- Printing money like it’s going out of style…
- Credit is not money…
- A Multi-Billionaire and Early Open AI Investor just made a stunning prediction. He just laid out his full research in a free presentation. For the time being, you can watch it here.
Dear Reader,
Today we begin on a trivial note. Quite literally, that is, with trivia.
The total United States money supply presently runs to some $22.8 trillion.
Nearly 66% of that supply has been conjured into existence within the past thirteen years alone.
Some 26% of that enormity has acquired existence since January 2020.
That is, some 26% of the $22.8 trillion money stock lacked existence until January 2020.
Yet as I have maintained before:
Large numbers — such as 22.8 trillion — exert a dulling effect on the sober senses… like large bottles of wine.
They are mere abstractions. They lack all tethering to common experience.
A man can get his imagination around hundreds, thousands, even… with mental exertion perhaps… millions.
Yet billions? And trillions? Here his eyes glaze on him. He is gobsmacked and dumbstruck.
One Trillion in Perspective
Let us consider the one trillion figure.
The nonprofit Employment Policies Institute places 1 trillion into this perspective:
- Let’s say someone told you to wait for something. If you waited 1,000 seconds, it’d only take about 17 minutes. If you waited 1 million seconds, you’d have to wait about 11.5 days… But if you waited 1 trillion seconds, you’d have to wait 31,688 years.
31,688 years!
Now let us apply our lunatic mathematics to the monetary sphere.
Assume you are instructed to print $1 trillion. Yet you may only print $1 bills.
You produce — feverishly — one $1 bill each second of each day, 365 days of the 365.
Only upon the printing of your trillionth $1 bill may you sit down.
How much time will you require to print 1 trillion $1 bills? Author Bill Bryson:
- If you initialed $1 per second, you would make $1,000 every 17 minutes. After 12 days of nonstop effort you would acquire your first $1 million. Thus, it would take you 120 days to accumulate $10 million and 1,200 days — something over three years — to reach $100 million. After 31.7 years you would become a billionaire…
- But not until after 31,709.8 years would you count your trillionth dollar.
10,328.33 Lifetimes
And if you are to print the existing $22.8 trillion money stock?
Fundamental mathematics reveals that you would require 722,983.44 years of ceaseless labor!
Assume the Lord grants you your biblical three-score-and-ten — 70 years in all.
We learn that you would require 10,328.33 lifetimes to fulfill your mandate.
How do you like it? Heaven… indeed… can wait.
Remember: Each one of these 22.8 dollars are representations of debt… as are all dollars under the present monetary arrangement.
That is because the United States dollar is a credit instrument.
Credit and debt are twins. One man’s credit is another man’s debt. Credit is a debt in mufti, a debt disguised.
The Fundamental Fact of Modern Money
In proof thereof, I republish the transcript of a conversation truly astounding — and a concession truly astounding.
On Sept. 30, 1941, Federal Reserve Chairman Marriner Eccles sat in front of the House Committee on Banking and Currency.
Committee chairman Wright Patman asked this fellow where the Federal Reserve had acquired the monies to purchase $2 billion in government bonds.
Their exchange ran this way:
ECCLES: We created it.
PATMAN: Out of what?
ECCLES: Out of the right to issue credit money.
PATMAN: And there is nothing behind it, is there, except our government’s credit?
ECCLES: That is what our money system is. If there were no debts in our monetary system, there wouldn’t be any money.
Now you have the flavor of it. Money is debt’s mirror in this exotic and alien monetary world we inhabit.
Is it any wonder then that today’s financial system is given to such fantastic perversions?
It is erected not even upon the shifting foundations of beach sand — but upon foundations of ethereal air.
It lacks all anchoring in material realities. Anchoring in, for example… gold.
Credit CANNOT Be Money
Explains economist Alasdair Macleod:
- Under a gold standard, incorporeal property took its value from a material property. Under today’s fiat dollar standard, all forms of incorporeal property take their value from another incorporeal property, banknotes, which are a central bank’s liability. Credit is only valued in another credit, an arrangement which is inherently unstable, irrespective of changes in its quantity.
Yet since ancient eras, adds Mr. Macleod:
- It was made clear that the value of credit was based on money, which was physical gold and silver. Without the value-link to gold or silver, there was no means of valuing credit, and all promises, which are the essence of credit, require to be valued… Even though it doesn’t feature as such in modern economies and economics, gold still remains the principal corporeal form of medium of exchange.
That is, credit cannot be valued by reference to credit. Credit must have anchoring in, it must derive its existence from, authentic money.
The Standard Against Which All Credit Must Be Valued
More:
- Debt and credit must take its value from something… In history, the value-anchor was always a corporeal entity such as gold. Instead, today it is anchored to another incorporeal asset — central bank credit, or banknotes. In other words, the entire structure of national credit hinges on the government’s credibility as issuer of currency obligations.
In conclusion:
- The only solution to prevent fiat currencies from collapsing entirely is to officially recognize and reintroduce gold as money, making it the standard against which all credit is valued.
Yet this Macleod fellow is no fantasist. He understands well that no government will voluntarily place its wrists in golden handcuffs.
No government will voluntarily relax its vise grip upon the manufacture and distribution of credit.
As well expect the devil to gulp holy water.
Yet as I have argued before: Gold is everything credit is not.
Thus it is time the world once again gives credit where it is well and truly due — literally to gold.
Regards,
Brian Maher
for Freedom Financial News
