Despite constant attempts to prop up the system through Central Bank policy interventions, the built-in doom loop of fiat currency debt systems literally guarantees their inevitable collapse. The stability of our global fiat currency debt system relies on a constant erosion of the value of money. It’s called INFLATION and it’s typically presented by mainstream financial media as something that simply exists in an economy as a normal component of any monetary system. This narrative is false.
Frankly speaking, inflation is created by fiat currencies and the monetary authorities that control them. This article outlines the truth behind inflation and its essential role in sustaining our credit-dependent fiat system and economy. The very design of fiat currency systems is that they sacrifice the many in favor of the few.
What You Will Learn from This Article:
- The crucial role of inflation in sustaining our credit-dependent economy
- The impact of accumulating debt and the dangers of interest accrual
- Traditional monetary policy options for expanding credit and their drawbacks
- Why inflation is used to reduce the burden of rising debt so that more debt can be created
- The sacrifices made by savers and common workers in the face of inflation
- The impending collapse triggered by rising global risks and inflation
- The unsustainable nature of our current economic paradigm
- How Our GCR will eliminate all of the above
The Problem with Debt
Fiat currency debt systems are inherently flawed and destined for collapse. By relying on constantly increasing levels of debt to sustain themselves, these systems possess a built-in self-destruct mechanism that cannot be deactivated. The constant need for credit expansion (debt) and inflation to keep the system functioning creates an ever-growing burden that eventually becomes unmanageable. As debt accumulates and interest accrues, the economy and financial system reach a tipping point where borrowing becomes unaffordable, interest rates skyrocket, and the bubble bursts.
One of the major issues with debt is that it accumulates interest over time. The more we borrow, the more interest we owe. If our income doesn’t increase accordingly, there comes a point where all our extra money goes towards paying off debt, and we can no longer borrow more. This situation leads to a recession, where the economy slows down, and people struggle to make ends meet.
Policy Solutions and Their Drawbacks
To overcome the limits of credit expansion, there are a few policy options available. The government can borrow large sums of money and distribute cash to households. However, this leads to more government debt and borrowing constraints in the long run. Another option is for the central bank to lower interest rates, allowing consumers to refinance old debt at lower rates. While this can provide temporary relief, it doesn’t address the underlying issues. But inflation does!
The Role of Inflation: It Is Deliberately Created to Allow More Debt Creation
The most significant “solution” used by Central Banksters and Elitist policy-makers for continuing debt creation and keeping the fiat system alive is inflation. By increasing the amount of money in circulation and pushing up prices, inflation reduces the burden of existing debt. Let’s take the example of a home mortgage. Over time, as wages increase due to inflation, the fixed mortgage payment becomes a smaller portion of income. Inflation essentially erodes the value of money, making it easier for borrowers to pay off their debts.
Financial Sacrifices are Pushed Onto Everyday People
While inflation helps debtors, it comes at a cost to savers and common workers. Savers see the value of their savings diminish over time due to inflation. As interest rates are lowered to promote borrowing and spending, savers struggle to keep up with rising prices. Additionally, inflation forces common workers into higher risk investments to make up for the eroded value of their labor. This puts them at a disadvantage compared to the wealthy, who have better access to high-value assets.
Diverted Capital and Productivity
The constant need for higher-risk speculation to keep up with inflation leads to a misallocation of capital. Instead of investing in productive areas that boost economic growth, capital flows towards speculative risk markets. This results in a neglect of vital sectors like infrastructure, which ultimately harms the overall economy. The pursuit of short-term gains takes precedence over long-term stability.
The Coming Collapse
As global risks increase, borrowing becomes more expensive, and interest rates rise. This leads to a decline in borrowing and a spiraling economy. The effects of rising inflation become more pronounced, causing a breakdown in the system. The inflated speculative bubbles burst, leaving behind a trail of economic devastation.
It is an Unsustainable Paradigm
The current paradigm of a steady and sustainable economy is built on fallacies. Globalization and financialization, which were once deflationary forces, have reached their limits. Real-world inflation is eating away at discretionary spending, while the bursting of high-risk, speculative bubbles further erodes wealth. Our system is on the brink of collapse, yet those in power have no sustainable options other than doubling down on their own failed policies.
Our GCR Solution: A Financial System Reset Employing Asset-Backed Currencies
In light of the inherent flaws and impending collapse of our current fiat currency debt system, it becomes clear that a radical transformation is necessary. Enter the reality of a Financial System Reset, which advocates for the implementation of an asset-backed currency system, under a Global Currency Reset (Our GCR).
Monetary Value Preservation: Asset-backed currencies form the foundation of a robust and stable financial system. Unlike fiat currencies, which can be artificially created or destroyed, asset-backed currencies derive their value from tangible assets, such as gold or other commodities. This intrinsic value provides a solid basis for currency stability, reducing arbitrary inflation or deflation.
By keeping debt in check and eliminating the need for constant inflation, an asset-backed currency system ensures that purchasing power and value remain preserved. The erosion of currency value, which burdens savers and common workers in the current system, is mitigated, fostering economic fairness and stability.
Fair Trade: Furthermore, an asset-backed currency system operates on a level playing field globally. Cross-border trade and currency exchange rates are based on genuine value, promoting fair and transparent transactions. This equitable framework facilitates international commerce, allowing nations to engage in trade without the unfair advantages or disadvantages imposed by fiat currencies.
Fair Wages: One of the significant advantages of an asset-backed currency system is the equalization of living and working wages between nations. This addresses the issue of forced immigration and eliminates incentives for slave labor manufacturing. By aligning wages across borders, the system promotes a more just and sustainable global economy, reducing exploitation and inequality.
No Need for Central Banksters: Another compelling benefit of a Financial System Reset with asset-backed currency is the elimination of the need for central banks and their monetary policies, which often result in unethical wealth transfer. In this new system, the power of central banks is curtailed, as the stability and value of the currency are derived directly from tangible assets. This decentralization fosters a more democratic and accountable financial system, free from the manipulation and concentration of wealth often associated with central banking practices.
In conclusion, a Financial System Reset with the implementation of an asset-backed currency system, such as a Global Currency Reset (GCR), offers a compelling solution to the inherent flaws and self-destruct mechanism of our current fiat currency debt system. By introducing such a transformation, we can establish a financial framework that ensures stability, preserves purchasing power, promotes fairness in international trade, equalizes wages globally, and eliminates the unethical wealth transfer perpetuated by central banks.
