The Guardian: The Global Financial Pyramid Scheme Explained
Posted by The Interest on February 9, 2009
Must see example from The Guardian of the global financial pyramid scheme explained…
The above is the final slide that talks about velocity of money. As we’ve learned here at “Where’s the Interest?”, the supply of money may not be the determining factor of whether there is enough money to pay bills or even interest, it is the frequency of which this money changes hands or the velocity.
The equation above is mv=pq. Or Money (supply), Velocity = Price, Quantity (economic output). As you’ve been hearing, prices (result of deflation) are falling, as unemployment increases total output is falling, and even though money supply has increased, this is largely new debt and not being lent. Velocity has fallen greatly. It is estimated that the total amount of all the derivatives in the world is equal to $600 trillion. Or 1/10th of the total GDP output of the world.
The debt cannot be repaid. That isn’t the concern by the banks. All they want is you to pay the interest. Without velocity, “Where’s the Interest?”
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