The Vampire Fiat Money System: How It Works and What It Means for Your Wealth
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by Tyler Durden
Sunday, Oct 27, 2024
When you reflect a little longer on the horror story of the vampire demon, you will inevitably begin to see parallels (or at least points of contact) with the fiat money system that exists worldwide today.
Under Cover of Darkness
It takes place under the cover of darkness: It is fair to say that the vast majority of people are unaware of how today’s fiat money system is structured, how it operates, or what its effects are. Students in schools and universities are, for the most part, left in the dark about it, and the consequences of the fiat money system, therefore, take most people by surprise—unprepared and relentless. Indeed, how many people know that our current fiat money system is a system in which the state’s central bank holds a coercive monopoly on the creation of fiat central bank money, while commercial banks issue their own fiat commercial bank money based on central bank fiat money.
Vulnerable Victims and Life Sucked Away
The victims are often helpless and unaware, with the fruits of their labor effectively being siphoned away. Fiat money has something vampire-like about it, enabling one group (those allowed to create fiat money) to live at the expense of others (those forced to use the monopolized money). The first recipients of newly-created fiat money are the beneficiaries. They can use the new money to purchase goods and services whose prices have not yet risen, making them wealthier.
As the money changes hands, it increases demand, and prices of goods rise accordingly. As a result, the late recipients of the new money can only buy goods at higher prices, leaving them at a disadvantage. The first recipients improve their position at the expense of the late recipients. The most severely affected are those who receive nothing from the newly-created money supply—they are, in effect, the ones “sucked dry.”
The vampire-like redistributive effect of fiat money, which operates in the shadows, particularly benefits commercial banks that create fiat commercial bank money, as well as those in a position to take out new bank loans in fiat money.
more:
https://www.zerohedge.com/personal-finance/vampire-fiat-money-system-how-it-works-and-what-it-means-your-wealth