Law of Unintended Consequences
I have pointed out that making something criminal seems to increase the activity and it appears that one aspect behind the trend is you are exempting it from taxation. Therefore, prohibition funded the Mafia. There is another aspect to the Law of Unintended Consequences that answers the question WHY no empire has died of hyperinflation – sorry not even Rome and the French hyperinflation was also Revolutionary between the King and Napoleon who began seizing all the property of the Catholic Church and even imprisoned the Pope to replenish the treasury.
The more an ESTABLISHED government tries to inflate, the more it causes capital to flee and hoard. This is why Jean-Baptiste Say (1767–1832) said it was absurd that someone would save money for it continually declined in purchasing power. Sir Thomas Gresham’s (1519–1579), law is an economic principle that states: “When a government overvalues one type of money and undervalues another, the undervalued money will leave the country or disappear from circulation into hoards, while the overvalued money will flood into circulation.” It is commonly stated as: “Bad money drives out good”.
What these observations reveal is why hyperinflation becomes impossible for an established government (not revolutionary). If the money was coin, as they debased, they caused the old money to be hoarded and thus Bad money drives out good. So why is there no hyperinflation? That is actually simple. Hyperinflation is the increase in the velocity of money so people spend it as fast as they get it and there is no savings. Governments cannot sell bonds and banks lose all deposits. But worse yet, as people hoard the old coins, the money supply actually implode. A great example is Japan, Every emperor devalued the old coins in circulation and made his issue valued at 10 times more than the outstanding supply. The Japanese would not save and the coins of China became preferable and then they simply refused to accept the coinage of the Japanese government. Rice began money and no coins were issued for 600 years.
Established governments cannot Hyperinflate because the UNINTENDED CONSEQUENCES come into play that cause the velocity of money to decline as people hoard their capital and will not even keep cash in banks on deposit no less buy government bonds. The entire economic situation implodes BEFORE you ever reach a state of crazy Hyperinflation as seen in Germany. Yes people spent whatever they got and money vanished from banks. Credit ceases to exist and the entire credit card industry would implode long before hyperinflation would ever take place. There is an inherent check and balance against established governments.
The Coming French Revolution?
They do not intentionally need to destroy the economy, they are doing a great job on their own without even trying. The French Constitutional Court has approved Hollande’s 75% tax on all people earning more than 1 million euros. They just do not understand the economy and never will. Those who are so desperate to see conspiracies to grab everything for the top 1%, never take the next step. What will someone do if he has all the money? He cannot spend it because there is no place left to spent it. Money becomes worthless in a Dark Age These people are destroying the economy with unintended consequences.
Hollande thinks he can seize all the money of the rich and this will somehow make things better. He is such a fool. Even the sports players are starting to leave and then to keep people happy the Romans knew how – give them games and free bread. We will see the French rise up against the insanity as unemployment continues to rise, the future is cut-off for the youth, and they will not even have sports to occupy their minds. The French have a long history of confrontation with government.
Collapsing the Economy Makes No Sense
COMMENT: So government has no interest in collapsing the economy, but they do in collapsing the Twin Towers as you intimated? We’re all a bit looney in our own way I guess.
JC
REPLY: Follow the money. 911 expanded their power and got rid of an investigation into $2.3 trillion missing money at thePentagon Rumsfeld said he would investigate one day before 911. Of course the plane hit ONLY the room where all the evidence was stored ending that investigation. WTC 7 had way too much evidence they needed eliminated. However, the Twin Towers was really a terrorist attack they LET HAPPEN for the guys in MCC New York drew the Twin Towers on the wall of their prison cell with airplanes going into them 1 year BEFORE! They knew it and used it as cover and to expanded their power. The Pentagon and WTC7 were convenient eliminations. Stay with the evidence. Painting everything with the same brush loses credibility.
They are going after the bankers now with major fines for the first time. J.P.Morgan was hit with $13 billion fine for its mortgage scam, then there is the Whale Trade and more. They are concerned about civil unrest that could lead to revolution. Government cannot control the economy any more than lowering interest rates helped Japan, USA, or Europe. It is always about their power. Collapsing the economy would produce what advantage? They are the Financial Capital of the World. Why would they even want to collapse that? I honestly do not understand this sort of reasoning. Where’s the benefit to them? The dollar would not be the reserve currency. They would lose everything in their basket of power trips. It makes no sense. Not even Bush would come up with that one.
FEMA Camps – The Real Issues
A number of questions have come in regarding the FEMA camps and is the collapse in gold and silver part of some orchestrated economic collapse that is being planned by the bankers of Wall Street with the oversight of the White House and the full knowledge of the Justice Department. I am certainly not a mouthpiece for the Government or the bankers. We have to be realistic here. Just follow the money. Where is there any economic benefit to Wall Street to collapse the economy or suppress the metals, which are such a tiny fraction of the financial markets. I realize people need to blame someone for being wrong. But I question seriously these type of stories for they go way over the top. The one way to discredit the truth is to exaggerate it beyond all rational thought.
There is no plot with the bankers conspiring to collapse the US economy. What would they have to gain from that? They want the easy life and places to go and spend money. They are not interested in the destruction of the economy. There is no profit in that. Money loses ALL value in a Dark Age. The ONLY thing that survives if you go that far is food. There were no gold coins even minted shortly after the fall of the Roman Empire until the 13th century.
There was a brief issue of Anglo-Saxon and Merovingian low-grade gold coins that appeared during the 7th century. However, these too faded rather quickly with massive debasement and rapidly became just silver Sceats. The monetary history of Europe shows a lack of gold coinage for about 600 years.
What we must be concerned about is not this nonsense. Government is concerned with retaining power and they will kill the bankers in a blink of an eye. They are already losing their immunity from prosecution precisely on target – 31.4 years from the start of their wild trading days.
Government is concerned when their social programs are failing and unemployment rises as in Europe. This is what is really behind Obama’s gun control effort that the media preaches every chance they get. They already have countless laws against guns but they do nothing because the drug trade is tax-free and is not going away.
The FEMA camps are to arrest civilians when they realize Social Security and the rest of the socialist agenda including pensions are collapsing. This is the core of the issue. It has nothing to do with bankers and suppressing gold. That would impact less than the people losing their extended unemployment benefits. They are concerned about the masses. Not the proportionally tiny precious metals investors compared to the entire economy.
The FEMA camps exist purely because the debt structure is collapsing and those in the bowels of the bureaucracy are scared to death of what they see economically in Europe and the rising civil unrest. There was the incident of 1932 known as the Bonus Armythat marched on Washington. That was one of the primary reasons Hoover lost the election because he allowed the troops to move in with tanks against civilians with women and children.
Then there was the worst of the civil unrest incidents that erupted exactly on the half cycle 13 years into the wave after the Civil War had actually ended. This became known as the Great Railroad Strike of 1877, that is also sometimes referred to as the Great Upheaval. It began on July 14 in Martinsburg, West Virginia, and ended some 45 days later only after it was put down by local and state militias, and federal troops. Here is an illustration from Harpers of one battle in Baltimore on July 20th. Numerous cities were set on fire, Pittsburgh, Philadelphia, Baltimore, Chicago, St Louis and others.
The Whiskey Rebellion was a tax protest in the United States beginning in 1791, during the presidency of George Washington. Farmers who used their leftover grain and corn in the form of whiskey as a medium of exchange were forced to pay a new tax. Yes – it was a 1791 version of Bitcoin. Many participants were Revolutionary War veterans, who argued that they were fighting for the very same principles of the American Revolution – no taxation without local representation. Of course, the new Federal government maintained the taxes were the legal authority of the taxing powers of Congress that they put in the Constitution – not the people.
It was in July 1794 when it erupted into violence with more than 500 armed men attacking the fortified home of tax inspector General John Neville. President Washington responded personally with men he then called “rebels” to justify their killing just as the veterans of 1932 were call “criminals” to justify use of force against citizens. Washington summed an army of 13,000 militia provided by the governors of Virginia, Maryland, New Jersey, and Pennsylvania, and set out to wage war against the American people. Washington rode at the head of an army personally. The rebels were way outnumbered and it became clear, pay your taxes or you will be dead. The rebels went home before the arrival of the army, and there was no confrontation.
Then there was the Watts Riots (or Watts Rebellion) that was a race riot, which took place in the Watts neighborhood of Los Angeles from August 11 to 17, 1965. There were many race riots that began in 1960 (see Listing of all Civil Unrest Incidents in United States)
This is what they look at and why they want to take the guns from citizens who will obey the law and they can then just shoot the drug dealers on sight. It is mass civil unrest that is behind everything they do. Forget the bankers. They will be picked clean once they realize they do not need them to sell their debt anymore.
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