Perhaps Money Really Does Grow On Trees After All
by
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History, Politics
The old saying goes that history repeats itself and this is unerringly often the case, even if you might prefer for it not to be so. For instance, there are certainly parallels between a historical (as it died) currency such as the German mark in the 1920s and the current gradual destruction of both the British pound and US dollar. Speaking of Germany, just a few years after the infamous inflation, then hyperinflation of Weimar Germany, the Nazis succeeded in doing pretty much the same thing with its replacement, the reichsmark. Starting in 1933, they embarked on massive public spending programmes including the huge autobahn construction project. In addition to the propaganda value, this provided employment to over 100,000 labourers. You might well wonder just exactly how the Nazis funded such an undertaking. It is telling that in the four years since taking office, they depleted the total value of Germany’s gold reserves from 937 to 72 million reichsmarks. Which brings us neatly to the subject of the gold standard, whereby a country’s currency is effectively “backed” by a physical quantity of the precious metal, held in reserve. This has the effect of restricting the ability of central banks to increase the amount of money in circulation. When currency is not backed, known as fiat money, there is no such restriction. However, a significant increase in the money supply can be highly inflationary.
So to the present, where there is growing disquiet over the fiscal policies of both the Bank of England and US Federal Reserve. Both institutions have by electronic means, taken a comparable course of action to a historical Germany or a modern day Zimbabwe. It may initially sound preposterous to compare the currencies of two wealthy industrialised nations, with that of a broken African state for example. But incredibly, the dollar has lost about 95% of its purchasing power since 1913, the year in which the Fed was established. Tellingly, the majority of the decrease can be attributed to the cutting of the Bretton Woods tie to gold in 1971, courtesy of Richard Nixon. Within the last few years, both the BOE and Fed have injected billions worth of new money into the British and American economies. This is presented to the public as “stimulus” or “quantitative easing”, though if anyone else did the same, it would just be called forgery. Perhaps the central bankers just see themselves as some kind of latter day alchemists, though alarmingly with a far greater degree of success.
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As a newcomer to Neothink It is my opinion that some advanced Neothinkers should come up with a STABLE plan to replace the “Federal” Reserve System. The preceeding and current crop of international bankers have almost succeeded in their plan to control and demonize the whole world. They will fail as all thieves and murderers fail in he long run. I am doing my small part in making sure that type of mentality NEVER CONTROLS ANY PLANET – here or in any other part of the galaxy. Thank you.