The virtual economy is the true reality of the created myth Bashny.Net

We all understand that the cost of anything that can be created in digital form, the cost is nearly zero.

Since money is now created in digital format, they are also essentially free. We can see how easy it is to create the figure of trillions of dollars in the chart, U.S. monetary base. Approximately $ 1.2 trillion was created out of thin air in the years of the global financial collapse:



Correction of the base money supply; Source: Federal reserve St. Louis

Here is a detailed look at the assets bought by the Fed created the figure of the money — mostly Treasury bonds and mortgage loans:





A key feature of creating digital money / credit is: it is Immeasurably easier to create digital claims on real hard assets than to create them physically.

That's why the digital creation of trillions of dollars of money\loans distorts and undermines the real economy and the real world of assets: claims on these assets continue to grow, while the actual assets remain rigidly connected with the real world.

This growing gap between the rapidly proliferating digital claims on real assets and real assets by giving rise to many adverse consequences.

Because the money you can create for free, and they retain their value? The answer is artificial scarcity. Example of College diploma instructive.

Created in the digital space open online courses have made education free in the same as text of knowledge. This means that offer a series of courses at College level is now almost free.

In a recent study, it was found that students who watched the courses, I learned more knowledge and showed better test results than students who attended live lectures.

As colleges get more than one hundred thousand dollars out of something that is essentially free? To monopolize the issuance of diplomas. You can get education almost for free, but as soon as the right to issue diplomas belongs to the College, you will have to pay them 100 thousand dollars for the paper that certifies your free education.

This is the classic structure of cartel to artificially create restrictions for what there is demand.

As the fed artificially creates based on the lack of value for their no cost created trillions of dollars? It would be nice to you or me to take a couple of millions at almost zero interest rate? Under half a percent of annual cost by 2 million dollars amounted to a measly 10 thousand.

Alas, access to almost free money is limited to a narrow circle of persons financial elite — the aristocracy of our neo-feudal of debtocracy over. This thin layer of elites can borrow money almost for free and then purchase on these digital loans to the real physical assets.

Fortress debtors have access to limited amounts of free money, but at a much greater percent. When the purchase of assets debtors fortress serves the purpose of political / financial elite, for example, purchase house or car, it is free money being given out enslaved serf — serfs have recruited to serve debt, thus enriching the financial system that lent them the money.

And how the financial sector got money? From the Federal reserve.

The creation of almost free money and limiting them in favor of a narrow circle of the elite definitely makes it possible debt slavery, but has done little for the real economy.

The fed can create trillions of digital dollars without cost, but this does not mean that the money gets into the real economy.

And again we ask the question: cui bono, or who benefits?

 

source: mixednews.ru

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