Cannot work forever

The economy. Destined to fail. Mathematically it cannot work. Every economic decision is made to stave off the failure. We have reached the end of the game but we don't want to admit it.

Think about it. How can something with no intrinsic value maintain its worth? The world is a dynamic place.

Let's put it into perspective. Which is more valuable, oxygen or money? Food or money? Shelter or money? Sure, money can buy each one of those, but what happens when people stop accepting your money for those goods? Your money is worthless. This predicament is where every fiat economy is destined to end up.

Banks can lend out 9 times the money they have on hand or their reserve. Interest that can be collected on those loaned notes can be added to their reserve, which means they can loan more, which means they get more interest, which means their reserve is more, which means they can lend more, which means....

You get it I hope. Follow the extreme of that logic. Eventually, via mathematics, we see that the amount of money (that doesn't exist) is limitless. With a limitless supply of money, the money becomes worthless.

Don't believe me? Look at every fiat economy in history. The problem is that we cannot see the trees for the forest. The scale is so grand that the layman cannot grasp it. That is where the exploitation comes in. Those with money need to keep those without wanting it so that the value is maintained. This manufactured value cannot stand the test of time.

A big problem is that people look at it from the perspective of "what my money is worth". Look at it from the opposite view...what is my dollar not worth?. When the constitution was written, an ounce of gold was equivalent to $20. It remained that way until we went off the gold standard. Now look at the cost of gold. Go ahead, I will wait. Your $20 is now worth about 2% of what it was. In less than a century, our money has devalued to 2% of what it once was.

If we bailout the banks, all we do is postpone the inevitable. If the bailout goes through, then all we can do is wait for the next time. I say lets hit the reset button.

Be good to one another,
Rev Biggus