Ch 11.23 - Fiat/Inflation/Hyperinflation
"If it has a price it’s cheap. How much for is your honor, your kids, your skills, and your love worth?" - Owen Benjamin
a. Fiat
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fi·at - noun - a formal authorization or proposition; a decree. From Latin, ‘let it be done.’
"Are you wondering about the essence of fiat money? Let’s break it down into three characteristics:
1) State-sponsored central banks wield a monopoly over the production of fiat central bank money. Upon obtaining fiat central bank money, commercial banks are allowed to generate their own money, known as fiat commercial bank money.
2) Fiat money is typically created through lending without the backing of real savings. It is essentially created out of thin air (or ex nihilo, as it is called in Latin).
3) Fiat money predominantly exists in dematerialized form. While it may manifest as colorful printed pieces of paper, its primary existence resides in digital entries on computer systems, represented by bits and bytes." - Unknown
"Fiat is fraud when you can print money to lend out at interest." - Unknown
"Fiat money is 'inconvertible paper money made legal tender by a government decree.'" - Unknown
"Are you wondering about the essence of fiat money? Let’s break it down into three characteristics: State-sponsored central banks wield a monopoly over the production of fiat central bank money. Upon obtaining fiat central bank money, commercial banks are allowed to generate their own money, known as fiat commercial bank money. Fiat money is typically created through lending without the backing of real savings. It is essentially created out of thin air (or ex nihilo, as it is called in Latin). Fiat money predominantly exists in dematerialized form. While it may manifest as colorful printed pieces of paper, its primary existence resides in digital entries on computer systems, represented by bits and bytes." - Unknown
"You cannot apply classical economics to a printed fiat economy. Bottom line is intrest rates can be whatever 'they' want them to be via bond purchases on an endless central bank spreadsheet. The fed literally could say I'm gonna buy up the entire u.s. debt with printed capital and keep it on the spreadsheet marked to zero. There isn't a hole, social security, pensions, bank bailouts, car bailouts, state gov bailouts, that can't be filled with printed money. This will go on ad nauseum, and will never collapse on itself. Only way out is the one you can provide. The printing will continue until morale improves in... The age of madness" - Unknown
b. Deflation/Disinflation
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"Deflation impoverishes the rich because they have 12 times more debt than regular people and the debt gets bigger. Inflation, meanwhile, impoverishes everybody else. Guess who the Fed caters to?" - Unknown
"Recessions lower inflation in the same way dying lowers your blood pressure." - Unknown
c. Inflation
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“Inflation is the surest way to fertilize the rich man's field with the sweat of the poor man's brow.” - Daniel Webster
"Inflation is a soft default on the debt every day." - Unknown
"Between the millstones of taxation and inflation, will we grind some folks." - Stalin
"The Fed has always targetted inflation at 2%. Why 2%? 2% is the number that the fed can steal from your bank account without people noticing." - Chris Irons, Quoth the Raven Podcast
"Keynesian economics is really an exercise in how to steal for the longest possible time without anyone noticing." - Rafi Farber, Keynesian Economics is Corollary to Austrian Economics
"Austrian economics is the branch of economics concerned with the preservation of wealth and prosperity of a nation." - Unknown, Austrian Economics is Corollary to Keynesian Economics
"By this means the government may secretly and unobserved, confiscate the wealth of the people, and not one man in a million will detect the theft." ― John Maynard Keynes, The Economic Consequences of the Peace, on the inflation tax
"We can guarantee cash settlements as far out as the eye can see. But we cannot guarantee their purchasing power." - Alan Greenspan, former Federal Reserve chairman
"We will pay the price but will not count the cost." - Unknown
"Live within your means until THEY raise your property taxes, until insurance companies jack their rates, until food becomes a massive expense, until fuel and electricity double in price. Did you ever consider people WERE living within their means until external forces they had no control over put them in debt just to survive?" - Unknown
"I bought a Sausage McMuffin combo the other day for $8.37. It cost $4.78 two years ago. Go figure." - Unknown
"Bidenomics is working. Under trump, my gas tank only held $30. Now, it holds $90" - Unknown
"I hate shrinkflation....now you buy a box of cereal and you get 3 bowls out of it....in a huge empty box..they always have the disclaimer..the product might have settled in shipment....yeah it did..to the bottom third of the box" - Unknown
"Inflation is a stealth tax on those without assets...like most of the middle class and poor. Vote harder. What is the gov to do? You have a nation of voters (many on the right and EVERYONE on the left) who are abject lazy thieves. Any politician who tries to get elected with honest money or budgets would get laughed off stage. You want 'FREEE!!!'.....you got free. It's called the inflation tax. Pay it." - Unknown
"Austerity has never been done in history when the government owns a money printing press." - Unknown
"11. What if the Bank runs out of money? Some players think the Bank is bankrupt if it runs out of money. The Bank never goes bankrupt. To continue playing, use slips of paper to keep track of each player's banking transactions - until the Bank has enough paper money to operate again. The bankers may also issue "new" money on slips of ordinary paper." - Unknown, If you don't understand how it works, start with Rule 11 of the Monopoly Game
d. Hyperinflation
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"People pay with their freedom. The currency was so worthless that the state demanded forced labor rather than accept its own coins as tax. Merchants had to provide goods directly to the state and army, and leaving their trade was outlawed." - Unknown on the fall of the Roman Empire
“I will use the printing press like a machine gun to destroy the middle class.” - Vladimir Lenin
"We are devaluing American money so rapidly that in America today, you can't even bribe Democrat senators with cash alone. You need to bring gold bars to get the job done, just so the bribes hold value." - Matt Gaetz
"Date: German Marks needed to buy one ounce of gold
Jan 1919 170 HUNDREDS
Sept 1919 499
Jan 1920 1,340 THOUSANDS
Sept 1920 1,201
Jan 1921 1,349
Sept 1921 2,175
Jan 1922 3,976
Sept 1922 30,381
Jan 1923 372 477
Sept 1923 269,439,000 MILLIONS
Oct 2, 1923 6,631,749,000 BILLIONS
Oct 9, 1923 24,868,950,000
Oct 16, 1923 84,969,072,000
Oct 23, 1923 1,160,552,882,000 TRILLIONS
Oct 30, 1923 1,347,070,000,000
Nov 5, 1923 8,700,000.000,000
Nov 30, 1923 87,000,000,000,000
The German hyperinflation occurred over a period of several years" - Unknown
"In the last Great Depression there were plenty of things to buy, but nobody had any money. In the next Great Depression, everyone will have plenty of money, but it won't buy anything." - Unknown
"That is what I have been trading my dollars for... tractor, tools, welder, things I can make and sell with and do services in trade. It is kind of a hedge. Plus, I can always sell the stuff for more than I paid for it just based on inflation." - Unknown
"After beans, bullets and bandaids, this is solid strategy right here... ^^^^^^" - Unknown
"Everything is being fulfilled right on schedule which includes a days wages for a days food by the midst of this decade: 'And when he opened the third seal, I heard the third living creature saying, Come. And I saw, and behold, a black horse; and he that sat thereon had a balance in his hand. And I heard as it were a voice in the midst of the four living creatures saying, A measure of wheat for a shilling, and three measures of barley for a shilling; and the oil and the wine hurt thou not.' - Revelation 6:5-6" - Unknown
"Money extracted from nothing cannot be lost, it just returns to it's origins. What matters at the end of the day is generally what physical improvements money achieves, script or gold, any form of money can do good on the ground or simply sponsor more looting operations. In other words, no money has intrinsic value, it has to earn its value in real achievements within the physical economy. Even gold can be wasted on paying debts which achieved little improvement to the physical situation within the economy. The root of the failure mode is not the form of money, but having too many rent-seekers and not enough production improvements within the economy as a whole. The parasites have grown more influential than the host, due to being so successful at looting." - Unknown
"To live in a free, noninflationary society, you must do the following:
1) End central banking;
2) End debt-based currencies;
3) End fractional reserve lending;
4) End direct taxation: taxes paid directly to the government: income, property, estate, wealth, and inflation.
Do these things, and you will be free, happy, and prosperous." - Unknown
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