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Old 01-10-2015, 03:44 PM
Danny B Danny B is offline
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Join Date: Oct 2012
Location: L.A. Ca.
Posts: 4,890
Bankism and money printing

Several writers have observed that we no longer have capitalism. It has been replaced with "bankism".
Charles Hugh Smith wrote an excellent article about another "system" that has been replaced.
Keep in mind that the Post-war Bretton Woods agreement made the dollar the reserve currency but, insisted that it be backed by gold. Since the dollar was good as gold for so may years, it flowed into every country. When the gold backing was removed, the dollars were still there. People continued to hold dollars as a rainy-day fund mostly out of momentum.
This worldwide saturation of dollars means that the FED can print a lot of dollars without causing the expected inflation. Also, foreign States created a lot of dollar loans that demand a lot of dollars to fund them. There is a big demand for dollars even though the petro-dollar is not as much in demand as previously.

In a general sense, a State funds itself by taxation. America has reached a point where it no longer depends on taxation. The Grace Commission created by Ronald Reagan reported that not one dime of federal tax revenues goes to support GOV. American GOV is supported just by printing. Smith claims that this can not be stopped internally. It must be stopped by external parties.
The banks took our money and bought the lawmakers and the courts so, I suppose that he is correct.
oftwominds-Charles Hugh Smith: 2015: Everything Can Be Fixed by Printing More Money
"But what if you live under a regime of people who obtain their wealth not through taxation but through money printing?"
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