Churchwork
10-04-2009, 11:30 AM
We are not going back to a gold standard like in previous inflationary periods that ended up becoming deflationary due to being on the gold standard (certain number of dollars equal an ounce of gold). As miners mine gold, that is the most that can be printed for equivalent dollars per ounce of gold. This is inherently deflationary IF the population and economy expand faster than gold can be produced. More people have to share few dollar bills. The gold standard restricts the government's ability to print money so when the deflation comes, there is no way to escape it. Like an elastic band things quickly come back in line. Therefore the government is motivated to not let debt burdens get too far out of control because the subsequent downdraft will be vicious like in the 1930's followed by war in the 1940's then not until the 1950's does Debt/GDP hit its final low around 125-150%.
But this time it really is different. Helicopter Ben Bernanke is right: he knows the power of printing and of Bretton Woods II (competitive globally currency devaluation-about who can print the most the fastest). Instead of facing the piper, the government will print until the Great Tribulation. It's easier to make the debt go away than work hard to make it go away. USA will inflate away their 75 trillion unfunded liabilities and the Debt to GDP will go up from 400% to 600% even while consumers are reducing their debt loads. It will the be government that will amass ever great debts. Interest rates will go down to zero percent. Why is this so disturbing? Because anyone making less than $100,000/year will be struggling (that's because $100,000 doesn't buy what it use to). Interest bearing investments pay virtually nothing. In order to increase the debt you need to lower the interest rates. Instead of letting everything go bankrupt, keep feeding more printed dollars to keep the boat afloat like in Japan.
We won't be able to buy or sell without the chip implant. Debt will be used to control people. As debt increases, there will be more controls. We will not go back down to 125% Debt/GDP until Christ returns and then I don't know if we will use money anymore, or at least as the millennial kingdom progresses, money will be done away once and for all. I know this seems crazy and perhaps one's natural instinct is to think things will get better-the total debt will come down. I think the owners of the central banks around the world make their money with the creation of debt. If there is no money, they are out of business. It takes ever increasing more debts to generate profits for them. Things will get a lot more dangerous before they get better. Jesus is going to return this century so it is all happening in the coming decades.
Did you know that every 10 years the amount of oil used in the economy is greater than all the oil used in previous decades combined? You ain't see nothin' yet.
But this time it really is different. Helicopter Ben Bernanke is right: he knows the power of printing and of Bretton Woods II (competitive globally currency devaluation-about who can print the most the fastest). Instead of facing the piper, the government will print until the Great Tribulation. It's easier to make the debt go away than work hard to make it go away. USA will inflate away their 75 trillion unfunded liabilities and the Debt to GDP will go up from 400% to 600% even while consumers are reducing their debt loads. It will the be government that will amass ever great debts. Interest rates will go down to zero percent. Why is this so disturbing? Because anyone making less than $100,000/year will be struggling (that's because $100,000 doesn't buy what it use to). Interest bearing investments pay virtually nothing. In order to increase the debt you need to lower the interest rates. Instead of letting everything go bankrupt, keep feeding more printed dollars to keep the boat afloat like in Japan.
We won't be able to buy or sell without the chip implant. Debt will be used to control people. As debt increases, there will be more controls. We will not go back down to 125% Debt/GDP until Christ returns and then I don't know if we will use money anymore, or at least as the millennial kingdom progresses, money will be done away once and for all. I know this seems crazy and perhaps one's natural instinct is to think things will get better-the total debt will come down. I think the owners of the central banks around the world make their money with the creation of debt. If there is no money, they are out of business. It takes ever increasing more debts to generate profits for them. Things will get a lot more dangerous before they get better. Jesus is going to return this century so it is all happening in the coming decades.
Did you know that every 10 years the amount of oil used in the economy is greater than all the oil used in previous decades combined? You ain't see nothin' yet.