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News Link • Dollar Meltdown The

FINAL CURRENCY DEBASEMENT TO ZERO HAS STARTED

• goldswitzerland.com by Egon von Greyerz

Money used to represent a medium of exchange that would facilitate bartering. Instead of exchanging goods or services, people would receive a piece of paper that was equal to the value of their goods or services. This was initially an honest system when for each service or goods offered there was only one bank note issued. Eventually the banker started to cheat and issued a lot more money/paper than the counter value produced in kind. And that was the beginning of money printing. It just became too tempting and convenient for governments and bankers to simply create more money since nobody would really know. So if the value of a day's work or a pig were both say $100, the money or paper issued for this should be $100 for each. But gradually governments/banks would issue more and more paper with nothing produced in return. All banks today lend at least 10x the money deposited so for every $100 received $1,000 is leant. But the leverage can be much greater like Deutsche Bank which is leveraged nearer 50x.

1 Comments in Response to

Comment by Ed Price
Entered on:

However, included in the crookedness of the bankers is the rapid advance of progress in the States. How? For example. How much money does it take to build a system of highways like we have today? Way more than exists. By allowing the banks to carefully make more money than exists, and then letting people and Government borrow it, we can have the progress now, rather than after many years into the future. The disadvantage is that at some point we are going to have to shut down the banks in order to keep them from owning everything.


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