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Infographic: The System of The World

Mark Jeftovic
By Mark Jeftovic / September 18, 2013

The Yoke

The Yoke is a subtle, ever present method of control over every member of the populace.

The best possible Yoke is one the wearer doesn’t realize he’s wearing or one that the pack animal mistakes for being a natural characteristic of its habitat or environment.

Because of the level of sophistication attained by The System, it need not be physical carrots and sticks. The System employs monetary policy because it works even more effectively than brute force coercion.

These are: Debt, Inflation and Taxes.

Debt

is the super elixir of The System. With debt you can consume before you produce, you can consume more than you produce, and you can live beyond your means … for awhile.

The distinction between productive debt (money borrowed to invest or build something that can then self-liquidate the debt) and destructive debt (going on vacations, benders or sprees on your credit cards) has been abandoned; in fact the emphasis is now on the latter as it it “stimulates consumption“.

Governments use debt to live beyond their means and they encourage the populace to do the same. For governments debt is to finance entitlement programs, empire building and for the public it is so that they can continually consume.

When everybody is in debt, they are trapped because the populace must service their debt, but government and the banks get to cheat, because they control the monetary system, they can create:

Inflation.

Most people think that prices slowly, naturally, inexorably rise over time just as sure aging and erosion. They also think that that is “inflation”.

It’s not, inflation is an expansion in the supply of money, but only when the government or it’s bankers do it. When you or I expand the supply of money it’s called counterfeiting.

We are led to believe that inflation is “natural”, so much so that most governments speak pretty openly about having a “targeted inflation rate”. The most recent example of this is called “Abenomics” in Japan, with their “2/2/2” campaign to: double the money supply, target inflation at 2%, grow GDP by 2%, within 2 years.

Abenomics has gone on long enough (or unfolded fast enough) to illustrate exactly how this works:

If you want more pizza, just cut a slice in half!

If you want more pizza, just cut a slice in two!

The perceived “wealth” effect of asset prices going up is driven entirely by the value of the currency these assets are priced in going down.

It doesn’t stop there:

  • Borrowers prosper because they can service their debt in “cheaper” currency.
  • It is not only asset prices that rise, everything else does too: commodities and staples. Thus, the “cost of living” increases.
  • This has the effect of pushing assets “up the chain” toward the elites at the top, because those with less wealth have to spend more of their income on just staying alive, while the elite amass more assets which appreciate in price.

That’s still not all because:

The government under-reports price inflation.

Official government statistics of inflation are inaccurate and low, because if the “true” rate of inflation were admitted, the populace would realize that the cost of living is rising faster than their wages, or for those lucky or foolish enough to have savings: the inflation rate would be seen to be higher than meager interest earned on their savings (this is the one/two punch of rampant money creation combined with artificially suppressing interest rates) – See http://www.shadowstats.com

Finally, after the government uniformly steals from everybody via targeted inflation, after they lie to everybody by under-reporting and skewing the actual price inflation and then make it nearly impossible to earn an actual return on what money can actually be saved, there is:

Taxation

Where we all have a portion of our income confiscated by the government where it is used to finance the perpetuation of The System.

We are taught in school that taxation is unavoidable and that inflation is normal and natural. Deflation is written up in our conventional textbooks as an unthinkable harbinger of horrific malaise.

In reality, deflation is only devastating when your money is based on debt and your entire economy depends on perpetually expanding credit a.k.a borrowed money.

Prior to 1913 there was no personal income tax (that is also the year the Federal Reserve was ushered into existence in what can only be described as a backroom deal and a midnight vote on Christmas Eve – See The Creature From Jeckyll Island)

Under the Classical Gold Standard, mild deflation was not uncommon and instead of it being a virulent period of Great Depression, it instead unfolded during the Industrial Revolution: one of the most explosive periods of human advancement in history.

(This is why crypto-currencies like Bitcoin are emerging as an evolutionary monetary response to incessant centrally planned interventionism and inflationary policies.)

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About the author

Mark Jeftovic

Mark Jeftovic is the creator of Wealth.net, founder and CEO of Canadian domain registrar and DNS provider easyDNS.com and member of the indie rock sensations The Parkdale Hookers.

His personal blog is at markable.com

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