Prices and Value

People were warning that 'the reality was the unreal' when they looked at the wreckage of the fiat/speculation system in the 1930's, too. And then they herded together and marched right back into the same house of mirrors and voodoo.

That's the amazing power of the fictional wealth matrix- the mechanism can, in its early stages, add painless zeros onto the ends of incomes and assets, and that makes the public happy and complacent ( and forgetful about what lies on the other side of the mountain, even when the history books show it ). It works like magic. When you first borrow your 'new wealth', you don't even feel the burden. It's nearly weightless. In the beginning, it feels like the fountain of youth rejuvenating the economy.

People need to wake up and stop counting prices as a measure of wealth. When you're adding zeros to your income or to your home price, what you're really doing is acting as a thermometer for how much debt is entering the system. Price and value are two different things. In a fiat system, something's price is 'value' X 'the amount of paper money prepared to pay for it'. The same loaf of bread can be 25 cents in a sane money system and $100 in a money system spinning out of control. The bread has the same value in both cases, but the prices are night and day.