eco 101
1....
Unless you understand the following ,
it is difficult to properly understand the current international monetary system .
most of our class s eco guy s have no clue how this process works ,
....yet this process is in place .
Any nation that has a Central Bank is NOT a sovereign nation .
Any nation that has a Central Bank is NOT a sovereign nation .
Any nation that has a Central Bank is NOT a sovereign nation .
accepted ..../ not accepted...
so , USA , India , China are not sovereign nations .
I repeat , Any nation , even EU , that has a Central Bank , is not a sovereign , nation.
2....
The FRS USA s Federal Reserve (central bank) System
controls the emission of money in all the 200 nations.
( and thus can dictate cost of , quantum of, direction of, economic growth in any nation ) .
accepted ..../ not accepted...
Why you or I , or our PM Mr Modi is short of money for investment ,
it is coz India is not a sovereign nation ...
.FRS decides and controls us .
3...
The FRS extracts ( ?? 20% plus ) most nations' wealth every year for itself ,
without having to send its US army.
accepted ..../ not accepted...
4....
FRS is private owned .
Till you invest many hours on debating whether FRS is private or USA Govt controlled ,
this issue seems confusing .
Effectively FRS is independent of USA Senate and of USA president .
It acts ONLY in interest of its private owners .
accepted ..../ not accepted...
5..
If you have even 1% confusion on above 4 poiunts ,
please debate with me ,
else you cannot predict or understand our world .
Confirm for each of above , accepted ..../ not accepted...
Ravi Garg
July 2015
Six new RGarg axioms of economis :
ReplyDeleteAxiom 1 ... 95 % of money in economy is created via bank debts , and despite repayments of loans , total amounts of bank debts eg money in economy keeps expanding ( as a dysfunctional way to meet money needs of expanding economy )
2... the interest payments expand geometrically , as , despite loan repayment , debt money in economy is not destroyed even reference to the loan fully repaid !
3.... I do not have any loan or interest liability , yet , 40 to 70 percent of my monthly expense in groceries etc goes towards interest payments, - the truck who delivers pays interest , the farmer pays int. for seed or fert . , the garment shop I buy from pays int . etc .
4.... due interest on frb fractional reserve banking frb money the free market a la Adam Smith gets greatly distorted and the prices of goods give false signals to employers or producers .
5... price inflation may happen BOTH when there is increase in availability of funds and when there is decrease in availability of funds . Price inflation can also be analyzed via loss of purchasing power that occurs under many circumstances , including due impact of interest , theft of money due corruption , etc.
6.. the quantity of money and in which sector s it is used in an economy , is significantly controlled or managed by IMF . the national govt. s do not have sovereign authority in such important matters..
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sermon from and to Marie Antoinette s of the world .....
ReplyDeletethe rich 2% enjoy the shift from bread to cakes , while the rest scream yearn for bread.
even us 2% ers shall face doubling of grocery prices every 5 years or so @15 % ,if I need 25k rs monthly now then in 20 yrs I shall need rs 100 k monthly , if my eqvt. Hse rent is now rs 25 k , same increase in rent to 100 k monthly ..... just for groceries , I need fixed deposit of rs 2 crores, interest @ 6% p a , less 20 % tax gives rs 80 k monthly just for plain groceries , no car, etc. to pay for two persons in about 15 years from now . are we in position to plan for this ..and we are the 2%ers .this may or may not include elec water local travel ..
so what should the others do to handle old age with inflation at 12 to15 % average ?
you I we others want to work but there is no job and no capital ..the situation is much much worse in small towns village s where older people our age are retired or forced to retire with no children nearby to help!
with increasing productivity , esp over last 50 years due fertilizers, computers , ... yet no income for retirees ...
what is wrong ?
where does inflation come from ? where does purchasing power vanish ? why no capital or jobs in small towns villages?
think think
act act