rjaadave,I met redbacka some time ago in brisbane and I can't...

rjaadave,

I met redbacka some time ago in brisbane and I can't imagine his intent as being anything that you suggest, but nevertheless I do think that Hedgejob has a point even if he hasn't communicated it... Understanding how fractional reserve banking works is one thing but understanding the implications of it is quite another and on that point I think HJ is correct in his statement that only a bare handful on this thread have bothered to have a look at it.

In my opinion the entire financial system has been a fraud since the day that central banks and governments (which are basically the same thing) decided to welch on their promise to redeem paper certificates for gold or silver bullion. Added to this theft and fraud is the problem of interest obligations which (in a world where all money is counterfeited bank credits that have been borrowed into existence) cannot be repaid from the money supply in circulation. It's just a mathematical impossibility. So the system is destined to cycle through periods of inflation and deflation with banks calling on the power of the state to confiscate assets when the inevitable deflationary contraction comes around.

Back in the 1800's people understood this very well and in the US they elected Andrew Jackson into office based on his promise to dismantle the American central bank, which he did do. So why don't people still know about this now?? As long as we have something that can drive constant economic growth then people will be inclined to borrow increasing amounts of money for investment, and for eighty years or more the world has had increasing production of every commodity (especially oil) that can contribute to economic expansion... so all anyone on this forum has ever known is inflation. But at what point then would you expect the inevitable deflation???... When the world starts to produce less instead of more base commodities each year... Peak oil was most likely 2005.

The world has been building up debt for longer than has ever been the case before. To think that the next deflationary depression should be equal to or less severe than the 1930's is simply not rational.