The Central Bank Swindle – Part One

Let’s start with the first fib Gordon Brown told us to kick off the central bank series of articles…that the business cycle is dead. That mathematically cannot be true as long as there is a central bank which creates money out of debt and charges interest.

This money from debt mechanism, never questioned, is the business cycle. It is also the cause of rising prices and the cause of the slow yet steady devaluation of the currency through monetary inflation.

The central bank is nothing short of a giant ponzi scheme…and the mathematical limits of its ability to perpetuate itself are coming to an end. This is one of the key things that we are seeing right now as this fiat currency system begins to crumble around the world as it’s mathematical limits are approached and the way to fix all fiat currency schemes, which do work for a while, are tried.

 Governments have no other way out than to print more money and borrow until they can’t borrow another penny. This works at the start of a fiat currency scheme, but eventually leads to a hyper inflationary bust.

Now, with all this deflation happening right now, you might think this is odd…but it’s really very simple. The deflationary period comes first, as credit is destroyed after the huge credit bubble. We are seeing the deleveraging of the credit and the ensuing destruction process happening right now as loans and mal investments’ are written off all over the system.

The hyper inflationary element comes as the government attempt out dated Keynesian notions of spending our way out of the current crisis. The huge government spending tries to correct the issue of too much credit with more credit. It’s laughable really to any serious economics student. It can’t work. It has never worked. It created more and bigger problems down the line.  You should be worried about the inflation that Gordon Brown will now create a lot more than if a few banks had failed. It’s a case of the cure killing the patient.

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For More information on specific Banks use these links

• Alliance & Leicester
• Barclays
• Capital One
• Child Trust Fund
• First Direct
• HSBC
• Post Office
• Tesco Savings

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Tags: Central Banking, Currency, Debt, Gordon Brown, Hyper Inflation, Inflation, Keynesian