THE BIG LIE OF ECONOMICS: INFLATIONGATE

By John C. Turmel, B. Eng.

HOW "MORT-GAGE" INTEREST CREATES A DEATH-GAMBLE

"All Economics is based on the false premise that "interest fights inflation" when the truth is that "interest causes inflation." Almost everyday in every financial story of every newspaper and radio or television program, it is repeated over and over the interest fights inflation. They all agree that interest causes unemployment but all have been conditioned to believe that it is necessary to fight inflation. "Inflation is coming so we'll have to raise interest rates" is hypnotically chanted like a mantra.

The word "mort-gage" is derived from the French word "mort" meaning "death" and "gage" meaning "gamble". Bankers create the money supply when they make loans. Producers are forced to gamble by borrowing newly created Principal(P) to pay for production costs and then inflating their prices to recuperate both the created Principal and the non-created Interest (P+I) from their sales. Because total goods priced at (P+I) can never be sold when consumers only have P dollars available, a minimum amount of goods must remain unsold and a minimum number of producers must fail and suffer foreclosure. The economist Keynes likened the mort-gage death-gamble to the game of musical chairs. Just as there are insufficient chairs for all to survive the musical chairs death-gamble, so too, there is insufficient money for all to repay (P+I) and survive the mort-gage death-gamble." (snip) ...

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