Why bailouts don't cause inflation.( not quite anyway) (insurance, accountant, companies)

[gwynedd1]

I do not believe most people look at the bailouts in the correct way. The key is understanding our system of money. To put it simply fractional reserve systems were born from a gold smith fraud. Most people would not want their gold all at once so gold smiths created more paper receipts to claim gold than there was actual gold.
What does this mean? What does any money mean? Its what we think its worth based how much there is. What if we think there is more than there is? We act as if it was there. The problem is what happens when people find out there is less and you may not be the one to get it? Only those first in line get their gold. Bank runs were simply a scam revealed where their was more paper than specie.

Yet today it is far more ridiculous. We have institutionalized fractional reserves. Why not institutionalize insurance fraud? I lose a $100 worth of stuff and then make a claim I lost $200 worth of stuff. We will just have the insurance try to collect it in more premiums until they find out about it and then only pay out $100 where upon the premiums are now too high.

We can then create the FIPC. The Federal Insurance Premium Corporation where it will pay the excess premium that reflected the fake claim of $200 now actually paying out $100 dollars so we can compensate the claims only paying put $100, but with still inflated premiums based upon phony claims. This insurance fund will naturally run dry if it goes on too long.

This will hopefully prevent the insurance collapse since people will realize the insurance is not worth the premium. Naturally some insurance companies will need to be bailed out due to the lack of new premiums and people canceling their insurance because its not worth it. Obama would then offer an insurance stimulus to pay %10 of the premium which still would not be enough but at least he will have a legislative victory. Do you see our money system as any different? Of course its chaos.

Now we know that the money we see in our accounts is there but not really. We know ours is there when we want it so long as no one else wants it while we want it.
What is our solution? When we find out that we are not the only ones who want what is not really there we decide to actually create was was not there with bailouts because we acted like it was there even though it really wasn't. So to keep people as they were thinking the money was there we created as if it were and the system is fixed.


The bailout is not inflationary. Fractional reserve bubbles creating fictional money is inflationary because we think its there. The moment we see its not, consciously I guess, we simply create it on the spot. All better now....
See the problem? Bailouts are post inflationary. What a completely ridiculous solution. Its a fiat currency for crying out loud what are we doing allowing psychological money to inflate and backfill with a few book entries and a paper mill so we think its there and look, now it is. We have accountants filling in a column assuring us its there now? It all pschological accounting tricks. They are just replacing the money we thought was there. The bailout is just a slight of hand back filling previous inflation.

At least that is how it end up. Its done in a painfully slow fashion to allow the insiders to clean up. That is the real reason we have a truly barbaric system of fraud in our money system. If we allow fractional reserves to go on and not go straight for its throat, forget it. This is class warfare. Its the banking class against all the rest of us.