How Will the Elites Engineer Hyper Inflation?

In a usury money system money is debt. Taking on debt creates the money as when you buy a home or car or take a trip on your credit card. The money is created out of thin air and used by the borrower to pay someone else for the car, the home or the services rendered on the trip.

Now the money received by the maker of the car, the home (or home owner) or travel providers is money that does not represent debt they owe, but the debt owed by their customer. This received money ends up in bank accounts or as cash on hand that is spent or re-spent. The original debt creation can have a multiplier effect of up to five times its original value, according to the dismal science of economics.

At this point the debt-based dollar represents energy. The energy it took to build a home, including the sum total of all the energy it took to create the components of the home plus the energy to ship it, handle, assemble it.

But that original creation of debt by a borrower will have to be paid by the borrower from the energy expended in future years. So that debt dollar is ultimately not backed up by the asset collateral or service exchanged for the debt credit, but by the energy of the borrower to pay back the debt, plus interest. )Take away that future energy repayment and the value of the collateral collapses)

As the principal is paid off, money (debt) is expunged from the books of the money issuer, the banks, but the banks get to keep and spend the interest received on the original debt credit.

Of course, eventually the banks would suck up all the credits (money) as the original money (debt credit) is paid off, or destroyed. To offset this flaw in the system, the Federal Reserve continuously issues excess money (Congress does not print or issue money as called for by the Constitution, only the privately owned banks and privately owned Federal Reserve do. If you challenge that, then why does the government borrow money and not issue it directly as Russia reportedly does?).

How does this relate to hyperinflation?

Massive amounts of original debt credit issue created by the financial system for the purchase of homes was backed by debt originators (borrowers) who would not be able to pay back the debt. It has also been alleged that massive amounts of mortgage debt and related derivative asset bets were not even backed by actual property, much less an actual borrower.

Much of the recent debt - money created by the privately owned Fed - using the ruse of having Congressional backing - was used to simply fill the black hole caused by the collapse of debt credit that would never be repaid by the original orignator-borrower.

So the skeptics on this board are correct in saying not as much new debt-money was created since it simply replaced debt-money which had, in effect, vaporzied due to obvious non-payback because the borrowers would be unable to pay back the debt plus the vast overpayment representing compounded interest due.

We had serious inflation problems back in the 1970s because the Federal Reserve printed massive amounts of money debt so the government could finance both its Great Society and its Great Conflict against communism in Vietnam (a UN peacekeeping action that under UN protocols called for daily battle plans to be signed off on by communist Russian generals). At the same time, there was no massive destruction of money, thus money supply inflated.

To offset this inflation, the Federal Reserve jacked up interest rates to kill inflation, but as two economists wrote long ago in the Wall Street Journal, this might have fueled inflation further as businesses simply raised prices to handle higher interest costs. In response, the Fed printed money so the public had more dollars on hand to pay back principal plus debt.

In 2008 the federal government was borrowing money to finance its current Compassionate Conservativism programs plus fight dubious wars on two fronts while also spending on a massive array of deficit loss leaders from subsidizing Israel (to combat an Isllam that is a morality threat but not an economic or military threat) while ignoring the Chinese expansion into Africa and our own western Hemisphere) to energy and housing stimulus programs. It was also spending on current operations and program staffing, plus rising retirement and senior health care programs.

It should be apparent that the aging population and the destruction of the democgraphic effects of more than 40 million abortions makes it difficult for the future energy of this nation to pay off the accumulated debt of the nation, both consumer and public.

The ability to pay back this debt - and to simultaneously consume new homes and cars and travel seems shaky.

Thus money will deflate, as it did during the Great Depression.

If the federal government does not repudiate this debt, as consumers and businesses are doing through foreclosures and bankruptcy,, it will have to pay off the debt with hyper inflated useless dollars.

In essence, some of this has already happened when the Fed created credit debt to fill the black hole from the mortgage collapse.

But how will it transfer hyper inflated credit debt to China and foreign and domestic federal debt holders? That is the unanswered question.

Florida government is already raising taxes on citizens to fill its black hole. This will leave less money in citizen hands to push up the cost of goods and services.

The federal governmenet has already announced it will not stimulate domestic spending by giving retirees more money to spend. Retiree transfer payments have been frozen. That is deflationary.

Any hyper inflated dollars transferred to China, Japan and other domestic and foreign debt holders will create a flood of dollars, but how will China logistically spend those hyper inflated dollars?

If they transfer those hyper dollars to their own citizens, the Chinese will have to ultimately buy U. S. products or assets in U. S. denominated debt credit as those U. S. credit dollars are repatriated home. Ecnomists have always said U. S. dollars sent overseas eventually have to come home.

If Chinese and foreign debt holders start to exchange their dollars for U. S. property or businesses - that will simply transfer our holdings to them at distressed prices. We are now more of a sevice economy and the foreigners will have to travel here to consumer our sevices for the credit dollars they have accumulated.


This is really getting complicated - how this will all play out. How much easier it would be to just return to the economics of the Renaissance when there was no usury debt. Only this time the kings should be forbidden from borrowing from foreign banks to fund their empirical dreams. Every king who has done so has ruined his kingdom.

So for now we have deflation. We could have hyperinflation, but the money system engineers still have to engineer just how that can be accomplished.

I urge any of my seven followers to clarify where I am hazy and to hopefully refute my contention that all is confusion and even the sophisticated derivative software programs could not figure this all out - or if they did then some people knew and why are those people still not going to prison?.