© MMXIII V.1.0.6
by Morley Evans
Germany, during the Weimar Republic period (1919 to 1933), suffered hyperinflation when so much money was printed that it became worthless. Today, the Federal Reserve has been printing a trillion dollars ($1,000,000,000,000) a year, or $2,739,726,027 every night.
This has been going on since Ben Bernanke took over from Alan Greenspan as the Chairman of the Federal Reserve. We should be suffering from hyperinflation. We do have inflation, but not hyperinflation. Why are we different from Germany?
Prices go up when vendors realize they can charge more for what they are selling. Vendors can charge more because purchasers are willing to pay more. Purchasers are willing to pay more when they have more money. Purchasers bid up the prices.
Just imagine that you could print your own money — this would be real money that would be exactly the same as the money cranked out by the central bank. You could buy anything you want. There would be no inflation. Vendors might realize that you could afford to pay higher prices, but if you were not willing to pay more than anyone else, vendors would sell to you at the same prices as everyone else.
You would be on easy street. You could live like the Sultan of Brunei.
What if you gave some of your new money to your family and a few friends? They could live like the Sultan too. Everyone else would live as before. Money would buy what it always bought. There would be inflation within the group that had the new money for the items they wanted to buy because they would be bidding against each other. Most people would not be at those auctions.
So you and your family and friends would pay the same as everyone else for a dozen eggs and you would be paying $25,000 for a Chopard 201-carat watch. Most people would buy a Timex watch for less than one hundred bucks or they would do without. Most people would never dream of buying a watch for $25,000, but if $2 billion were put into their bank account every night, $25,000 would become small change. It would be small change to you and your friends. You would bid against your family and friends for your yacht or watch or a Rembrandt for your new palace.
The Weimar Republic suffered hyperinflation because the new money was widely distributed to the general population. Germans were pushing wheelbarrows of Deutschmarks to the bakery to buy bread. The Fed is keeping all the new money inside the little community of banksters and brokers on Wall Street and within the war department that is the muscle of the U.S. gangster state.
Government money is not going to welfare bums. Government programs are being cut back. Taxes are being raised to repay all that imaginary money the government borrowed from the Fed. People are being told that their profligacy is the problem. They are being told to feel guilty and ashamed. People are being told to lower their expectations.
That giant sucking sound is money being vacuumed out of the pockets of the poor and the middle class that is filling the pockets of the super élite. The biggest banks have been using their money and power to gobble up the smaller banks that used to think they were members of the élite. American manufacturing has been devastated. Lehman Brothers and Bear Stearns are gone. Merrell Lynch and Bank of America have been rescued. Goldman Sachs and J.P. Morgan Chase are doing fine. The big boys are clearing out the suckers.
Prices inside the U.S. empire are kept low for now because everything is now being manufactured in lost-cost places like, Mexico, China, India and Bangladesh. Jobs within the US empire have disappeared. Bad times for most people are ahead. Look at Portugal, Ireland, Italy, Greece and Spain.
Washington is running the biggest Ponzi scheme in history. It plans to use the "most powerful military in history" to keep those in power running the affairs of the world, forever. They might get way with it, if they can continue to face down rivals and successfully con the citizens of the empire. They have plans for those citizens if they rebel.