American dollars are disappearing.
The greenback is essentially a debt-note. When you grab a dollar as it passes by you, its on its way from someone who owes a debt to someone who is owed money. When we see the total number of dollars dropping quickly, despite the fact that the Federal Reserve is offering zero-percent interest to banks, it means one thing.
Debts are getting paid back, and no new debts are being taken out.
In other words, capital projects are not getting off the ground, and whatever money people have, they are putting towards their debts.
The banks are, of course, furious. Larry Summers is pushing Congress right now for a brand new round of “stimulus”. In other words, Summers wants Congress to borrow $200B from the banks who are not managing to lend to the rest of America.
See, when you aren’t borrowing money, and when you are paying back your debts, the banks are beside themselves with panic. They have no relevance in such a situation. They need you to borrow and borrow and borrow.
But what’s causing them an even greater panic is that their entire program of devaluing the dollars in your wallet through money-printing and therefore inflation, isn’t working. If capital projects were borrowing money, if people were spending it, if people were not just paying off debts with whatever they were scraping together, the bankers would be happy because we would have inflation. And inflation would mean that the dollars in your pocket lose value as the dollars in the central-bankers-books gain value.
But instead, their funny-money is sitting around unused in the big banking system. Housing prices continue to fall. Consumers arent’ spending money. Americans are paying down debts. And smart banks are padding their walls with money, to make sure they have some if people come demanding their account money. All this means that money isn’t flowing into the economy. Its disappearing.
And so the dollar in your pocket is becoming more valuable (bad for government central bankers). The price of the house next door is coming down (bad for the bankers that own all the real estate). The planned for inflation isn’t materializing (ruins their plans). And people are getting out of debt. (Hysteria!)
