Money from Nothing: A Primer on Fake Wealth Creation and its Implications (Part 1)

[Crewleader]

(March 12, 2012)

by charles hugh smith

What is fraud except creating “value” from nothing and passing it off as something?

Frauds interlink and grow upon each other. Our debt-based money system serves as the fraud foundation. In our debt-based money system, debt must grow in order to create money. Therefore, there is no way to pay off aggregate debt with available money. More money must be lent into the system to make the payments for old debts. This causes overall debt to expand as new money for actual people (vs. banks) always arrives at interest and compounds exponentially. This process is called financialization.

http://www.oftwominds.com/blogmar12/money-from-nothing-pt1-3-12.html

[Warpy]

1. This is absolutely correct and why when the house of cards derivatives built collapses

(and it will, there's nothing holding it up but common consent), it's going to take a hell of a lot of billionaires with it. We'll have another of those "all the money disappeared overnight" Depressions because the billionaires won't be the only ones hurt.

[Ruby the Liberal]

2. FYI - this is a dupe.

It was posted earlier today. http://www.democraticunderground.com/11168139

[Crewleader]

3. Good, glad it was posted.

I look forward reading Part 2.

[rhett o rick]

4. Has part 2 been published? nm

[Crewleader]

5. rhett o rick, this Wednesday

We interrupt the regularly scheduled Part 2 of Money from Nothing to post four charts of interest on Fed-Speak day. Part 2 will be published tomorrow, Wednesday.

[rhett o rick]

6. thanks. nm

[Crewleader]

7. Money from Nothing: A Primer on Fake Wealth Creation and its Implications (Part 2)

(March 14, 2012)


Today we present Part 2 of "Money From Nothing" by Zeus Y.

Only in a debt-based money system could debt be curiously cast as an asset. We’ve made “extend and pretend” a quaint phrase for a burgeoning market for financial lying and profiteering aimed toward preventing the collapse of a debt- (or lack-) based system that was already doomed by its initial design to collapse. This primer will detail the major components and basic evolution of fake wealth creation, accelerating debt expansion, hollowing out of the economy, and inevitable financial implosion.

http://www.oftwominds.com/blogmar12/money-from-nothing-pt2-3-12.html