We all need to ask ourselves this fundamental question.
“How come, while dumped billions of dollars created from nowhere (therefore normally from counterfeit money), that we are neither in macroeconomic collapse nor in hyperinflation?” Some will answer that it should not take long, but it has been going on for 6 years and there is still no collapse …. the proof is made that there is something else. To answer this question, we must first ask ourselves another question that brings us closer to the truth. Instead of hyperinflation which is characterized by skyrocketing prices with stagnating incomes, we are witnessing relative price stability and a very sharp drop in incomes caused by massive unemployment, this is the hyperstagflation. Therefore, we can suspect a link between hyperstagflation and the fact that monetary creation does not cause hyperinflation. So we can rephrase the previous question: “How does hyperstagflation prevent massive money creation from causing hyperinflation?”< /i> Let’s analyze this question. We see the fundamental word creation appear.
However, if the system seems balanced for years, if there is creation, there is necessarily at a given level destruction. Let’s continue the reasoning by taking a specific example. Suppose you are employed by a boss and you have agreed with him to be paid 1000 € for a given job, an amount corresponding to the income in the company around you. Once that job is done, let’s say that boss only pays you $800. What actually happened to you? You suffered a loss of €200 real money because based on your work, which in the theoretical framework of your economic circle corresponds to a payment of €1000 accompanied by a destruction of 200 €. And yes, if there can be monetary creation, there can also be monetary destruction. Now, let’s take this reasoning to the state level.
If a government, through austerity measures, reduces the purchasing power of a people, this causes monetary destruction, and, knowing that bankers have the power to creating money …
You may also have noticed that the FED started creating money AFTER the austerity measures started destroying peoples money. It would have been dangerous, economically speaking, to create money as long as its destruction had not been effective, because that would have triggered hyperinflation. This also explains the capital importance of dollars for the financial oligarchy.
This also explains to us why, despite the enormous amount of money created every day, prices remain stable The whole art of the financial oligarchy therefore consists in precisely measuring the quantity of money destroyed by austerity in order to define the quantity of money that it can create. Knowing that the FED creates more than 85 billion dollars per month, we deduce that the equivalent was previously destroyed by austerity measures. So a lot of things can be explained:
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