The Midas touch of the Financial Matrix proclaims it can turn debt into money. In reality, however, this so called debt-money creates inflation and an unnatural scarcity of money because interest money must be paid on the debts, but no money was created to pay the interest. This, not surprisingly, causes an imbalance between the amount of debt money created and the amount of debt money owed. In consequence, the people, companies, and governments must seek further debt, which leads to higher inflation and an even more unstable money supply as the gap between debt money owed and debt money created is exacerbated. The Financial Matrix has hijacked the world’s money supply, creating a perverse game of musical chairs, a monetary game where debt owed always outruns the money supply, until the exhausted and broke people can no longer service the debt. Another fraudulent boom that always goes bust.
Indeed, George Santayana, the profound American philosopher said it best, “The only thing we learn from history is that we do not learn from history. “ The modern world must learn this lesson – the boom/bust cycles will repeat with even greater devastation, unless debt is rejected as an illegitimate source for society’s money due to its inherently unstable nature.
Debt, in point of fact, is the least stable of all potential monies, for it can be created and destroyed with a simple ledger entry, adding or subtracting to society’s total debt load. In other words, the instability caused by the boom/bust cycle is directly attributable to the instability inherent within the debt-money system. The modern money curse simply cannot end until society refuses to allow the Financial Matrix to casts its debt spells any longer. The failure of our modern economy, in turn, is not a failure of free markets as the communist allege, but rather a failure to demand free market money in the highly centralized cartel banking system, aka the Financial Matrix.
Perhaps 2020 is the year Americans learn the lesson and demand a return to legitimate money, a money which cannot be easily created nor destroyed, and thus have a stable money supply. Bitcoin, Gold, or Silver, could all work because they meet the three functions of real money, namely, 1) a convenient medium of exchange, 2) a consistent measure of value, and 3) a safe store of value. Debt, in contrast, only met the first function but wholly failed the other two and is thus disqualified as legitimate money. Only when our money meets all three criteria can entrepreneurs in a free market enjoy the challenges, the risks, and the rewards of creation, creations that bless society with better products, lower prices, and an increased quality of life, without the fear of another boom/bust cycle hanging over them like Damocles’ sword.