Saturday, November 21, 2015

Monetary system collapse

Monetary stuff

Saving into the financial sphere hurts the real economy

 time period 1  corporate revenue = expenses + profit + wages 

time period 2  all must be the same.  If some wages or profit saved, then there will be less revenue, less money circulating in the economy and maybe fewer jobs….unless the government puts money into the system by deficit spending on real goods and services, like infrastructure (not just more financing). Government deficit spending is needed to offset the loss of money supply going to private savings…, or there will be a recession, and lots of hardship, and transfer of ownership wealth to the already rich. 

Prison example

Where cigarettes are currency, fixed number, unless admin puts some money in that can be used to buy cigarettes from outside.. i.e. admin deficit spends.. if some prisoners start to save cigarettes, then fewer circulate, and the economy dies up…again, unless the admin deficit spends more cigarettes into the system…

Boomers and children

Boomers don’t like to pay taxes, and the government and everyone thinks deficit spending is bad,
 so welfare and education and small business financing and affordable housing are cut back, and the Boomers children stay at home, financed by their parents money, the money the parents wouldn’t pay out in taxes… these parents say, I won’t pay for others people’s kids to get welfare or be educated or get jobs…. These parents save money by investing in already existing large corporate bonds and stocks, not in small business, thus draining money from the real economy..

Boomer’s excessive savings, a result of Government money printing,( the hyperinflation of real estate and stock and bond prices)  are wrecking the real would economy.


When a severe recession hits, because too little money is circulating, ( because of too much financial sphere saving, not enough spending on real goods and services) people can’t pay mortgages and they lose their property. The property flows into the hands of those wealthy enough to buy it up at bargain prices… so recession means wealth transfers to the already rich. The rich like recessions, and oppose the deficit spending on real goods and services needed to halt them…

We are headed to a global monetary system collapse, it has already begun in many countries, because the major governments, The USA, The EU, Japan and China, have fostered pouring trillions into the financial sphere and practically nothing into the economic sphere to offset the wealth transfers to those already rich (in ownership paper), or newly rich..

If you are rich enough, you can easily get a big loan from a bank, to buy more stocks and bonds. Enough of the rich do this, the bonds and stocks go up in price, and you can now use the extra collateral to get even more loans… The financial system feeds on itself.. unless some of that money spent on stocks and bonds goes into infrastructure, or factories, or other real goods financing… but then, we have the system sustaining China, of example, where they build one new city for 4 million people every two weeks ( which  will only house 1/4 of the increase per year in new housing needed). These cities are empty, people can’t afford to live there….the cities can’t return the capital spent to build them. The system eventually collapses, as the ownership paper on these cities eventually collapses in marketable value, and those owners risk going bankrupt.. While others get the buildings for bargain prices. But without the jobs to justify the workers rental payments, how can this system survive? 

Where is government money printing going?

Into enormous expenditure on empty buildings, empty cities,

Into enormous increases in private investment into the armaments industry,  on war weapons including nuclear weapons. 

Into fostering the weapons industry by destroying existing economies, and lives, in the Middle East and elsewhere, creating jihadists, thus increasing the justification for more weapons to fight them, 

By generating fear of terrorists, justifying huge increases in expense on surveillance techniques and personnel, and cutting back on expenses to real economy goods and services, 

By fostering and subsidizing poor nutrition, meat and dairy farming, thus increasing the need for more expense on pharmaceuticals and mainstream medical education and infrastructure investments, draining money from the real economy (affordable housing, small business jobs).