The Real Pandemic: Unreported Truths
This year, as COVID-19 spread across the world and over 40 million people in the U.S. lost their jobs and had to file for jobless claims, there was something else happening that most Americans were completely unaware of.
Some conspiracy theorists say that the pandemic is a hoax and while I believe that it wasn’t, I do believe that it is the greatest coverup in our history.
English economist John Maynard Keynes once said,
“There is no subtler, no surer means of overturning the existing basis of society than to debauch the currency. The process engages all the hidden forces of economic law on the side of destruction and it does it in a manner which not one man in a million is able to diagnose.”
Today, our economy is sick because the runaway printing presses of the Federal Reserve are flooding our monetary system with funny money that debauches our existing currency, and no one is able to diagnose the problem, just as Keynes warned so many years ago.
Money From Nothing
One reason why people ignored the advice of Keynes, Nixon’s 1971 change, and others on the destruction of money, is because debauching the currency suddenly made people feel rich.
Credit cards came in the mail, and shopping became the national sport. Many in the middle class became pseudo-millionaires as their homes seemed to magically increase in value. They came to believe their retirement would be financed by profits in the stock market. People took out home equity loans to pay for family vacations.
Rather than one car, families had a Mercedes, a minivan, and an SUV. Kids went to college and were strapped with student loans that take years to pay off. The middle class celebrated their newfound wealth by dining in fancy restaurants, dressing in designer clothes, driving Porsches, and living in McMansions—all financed by debt.
We are now coming out of the biggest economic boom in history.
The problem is that the boom was caused by debt, not money.
By inflation, not production.
By borrowing, not working.
In many ways, it was money for nothing—because money was nothing. As Keynes would say, our money was debauched. We looked rich, but society as we knew it was collapsing.
After 1971, central bankers could create money by merely printing more paper. In today’s digital age, bankers do not need paper to create money. As you read this, trillions of dollars, yen, euros, pesos, and pounds are being created electronically—out of thin air.
Today, people do what they have been taught to do; they go to school, work hard, pay their bills, save, invest their money in mutual funds, and hope that things will return to normal.
That is why everyone is clamoring for his or her share of the bailout. Few people realize that the root of our problem isour money—the very thing they work for and hang on to.
Few people realize that those who control the money supply want us to need more and more of their toxic money.
The more we need money, the more money they can print. The more we need money, the weaker we become. The more we need money, the more we’re headed toward socialism.
Rather than teaching people to fish, the government gives people fish, and people become dependent upon the government to solve their money problems.
When a person joins the ranks of the poor, they become dependent upon the government to take care of them. And the more they receive from the government, the more dependent and entitled they become.
Don’t Bank On It
Ironically, the world is looking to the Federal Reserve and the U.S. Treasury to solve our money problems, even though those institutions are causing the problems.
The Federal Reserve is not federal, and it is not American. The Fed is owned by some of the richest families in the world. The Federal Reserve is a banking cartel just as OPEC is an oil cartel. Few people realize it has no reserves because it has no money. It does not need a big vault to hold money. Why do you need to store money when Monopoly’s rules for bankers apply? The Federal Reserve Bank is not a bank—that idea is as illusionary as our money.
Some people say the creation of the Federal Reserve was unconstitutional. They think the Fed’s creation has harmed the world economy—and it has.
There are others who say the Federal Reserve System is the best thing that has ever happened to the world. They say that it has helped bring wealth to the world like never before—and it has.
It does little good to question the motives of the Federal Reserve’s founders. The reality is, that today the Fed runs the game.
Rather than ask what the President is going to do about the economic crisis, it is better to ask yourself, “What am I going to do?” Rather than ask if the trillion-dollar stimulus package will work, it is smarter to ask yourself, “Where does that trillion dollars come from? Is it sitting in someone’s vault?”
Remember: The banking system is based on printing money. It is known as the fractional reserve system. That means, for every dollar a saver saves, the bank is allowed to lend out a “fraction” of that money.
If the fractional reserve is 10 percent, a bank may lend out $9 to debtors for every $10 of savers’ money. When the $9 goes to the debtor’s bank, the debtor’s bank may lend out $8.10. The sad truth is, there is only $1 of real money in savings. That is why if savers panic, banks may not be able to give the savers back their money.
What Are You Going To Do?
Central banks have become more powerful than governments by their ability to create massive amounts of money without any legal restrictions or limitations on the amount.
The markets, banks, and speculators have become reliant on central banks to create money, not just in emergency situations, but as an ongoing subsidy for their activities.
The coming disaster will be much bigger than the 2008 crash.
Just remember, when the central bank’s house of cards comes crashing down, gold and silver will still be gold and silver. And cryptocurrencies will still be cryptocurrencies.
Editor, Rich Dad Poor Dad Daily