Tuesday, February 26, 2013

The Monetary Illusion: Instruments of Destruction

Printing money, which these days is done by an entry in a spreadsheet at the Federal Reserve, creates the appearance of prosperity until reality sets in and the worthless, asset less central banking and monetary system collapses upon itself.

This is a 1929 bank note, issued on the National Bank of Bathgate North Dakota. 

Bank of Bathgate Note
After a almost decade-long run of feigned prosperity (the Roaring 20's), fueled by the production of notes like these at national banks throughout the country, the system collapsed starting with Black Monday in October of 1929.  The United States was thrown into the Great Depression.  

These days, we don't bother with the hard-copy notes to artificially increase the money supply, but if we did, the physical manifestation of the print, borrow and spend regime would look something like this.

Bank of Barack Note
The regime of Bernanke printing, Geithner borrowing and Obama (who appointed Bernake and Geithner) spending, will come to an ignominious end, just as occurred in the 1929.   Money is not real. 


  1. Technically Bernanke was appointed by George W. Bush and then re-nominated by Obama

  2. Bernanke printed trillions of dollars for Obama (QE's 1, 2 and 3) and essentially nothing for Bush, but don't let numbers confuse you. Life is so much easier that way.

  3. Ah my friend, money is real. The paper stuff we hand to the cashier at Walmart is alas, only an IOU, worth in reality only the cotton it is made from, about 1 ball. Even our coin, real money is worth less since it is made from something other than silver or copper.