The Immorality Of Paper Money
The rise of the Stock Market in recent years has nothing to do with economic health. It is reminiscent of the Dutch Tulip mania, that depended on the continued belief that the price of tulip bulbs would continue to rise, though the value of the actual bulbs had long since been eclipsed. It is similar to a Ponzi scheme. – Shorty Dawkins
This article comes from the Personal Liberty Digest.
by Bob Livingston
One of today’s most common economic fallacies is that the soaring stock market is evidence of economic recovery. Nothing could be further from the truth.
Stocks have almost tripled since the 2008 collapse, but that stock growth stems from Federal Reserve money printing (inflation) and near zero interest rates. The Fed’s balance sheet has grown more than fourfold since 2008 — to $4.3 trillion — and was used to prop up the “too big to fails.” That money had to go somewhere.
It has found its way into the stock market because U.S. Treasuries are paying less than the rate of inflation; and corporate bonds, certificates of deposit and other fixed-income products pay even less. This and price inflation (currency devaluation) is fueling the rise, not positive economic growth or common sense.
Stocks are being bought by the banksters and large corporations. Average people aren’t buying them. A study by the Pew Research Center found fewer than half of all Americans (45 percent) own stocks. The number is down from 65 percent in 2002. Individual investors are cashing in their retirement funds just to survive.
Government printing press money distorts economic reality, dilutes morality and is the true source of “income inequality.” Financial speculation rises with the increase in paper money and the general work ethic deteriorates. The something-for-nothing mentality pervades society.
Paper money promotes the “quick buck” syndrome like narcotics peddling and hookers on the streets. Hookers, incidentally, were widespread in the Weimar Republic in Germany in 1923 because the women had to sell their bodies for food for themselves and their families.
In a paper money society, the social order visibly deteriorates. The morality of the stable gold standard gradually changes to the amorality of fiat. Few people see the cause and effect, and the politicians try to legislate human behavior. They always fail, as the system is overrun with jails and prisons.
Fiat promotes an illusory reality where non-substance like financial speculation and gambling replaces the substance of industrial production and long-term value. When consumption surpasses income, as the government and the politicians promote, distorted human emotions replace stable behavior. Social breakdown increases, and real values are forgotten.
Prices of labor and craftsmen escalate beyond all reason when there is never enough money. Service repairmen charge fees like medical doctors.
When labor and supplies are valued in fiat, everything becomes distorted. In the final stages of hyperinflation, there is no anchor to sanity and common sense.
Paper money expands consumption way beyond income. This eventually guarantees debt collapse and social breakdown. The foundation of the household collapses and the middle class is destroyed. Paper money is an illusion because it is non-substance and can be created by the government to infinity. When the people accept numbers on green strips of paper or computer symbols for money, they accept illusion for reality. They accept non-substance for substance. Real money (gold and silver) comes from the earth and human production. It is no illusion.