Boom and Bust Cycles Are Primarily Due To Fiat Money

Make the Masses focus on other factors so they don’t focus on the Fiat Money Factor

The ploy from the day we got of the Gold Standard has been to redirect the masses attention. The masses are directed to focus on they could buy with all this money. In other words, Fiat money appears to be incredibly valuable, even though it has no intrinsic value. 

To cement this illusion, a small segment of the population is paid fantastic salaries and their flamboyant lifestyles are broadcasted for everyone to see.   The goal of creating divisions in society is to make one group of individuals wish for the lifestyle that this other group is living. The more divisions you create, the greater the cover; in other words, these divisions are created to ensure that the masses forget the real task at hand. This has worked very well, for almost no one today questions Fiat.  Their main agenda today is to make more money so that they can lead a better life; little attention is paid to the fact, that they have to work harder and harder for less and less. The money they are paid is constantly being diluted; this is the true defintion of inflation. An increase in the money supply and not an increase in prices. Rising prices are only the symptom of the disease.

Playing Devils Advocate

Our idea would be to get people to forget that money was backed by nothing and not real; instead, the objective would be to make them focus on trying to get more and more of it.  In fact, this is exactly what the top players have done; the masses no longer question the validity of money; they just want to make more and more. This is a long topic, but it can be summarised in the following manner. Fiat will not be replaced soon because most people do not believe that today’s money is fake. Instead, the focus is on gathering more and more. Therefore it is quite likely that the US deficit will top $90 trillion dollars before the masses start to pay serious attention to what is going on and even at that stage it is only a possibility and not a certainty.

If the masses do not view Fiat money as fake, one can conclude that until they do, the markets will rebalance after every strong correction and eventually rally to new highs as new loads of hot money are poured into the financial system.

Game Plan

In such an enviroment every crisis has to be viewed through a bullish lens, especially stock market crashes. The strong the correction, the better the opportunity.

This post was published on the now-closed HuffPost Contributor platform. Contributors control their own work and posted freely to our site. If you need to flag this entry as abusive, send us an email.
CONVERSATIONS