I was at an apartment about a decade ago at an acquaintance’s who happened to sell a white substance both the lowest people and the highest people of the social structure often crave—and no I wasn’t there for that reason myself. A customer came while I was there and bought some product, snorted it in his nose through a hundred dollar bill off a Redman CD case, and proceeded to ramble on without a pause—or a breath it seemed—about his job as a stock trader, or broker, or something; he spoke pretty quickly. Either way, during the blur of hyper-delivered sentences he unrolled the hundred bill and rhetorically asked me, “You know what makes the world go round?” I replied, “alot of things, but I guess I’d have to say gravity.” That shut him up for a few seconds as he stared off confused into space, but soon enough he was rambling on again about how, “money makes the world go round,”—we all know the old saying. That was at least ten years ago and I still know better than to believe the world spins because of money, like if the dollar suddenly disappeared the earth would stop turning; but fortunately, or rather, unfortunately, I think we’re all about to find out.
As we’ve discussed in previous posts, the days of the American dollar-based world economy are looking very grim and many say it’s right about to come crashing down—bursting would be a closer description. While food and living expenses keep rising, unemployment is high, and people in their 30’s are moving back in with mom and dad—who are also broke—the top bankers and their bought-and-paid-for media are manipulating the truth and trying their best to pretend everything is okay—but credible sources everywhere are calling them out as liars; and the evidence for calling them out is indicated in today’s money velocity—how often the money within an economy changes hands within a determined amount of time. Logically, a lot of money changing hands shows a healthy economy, while little money changing hands shows an unhealthy economy.
If math intimidates you, have no fear, I hate it too, and this part will only take a sec. In any case, figuring out a total for money velocity is fundamentally simple and it comes with an even simpler formula to find it: Vt = nT / M—where Vt represents the velocity of money for all transactions in a determined time frame; nT represents the value of transactions in that time frame; and M represents the total amount of money circulating in the economy during that time frame. Confused yet? Don’t be, we’ll look at it in a simpler example.
Creating our own simple economy which consists of only two people—me, a writer, and you, let’s say a farmer—with $100 in circulation (M) —$50 each—we’ll figure out a simple money velocity figure for a week’s time. Now, within that week let’s say you bought $50 worth of books off me, then with my $100 I bought $100 worth of vegetables off you, and then after that you bought another $50 worth of reading materials from me. In that week there were three transactions where money changed hands (nT), which together totaled $200 (50+100+50). Even though our economy only has $100 between the two of us, we spent those dollars multiple times within that week, so to figure out the money velocity we just need to divide $200 (nT) by $100 (M) and we will find our money velocity (Vt) equals 2/week (200/100=2). An economy’s health is truly measured by this figure—the higher the better—and in the real world, and not our little fictitious economy of only 2 people, American dollars (which all other currencies are measured by) are barely changing hands at all; and the money velocity is at an all-time low.
“When an economy is healthy, there is lots of buying and selling and money tends to move around quite rapidly. Unfortunately, the U.S. economy is the exact opposite of that right now. ” -Michael Snyder, The Velocity of Money In The US Falls to An All-Time Record Low, (1/6/2014)
As it sit’s right now, even given the fact everything in the world is disgustingly overpriced, people generally aren’t spending money because they don’t have any; and if they do have some they don’t know if they’ll ever have any more in the future if they spend what they have now, and because of this big name stores are shutting down all over, prices are going up even higher (and to compensate most companies are using cheaper materials and ingredients), Wall Street mega-banks trading revenues are plummeting, and consumer confidence is nearly gone altogether.
According to these figures, essentially we’re all blindly stepping into a heavy global deflationary period where money is becoming more worthless by the day; and the Federal Reserve, in its infinite knowledge, just keeps pumping debt based money into every financial bubble they can while this is happening. This, as we have seen, is a terrible idea, because when money is stagnant, and 1 in 8 able bodied people can’t find work, the last thing you want to do is add more debt-based money to the equation, but as I’ve stated before, I feel this is being done intentionally by the evil men who control, print, and loan the money in order to destroy the possibility of anyone else having their hands on any wealth, whatsoever. I just hope it doesn’t get to that point before before the majority of people getting robbed along with me catch on.
Put simply, when no one is spending money, the economy suffers, prices go up to compensate for losses, and big banks need to loan smaller banks more money to cover their debts and the debts of those they’ve loaned to, which in turn creates much more debt. I’ve said it before and I’ll say it again, it’s a trap—of unbelievable proportions.
“Since 2008, the size of the Fed balance sheet has grown from less than a trillion dollars to more than four trillion dollars. This unprecedented intervention was able to successfully delay the coming deflationary depression, but it has also made our long-term problems far worse. So when the inevitable crash does arrive, it will be much, much worse than it could have been.” -Michael Snyder, The Velocity of Money In The US Falls to An All-Time Record Low, (1/6/2014)
In order for this system of debt-based money to keep going, the Fed needs to keep creating money, because as soon it stops the businesses which support the western economies will all fail. Imagine all debts being called in at once with no one to get the money from to pay them. Luckily for the Federal Reserve, and unlucky for us, the bankers know a way that will always require them to keep printing money: war.
When people say the politicians work for the bankers, it’s not an exaggeration. The job of a western politician is to perpetuate the debt as much as he can for the system to stand, and war is a way to keep the money rolling in, and therefore war is a definite way to keep the Fed printing the money.
“The United States has been involved in more military conflicts than every single other developed nation combined; multiple fold. Very simple, because the cash needs to be borrowed into existence and then dispersed; and the US dollar, remember, is still the world reserve, and that’s why it’s a priority at this point.” –Gregory Mannarino, video below.
So, how long can we keep fighting wars which destroy humanity and the earth it exists on while continuously printing imaginary money? The answer is obviously not forever, and unfortunately it looks like the problem is reaching its bursting point, but that’s simply because we collectively let these robbers who work in banks manipulating interest rates to scrape the last 7% of the money supply out of our pockets and into their coffers, lead us around into wars and financial meltdowns like they’re dangling carrots in front of mules—and I think we’re about to notice those carrots were hanging from Federal Reserve helicopters as we step blindly off a cliff. So let’s wake up, shall we?
Article by Olan Thomas of Cut2thetruth
This article is strictly for the purposes of education and is no way intended for profit of any kind.
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