Predictable economic instability is an integral component of the Global Fiat Monetary System; a banking concept that is based on perpetual inflation. It functions, solely, on the understanding the growth is not measured in productive output, but on the capacity of the system to generate inflation. A predatory system deliberately designed to function by creating cyclical failure.
This System creates perpetual hardship by institutionalizing a predatory overtone across the financial and government specter (read the entire article on the TIMF website). Think of it this way: The more your home increases in value the more you can borrow against it and the faster the inflated value occurs the more frequently you can extract value from it. However, there are critical flaws in this system:
(1) it requires that income/revenues keep pace with the rising costs of the underlying debt.
(2) when adding the cost (interest) of servicing the debt you quickly discover, even if one didn’t accumulate additional debt, that the total grows exponentially.
(3) debt accumulation occurs primarily because one lacks the financial liquidity/resources to act on its own or self-fund.
The end result of this routine is quite simply and predictably inevitable. The system crashes as there is never sufficient funds to pay-off the accumulated debt. Here’s a quick example: Global Government Debt is hovering around $53 Trillion while Global GDP is approximately $79 Trillion which on the surface appears quite manageable however, when one takes into account that nearly one third of the Global GDP is Government Spending the true GDP Resource is actually $55 Trillion. If that isn’t sufficient proof of the systemic flaw in the process then consider the following two components:
(1) U.S. Government Unfunded Liabilities stand at $139 Trillion – just the U.S. alone.
(2) the Global notional (face) value of all Derivative Contracts is a staggering $552 Trillion, $247 Trillion of which is held by U.S. Banks.
For the System to survive, counterintuitive as it may be, it needs to collapse so that it can vaporize its debt however, the problem is that when this function occurs it simply benefits the issuer of the debt and those who’ve no collateral to lose when the “reset” occurs. Think of it: When the Government moved in to rescue GM who was harmed? GM or those responsible for its malfeasance? No, but its suppliers, bond and stockholders were. When the Government bailed out Wall Street and the FED shoveled boat-loads of money to the EU to prop-up various U.S. & E.U. Institutions to the tune of an estimated $13.7 Trillion who was harmed? Certainly not the “institutions” however homeowners, forced out of their homes, did.
Meanwhile, no one dare ask two of the most fundamental question:
(1) what happened to the $13.7 Trillion in debt assumed by the Government/FED?
(2) what happened to the Mortgage Debt?
I’ll answer both of these questions: It was vaporized; one day it was there, the next it was gone and trust me, you’ll not find it on any Government/FED financial statement or report. Interestingly enough, in the case of the Housing/Mortgage topic, remember this: Every one of the Homes/Properties foreclosed upon still remained and were simply sold back into the marketplace and new loans were re-issued, mind you, on the same house, all over again. One word; vaporized!
True, there are a great many and finer points one could plunge into however, none would bring any further clarity to the fundamental truth that the Global Banking System design is devoutly predatory. It persists as it is because its facilities enjoy the privilege to feed at will and without recourse and they will fight all front in order to protect its ability to do so. Unless of course you decide to stop them.
Curtis C. Greco, Founder