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  • Peasant Money and Aristocrat Money ... or Inflation Demystified 0 comments
    Mar 30, 2010 10:30 AM

    There is massive inflation going on - in Treasury IOUs. Treasury IOUs are actually a currency reserved for mega-wealthy individuals and institutions. The things that the mega-wealthy like to buy - such as stocks, bonds and gold - have been going through the roof since the Treasury started cranking out Treasury IOU currency like crazy back in 2008.

    The subsequent run up in the stock market, the bond market and precious metals was all just inflation, inflation of the Treasury IOU money supply.

    Federal Reserve Notes? That’s peasant money. It basically exists to disguise the fact the Treasury IOUs are currency. When mega-wealthy Aristocrat A wishes to buy, say a ton of gold, he transforms his horde of Treasury IOUs into Federal Reserve Note peasant money and buys a ton of gold from Aristocrat B who immediately takes his peasant money and transforms it back into Treasury IOUs.

    We have two types of currency, one for peasants and one for Aristocrats. Peasant currency (AKA Federal Reserve Notes) doesn’t pay interest, is issued in tiny denominations and circulates among the peasants. Aristocrat currency (AKA Treasury IOUs) does pay interest, is issued in huge denominations and circulates among the Aristocrats. Peasant money doesn’t pay interest so that peasants have to work to get more. Aristocrat money does pay interest so Aristocrats don’t have to work to get more.

    It’s all just inflation. When the Treasury stop cranking out Treasury IOU currency the stock market will migrate south, the bond bubble will burst and gold will lose its glitter.


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