The Modern Economic Depression – What, How, and Why – part 3
Money Per Capita
Another key concept to understand is money per capita.
The more money there are in circulation the more money there are per person. This doesn’t mean that everyone has equal amount of money, but this is rather a statistic which shows how much each person could have if the money were distributed equally.
For example if there is a $1000 dollar per 1000 people in circulation, than there’s $1 per each person or $1 per capita. When there’s 1000 people and $2000 in circulation, there’s $2 dollars per capita. When there’s $3000 in circulation there’s $3 per capita.
On the contrary, when there’s 1000 people and there’s only $500 in circulation, there’s only 50 cents per person.
So as the money supply is retracted by limiting number of credits central bank gives out, it in effect it decreases amount of money per person. This results in scarcity of money, less credit and worse economic conditions.
This is precisely what central banks accomplish when they decrease money supply. Worse economic conditions. And what happens when bad economic conditions occur? Bankruptcies, corporations going out of business, production at halt and farmers with unsold goods and defaulted mortgages.
Why central banks would want to create that? This the topic of discussion in the next section.
Why Central Banks Want to Create Depression
As the money supply is retracted, there’s less money per person, meaning each individual can spend less. As each individual can spend less, businesses see their profits decline, because they rely on individuals (and corporations) for profits.
As business profits decline stock value goes down and businesses are forced to rely on reserves. As reserves run out, businesses file bankruptcy… What happens when businesses files a bankruptcy?
They are either sold off by PARTs OR are purchased in entirety for pennies.
This is the key. As corporations and businesses go bust, they either sell off for LOW share value to avoid bankruptcy, or sell for pennies after the bankruptcy.
This is where the dominant bankers come in. Since they create the money, they purchase off those businesses for pennies (directly or through agents) and end up owing land, natural resources, factories. They end up owing REAL valuable resources.
Remember in the preceding chapter we described how monetary systems come and go away, but the physical assets stay? To refresh your mind:
Money systems go away, but physical goods stay. 800 years BC gold was valuable in Roman Empire. Today, gold is valuable. Take roman currency from 800 BC and use it today, what’s it worth? What Can you do with it? Nothing.
Take deuche marks from 80 years ago and try to do anything with those marks today. What can you do? Nothing. Take a piece of land purchased 80 years ago in Germany, by deutsche marks, what can you do with that piece of land today? Sell it, rent it or use for it production, converting that land into other form of value.
Money are only systems which come and go. It’s far more beneficial to own physical assets than money, because assets can be converted into some form of money anytime, everywhere. Value of the those assets fluctuates in relation to a monetary system, but it never seizes to exist. Look at assets as energy that cannot disappear (like any other form of energy), but can only be transformed into something else. Look at money as void, with no energy value, which can appear or go away.
Central banks cause depression for the purpose of consolidation of REAL wealth, which are physical goods, and assets. By engineering the depression, farmers, small business owners, house owners and corporations are forced to sell of themselves or their assets like land, resources, factories, mills, etc for pennies.
They are FORCED to do it, because they would not do it if the economic condition stayed stable. By FORCING sale of REAL assets through economic collapse, bankers buy those assets and consolidate land ownership, business ownership and resource ownership throughout the world.
What happens when they consolidate more and more into fewer hands?…
Make no mistake, the goal is control, it’s a conquest, but its a conquest of a different form, it’s a new strategy.
To finish this article, here’s the quote from Tomas Jefferson (one of the founding fathers of US)
If the American People ever allow the banks to control the issuance of their currency, first by inflation and then by deflation, the banks and corporations that will grow up around them will deprive the people of all property until their children wake up homeless on the continent their fathers occupied. The issuing power of money should be taken from the bankers and restored to Congress and the people to whom it belongs. I sincerely believe the banking institutions having the issuing power of money are more dangerous to liberty than standing armies.
Permalink Comments Back to Top Back to Homepage
