Bankruptcies are on the rise

Latest news indicate bankruptcies in the U.S. hit highest level since 2005. Unfortunately, due to deflating money supply, some of us are guaranteed to go bankrupt. Total money supply is not enough to pay total debt.

This is because of the way the monetary system works. Most of our money supply is debt. It is borrowed from the banks. When the money supply itself has principal + interest to pay back, we have a problem because principal exists so we can earn it and pay it back, but the interest portion is not even created yet. How did we get here? Let me explain:

When we borrow,banks create money out of thin air and demand interest for it:

http://www.tradingstocks.net/html/banks_create_money.html

This new money inflates the money supply and makes it easy to earn. This is why the government encourages borrowing. Mortgage interest deduction from tax, sub-prime, no 20% down, liar loans were all by design to inflate the money supply. Cash for clunkers, 8K home buyer credit hopes to serve the same purpose. Obama is running around telling the banks to lend. Because government wants to inflate the money supply. Why?

Because debt needs to inflate exponentially so that at a given time principal + interest of old debt exists and can be earned and can be paid back. But there is a problem. Debt cannot inflate infinitely because the economy cannot carry the burden of servicing debt. This is the debt problem that is causing deflation:

http://www.tradingstocks.net/html/inflation_deflation_credit_bub.html

Deflation is the reason why foreclosures happen, people, companies go bankrupt. Unemployment, housing are all due to deflation. The monetary system is prone to inflation and deflation. Interest based monetary system coupled with fractional reserve banking is destined for a deflationary depression:

http://www.tradingstocks.net/html/prepare_for_market_crash.html

And just in time in 2005, they changed the bankruptcy laws to make it much harder to go bankrupt. In the past it was easier to declare bankruptcy and wipe out old debt for an individual. But bankers knew deflationary crash was coming. After prime borrowers, we went through sub-prime and then we ran out of borrowers. They tried to delay deflation as much as possible. But inevitable was coming. So they changed the law so that entire population who owes money to the bankers would be on the hook for the debt. If you look at the charts, right after the law change the bankruptcy filings has dropped. But now it is so bad, the numbers are going up again.

This is how the bankers are robbing the entire population. They create money out of thin air, inflate the money supply, demand interest for it. Inflation makes it impossible to save and buy anything. This forces people to borrow. Then they change the law to make sure you cannot get away. When entire population is in debt, and deflation arrives, they tell you have to pay no matter what. They garnish your future wages if need be.

Folks, interest free economy is the only salvation you got! And bankers do not want you know that it is possible to achieve it.