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June 14, 2020 | Zero Reserves Should be Positive for AU and AG!

Donald B. Swenson: Born January 24, 1943, Roseau, Minnesota. Graduated H.S. 1961, Moorhead High, Minnesota. Graduated College 1968, Moorhead State University, Minnesota. Designated member of Appraisal Institute (MAI), 1974. Employed with Western Life Insurance Company, 1968 – 71; Iowa Securities Company, 1971 – 73; American Appraisal Company, 1974 – 81. Part-time teacher/valuation consultant/bartender, 1979 – 2008 (taught workshops at Waukesha County Technical Institute, Wi. and Madison Area Technical College, Wi.). Retired 2008 (part time teacher/blogger), AZ. Self educated economist/philosopher/theologian:
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Our esteemed Fed has lowered the bank reserve ratio to ZERO. This means that thousands of commercial banks (member banks of the Fed) can now just ‘type’ numbers (called money) into clients accounts (and call the transaction a legal loan). Amazing! Our Central Bank has had this privilege for decades and now all the member banks can create new loans via the computer (into infinity) with NO RESERVE requirement (backing). Is this prudent? Where does this lead going forward?

First of all, this policy decision SHOULD be very positive for investors/traders in gold and silver. We now have ‘virtual’ money creation (potentially to infinity) and thousands of banks can now participate in lending to infinity. As a banker, I could make you a loan for whatever purpose and mark it as legal and valid on my books. Thousands of banks can now practice this Ponzi Scheme for their clients. All is now up for graps (by those with credit and/or no credit).

All this could (potentially) lead to massive new liquidity entering our markets. Borrowers could arrange loans from their banker buddies for whatever purpose and goal. No restrictions and no reserve requirement is necessary. Amazing! Could this lead to HYPERINFLATION? Yes, it could IF borrows and bankers actually acted upon this reality. I could borrow even if totally bankrupt (as Hertz is now doing). Companies and select elites could borrow in unlimited amounts (if their banker finds the loan creditable).

Congress could expand their stimulus programs into infinity also. Keep in mind that our currencies are now mere NUMBERS. Yes, all our currencies (called money) are now ‘imaginary numbers’ created via typing into a computer keyboard. TYPING numbers is all that is required for a BANKER to make a loan. Type, type, type and expand the loan portfolio to INFINITY seems to be the new policy. Some call this MMT (Modern Monetary Theory).

Could all this typing of numbers (called money expansion) lead to the opposite (a total breakdown of the banking SYSTEM)? This also is possible if enough thinkers (investors) lose confidence in this PONZI System. Imagine what is now possible. Bankers can expand their lending to INFINITY (even if bankrupt). Borrowers can be bailed out irrespective of prior debt. The public could to given STIMULUS checks (direct deposits to their computer accounts) indefinitely. Amazing! Is this prosperity or is it a fairy tale (illusion within our mind).

The END of MONEY is near IMO. All this PONZI finance does POINT to a final ENDING.
 This ending will be dynamic and chaotic. We could see prices (for a pound of hamburger) go to hundreds in terms of our virtual dollars. Virtual dollars give us our PRICES. If unlimited virtual dollars are created by our bankers, we could witness a loaf of bread going to hundreds (in terms of dollars). We could witness a car going to millions, a house to billions, and a select mansion on the ocean to trillions.

But we could also witness a complete CRASH of the System prior to this HYPERINFLATION. Banks could be CLOSED. All this virtual money could be removed from people’s access (via a decision). Smart Phones could be empty of virtual dollars with the decision of a banker who cuts OFF one’s credit. Investment accounts could be meaningless as accounts are placed on hold (during a bank holiday). All this could lead to the CRASH of all history (and it could happen in ONE day).

The END of money is arriving within our lifetime IMO.
 Virtual money is inner money. Virtual money lives within our CONSCIOUSNESS. It’s money from ‘heaven’ essentially. It has no real purpose for moving our commerce (as it has ZERO value). But the system will continue until it ENDS. All this SHOULD be good for AU and AG. Buy some gold/silver for purposes of barter (when all this happens). The outcome is predestined. That is my view. Think for yourself to discern reality!

I am:

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June 14th, 2020

Posted In: Kingdom Economics

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