Explaining Central Banking to the Publicly Educated

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Previously
by Jeff Berwick: The
Weekend Vigilante

 

 
 

Don’t understand
economics? And the thought of even trying makes your eyes cross?

That’s what
they want. Government, which is an artificial, unnecessary construct
has made a concerted effort to make economics sound as difficult
as possible for decades. The reason? They can use your programmed
ignorance as the publicly "educated" to confuse you about
how they manipulate the economy for their benefit.

Economics is
simple. Nearly the full extent of it can be taught in a near pamphlet,
as has been done in Henry Hazlitt’s Economics
in One Lesson
. That is the full extent that any individual
needs and should know about economics.

Those four
to eight years in college to get a bachelor or PhD in Economics?
Pure mental masturbation – at best.

ECONOMICS
ON AN ISLAND

Most everything
can be broken down to its most basic components in order to simplify
things. When faced with a large question always try to break it
down. Let’s do that with economics to show how simple it is and
why central banking is a central tenet of communism and is an abomination
that makes no sense in a free market.

Let’s say that
you and four other people live on an island. As far as you can tell
there are no other humans on Earth. Each of the people on the island
do things which help the collective although they have selfish reasons
for doing so (ie. they want something in return).

Perhaps you
fish. Another gathers coconuts. And another is good at building
and repairing thatch huts and collecting rainwater for drinking.
Amongst yourselves you trade. You offer some fish for coconuts,
water and a nice maintained hut. The others offer their services
in trade for your fish.

In comes the
fourth person – a bearded man with no particular skills who thinks
he is better than everyone else. He produces nothing but tells you
that he has come up with a better system using "money"
where you don’t have to wait until the man who gets coconuts wants
fish before you can get coconuts. Instead you can trade money…
perhaps a piece of paper that the fourth person has inscribed with
pictures and denominations on it.

So far it doesn’t
sound too bad. But here is where he becomes a "central banker".
First, he pulls out a spear and tells you that you must, under all
circumstances use his money and no other money. Then, during times
when the fishing is poor or there is a drought he tells you that
he can help everyone out by "stimulating" the economy
of the island by drawing up more money.

If things got
really tough he could double or triple the amount of money on the
island. At first, everyone thinks they are richer, so they
buy more fish or water or housing than they otherwise could afford.
This ends up using up more resources than would otherwise be prudent.
Soon the money has circulated and now coconuts just cost twice or
three times more than before in currency units. The same for fish…
the same for water and housing.

How has this
central banking scheme "helped"? It hasn’t. It actually
ended up destroying scarce resources as it fooled the participants
in the economy for a period of time into thinking they were more
wealthy than they really were.

That is all
there is to central banking. Of course, what then happens is the
entire island gets corrupted and people begin to look to get favors
from the central banker to get the newly created money first. And,
then, if the printing of money begins to get out of control and
the central banker stops printing money in order to salvage the
"value" of the money before hyperinflating it into worthlessness,
because of the fact he uses violence to enforce its use, all of
a sudden there will not be enough money in the system to transact
basic transactions and people will not be able to survive. There
will be either war (over the resources) or starvation as the denizens
of the island find themselves unable to acquire the currency they
are forced to use to survive. Either that or the banker will take
control of your future productivity in exchange for some easily
printed cash today effectively putting you into slavery just to
survive.

The only thing
missing on the island at this point is someone to start a fascist
media conglomerate who, in cahoots with the central bank, put out
this
magazine cover
showing the one non-productive member of the
island as being the hero.

THE HERO?

"Ben Bernanke
saved the economy, so why does everybody hate him?"

First of all,
not enough people know enough about him to hate him. If they did,
however, a public sodomization and lynching like Hillary did unto
Khadaffi would be in order.

Here is the
man who destroys economies. The man who funds and makes all wars
possible. The man who puts senior citizens on treadmills and makes
them run just to be able to eat cat food. And he does it all with
a smug look on his face
reminiscent of the last time this kind
of nonsense was attempted.

Remember that
one? Three of the smuggest looking conmen in the world posed as
saviors just months before the collapse of the global economy –
which they all brought about. That Slime cover story came out on
February 15, 1999 proclaiming that the money changers had saved
us all from the global economic meltdown.

How’d that
all work out for everyone?

Are they pulling
the same tricks again now to try to salvage a few more months of
the fantasy economy? Probably.

The beautiful
thing, however, is that all those anachronistic media organizations
such as mainstream television and newspapers are dying a rapid death.
I sat in the office of the President of USA Today, Tom Curley (now
CEO of Associated Press), in 2000 and told him that inside of ten
years he’d be irrelevant.

I declared
victory when in 2008 Gannett (the parent of USA Today) hit
$1 after being $60 in 2000… despite the dead cat bounce it has
done since.

Today, The
Dollar Vigilante and it’s parent company, TDV Media, is one of the
fastest growing media organizations on the planet.

Why? Because
we spread truth and help awaken the brainwashed. A revolution is
going on whether you realize it or not. The internet has exposed
the cockroaches. Government, nor central banks, have any right to
exist. Only propaganda and subterfuge has enabled them to survive
this long.

DO YOU UNDERSTAND?

If you understand
what central banking is really about then you are preparing now
for the final stages of the collapse of the western monetary system.
This means investments in hard assets such as gold and silver bullion
and speculative bets in a final inflationary bubble into precious
metals stocks. If you understand central banking and the governments
that are subjugated to them then you know by now to get a significant
portion of your assets outside of the control of the government
that purports to own and control you. You understand that getting
a second or a third passport is now as common sense as saving a
significant percentage of your income in the past. Or, if you want
to stay and fight in the coming years, you understand the importance
of becoming self sufficient in terms of food and energy and preparing
to protect yourself via armaments.

And if you
understand all of this then you have broken out of the brainwashing
of your public education and are thinking for yourself. You are
now enemy number one of governments in the western world. We’re
happy you joined us.

Reprinted
with permission from The
Dollar Vigilante
.

March
29, 2012

Jeff
Berwick [send him mail]
is an anarcho-capitalist freedom fighter and Chief Editor of the
libertarian, Austrian economics grounded newsletter, The
Dollar Vigilante
. The Dollar Vigilante focuses on strategies,
investments and expatriation opportunities to survive & prosper
during and after the US dollar collapse.

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