beginning to understand well what it is. It all starts July 27, 1694, when Mason and London banker " William Paterson " with some of the brothers founded the first central bank in the world: the Old Lady of Threadneedle Street , better known as Bank of England. This is not the first bank ever, because already in 1163 in Venice, there was a fruitful private Monte created to facilitate trade, not to mention the Banco di San Giorgio in Genoa in 1407, the first real public bank in Europe. The Bank of England, however, is the first central bank in the world. Why is this important to the bank? Gladly answer, but I give the word to "Karl Marx", who in his book "The Capital", denounces in no uncertain terms that, since birth, major banks have not been other companies that private speculators who joins the government and, thanks to the privileges obtained were able to anticipate their money. The accumulation of public debt has no more infallible measure of the gradual rise of the shares in these banks. As early as 1867 (year of publication of 1000 copies of his book) was a clear link between public debt and banks. This is the first interesting fact. That's why 27 July 1694 will be a symbolic date for us is very important because, rightly or wrongly, begins the elusive "Monetary Seigniorage." Prima però di spiegare cos'è questo Signoraggio, ricordo che il modello della Bank of England fu esportato e copiato in ogni paese (in Francia il 18 gennaio 1800 grazie al fratello Bonaparte e in Germania il 10 marzo 1870, nel 1913 in America con la Federal Reserve Bank per opera dei massoni Warburg, Rockefeller e Rothschild). Come oggi un manipolo di persone esporta la democrazia per strategie geopolitiche, 315 anni fa un manipolo di banchieri massoni ha inventato ed esportato un sistema monetario basato sul debito, per strategie socio-politiche: tenere incatenate e soggiogate centinaia di milioni di persone.
Signoraggio monetario.
Cos'è il Signoraggio monetario? Ufficialmente non esiste. Nessuno ne parla. Eppure è un qualcosa che sta facendo sprofondare l'intero pianeta nel debito, giorno dopo giorno, inesorabilmente. Quante volte abbiamo sentito parlare di debito pubblico, commerciale, di debito dei paesi in via di sviluppo, ecc. Ma debito nei confronti di chi?
Cosa lo provoca? E soprattutto: cos'è questo Signoraggio? Il Signoraggio è la differenza tra il valore nominale della moneta e il suo costo di produzione. La moneta, come ogni bene tangibile, ha un suo costo di produzione: per le banconote pensate a carta e inchiostri; per le monete di metallo pensate alle leghe. Ma nonostante ciò, la stampa e quindi l'emissione di moneta costa pochissimo. "(A questo punto voglio ricordare, che fino al 1971, the bank issues money only and I say only if they had a reserve of gold. What does this mean? That for every $ 1000 issued by the bank, it had to have gold as a deposit for a value of $ 1000. So the banks without reserve of precious metal, they could not make money. Instead August 15, 1971, Richard Nixon eliminated the convertibility of currencies into gold, burying forever Bretton Woods agreements of 1944 . So the money issue for almost forty years no longer need an equivalent in precious metals - gold, silver or copper -).
Issue of money.
The central bank issues money from scratch, without reserve. Let us take a numerical example: print a ticket costs € 500, more or less, 5 euro cents (including paper and ink)! Nonsense, right? Well this bill, which costs only € 0.05, is "rented" to the States at face value, ie € 500! This difference is seigniorage! The private company that prints and issues the currency in circulation "gains" for each bill issued the beauty of € 499.05 (minus printing costs) and the State, again for each bill, s'indebita of 500 €! Do you know the name of this private company s'incamera seigniorage? Central Bank. To be precise, the rule that costs even more money because of the "discount rate" (ie the cost of money between central bank and local bank) which is currently 2%. So the € 500 note, the rule costs the beauty of 500 € + 2 € (at the rate of 2%) and then € 502! Are we or are not the madness? The state pays to the Central Bank (ECB and spa company, and private) the rent of this money with government bonds, and therefore s'indebita disproportionately and continued against him. This debt we pay our taxes. The State ultimately monetarised its debt and this debt will continue to grow day after day, year after year. No one with such a system can never just think of out of debt, imagine the countries in the developing world. Imagine for a moment, and if it were the state to print money and keep the seigniorage? There are fewer and lower taxes. A society where people work without killing to survive as it is today? Utopia? For some yes, for me is called monetary sovereignty, that they took a long time, that is, at least away from that July 27, 1694. Someone once tried to regain possession of the Sovereign, but it cost him a lot.
Executive Order 11110 of John F. Kennedy.
On June 4, 1963, U.S. President "John F. Kennedy " with Executive Order 11110 , ordered the issuance by the Treasury - thus the state - more than $ 4 billion of the time with notes that bore the inscription "United States Note" (State of tickets in circulation citizens) instead of "Federal Reserve " (business of the Fed, the Central Bank in private practice). Kennedy prevented the Federal Reserve to lend money on interest to the U.S. government, dangerously playing with fire, challenging the power of the Bank, in fact, November 22, ie after a few months, was assassinated in Dallas, symbol of "money" and "eleventh "seat of the twelve Fed! You know what was the first thing he did his successor, Lyndon Johnson? Immediately withdrew from the movement of those dollars, "people" and replacing them with those "private" Federal Reserve!
The famous stock market crash of 1929 was organized by an elite of bankers belonging to the Federal Reserve. Between 1921 and 1929, the Fed greatly increased the money supply in circulation and there was a growth of loans to businesses, individuals and other banks. In addition he introduced the "margin loan", which allows the investor to purchase a title to 10% of the original price, while the remaining 90% was covered by a broker, the broker. The scam was based on the fact that the loan could be withdrawn at any time and must be paid within 24 hours. The call for additional margin almost always forced to sell the securities purchased on credit. Shortly before 24 October 1929, made history as the "Black Thursday", and Bernhard JDRockefeller Barack coming off the market without notice, and so the bankers "outsiders" who had lent them retreated to the sidelines on a national scale. This triggered a chain reaction: the sale of securities to pay off debts, levies, collapse of 16,000 banks and the possibility for the conspirators of the Fed to buy at bargain prices rivals thousands of banks failed. What's more, the Fed increased the money supply but declined, causing more grande depressione americana.
I banchieri della Fed, dopo aver ridotto in ginocchio il popolo americano, decisero di abolire il Gold Standard , ma per farlo dovettero rastrellare tutto l’oro in circolazione. Così, nel 1933, con il pretesto della soluzione alla grande Depressione, diedero il via alla confisca dell’oro sotto minaccia di una pena di 10 anni di galera per chi si fosse rifiutato di cederlo al Tesoro dello Stato. Il Gold Standard fu liquidato nello stesso anno e il Dollaro Usa non fu più convertibile in oro, basta leggere la scritta sulle banconote pre-1933 “convertibile in oro” e la scritta di adesso “moneta a corso legale” per accorgersene anche senza studiarne i dettagli. Perciò the only thing that assigns a value to the dollar, euro and so on, is the amount of money issued by central banks, which control the purchasing power or inflation.
European Central Bank.
In our country, monetary sovereignty (the power of those who print and issue currency) and then the seigniorage, is in the hands of European Central Bank (ECB) in Frankfurt. The ECB, private, established by the Treaty of Maastricht, is a bank formed by the central banks of 15 countries including the founding members of our Bank of Italy (based in the Cayman Islands). But not everyone knows that the central banks are for the most part private banks. Bank of Italy, for example, is controlled by Intesa (proprietress of 27.2%), San Paolo IMI (17.23%), Capitalia (11.15%), Uni-credit (10.97%), General (6.33%), Monte dei Paschi (2.50%), RAS \u200b\u200b(1.33%) , INPS (5%), Carige (3.96%), BNL (2.83%), The Fondiaria (2%), Premafin (2%), Cassa di Risparmio di Firenze (1.85%), and 5.65% of remaining anonymous. Only the first three groups control more than 55% of the Italian Central Bank, and the absurd thing is that the central bank should monitor commercial banks, that their members. How is it possible? The controller that controls himself! It is now clear for it have been avoided, and not even be in the future, financial scandals and crack. So the ECB is a private bank, since it is made by private banks, but unlike the others is the only private by law may issue currency in Europe. According to Article 2 of Chapter 105A of the Policy monetary policy 'of the Maastricht Treaty: "The ECB has the exclusive right to authorize the issuance of banknotes within the Community." European seigniorage is therefore the responsibility of the ECB, which then distributes it to private shareholders in proportion to the percentage of responsibility.
The list of members of the ECB.
Mario Draghi & C. now take 14.57% of seigniorage European and 92% of the national seigniorage (8% remains at the ECB).
Here is the list of members with their percentages:
Bank of Belgium (2.83%);
Bank Denmark (1.72%);
Bank of Germany (23.40%);
Bank of Greece (2.16%);
Bank of Spain (8.78%);
Bank of France (16.52% )
Bank of Ireland (1.03%);
Bank of Italy (14.57%);
Bank Luxembourg (0.17%);
Bank of Netherlands ( 4.43%);
Bank of Austria (2.30%);
Bank of Portugal (2.01%);
Bank of Finland (1.43%);
Bank Sweden (2.66%);
Bank of England (15.98%)
I would not complicate the picture, but it is a must clarify that there are three different types of seigniorage, the same mechanism but different in that subject if the pockets.
seigniorage just seen on paper currency through the work of the ECB is the colossal theft by definition, then there is the seigniorage on coins, which is the only state that as it goes to the Treasury, and finally the-money scriptural, created the virtual banks, which remains in commercial banks. Apart from the seigniorage on the coinage, which is lower in value than, the fraud on the virtual currency of commercial banks is even more complex. In this Seigniorage is the case, the face value (although in this case is not real money) of all money paid by the banking system in the form of credit (bank account, etc..) net of the cost of production of (absolutely invalid: simple typing on a computer or writing to a register). Obviously I'm not joking when I talk about money created from nothing, and now I will explain with another example. When a person goes to a local bank with a deposit of 100 € in cash, a bank with € 100 these "real" is able to provide well € 5000 "virtual". This alchemy has a precise name: "fractional credit," and is multiplication operation permitted and authorized by the so-called "reserve bank, whose value is determined, as it happens, by the Central Bank. In practice, this "reserve" is a rate that indicates the minimum amount of money that banks must keep physically into the coffers, just as a reserve. Today, the 'rate of reserve "is 2%. The bank then immediately put in" reserve "the 100 € that are real, and automatically (in the coffers having these 100 €) the law allows her to 'create' 5000! 2% of 5000 is € just 100 €. If you do not believe, come to an agreement with the depositors of a bank and go back all the money the same day ... The banks have physically about one-fiftieth of the money that move. arises a question: € 100 deposit if the bank creates real and 5000, where they jump out of the € 4900? Alas this money, that does not and can not exist in reality, deprives wealth to the country in a vicious circle vicious and harmful. The vast majority of money in the form of book money, then of virtual currency, and therefore monetary debt. Understand what the mother of all evils? What you have just read is the biggest secret and hidden, perhaps the largest and most massive fraud perpetrated at our expense for three centuries.
What can we do?
The central bank issues money from scratch, without reserve. Let us take a numerical example: print a ticket costs € 500, more or less, 5 euro cents (including paper and ink)! Nonsense, right? Well this bill, which costs only € 0.05, is "rented" to the States at face value, ie € 500! This difference is seigniorage! The private company that prints and issues the currency in circulation "gains" for each bill issued the beauty of € 499.05 (minus printing costs) and the State, again for each bill, s'indebita of 500 €! Do you know the name of this private company s'incamera seigniorage? Central Bank. To be precise, the rule that costs even more money because of the "discount rate" (ie the cost of money between central bank and local bank) which is currently 2%. So the € 500 note, the rule costs the beauty of 500 € + 2 € (at the rate of 2%) and then € 502! Are we or are not the madness? The state pays to the Central Bank (ECB and spa company, and private) the rent of this money with government bonds, and therefore s'indebita disproportionately and continued against him. This debt we pay our taxes. The State ultimately monetarised its debt and this debt will continue to grow day after day, year after year. No one with such a system can never just think of out of debt, imagine the countries in the developing world. Imagine for a moment, and if it were the state to print money and keep the seigniorage? There are fewer and lower taxes. A society where people work without killing to survive as it is today? Utopia? For some yes, for me is called monetary sovereignty, that they took a long time, that is, at least away from that July 27, 1694. Someone once tried to regain possession of the Sovereign, but it cost him a lot.
Executive Order 11110 of John F. Kennedy.
On June 4, 1963, U.S. President "John F. Kennedy " with Executive Order 11110 , ordered the issuance by the Treasury - thus the state - more than $ 4 billion of the time with notes that bore the inscription "United States Note" (State of tickets in circulation citizens) instead of "Federal Reserve " (business of the Fed, the Central Bank in private practice). Kennedy prevented the Federal Reserve to lend money on interest to the U.S. government, dangerously playing with fire, challenging the power of the Bank, in fact, November 22, ie after a few months, was assassinated in Dallas, symbol of "money" and "eleventh "seat of the twelve Fed! You know what was the first thing he did his successor, Lyndon Johnson? Immediately withdrew from the movement of those dollars, "people" and replacing them with those "private" Federal Reserve!
The famous stock market crash of 1929 was organized by an elite of bankers belonging to the Federal Reserve. Between 1921 and 1929, the Fed greatly increased the money supply in circulation and there was a growth of loans to businesses, individuals and other banks. In addition he introduced the "margin loan", which allows the investor to purchase a title to 10% of the original price, while the remaining 90% was covered by a broker, the broker. The scam was based on the fact that the loan could be withdrawn at any time and must be paid within 24 hours. The call for additional margin almost always forced to sell the securities purchased on credit. Shortly before 24 October 1929, made history as the "Black Thursday", and Bernhard JDRockefeller Barack coming off the market without notice, and so the bankers "outsiders" who had lent them retreated to the sidelines on a national scale. This triggered a chain reaction: the sale of securities to pay off debts, levies, collapse of 16,000 banks and the possibility for the conspirators of the Fed to buy at bargain prices rivals thousands of banks failed. What's more, the Fed increased the money supply but declined, causing more grande depressione americana.
I banchieri della Fed, dopo aver ridotto in ginocchio il popolo americano, decisero di abolire il Gold Standard , ma per farlo dovettero rastrellare tutto l’oro in circolazione. Così, nel 1933, con il pretesto della soluzione alla grande Depressione, diedero il via alla confisca dell’oro sotto minaccia di una pena di 10 anni di galera per chi si fosse rifiutato di cederlo al Tesoro dello Stato. Il Gold Standard fu liquidato nello stesso anno e il Dollaro Usa non fu più convertibile in oro, basta leggere la scritta sulle banconote pre-1933 “convertibile in oro” e la scritta di adesso “moneta a corso legale” per accorgersene anche senza studiarne i dettagli. Perciò the only thing that assigns a value to the dollar, euro and so on, is the amount of money issued by central banks, which control the purchasing power or inflation.
European Central Bank.
In our country, monetary sovereignty (the power of those who print and issue currency) and then the seigniorage, is in the hands of European Central Bank (ECB) in Frankfurt. The ECB, private, established by the Treaty of Maastricht, is a bank formed by the central banks of 15 countries including the founding members of our Bank of Italy (based in the Cayman Islands). But not everyone knows that the central banks are for the most part private banks. Bank of Italy, for example, is controlled by Intesa (proprietress of 27.2%), San Paolo IMI (17.23%), Capitalia (11.15%), Uni-credit (10.97%), General (6.33%), Monte dei Paschi (2.50%), RAS \u200b\u200b(1.33%) , INPS (5%), Carige (3.96%), BNL (2.83%), The Fondiaria (2%), Premafin (2%), Cassa di Risparmio di Firenze (1.85%), and 5.65% of remaining anonymous. Only the first three groups control more than 55% of the Italian Central Bank, and the absurd thing is that the central bank should monitor commercial banks, that their members. How is it possible? The controller that controls himself! It is now clear for it have been avoided, and not even be in the future, financial scandals and crack. So the ECB is a private bank, since it is made by private banks, but unlike the others is the only private by law may issue currency in Europe. According to Article 2 of Chapter 105A of the Policy monetary policy 'of the Maastricht Treaty: "The ECB has the exclusive right to authorize the issuance of banknotes within the Community." European seigniorage is therefore the responsibility of the ECB, which then distributes it to private shareholders in proportion to the percentage of responsibility.
The list of members of the ECB.
Mario Draghi & C. now take 14.57% of seigniorage European and 92% of the national seigniorage (8% remains at the ECB).
Here is the list of members with their percentages:
Bank of Belgium (2.83%);
Bank Denmark (1.72%);
Bank of Germany (23.40%);
Bank of Greece (2.16%);
Bank of Spain (8.78%);
Bank of France (16.52% )
Bank of Ireland (1.03%);
Bank of Italy (14.57%);
Bank Luxembourg (0.17%);
Bank of Netherlands ( 4.43%);
Bank of Austria (2.30%);
Bank of Portugal (2.01%);
Bank of Finland (1.43%);
Bank Sweden (2.66%);
Bank of England (15.98%)
I would not complicate the picture, but it is a must clarify that there are three different types of seigniorage, the same mechanism but different in that subject if the pockets.
seigniorage just seen on paper currency through the work of the ECB is the colossal theft by definition, then there is the seigniorage on coins, which is the only state that as it goes to the Treasury, and finally the-money scriptural, created the virtual banks, which remains in commercial banks. Apart from the seigniorage on the coinage, which is lower in value than, the fraud on the virtual currency of commercial banks is even more complex. In this Seigniorage is the case, the face value (although in this case is not real money) of all money paid by the banking system in the form of credit (bank account, etc..) net of the cost of production of (absolutely invalid: simple typing on a computer or writing to a register). Obviously I'm not joking when I talk about money created from nothing, and now I will explain with another example. When a person goes to a local bank with a deposit of 100 € in cash, a bank with € 100 these "real" is able to provide well € 5000 "virtual". This alchemy has a precise name: "fractional credit," and is multiplication operation permitted and authorized by the so-called "reserve bank, whose value is determined, as it happens, by the Central Bank. In practice, this "reserve" is a rate that indicates the minimum amount of money that banks must keep physically into the coffers, just as a reserve. Today, the 'rate of reserve "is 2%. The bank then immediately put in" reserve "the 100 € that are real, and automatically (in the coffers having these 100 €) the law allows her to 'create' 5000! 2% of 5000 is € just 100 €. If you do not believe, come to an agreement with the depositors of a bank and go back all the money the same day ... The banks have physically about one-fiftieth of the money that move. arises a question: € 100 deposit if the bank creates real and 5000, where they jump out of the € 4900? Alas this money, that does not and can not exist in reality, deprives wealth to the country in a vicious circle vicious and harmful. The vast majority of money in the form of book money, then of virtual currency, and therefore monetary debt. Understand what the mother of all evils? What you have just read is the biggest secret and hidden, perhaps the largest and most massive fraud perpetrated at our expense for three centuries.
What can we do?
That said, we ordinary citizens and consumers under the Pyramid of Power, What can we do? Meanwhile, aware of the functioning of a monetary system and a seigniorage through which the powerful banking cartel is deliberately plunging the planet into an economic abyss scary. Which is more effective control of the impoverished masses? This is an establishment so powerful that no one, and I mean nobody, goes against publicly denounced the whole world. Apart from exceptional people, unknown to most people, like Professor " Giacinto Auriti (promoter of alternative currency Simec ), where the champions of justice? Those who have made themselves champions of the TV rights of citizens? It's easy to criticize a company or a bank that behaves badly, because people care, etc.., much more difficult is to report a monetary system that is bankrupting the entire planet. Why no newspaper, no TV talking about it, we break the balls with the talk-show, with the reality of these things but nobody talks about it. Our country should be master of his own nonet, and the people that gives value to money, is not whether to borrow with interest from a private company that creates them from nothing, and inammssibile. Although it must be said that the country today (masters) of its currency, because they, ie the state of print and issue currency, are then sabotage the rest of the community. I'm almost 40 years with pressure and boycott Cuba because printing money for themselves. Therefore it is difficult for a country goes against the system manetario. It difficult for a politician to take forward such a speech in parliament. We must inform you that the people do not stop reading this blog, look for more on this topic on the Internet.
What is inflation!
There are many illuminari economy (at least that call themselves) who say that print their own currency would increase inflation! But what is inflation. The term "inflation" refers to the phenomenon of continuous and widespread of all prices. This occurs when the demand for goods and services is in excess of the resources of the economic system (supply). Global demand is therefore in excess of the capacity of the system. For example, if people get an increase in income, demanding a greater quantity of goods and services. If you can not increase supply in equal quantities, prices tend to rise. Consumers will compete with each other to grab the few goods in circulation and thus lead to higher prices. Let's take an example, imagine that George the gardener goes to the local market to sell his potatoes. The experience of the past weeks knows that fixing the price at € 2 per kg will be able to sell all the 15 kg of potatoes has brought with him. In the square there are Anna, Beatrice and Carla, who fell to shop: each has decided to allocate € 10 dall'ortolano purchase of potatoes. Skip first Anna and buys 5 kg, then Beatrice does the same and finally, late in the morning is the turn of Carla, who buys the last 5 kg. The following week the price of potatoes is always 2 € but in the meantime something happened. Anna has in fact married a talented forger, and now can devote to potatoes € 20, including 10 false. Opening of the market buys Anna just 10 pounds of potatoes and leaves. When Beatrice arrived shortly after and buy the last 5 pounds George is now with more merchandise. We are only halfway morning and the potatoes have already been sold out: there is nothing left for Carla, who returns home empty-handed. In the days following George thinks to himself: "Because I can not bring to the market more than 15 pounds of potatoes and since I have a 2 € sold all at once, I might try to raise the price!" Said and done . The next week the price of potatoes is 2 € and fifty pound. As usual Anna passes with its 20 euro, which now can only buy 8 kg of potatoes, followed by Beatrice and Carla, which are divided in half the last 7 pounds, paying 8 euro and 75 cents apiece. George the gardener if he goes home with € 37.5, half past seven in most of the previous week. What this tells us little anecdote example? - The first to receive new money to increase their income at the expense of the money does not get it: Anna is able initially to purchase the products at the "old money" and even after the 'A price adjustment may buy more potatoes than he could do at the start (+3 kg), all at the expense of Carl and Beatrice (-1.5 kg each) .- The price increases following an increase in demand , George does not increase the price of potatoes because it is a bad seller and speculators but does so in response to increased demand triggered by the ten potato € fake Anna. We are always in the market and this time we deal with Dario the butcher. Anna is a vegetarian, and Beatrice Carla spend € 10 every week to buy the thread and end of the day George the gardener spends one third of its revenue (10 €) to purchase meat. Imagine that the first week the price of meat is 10 € per kg and that Dario has in store 3 pounds of meat, which are all sold. For three weeks, everything continues as before until the evening of the fourth week, when George comes into the store with 13 €, three more (he received 37.5) and would like to buy meat but is not there. What will happen next week at the price of meat? Dario increase it to 11 € per kilogram! Over time, as that the new currency "circulating" in the economy, there are adjustments in the prices of all goods. This increase in prices and inflation.
we can do is cry! There are many illuminari economy (at least that call themselves) who say that print their own currency would increase inflation! But what is inflation. The term "inflation" refers to the phenomenon of continuous and widespread of all prices. This occurs when the demand for goods and services is in excess of the resources of the economic system (supply). Global demand is therefore in excess of the capacity of the system. For example, if people get an increase in income, demanding a greater quantity of goods and services. If you can not increase supply in equal quantities, prices tend to rise. Consumers will compete with each other to grab the few goods in circulation and thus lead to higher prices. Let's take an example, imagine that George the gardener goes to the local market to sell his potatoes. The experience of the past weeks knows that fixing the price at € 2 per kg will be able to sell all the 15 kg of potatoes has brought with him. In the square there are Anna, Beatrice and Carla, who fell to shop: each has decided to allocate € 10 dall'ortolano purchase of potatoes. Skip first Anna and buys 5 kg, then Beatrice does the same and finally, late in the morning is the turn of Carla, who buys the last 5 kg. The following week the price of potatoes is always 2 € but in the meantime something happened. Anna has in fact married a talented forger, and now can devote to potatoes € 20, including 10 false. Opening of the market buys Anna just 10 pounds of potatoes and leaves. When Beatrice arrived shortly after and buy the last 5 pounds George is now with more merchandise. We are only halfway morning and the potatoes have already been sold out: there is nothing left for Carla, who returns home empty-handed. In the days following George thinks to himself: "Because I can not bring to the market more than 15 pounds of potatoes and since I have a 2 € sold all at once, I might try to raise the price!" Said and done . The next week the price of potatoes is 2 € and fifty pound. As usual Anna passes with its 20 euro, which now can only buy 8 kg of potatoes, followed by Beatrice and Carla, which are divided in half the last 7 pounds, paying 8 euro and 75 cents apiece. George the gardener if he goes home with € 37.5, half past seven in most of the previous week. What this tells us little anecdote example? - The first to receive new money to increase their income at the expense of the money does not get it: Anna is able initially to purchase the products at the "old money" and even after the 'A price adjustment may buy more potatoes than he could do at the start (+3 kg), all at the expense of Carl and Beatrice (-1.5 kg each) .- The price increases following an increase in demand , George does not increase the price of potatoes because it is a bad seller and speculators but does so in response to increased demand triggered by the ten potato € fake Anna. We are always in the market and this time we deal with Dario the butcher. Anna is a vegetarian, and Beatrice Carla spend € 10 every week to buy the thread and end of the day George the gardener spends one third of its revenue (10 €) to purchase meat. Imagine that the first week the price of meat is 10 € per kg and that Dario has in store 3 pounds of meat, which are all sold. For three weeks, everything continues as before until the evening of the fourth week, when George comes into the store with 13 €, three more (he received 37.5) and would like to buy meat but is not there. What will happen next week at the price of meat? Dario increase it to 11 € per kilogram! Over time, as that the new currency "circulating" in the economy, there are adjustments in the prices of all goods. This increase in prices and inflation.
So now we see two cases.
First hypothesis: in a country where everything works, everyone has a job satisfactorily, with a good income. There is no unemployment, taxes are few, low, and even retirees are doing well (what if it happened really nice). A country where there is uncertainty about the future. So happen that people spend, spins the money, rising inflation and behold! But as the mo things are fine salt inflation!
Second hypothesis: in a country where nothing works, with a continuing loss of jobs, increased taxes, loss of purchase power of salaries, with a lot of uncertainty about the future. In this case, people are afraid and do not spend more money does not circulate, and that is that inflation goes down (the demand for goods and services falls). But then we will not ever good! If to keep down the cost of living should not spend (money does not circulate), we realize that the global monetary system there is something wrong.
Second hypothesis: in a country where nothing works, with a continuing loss of jobs, increased taxes, loss of purchase power of salaries, with a lot of uncertainty about the future. In this case, people are afraid and do not spend more money does not circulate, and that is that inflation goes down (the demand for goods and services falls). But then we will not ever good! If to keep down the cost of living should not spend (money does not circulate), we realize that the global monetary system there is something wrong.
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