Money Politics Part 2

My last comment on this “Economy” discussion and this one my simply cause your brain to turn to Cheetos!  This “Cycle” of  Debt creation,  Inflation and Collapse, I theorize,  may actually be deliberate, planned and/or crafted purposefully.  The reasoning is vague and may seem wholly inconceivable which I readily acknowledge but for one simple reason and it goes like this:  Let’s imagine for the time being that you are a Bank but, NOT just any Bank!  You are a Central Bank and being a Central Bank you and you alone are privileged with being able to print all the Currency you want. Your Currency is the very life-blood of the Economy/Nation you serve.  Nothing and I mean nothing moves from the extraction of raw material to finished product, from the oil reserve to the local gas station,  from the Government to the Citizenry, from the timber stand to the eventual home,  from the reservoir of water to the tap in any sink without using YOUR Central Bank’s Currency.  It’s important that you master this understanding to this point as nothing I will say further will make sense if you don’t!  Read this preamble of this illustration again and again until you do! You are not only the life-blood of the Economy/Nation but you also create the Blood!  Now,  for all your printing efforts you are entitled with the ability to charge (Interest) your friendly distributor,  your local Banks,  for the their distribution of YOUR Currency about the Economy/Nation for which they also charge their Patrons for its use all of which is evidenced by some form of Debt Instrument (e.g., Mortgage, Secured/Unsecured Loans etc.).  Wait,  it gets even better.  One of your best Clients is the Government because this entity wants to spend as much as it wants and because Debt = Economic expansion YOUR Bank is only to happy to oblige.  So,  for your Best Client,  you give them all the Currency necessary to suit their delight after all,  all you have to do is print it.  Right?  Yes,  but it all has to look legitimate so what you do is create pieces of Paper evidencing the Governments promise to pay YOU back and then turn around and sell them to unsuspecting Investors who actually think,  one day,  these Instruments will be settled.   Now,  here’s were it really gets interesting.   At some point the Economy/Nation’s ability to advance this cycle of debt creation,  for various reasons some of which we illustrated above in the “Housing Industry” discussion,  simply becomes unsustainable.   What do YOU do,  what do YOU do?  Well YOU do what every self-respecting Central Banker would do which is you simply allow the system to collapse.  The financial markets where Debt is traded (along with other Securities) implode, the Real Estate that you secured by your Debt Instrument submerges and the Economy that is stimulated by it all founders. The Government is, to some degree, off the hook too.  How,  because the Debt you sold the unsuspecting Investor that funds the Government now becomes nearly worthless.   This statement,  I know,  needs further explanation,  but I’ll not bore you further.  Just,  for now,  accept that it does. Lastly,  and this is really, really, good news,  the stage is now set, once the dust settles,  for YOUR Central Bank to start the cycle all over again because you’ll come to the rescue with more Currency!  You don’t mind though,  all you have to do is load up the printer with paper and ink and start it all over again!

Just know,  YOUR Central Bank,  in this illustration,  is (point of fact) the Federal Reserve Bank of these United States of America.

[Note:  I’ve truncated this piece from its original version as formally published.  The Balance of the piece had additional commentaries regarding “personal finance” and the “media”.   If a reader of the “Blog” would like the Article in its entirety,  email me and I will send it to you.  For now,  I’ll bank your interests for future entries and conclude this entry with the closing summary as original presented.]

To some, it may seem that I’ve unnecessarily traveled a great distance to simply arrive at my ultimate point.  Frankly,  it wasn’t my intension yet I must confess it seemed an incomplete attempt without doing so.  As always,  I leave it for you to decide.  With this in mind I will close with the following:

For what ever the reason or purpose,  our Political System has become the Servant of Interests that neither serve this Republic nor the People whose Interests said Republic is charged with protecting and advancing.  It (the Government) has been conscripted to a form of servitude which anesthetizes the Public,  selectively,  with pabulum as a token gesture and entraps those which it does not..

Money,  or should I say,  Finance has been driving Politics in this Country for decades while our true Prosperity,  whether it be Social, Economic or Spiritual,  suffers the consequences of neglect!  As I engage in the practice of my Profession as a Realtor,  as a Counselor to my Clients, my various business interest and as a Speaker/Comentator in the public forum on various issues many of which you visit whilst reading my various writings,  more and more I sense a solemn desperation the likes of which I’ve never witnessed.   The essence of what I observe is not so much about what is wrong or even who is responsible,  no,  it is far worse.  It is more a combination of the following: there is not critical thought,  there is no moral compass and there is a growing belief that there is no vehicle capable of defining a course to recapture what has been lost!  Recently,  I was a quest speaker at a small gathering of industry leaders and at the conclusion of the event I was visiting with several who,  I got the sense,  simply wanted their opinions and concerns heard and I was struck by the imagery illustrated by the words of one of these folks.  The comment,  as best I can recall,  was this: “…it’s as though I’m a passenger on a train traveling through the desert on a moonless night.. The lead locomotive has derailed and I’m one of several passengers who made there way to the front of the train and upon arriving discover the Engineer standing along side the wayward locomotive. We asked him for a status report!  The Engineers response is idiotic ‘…well we’ve derailed!!’  The most vocal of the passengers responded with ‘ I can see that for my self, but my question is what are you doing about it?’  The Engineer quipped, “…nothing,  I’m an Engineer,  I drive ‘em,  I don’t fix em!’”   I should have kept my mouth shut however I’ve an occasional malady that intermittently surfaces, Tourette syndrome, and as best I can recall I think I said:  I wonder if we should appoint a Government Committee to poll suggestions on whether or not someone should appoint an Investigative Committee on the possible uses for the remaining Locomotive?    Or,  I said,  maybe one of you could simply get in and drive on leaving the observers to do just that!  Observe!

All aboard!!!!!

Curtis Greco, Founder

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