Posted on November 2, 2015 by Martin Armstrong
ANSWER: Honestly, most people are oblivious to the fact that governments always default in modern times. Jean Baptiste Say took the position that a rational businessman will never hoard money because of inflation and he will promptly spend any money he gets “for the value of money is also perishable.” (“A Treatise on Political Economy”, Book I Chapter XV, 1803 id/138–9). Before modern times, money was ALWAYS debased or devalued as a means of paying expenses. It was easier to do this, even when using metal for coins, than to tax or borrow.
In the modern era, the princes of Europe began to borrow money and quickly learned to imprison and default on their bankers. Edward I of England borrowed from the Jews, and when he could not repay, he suddenly discovered that they were Jewish and banned them from England while not allowing them to take property.
Honestly, it is just insane. They do not do their research and governments are always responsible for creating wars and destroying the savings of the people. Adam Smith in his 1776 “Wealth of Nations” expressed it best.
We are just fools. We insanely believe that we can create change by replacing one politician with another. The ONLY possible way to achieve change is to change the very system of how government functions. Until we are prepared to do that, suck it up, for your future belongs to the madness and corruption of politicians.
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