On 5/13/2011 11:55 AM, John B. wrote:
On May 13, 8:33 am, Kevin Alfred
wrote:
[...]
Inflation is not "an increase in prices." Inflation _causes_ an
increase in prices.

Inflation is a relative increase of the money supply. That increase
can only be caused by 1) government, 2) banks, or 3) counterfeiters.

There should be no inflation. There is no reason whatever that the
dollar could not be a fixed and honest measure, like the mile or the
ounce or the minute.

The real reason it is not an honest measure is because bankers and
vote-buying politicians like to create money out of thin air. _That_
is inflation. That is what steals the savings of the thrifty and
forces us to work our entire lives to pay usury to the bankers, who
have a license to create money out of nothing and do _nothing_
productive to earn their huge profits.

Read C.H. Douglas, _Social Credit_, if you want to understand what
is really going on.

With all good wishes,

Kevin Alfred Strom.
--http://nationalvanguard.org/ http://kevinalfredstrom.com/

I'm not an economist, but inflation seems to me a fact of life in a
market economy. The price of almost everything goes up over time, not
just in the U.S. but in every country on earth. Bankers and
politicians can't "create money out of thin air," as much as they'd
like to.



No, you're wrong about that. They can. And they do.

We all know that government printing presses can create money.

But less well known -- although far more of a problem -- is the fact
that the commercial banking system itself creates money every day.
In fact, the vast preponderance of the money supply was created _ex
nihilo_ by the banks.

The basics of money-creation are very easy to understand (though
powerful interests would prefer that you _not_ understand):

Say you deposit $1000 in a checking account at your bank.

Because of the Fed's "reserve requirements" rules, they can lend out
about, say, 90% of your deposit, or $900. Say they decide to lend
that $900 to Dave.

So they make a bookkeeping entry that Dave has $900 more in his
checking account than he had before.

But -- and here's the crucial part -- do they deduct the $900 from
your account? Do they even put a hold on $900 of your funds so that
you have to wait until Dave pays back his loan until you can get
that $900?

No, they don't.

So, where there was once $1000 on the books of the bank, now there
is $1900. All fully available for withdrawal at any time.

And Dave must pay interest to the bank for the use of the money they
created out of nothing.

Actually, it's even worse than that. The bank, or another bank if
Dave chooses to deposit elsewhere, can continue the process --
lending out 90% of Dave's funds too. And so on, _ad infinitum_.

And that is how _most_ of the money is created under our system,
which was created by the bankers, for the bankers, and to the
eternal profit of the bankers.


With all good wishes,


Kevin Alfred Strom.
--
http://nationalvanguard.org/
http://kevinalfredstrom.com/