Demotivator - Inflation

Lol

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I disagree. Just because Zimbabwe has such problems, it doesn't mean that all currencies will fail.

Inflation is caused simply because there is a higher increase in money supply than the increase of output.

Governments use for example printing of money to gain more funds, which causes inflation.

If for example a country's economy has 100$ and produces 100 apples each day, then each apple will cost 1$. But if the government is always in a budget deficit because it spends more money than what it earns for taxes and other sources of income, then it might consider to either make a debt or print money. If the government prints for example 50$ and spends it, then the economy will have 150$, but if it still produces only 100 apples, then the price of apples will increase to 1.5$. If the government keeps on doing that, then there will be a lasting hyperinflation, and one day apples might cost even 100$ per piece.

If money supply stays the same, and the country's output falls, then this will also cause inflation.

When Soviet Union has collapsed and Russia shifted from socialist to capitalist model, privatising most of its state owned companies, shifting from a planned economy to a free market, this resulted in a fall of Russian GDP by 40%, which was one of the reasons why there was a hyperinflation of over 600% lasting a couple years till 1994, with its peak at 2333.30% inflation in December of 1992, and an inflation of over 200% till the end of 1995. Millions of people lost all their savings and fell into unimaginable poverty.

In the case of Zimbabwe, due to bad government policies, Zimbabwe's output decrease considerably in addition to massive government spending which was countered by money printing. Obviously this has led to a hyperinflation.

Money isn't the problem It's is the bad decisions that governments make that cause this problem.

I think money is actually very convenient. It makes transactions very simple and I can't imagine a world to work without money. At least not in the next 100 years.

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Kenzu wrote:Money isn't the problem It's is the bad decisions that governments make that cause this problem.

I think money is actually very convenient. It makes transactions very simple and I can't imagine a world to work without money. At least not in the next 100 years.

Money is the PROBLEM.

Money is one of the many problems we have today and also help keeping this world in WAR, hunger, greed, power and the illusion of free speech.

The fact is Democracy is Dictatorship by giving the people the illusion that they have a say in how their country will be lead by letting them VOTE on people to sit in POWER and do well what they want just look at Bush and his wars based on lies and false reasons, or in Denmark where the voting for the Lisabon treaty never came to the people EVEN tho it clearly state in the Danish Constitution of Denmark that we as a nation and country can't give up our rights to any other Nation or government such as EU yet by accepting the Lisabon Treaty Denmark today take 80% of our rules and orders from EU which is clearly not right. The fact is Democracy only gives you a handful of selected parties or people to VOTE for these people and parties all claim they work for something when in reality they all work for the very same thing always have and always will, no matter who you vote for the result in the LONG run will be the same.

Money is just a tool, a tool the real people in power the ones who ACTUALLY dictate how a country will live or die uses. The problem is as long we have liberalism and MONEY as long will we be in the mercy of a few people. If anyone cared to study the USA fight for FREEDOM against the British you will find many things but one of them is the fact they wanted out of England's Central Bank system because of the fact its CORRUPT and the way it WORKS is to keep people AS SLAVES. As long we have money as long as we have the Central bank system then will we be slaves.

Everyone think the minute that all depth are payed out we will see a new and better world problem is THEY ARE WRONG.

1. The way the Banking system works today means DEPTH will never be able to be PAYED in FULL.
2. As long the governments and people support the banking system will they be slaves.
3. The second someone manage to pay every single DEPTH owed that SECOND will every single country using the Central Bank system go BANKRUPT the system CAN'T handle that DEPTH is payed.

Reason is simple the Banking system of today thanks to clever people and the governments help are build on 1 thing only.

MONEY = DEPTH.
DEPTH = MONEY.

As long there is DEPTH as long will the banks generate money.

If all Depth disappeared then the banks will not BE ABLE to produce money.

Another fact is that the country own MINT only produce a max of 5% of the money produced a day. 5% you ask me and think i must be stupid because the Local Mint should be the place where money is made and produced for the country.

Yes people every country using the Central bank system can the Mint not produce enough money to cover what is really created only 4 countries in the world has a Mint that manage to produce 5% of the daily money production.

Now you ask me where does the last 95% comes from.

Thats easy they comes from the DAMN BANKS them self.

Banks make new money so fast that the Mint can't follow and of the money they produce the only REAL VALUE in the deal IS WHAT YOU PUT ON THE PAPER DEAL.

Meaning if you put up your House, Car, Child, Wife, Husband or summerhouse as a guarantee that the bank will get their money back then those items ARE the only things with REAL value. The money you get has 0 Value, they are worthless they do NOT EXIST.

Now you ask me how can that be true well here is a fact, The money the banks make are Electronic the Bank do not have the money in their vault at any time, actually in most cases do they not even have enough to cover their own deals.

The central bank system works like this.

You start a new BANK you go to the Central bank gives them $1.111,12 REAL cash thats now what your bank has and thats it.

Well for those $1.111,12 are your new bank allowed to make a loan to someone in the area of 10.000$ 9 times MORE than what YOU ACTUALLY HAVE.

The match is simple lets say that the person who loaned the $10k give them to someone else who also use your bank and lets keep saying that the money do not leave your bank's at all then out of a start value of $1.111,12 can your bank generate in interest 90 times thats almost to $100.000 and at no time is the $1.111,12 toughed meaning they still stand in the Central bank but your bank is having no real money no real way to give the customer their money if they asked for them to be payed out in gold, paper what ever.

Now because your bank is part of the Central Bank system which is a closed loop then the result will be the same from a real value of $1.111,12 are there created $100.000 interest on MONEY the bank and central bank never had.

The fact is the thing the banks fear the most is a RUN on them. If every person in the world ran into their banks demanded everything they have to be payed out and yes included in that also the money you have left of the loan then every single bank in the world would close, as the fact is the Mint only produce up to 5% of the money generated each day and when a run comes there will never be enough money to go around.

The fact is in England did they try to get out of this system they failed, USA triede but the third of fourth president i recall it was sold them out what they fought for against the Britain's where all for not when that president accepted the Central Bank system.

Facts is Money is just one of many things we need to get rid of in this world as it brings nothing good, it only helps to keep people slaves, ignorant and stupid.

Sorry I stopped reading cuz I thought Ian posted this long post.

Nobody reads those haha

It has nothing to do with the Central Bank or Government.

It is all about People and Greed and the Have's protecting their position from the Have Not's.

Do away with money and they will just find something else.

Nimras I like your post!

There are two main ways how money is taken away from people: by taxes, and through inflation caused by money printing. This funds the government, and if the government provides goods and services which are of less value than what they collect from the people, then it's not worth it.

Manleva wrote:It has nothing to do with the Central Bank or Government.

It is all about People and Greed and the Have's protecting their position from the Have Not's.

Do away with money and they will just find something else.

Offcourse it has Manleva.

Facts is as long we use a Central Bank system and the Governments allows it then we will be in deep shit.

Thing is the People CAN stop this but they do not as they still believe ignorant as they are that the dictatorship named Democracy works for them and that the people in the Government will do whats best for the People and the Country when the facts are sadly very different.

The Have's and Haven's NOT is a minor thing.

As many of those who HAVE'S who PROTECT it actually HAVE'S NOT. Why easy because of the fact that they are not the true people in power.

Yes a new system will come if we remove the old, thing is if we should change the system we need to make sure the system we change to is a better one else we will have learned nothing and gotten nothing.

But tbh the only way things can change and things can become better is by the masses/people wakes up and see the truth around them the fact they are slaves, the fact they have not rights, the fact they have no freedom of speech, the fact the governments do not do whats best for them or the country, the fact that most of the rich people or big businesses do not care about them, the environment or anything else but them self, the fact that as long they stay blind then they will stay in a dictatorship which Democracy is .

Ohh and btw if we manage to do a run on the banks in all countries using Central Bank system what you think will happen?

I see only 1 outcome banks cracks all money goes away and we have a new problem what to do now if people stop there and say fine we did it and keep democracy and well much of the systems we have today will the run be for nothing but sadly people never learns.

The fact you think it has nothing to do with Central Bank and the Government shows you have much to learn.

Yes they are not the only problems, neither is Money but since this topic is about Money then atm the main problem and the biggest issue is for a fact the Central Banking system and the GOVERNMENTS nothing BUT.

Kenzu wrote:Nimras I like your post!

There are two main ways how money is taken away from people: by taxes, and through inflation caused by money printing. This funds the government, and if the government provides goods and services which are of less value than what they collect from the people, then it's not worth it.

lol m8 what you just said there is well just one of the many ways the Banking system and the governments keep you away from whats the real problem.

Who cares about inflation and taxes it has NO impact it has no saying in the real issue.

The fact is as long the Governments help and keep the current system running as long will we see the depth keep growing and growing until the day it has grown to big and we will see a crack a crack that already been here ONCE, the next one will be bigger and so forth will it go until it hits the vent and that moment everyone who has depth will loose everything they put forward as guarantee, for the governments that will be all the grounds they own such as the ground where your apartment is on which means you will loose your home and so forth.

The fact is as long this banking system lives as long can you take your taxes and inflation and shuv it up your ASS as its meaningless it always will be it has no effect on the real situation.

Heck if you have the time this is a good video: http://video.google.com/videoplay?docid=-2550156453790090544&hl=da