Wednesday, April 18, 2012

The Burning Match Theory



I first came across this idea from Jack Straw.  It says that all the economy is like a burning match.  He who holds the match the longest makes the most money.  Unless the flame burns him, in which case he loses all.

The party who first strikes the match stands to make the most money.  As he does not want to get burned he sells his investment to another party who makes the decision to buy it based upon how much money the first party who struck the match made.

Now that the first party is monetized again, they can go on to another match and do the same thing knowing that they will always make money with little or no risk.

The new party who owns the match takes a bigger risk by holding the match long enough to get closer to the flame.  He then sells the match to successive buyers each one taking more and more risk.  Closer and closer they get to the flame.  Till they can feel it.

The interesting thing is that through techniques of mind control, fraud and out right lying the end buyer is tricked into buying the burning match even though there is no match left.  This is what has happened to the public.  Step by step the public has bought into a match where there was no money to be made.  The public is burned.  Ouch!

But the story is not over yet.  Now that the match has burned the public and the public has lost its appetite for the investment, the first party who struck the match buys the burned up, blackened, charred remains of the match.  They spruce it up, new paint, new laws, new names and strike it again.  Once again the process starts all over again.

This burning match would not be so devastating if  the truth were known.  But when the sellers of the match deceives the buyer, it is possible to deepen the loss by selling the match that has already reached its end.

This has happened in the money markets.  Money must be in finite supply, not easy to duplicate and in a form that is easily exchangeable.  When there is money a bank can hold that money for you and allow you to withdraw it at will.

To facilitate transactions banks will accept checks or paper with the signature of the depositor on it.  This allows the owner of the money to transfer it to another party easily.  The receiving party simply shows up at the bank, presents the signed check or paper and the money is transferred or withdrawn by the new party.

What has happened is that so called central banks have cast themselves as everyone's banker.  They have printed their own checks call bills or notes and allowed people to exchange those papers with each other representing the deposits.  Only problem is that the central banks can print as much paper as they want regardless of deposits and they can fractionalize it meaning they can print more paper representing more deposits than they actually have.

One last step in this deception.  All the paper in circulation is created not against deposits of real money but they are made by borrowing against future money or wealth.

So, the papers or checks floating around as money really is not money but only a representation of money.  And those papers are representations of money that does not really exist either on a fractional basis or a borrowed against future money basis.

What you call cash is not money.  It is only a representation of money which theoretically will be made in the future.  How big is that amount?  It is in the quadrillions worldwide and it can never be paid back.  The accounts can never be settled.

Let me add one last component into this nightmare scenario.  Inflation.  Inflation is the method that governments use to take cash out of your pocket.  It is completely invisible.  In some circles if it is invisible it is considered to not exist.  But it is still there.  How do you know?  If you have to pay $1000 for a loaf of bread then you know what inflation is.  Think the Weimar Republic of Germany, Zimbabwe, Argentina, Soviet Union and plenty more.

Solution: One must have cash to pay for things.  But one must also have something that will maintain its value, can not be inflated away, can not be forged, can not be faked, can not be invisibly stolen.  One needs real money.  Gold and Silver are real  money.  Open your free account here.

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