If you notice that buying and selling is performed, not by consent, but by compulsion if you notice that to be able to produce, you have to obtain permission from men that produce nothing if you notice money flowing to individuals who deal, not in goods, however in favors if you notice that men get more potent by graft

and pull compared to work, as well as your laws and regulations don’t safeguard you from them, but safeguard them against you if you notice corruption being rewarded and honesty being a self-sacrifice you might realize that your society is condemned.?

Ayn Rand

This past year I just read aloud in my kids the children’s story: ?The Rats of Ni-mh?.

It’s a tale in regards to a mother by having an ailing boy, who’s forced to search out the aid of a residential area of rats. She and her boy are field rodents.

The rat community ?evolved’ from the laboratory experiment made to improve intelligence. It labored, the rats steered clear of, aware and fully conscious.

They continued to construct an intricate society, though living from the player.

Ultimately, they have to face the tough decision to risk current comforts for any more sustainable existence.

A existence if you don’t take from others, and living cooperatively rather of stealing in the humans.

The lesson is among self reliance also it parallels the truly amazing financialization and wealth transfer humans are facing within the planet.

This comes with each other, via a persistent belief and worship from the established order. Especially, the fiat currency illusion enforced here through the barrel of the gun.

Could it be far too late? Are we able to get a new way such as the rats? Will we possess the courage just to walk away. Or can we be trapped and drowned – or exterminated?

Deflationary Reality

We’ve been experiencing deflationary pressures because the 1990s, interspersed with the Mexican Peso crisis, the savings and loan debacle, and lastly the DotCom fiasco.

Each led to one undprescendented bail out following the other.

The financial intervention and inflation that came as a direct consequence was hidden in data management (CPI) or celebrated by means of greater asset prices for housing and equities.

As lengthy because the voices from the disenfranchised (the seniors, the savor, and also the poor) are stored from the mainstream narrative, it goes on.

Central banks all over the world continues expanding balance sheets on the massive scale.

In reaction, the financial sector, in the top lower, continuously extend more credit and lending to less qualified borrowers that will over and over pull forward demand ? making the economy appear more powerful while gutting the long run in the speculation as well as on the rear of an increasing number of citizen serfs.

Financial Weapons of Mass Destruction

Lending options (mostly derivatives) enable manipulation or even the tail wagging your dog by distorting prices from the underlying assets or goods.

Money (credit) creation has hit huge levels using the bailouts and QE since 2008. Hardly any of this currency is finding its distance to both your hands of shoppers. Rather, amounts of debt are growing and banking institutions are holding more money.

You realize it’s an issue when the ?Counsel for Foreign Relations? is advocating central banks to locate a way of getting cash in to the hands of shoppers without making more debt.

Minsky Moment

As lengthy as our currency is produced through fractional reserve banking, amounts of debt will invariably exceed credit (cash) creation.

There comes a place once the amounts of debt are extremely high. Also, once the interest in servicing your debt occupies most available credit and funds becomes relatively scarce (that ought to result deflationary pressures).

That’s the essence in our money system and why calling it anything under a fraud is disingenuous.

We’ll soon see another crisis much like 2008 as well as for annually approximately, cash is going to be king. The only real tool open to the financial government bodies is going to be devaluation from the currency to make debt simpler to service. They will have to create credit without contributing to debt.

Deflation is really a formality if you have a financial system according to limitless fiat. Limitless in finance simply doesn’t equate with building real capital and wealth.

Getting stated that, don’t underestimate the resolve from the financial government bodies to devalue their particular currencies to create debt servicing simpler.