It's All Just Funny Paper!
Before moving into this article, I am recommending that you get and read How Privatized Banking Really Works, by L. Carlos Lara and Robert P. Murphy. This is a must read for everyone.
We live in the richest nation in the world and sadly at the same time we have the highest rate of financial illiteracy in the world. This state of being has existed for the best part of 100 years. If you ask 100 people randomly to define money, they couldn't. If you asked them the difference between money and currency you would most likely get a dead stare. Ask them about inflation, fractional reserve banking, private property, trade, the free market, banking and government interference with free market, very few could explain any of it. I can tell you if you read this book you will be able to answer all of this.
My calling is to help the Middle Class learn strategies that help them create financial independence. This message is both counter intuitive as well as contrarian to much of the utter nonsense touted by financial periodicals and talking heads on financial networks. The only thing you need to know about this group is they are paid by Mutual Funds and Wall Street players. All spend their advertising dollars (12b-1 fees) with the financial pundits and writers. It's hard to be objective and make damning commentary against those who pay your salaries. But this is a discussion that deserves its own article.
The strategies I promote have all been used by the wealthy for generations, even banks have used these strategies. Yet the Middle Class doesn't get exposure to these strategies. The financial services industry has long separated the classes by the services they provide. The discussion of financial literacy education is starting to become popular, yet sadly that promotion to the Middle Class is simplified to the same old strategies the Middle Class has been pitched for decades. The core issues never exposed are how money and currency differ and how inflation is a hidden taxation the government uses to control economic growth.
You and I would spend decades in prison for counterfeiting, but our government is allowed to print money at the will of the FED. Let's take a look at what George Washington wrote in 1789:
"We may one day become a great commercial and flourishing nation. But in the pursuit of the means, we should unfortunately stumble again on unfunded paper money or any similar species of fraud, we shall assuredly give a fatal stab to our national credit in its infancy."
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Washington was referring to the disaster from extensive printing of the US continental. (their form of fiat currency).
"Money is simply used for exchange purposes only. As such any increase in the money supply produces no social benefit whatsoever. A large increase in the money supply, particularly when occurring in our modern financial system causes distortions of the entire economy besides driving up prices." -----From How Privatized Banking Really Works.
The expansion of inflation is directly related the expansion of the money supply. Thus, when government expands stimulus, they increase the money supply. When government expands money supply for its own spending purposes it creates inflation. This inflation is an indirect tax on the citizens of the society. Through regulations that same government creates an indirect taxation on businesses. This is not an occurrence, it's a strategy and is created with intent by the government.
So, what does this mean for you? Well, there are sound money strategies that can save you from government interference in your pursuit of financial independence. There are simple steps that remove you from the consequences you have zero control over. There is no reason to keep doing the same thing over and over and expect a different result. You must change. Waiting for the government to change or the society to change won't work. The individual must first create change, and then possibly that change creates momentum which can push up against the power infrastructure. Betting on yourself to create financial independence for you and your family is the single most powerful answer. Let's have a conversation and discuss how you can create financial independence.