“A Tale Of Two Banknotes”
I have sitting on my desk encased in frame two German
banknotes, one from 1910 and the other from 1923, reminding me of the awful
fate of those who refuse to face reality.
In 1910, the 1000 Mark note was made of finely engraved linen.
It was also worth and could be exchanged for about 12 ounces of pure gold.
The 1923 note sitting next to it is made of cheap, thin
paper stamped 50,000,000 (50 Million!) Marks. It’s
only printed on one side, as ink then was too valuable to waste.
-- 1000 Marks in 1910 could sustain a person’s living
expenses for a year.
-- 50 Million Marks in 1923 couldn’t buy you a single
cigarette.
What happened in those short 13 years?
Wars, fiscal mismanagement, stifling regulations and
reparations caused the collapse of the German economy and its legal tender.
The exact same conditions exist today in countries across
the world, especially the United
States - minus the war reparations. However,
if we substitute our interest on debt in place of war restitutions, we’re in
even worse shape than Germany
ever was.
Germany
tried to solve its problem by simply printing money. But more
and more had to be printed, because the value of the currency was in freefall.
With nothing backing up all the paper being pushed out, it fell to its
intrinsic value – zero.
Without exception, every single country or nation that has
tried to print themselves out of debt, or mint
themselves out with debased coinage, has failed.
From the ancient Egyptians, to the Greek City States, to the
Roman Empire, to Imperial China, to France, to Japan, to Germany, to Zimbabwe.
But we’ve gone one better than the rest. We no longer have
to print money – it’s now created with electronic entries. Virtual money
created out of thin air.
Think about it. In 1960, $50 would be enough for a nice
apartment in a clean neighborhood. $100 and you could be living large!
Today, $50 wouldn’t get you a flea-bitten mattress in a
dirty shack, much less a well appointed place to live.
When everyone is a millionaire, no one is a millionaire.
Face it folks... the writing is not only the wall, it's
being spray painted in huge multi-colored letters!
Sleep well…
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