Marshalsea Prison: Financial Repression & The Fall from the Grace of God

JohnQuincy ^ | 06/11/2011 | WizKid

[wizkid]

Not with a bang but with a whimper that is how it shall end for the West: No Weimar like inflation, no Black Mondays just the slow drip of our wealth trickling away. Like frogs in a pot of slow boiling water, our citizens gratefully slide into the warm bath that will slowly cook them.

Since recorded history, the brightest minds in the West have sought the Philosopher's Stone, a way to turn junk into nothing. In modern times, our debt addicted elites turn to Financial Repression for their salvation. To the financially responsible, recent central bank actions appear insane but to a common street junkie their actions make perfect sense. In order to understand what is going on, JohnQuincy kindly asks readers to put on their raincoats and follow me down the wormhole into the mind of a debt junkie.

[wizkid]

If you know how to spend less than you get, you have the Philosophers-Stone. -Ben Franklin Quotes from Poor Richard's Almanac

The U.S. government has a technology, called a printing press (or today, its electronic equivalent), that allows it to produce as many U.S. dollars as it wishes at no cost. Ben Bernanke

This is the way the world ends. Not with a bang but a whimper.-TS Eliot - The Hollow Men

[Prospero]

That was worth the overview. I could spend the rest of weekend studying the subject, but I “gotta feed the monkey.”

[wizkid]

Overview of the Post

Financial Repression is a technique used by governments to fleece savers/investors in order to reduce debt without actually paying it off. It is an inflationary stealth tax estimated to cost 4% to 6% a year. While this may seem like a small amount, at this rate, the value of any money you hold will decrease by roughly half over ten years.

This technique was used after WWII to get out from under a huge debt burden by the United States. Our government is currently trying to use this to finance itself. Unfortunately, the post WWII paradigm has changed so relying on this technique will result in disastrous consequences.