Last updated on July 16th, 2015
Centuries ago, Thomas Jefferson apparently gave the American people this warning:
“If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around them will deprive the people of all property until their children wake up homeless on the continent their Fathers conquered.”
Central banks (all over the world), are apparently using this method of conquest…
They have the power to create as much ‘money’ as they want. I put ‘money’ in quotes because apparently ‘money’ is what they say it is — currently printed pieces of paper and invisible electronic digits. The money is really nothing tangible. HOWEVER, they can use this so called ‘money’ and their acquired power to transfer into REAL assets using the following method:
The central banks flood the economy with paper and electronic ‘money’. Because of this, prices of stocks, real estate, and other things rise (soar during bubbles).
Individuals and businesses get lured into the markets and put up their REAL assets (tangibles) as collateral for loans that they use to invest in the markets and elsewhere. People become overjoyed seeing their stocks rise during this phase. (Many or most people actually suffer during bubble economies because prices rise while their pay doesn’t keep up with rising prices – but this is rarely pointed out.)
When ‘enough fish have taken the bait’, the central bank will slow the flow of money while the well connected get out of the market(s). The nation(s) slides into recession as money gets sucked out of the economy. Foreclosures are everywhere allowing banks to get a hold of REAL assets like houses, businesses, and others.
During any debt restructuring (Greece for example), the central banks demand ‘structural reforms’ – essentially taking over the nation with no accountability from the people within. They demand privatization of things like public land, infrastructure, and utilities so that they can essentially be taken over.
Once the bankers own and control what they want during this round, they’ll let out an amount of money to flow through the economy again.
Repeat the cycle.
This same ‘trick’ has kept the wealthy and well connected on top for centuries. We should have taken heed of the warning from Thomas Jefferson as quoted above.
Note: The Jefferson quote (above) is widely attributed to Thomas Jefferson. With that said, there is some speculation that he himself did not write it. That aside, the words ring true, and regardless of whether or not Jefferson himself uttered the words, the truth has a certain ‘ring’ to it…
The thing is, it seems that it’s way too late to heed his warning. The asset bubbles (and debt bubbles) are peaking as never before on the planet. It seems only logical and inevitable that the last phase is about to be upon us, and it could be a crushing blow.