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Monetary Zika - The Insidious Nature of Credit Expansion

Currencies / Fiat Currency Jul 27, 2016 - 02:52 PM GMT

By: Dr_Jeff_Lewis

Currencies

The insidious nature of credit expansion under the implicit guise of forced legal tender has worked it’s way (essentially) undiagnosed through many generations.  

Viruses work from the inside out. They take over the control center of a cell. They use the existing machinery to proliferate.

Ultimately, the most successful become part of the host. Some become a part of the genome.


Junk DNA, or the so called silent DNA, have been found to be composed of old retroviruses that were eventually incorporated into the genome and passed along.

They can change who we are; the system as a whole.

Most viruses have no cures. Unsuccessful ones destroy the system. Some spread quickly from host to host, evading detection and quarantine.

The Zika Virus proliferates in the guts of mosquitos. It's nearly asymptomatic human transmission can lead to severe brain malformation in the offspring of affected women. 

The adoption of world reserve fiat came much like this. At first, out of seemingly benign ideology in response to the crises of monetary power, greed, and centralization coming at the turn of the 20th century. 

(Note: As my readers are well aware...contrary to the popular belief that gold-backing was removed from the $US in  1971 - the classical (bimetallic) gold standard, as it existed for a brief period (of unprecedented growth in a world before antibiotics and modern anesthesia!) between the American Civil War and the early 1900's - and then morphed into the 'Gold-Exchange-Standard, and the finally the Bretton-Woods devaluation in the midst of the (loose-policy-induced) first Great Depression). 

The diminishing hard-money tether creates the illusion of wealth, and therefore goes relatively undetected, until it’s too late. People fail to see the distinction.

It's offspring are born with the defect of ignorance. As the the real story is told by the benefactors of policy.

With a foundation of too big to fail, tied in with the growth of the military-industrial complex - at first gradually, and then all at once - the defects spreads like wild fire into the masses, translating into an electorate that leverages it's new found power on the backs of the next generation.

Fast forward a few generations...

The following symptoms take on a life of their own:

  • Capital Flight
  • Brain Drain From Industry
  • Federal Lobbying for Corporate Subsidies & Tax Breaks
  • Off Shore Corporate Tax Havens
  • Compensation Schemes like Differed Wages
  • Fed Policies that Directly Link to Paper Investments, Paper Transactions, Renter Behavior, Exporting U.S. Dollars to other Trade Markets, Casino type Investments rather than Brick & Mortar or Capital Expansion
  • U.S. Congressional Financial Conflict of Interest Every Day
  • No Integrity in Financial Ratings in the USA
  • No Integrity in U.S. Accounting Standards
  • No Standard Financial Instruments
  • Lobbying for anything with PACs for Anything
  • LBO that lead to Decapitalization, Jobs Losses, and Collapse of Business Entities
  • Decapitalization not being recognized as Deflationary and Weakness in the Economy
  • Increases in Social Program Enrollment and Reliance not being recognized as Weakness in the Economy and Governance of USA
  • Credit and Derivative Linkages recognized as Weakness in Banking, Economy, Stability & Governance
  • Fake, Narrow, Corrupt, low Utility Government Statistics in GDP, Inflation, Unemployment, Social Stability, Future Tax Base, Future Consumption, etc.
  • Fake Narrative of the Cost of War, Financial Health of Nation, over $18 Trillion in Federal Debt, Low Velocity of Money, Eroding Demographics, and meaning of $59 Trillion in Total U.S. Debt

Life goes on for a while, though many people know the mortality. There are futile attempts at quarantine and controls. But they are useless. It doesn’t take much for system failures to begin.

Panic eventually roils markets; viral financialization of everything and financial bubbles in all directions.

A bubble is a speculative advance where prices rise on the expectation of future advances and become largely detached from properly discounted fundamentals.

A bubble reflects a widening gap between the expectations of the players and the odds of return that can be estimated through present-value relationships linking prices and likely cash flows.

Crashes are inevitable.

Just as important is that recessions tend not to be a gradual thing, but rather a sharp plunge in activity caused by some exogenous event (oil prices, terrorism, war, etc.).

The more intervention, the greater the systemic destruction. Free money for the few flows on.

Capital destruction and savings misallocation are the norm.

An artificial financial existence prevails, leading to parallel life existence. It is much like the subtle difference between health care and sick care.

Financial survival becomes more and more a system of propagandized wealth extraction and then destruction.

It is even worse than a virus. It is a systemic organism lying dormant.

Causing a disease that affects the individual, as well as the culture…

For decades, fractional reserve banking “without consequence” has worked its way into the collective wealth psyche.

When mistakes are socialized for the elite, the toxicity eventually trickles down through the collective.

What can you do to prepare for the incurable?

(Hint: If you are reading these words, you are well on your way). 

Food, water, and 'wealth quarantine'. 

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By Dr. Jeff Lewis

    Dr. Jeffrey Lewis, in addition to running a busy medical practice, is the editor of Silver-Coin-Investor.com

    Copyright © 2015 Dr. Jeff Lewis- All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

Dr. Jeff Lewis Archive

© 2005-2022 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


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