Posted on 06/29/2023 4:41:13 AM PDT by MtnClimber
How central banks and politicians create the conditions for indentured servitude.
Generally speaking, central banks are empowered to control the supply of money by employing a number of tools that include buying government debt, selling government bonds, adjusting reserve requirements, and setting official interest rates. Operating under various legal mandates to sustain an overall healthy economy, central banks ostensibly pursue policies that will produce relatively low inflation, steady economic growth, and low public unemployment.
What if these stated goals are merely talking points meant to justify a central bank's continued monopoly over a nation's creation of money, and the true objective of any central bank is to maximize wealth for the wealthiest economic players? Central banks, after all, are usually institutionally independent from government interference. They are private firms managed by the world's financial elite. How might a central bank pursue a hidden agenda to grow the wealth of its friends at the public's expense?
The easiest and most effective way would be to create artificial "boom and bust" cycles during which economies greatly expand and then quickly shrink. How does this work in practice? First, a central bank lowers interest rates — the cost of borrowing money — and thereby encourages ordinary citizens to take out loans. These loans are used to buy houses and cars and start small businesses. By artificially lowering interest rates below the natural market rate, central banks stimulate consumer purchases and small business expenditures beyond what Adam Smith's "invisible hand" would have rendered on its own. Investors who have an economic interest in selling houses, cars, and inventories for small businesses all benefit from the central bank's intervention.
Additionally, because central banks have encouraged borrowing, they have pumped more money into the greater economy. With the supply of money artificially increased...
(Excerpt) Read more at americanthinker.com ...
The boom and bust cycles...on average a seven year cycle.
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This seems a self evidently false assertion. Boom and bust cycles appear to be an extremely inefficient method of transferring wealth to selected individuals.
Insider trading, inflation, large government contracts, preferential loan deals, all are much more efficient than creating boom and bust cycles.
Central Banksters manage money growth and pursue a policy of some value of inflation, as part of the paradigm of currency is it being debt, interest paid to the central banksters to reward them for creating that money supply.
With a PM-backed monetary system, there would not be the inflation that we have now.
True, but we might well have deflation, which has its own set of problems.
I’ll take real money (and it’s issues) over debt-based fiat.
We are just beginning to see the huge downsides of fiat bankstering, the FED and its inherent slavery of us all.
100%.
I still think this is all Barry Hussien Soetoro’s plan , the ventriloquist using Biden on his knee.
There is only one purpose for governmental controls above the nation state and that is to move power further away from the people. That axion is simple enough to undestand when you see that the only purpose of an expanded federal government is to move power further away from the elected reprsentatives in the states.
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