Chapter 89 1. Money: Weights and Measures of the Economic World

Currency is the most basic and core weight and measure in the entire economic field. The role of currency is equivalent to the most important scales in the physical world, such as kilograms, meters, and seconds. A monetary system that fluctuates violently every day is like kilograms, meters, seconds, etc. The definition of a second is as absurd and dangerous as it is constantly changing from moment to moment. The ruler in the hands of an engineer varies in length every day. How can he build a high-rise building with dozens of floors?Even if it is repaired, who would dare to live there? How can athletes compare performances at different venues if the stopwatch timing standards for sporting events are constantly changing?

When a businessman is selling things, if the standard of weighing in kilograms is shrinking every day, just like changing the weights constantly, which buyer is willing to buy things from him? One of the fundamental problems in today's world economy is that there is no stable and reasonable currency measurement standard, which makes it difficult for the government to accurately measure the scale of economic activities, for companies to correctly judge the rationality of long-term investment, and for the people to lose any long-term planning for wealth. a safe frame of reference.The effect of money on the economy, under the arbitrary and arbitrary manipulation of bankers, has seriously distorted the rational allocation of market resources.

When people calculate the return on investment in investing in stocks, bonds, real estate, production lines, commodity trade, it is almost impossible to calculate the real return on investment, because it is difficult to estimate the shrinkage of the purchasing power of money. Since the U.S. dollar was completely separated from gold in 1971, its purchasing power has dropped by 94%.Four percent, a dollar today is worth only five dollars in the early seventies.six cents. China’s 10,000-yuan household in the 1980s was a sign of affluence. In the 1990s, a 10,000-yuan household was just the average level of urban income. Today, a household with an annual income of 10,000 yuan may be close to the poverty line.

Economists only care about the inflation level of consumer prices, but the phenomenon of frighteningly high asset inflation is ignored.Such a monetary system is a cruel punishment for savers, which is why, while the stock and real estate markets are very dangerous, not investing will be even more dangerous. When people buy a house, the loan they apply to the bank is just an IOU. The bank does not have such a large amount of money in its account, but at the same time as the debt is created, money is created out of nothing. This IOU is immediately monetized by the banking system. Therefore, the money supply will immediately increase hundreds of thousands of circulation, and these additional currencies will immediately push up the average price level of the whole society, especially in the asset field.So without real estate loans, it is impossible for house prices to be at such a high level. The bank claims to help people afford housing, but the effect is just the opposite.Bank real estate loans are equivalent to overdrafting people's income for the next 30 years at once, and distributing the money for the next 30 years together into currency today. With such a massive increase in money, how can housing prices, stock markets, and bond markets not skyrocket? reason?

After overdrafting the wealth accumulation of the people in the next 30 years, the house price has become so high that ordinary people cannot reach it.In order to help people afford more debt to support higher housing prices, bankers are piloting the great innovation of lifelong housing debt in the UK and the US. The UK will launch a 50-year mortgage, and California is preparing to pilot it for 45 years. If the pilot project is successful, the issuance of larger-scale debt currency will burst out, and real estate will usher in a brighter spring. People who borrow from banks will be tightly bound by debt chains for life, and there is no way to buy a house. People end up worse, and eventually they end up so poor that even the chains of debt in the banks don't bother to patronize.When the people's fifty years of debt and good food can't feed the appetite of the bankers?I am afraid that one day, cross-generational mortgage loans will be created in which the father's debt is repaid by the son, and the father's debt is repaid by the grandson.

When one trillion dollars of foreign exchange reserves make people happy, eight trillion yuan must be issued to buy these heavy American IOUs, and if these newly added currencies are fully entered into the banking system, they will be magnified six times, thanks to the Take the fractional reserve system from the west to this bible.The government can only choose to issue additional treasury bonds (or central bank bills) to absorb these rapid waves of currency issuance to a limited extent. The question is, who will repay the interest on treasury bonds?Still an honorable taxpayer. When education and medical care are also industrialized, due to the serious shortage of these social resources, the public resources shared by the whole society have suddenly become exclusive assets. In the wave of money flooding, how can their profits not skyrocket? ?

When the transaction certificate between companies becomes this kind of IOU, the bank will discount it, and these IOUs will be collected as assets of the bank at a certain discount, and new currency will be created at the same time. When people swipe their credit cards for consumption, each signed piece of paper becomes an IOU, each IOU becomes an asset of the bank, and each asset of the bank becomes an additional currency. In other words, each swipe creates a new currency. currency. Debt, debt, still debt.The renminbi is rapidly sliding into the abyss of debt currency. Different from the situation in the United States, China does not have such a developed financial derivatives market as the United States to absorb these additional currencies. The flood of these liquidity will be concentrated in the real estate and stock and bond markets, and there are almost no effective means to curb the super-capitalism in these fields. asset inflation.Japan's stock market myth and real estate mania will reappear in China.

International bankers are waiting to see another East Asian economic superbubble.When people in the industry Mrs. Thatcher disdainfully said that China's economy is hard to achieve, she was by no means alarmist or jealous. They have seen a lot about this debt-driven bubble economy.When the debt currency bubble expands to a certain extent, well-known international economists will come out from all corners, and all kinds of negative news and loud warnings about China's economy will be overwhelmingly piled up on the banner headlines of the world's mainstream media. Grinding their teeth, impatient financial hackers will swarm like wolves, and international and domestic investors will run away in fright.

Once the dangerous twin devils of the fractional reserve system and debt currency are released from the magic bottle, the world's polarization between rich and poor is already doomed. People who borrow money from banks to buy assets enjoy the benefits of asset inflation and being locked up in debt. People who believe in the traditional concept of being debt-free will inevitably bear the heavy price of asset inflation.With the twin brothers monopolizing international banking practices, savers have no other option to protect their wealth, and the banking industry is destined to be the biggest winner.

The debt currency and the partial reserve system will undoubtedly cause the devaluation of the IOU + promised currency. Under such a continuous depreciation of weights and measures, how can the economy develop stably and harmoniously? In an age when everything is about standardization, isn't it strange that there are no standards for monetary weights and measures? When people fully understand the nature of debt currency and fractional reserve requirements, its absurd, immoral, and unsustainable nature is undoubtedly exposed. Without stable currency weights and measures, there will be no balanced economy and rationally distributed market resources. This will inevitably lead to the polarization of the rich and the poor in society, and it is doomed to gradually concentrate social wealth in the financial industry. A harmonious society will only be It may be a castle in the air that cannot be realized.