Video Rebel’s Blog
Update: A highly disturbing article from Bloomberg was posted at Zero Hedge this evening. There are people smarter than I am who know more about finances but they usually do not want to protect people from Wall Street Bankers. This article said that the velocity of money is increasing and is driving inflation with it.
I once wrote an article in which I explained that America had survived 20% inflation under Paul Volcker. I concluded that we had survived 20% but could not survive 25% annual inflation. I said hyperinflation would begin at 25% and that we would soon thereafter lose our status as an international reserve currency. The late Bob Chapman was asked about my view and he agreed as at 25% the value of a dollar is cut in half every 3 years. So Sergey Glazyev’s plan for BRICS and the Global South to combine to end the dollar’s reign has now become a certainty to be set into motion.
All bank deposits in dollars, pounds, euros and yen will decline to zero value, probably before the November 2024 presidential elections.
The real inflation rate as reported by Shadow Stats is 16.8% not the 8.5% CPI reported by that criminal enterprise masquerading as a government in Washington DC.
This is the mechanics of velocity.
M x V = P x T. Money x Velocity = Prices x Transactions. Velocity is simply how many times Money changes hands in a year. If Velocity rises, then the overall level of prices and transactions increases. We have printed way too much money in the past. One reason was corruption so Wall Street could steal tens of trillions and not just billions. Another reason was to mask the decline in real wages due to over population caused by massive immigration. A third reason was that in the final stages of a credit based economy with an interest bearing currency that we accumulate mountains of Unpayable Debts. We need massive loans to pay for all that massive interest rate gouging. So in the final stages before collapse, we have to “borrow” $5 trillion into circulation just to get a modest bit of growth.
In the chart above we can see that Velocity grew from 1.2 to 1.4. If we substitute 1.4 for 1.2 and insert $21 trillion for M in M X V, then we can see the rate increased by 1/6th or 16.667%. Fortunately, the US M2 Money Supply is declining slightly though Biden did just pass an expensive bill that will force the US Treasury to monetize more debts.
The other disturbing fact is that trend line in the growth of velocity. If V were to rise from 1.2 to 1.4 to 1.6, then prices would increase 33%. As I said, our real inflation rate is already 16.8% and any increase in velocity will soon push us past 25% into hyperinflation which will force our few remaining friends overseas to dump the dollar and buy commodities. When they sell their stocks and bonds to buy commodities, prices will spike exponentially higher over night.
We must remember that the Biden admin is playing a dangerous game by forcing rents higher through massive immigration, forcing energy prices higher through insane Green policies and forcing food prices higher so he can force us to accept electronic passport- ration cards.
Washington DC will soon reap the whirlwind of zero value paychecks and zero value savings and pensions.
The rest of the previous article continues as before. It is well worth reading even though it is about money.
Of the 123 million Americans alive in 1929 at least 3 million starved to death, some demographers say maybe 4 to 7 million.
A Depression is a period in time when Unpayable Debts are cancelled en masse. In 1923 Germany cancelled debts through hyperinflation. In 1933 America 31% of our money supply was cancelled in bankruptcy courts and in foreclosures.
We have a debt based system which means that we are not allowed to have money unless we first take out a loan. Bankers gave themselves the right to charge us interest on checking account money they made out of nothing. Americans starved to death due to debt cancellation and the lack of borrowing until WW II.
Alternatively, we could have a non-interest bearing currency like Lincoln’s Greenbacks. Dr Irving Fisher in the 1920s suggested that we not only issue Greenbacks but also ban fractional reserve banking, which would have ended all those bank runs in the 1930s.
He called his proposal 100% money. He could have ended the Depression in 90 days, saved us from starvation and also from a lot of unwanted wars. He also would have stopped the exploitation of interest which under the present system transfers all wealth from Main Street which does all the work to Wall Street parasites who collect interest on the money they created out of nothing.
If we do not arrest the Bankers and seize what they stole from us to fund Debt Cancellation, America will definitely have a hyperinflationary Depression like Germany in 1923 but with far more starvation than then due to the addition of 220 million people sine 1929.