Inflation is a word we hear lots about. Not least of all because every month, the government uses the term to gaslight many of us into believing that because the inflation rate is dropping, we will once again be able to experience a life that everyone can afford.
Unfortunately, it’s a con and for as long as inflation of any kind exists within an economy, prices will continue to rise, and they certainly will not fall.
The way that money works today is an even bigger con. Not least of all because Money doesn’t have any value of its own.
Yet we have been conditioned to believe that everything in life has a monetary or financial value at its essence or core.
Money is a unit of exchange and nothing more.
But we have been led to believe that money or currency is the only thing that has value. And that everything that once had real value, doesn’t have value anymore.
The Money system is corrupt. We live and exist in a Moneyocracy.
This Moneyocracy is controlled by private interests rather than governments (As we have also been deliberately led to believe). And the most rotten part of the whole deal is that those in control of money don’t borrow money or sell anything to make money when there’s a shortage.
They simply press a button or quite literally go through the process of printing more.
Money is quite literally created from nothing.
The Moneyocracy is the closest thing you could have to the whole economic system being one giant game of Monopoly being played with the entire World as a board. With the only difference being that the lives, wellbeing and futures of real people are involved.
The money myth is a problem for anyone who:
- Doesn’t understand it, and
- Doesn’t have a constant flow of money finding its way to them beyond what they can themselves physically earn
For those who don’t understand The Moneyocracy, money is a problem. Because the creation or printing of money devalues the money that already exists.
So, anyone who relies on their earnings or what they are given every month and doesn’t have assets or property that they themselves fully own, will then find that the value of their money goes down whilst they sleep. Because someone has created more of it.
The ‘ad hoc’ creation or printing of money means that the value of the money available in proportion to property and assets available that accumulate exchangeable value has automatically gone down.
We could easily go down a rabbit hole here, and those who gain from the way that money works would happily push us down one by suggesting that the money system isn’t that simple.
No, the money ‘system’ isn’t simple. And it’s because the money system is deliberately complicated that the unethical behaviour that underpins and drives it can be hidden as easily as it is.
The money in circulation IS devalued every time that the government borrows, banks lend, financiers speculate in some way and the whole system ends up with more.
Let’s look more closely at the detail to see how the creation of money devalues the money that you earn and the money that you already have:
How money Printing effects the money that lower earners and those without property and assets of their own have:
Let’s say that everything that has value which increases such as property, resources, assets etc, always has a fixed value.
We will call these Value Accumulating Goods, Resources and Assets (VAGRA)
For the purposes of this example, we will say that this list doesn’t grow (As we are looking at the role of money and we will look at VAGRA elsewhere)
Let’s say that today, all of the VAGRA available in the World is worth £200.00 and there is also £200.00 in money in circulation that directly corresponds to it.
Of that £200.00 available today, you hold £1.00 of it in your pocket as cash or in your bank account as a digital entry on your online banking app or a monthly bank statement.
At 1am tomorrow morning, the government ‘borrows’ another £100.00 which it will tell us is being used to pay for public services or similar.
Myth Buster 1:
Banks do not lend out money that they have piled up or that they hold for other ‘customers’.
To lend the government this ‘new’ £100.00 means the banks create or print that additional £100.00.
The new or additional £100.00 is then added to the money in circulation so that there is a total of £300.00.– including the £1.00 you possess.
Myth Buster 2:
The value of all the money in circulation today is not tied to anything with real value.
What many don’t realise or see at this point is there was no change to the amount of VAGRA whilst the amount of money in circulation was extended by 50%.
This means that in direct relationship to the VAGRA that exists – which very few of us own, there is now £300.00 that corresponds to it, instead of the £200.00 that was there only today.
In one moment, whilst you were sleeping, the face value of the £1.00 you possess, hasn’t changed. But the true value or purchase power of the £1.00 you possess has dropped by 1/3 (a third).
Meanwhile, the face value of the VAGRA that the few and the elites own has just risen by 50%.
Please Note: Technically speaking, if an economic system was working without constant manipulation, the value of the money in circulation would ‘naturally’ grow as assets and resources are added. However, there would also be ‘natural’ loss, as assets are destroyed, become unusable and are replaced or resources are depleted.
However, FIAT or the money system that we have today, bears no relationship with a system where money or currency directly tied to the ‘real value’ in ‘the system’. That’s why it was always destined to hurt some and not others by being out of balance and why it was always going to go wrong.
The impact of ‘new’ money that isn’t linked to existing ‘Value’
The additional money that is created from nothing has knock on effects in many ways.
Not least of all because every financial transaction where goods, property and assets are concerned is pushed up. Before the next part of a very big problem begins to unfold.
Myth Buster 3:
Businesses now charge more than they need to, to increase their profits. Not because they have to. But because they can.
Yes, businesses of all kinds really do believe that it’s ok just to push prices up and use the news and narratives that politicians survive on to justify price rises that very few of us can actually afford.
The BIG problem is that this process of profiteering is also accumulative and with everyone in unnecessarily long supply chains adding more to already artificially inflated prices, the real cost of everything is significantly less than any end customer is required to pay.
Prices rise. That means the government and everyone else needs to print more Money, with the net gain or benefit from all that printing going to the same few and the elites who own everything.
Worse still, these are the same people who are charging all of us massive amounts of interest for mortgages, credit cards and other forms of borrowing money that they didn’t even posses in the first place. Before they pressed a button or switched a printer on and then gave it to us in the form of a loan.
The Truth IS Stranger than Fiction
The whole situation seems incredible and hard to believe. Because money does appear to buy things when we use it.
However, many regrettably still believe that governments, big businesses, banks, financiers and the people who own or influence them can be trusted to do the right thing for everyone. Rather than doing the right thing just for them.
Myth Buster 4:
Money flows to those who control it. Money flows to the top.
We have a hierarchical or top-down power structure. Fueled by the way that money is used to manipulate everything.
Money is at the heart of everything that is wrong with the way that the World works today.
Our Ignorance is Their Power
The biggest problem we have is that so many of us don’t understand how money really works.
To a certain degree, our governing and political classes also don’t understand how money works.
Where they do, they have completely lost sight of what printing or creating money means for those who don’t have a lot of it.
Because printing money it is an easy way for politicians to appear to solve problems, and when it comes to winning elections – to make it sound like they are doing good.
When politicians being seen to be doing good means more and more of us are having an experience which is very bad, it should be clear that the system is broken, is unsustainable and is getting nearer and nearer to a complete collapse.
In Our Local Future, People are the ONLY Economic Capital
We recognise that People, Community and The Environment are far more important than profit, power and influence for the few.
Money is a tool. Not a reason.
People, Community and The Environment are the reason that creates an incalculable number of benefits across every part of life.
Because an economy can only be Fair, Balanced and Just, when it is unwaveringly focused on doing the right thing.
Adam Tugwell 
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