THE EVOLUTION OF THE MONEY SUPPLY EXPLAINS THE EVOLUTION OF OUR LIVES
By Mauro Marturano
This text should be posted in front of every school, in front of every economics university, and not only there. Read it and you'll see yourselves reflected in what we've lived through. And obviously, you'll understand the importance of understanding the moment we're in within the EVOLUTION OF THE MONEY SUPPLY, relative to the real production of goods. The phrase "relative to the production of goods" is a fundamental one. Because if we don't compare the money supply, and its evolution, to something, the money supply remains just A NUMBER, which tells us nothing. That is, we can say a person is tall, for example, only if we compare them to someone else. Peppino is taller than Geppetto. When we say "Peppino is tall" without stating what we're comparing him to, we're really comparing him, without spelling it out, to an average height we have in our heads. When I have talked, talk, and will talk about the money supply, I always (and I mean always) do so relative to real production. An important concept, not to be forgotten. It's very important to understand the evolution of the money supply (relative to real production, from here on I'll take that as implied). It's very important to understand who controls the evolution of the money supply. Because whoever controls the money supply controls prices, and among those, controls the price of our time. If I have to work more to do the same amount of shopping, it means someone has "stolen" time from me. And that someone is whoever controls the money supply and, through it, prices, and through those, the price of my labor and my time.
But let's talk about the evolution of the money supply and take a tour of it through the Italian case, which is a proxy for the western part of the world.
As I said in a wonderful piece from January 2021, I consider the last macro-cycle to have started after World War II, from which, as you well know, Italy emerged on its knees. There was a need to rebuild. And indeed, between the 1950s and 1960s our country experienced a period of accelerated economic growth (which would come to be nicknamed the economic miracle or, even more simply, the boom), which profoundly transformed its face, turning it from a country with a predominantly agricultural economy into one of the West's leading industrial powers. We're at the start of the cycle. There's REAL production. In Italy there are factories, there are farmers, THINGS GET PRODUCED. And so there's a substantial balance between the money supply in circulation and real goods. The monetary counterfeiting operation hadn't started yet. Monetary counterfeiting that is at the root of what we're living through today, in which we are, and above all will be, VICTIMS of a genuine armed robbery.
On August 15, 1971, American president Nixon, with all Americans at the beach, effectively suspended the Bretton Woods agreements. An epic move, done as always during times of year when even the few people who think are busy doing something else. What repercussions did this have? Few in the short term, very important in the medium term, apocalyptic in the long term (2020, relative to 1971, falls in the long term 😂). Few in the short term because that's only the beginning. From there, in any case, a new economic phase of life begins. The imbalance between money supply and goods slowly starts to widen. The population also starts becoming more spoiled. And production starts being offshored to distant countries, which start enslaving their citizens with brutal work shifts. The more "important" money (dollars) that gets pumped in, the less we work, the more the Chinese work. Put simply, but that's really how it went. This is the era when Italians go to the beach for 2 months, happy 😂😂😂 (I read posts of extraordinary ignorance, you can really tell they don't understand that THEY HAD NO MERIT WHATSOEVER IN LIVING THROUGH THAT PERIOD, they were just fish that happened to be on the right side of the current).
We're at the soccer World Cup, with our unforgettable Totò. Meanwhile some problems start, we get a small wealth tax. Companies start being taxed. So that I, as an entrepreneur, have to decide whether to offshore or shut down. In both cases, Italian production (and obviously this also applies to many European countries and the US) doesn't increase. And the public debt problem starts to explode. So on one side we have more money supply, on the other less real production. The imbalance keeps widening. As the imbalance keeps widening, the vicious cycle of plundering businesses and families has to begin.
We arrive at Lehman Brothers (2008). Because of a crisis created in and by finance, central banks start printing money like there's no tomorrow, and the collateral... is citizens' credits. Laws are passed, absolutely criminal ones, whereby in the event of a country's default, the privileged credits are those of foreign investors (and not those of citizens — THIS IS WHAT THE CRYPTOS THAT SURVIVE WILL BE FOR (NOAH'S ARK)!!!). Against this immense money supply, production decreases further, partly because some companies go bankrupt due to the financial crisis, partly because offshoring continues. We're in the globalization boom. The money supply-goods imbalance is uncontrollable.
Little Mauro already warned you back in 2013. And again in 2020. The only option they'd have had to mask the monetary fraud would have been inflation. Today, honestly, I've partly changed my mind. In 2020, I added that, besides inflation, they would create a new monetary system. Obviously, justifications were needed for these purposes. Justifications for stealing rights on paper, which would have given us and would give us the right to buy/consume/travel. Real rights that in fact DO NOT EXIST.
This is a wonderful text. I can guarantee you that graduates, even given 150 years of life, wouldn't understand these arguments. Arguments that, however, affect and will affect everyone. The fact that you can read these texts for free doesn't mean they're worth little. Also because someone who says these things is highly unpresentable in certain circles.