At a conference held this weekend in Vienna, which was attended by economic experts, the shortcomings of the Western monetary system and the Great Reset was discussed at length. This is a neo-Marxist ideology, as Thorsten Polleit made clear in his lecture. The first two speakers, Keith Weiner and Thorsten Polleit, dealt with the monetary system and the role of central banks, which Polleit describes as “an ingredient in the Marxist witch’s brew”. He sees a severe recession coming.

The first presentation was given by economist Keith Weiner, a leading authority on gold, money and credit and President of the Gold Standard Institute USA. He is a fervent advocate of rational monetary policy and addressed the ever-worsening inflation of energy and food. Central banks are under increasing pressure to take action, i.e. raise interest rates. The Fed has already started to do this, and the ECB has at least announced an initial rate hike. Because if interest rates are not raised, the political mood could soon change, according to Weiner.

Citizens are not happy about energy prices and when people can no longer put food on the table, the situation could finally escalate.

The second speaker, Thorsten Polleit, has been an honorary professor of economics at the University of Bayreuth since 2014 and has been chief economist at Degussa since April 2012. He focuses on money and capital market theory and the Austrian School of Economics and is the author of numerous articles and books.

Central banks: An ingredient from the Marxist witches’ brew

According to Polleit, behind climate change and the lockdowns during the Corona crisis was an attempt to finally smash capitalism or what is left of it. The central banks have become more and more powerful almost unnoticed in recent years and determine which government is to be removed or not. The central banks are also able to control whether and which companies receive loans. This corresponds directly to the centralization of credit according to Karl Marx. Therefore, for the economist Polleit, central banks are the main driver of the current economic mess.

He emphasized that the representatives of the Viennese school, such as Ludwig von Mises or Friedrich von Hayek, already foresaw this. For example, Hayek wrote of the central bank monopoly on money: “There is less reason than ever to hope that states will become more trustworthy as long as the people have no choice but to use the money that the state makes available to them.”

Fiat money [money printing, ed.] is inflationary, Polleit maintained. So it loses its purchasing power because it can be increased simply by printing money. It favors the few at the expense of the many. This unequal distribution is called the Cantillon effect.

The redistribution is particularly nefarious, because the state benefits from inflationary money as it is able to pay its debts more easily. On the other hand, fiat money causes the market interest rate to fall artificially. This in turn leads to society living beyond its means and becoming over-indebted.

Fiat money thus inevitably leads to a debt economy in which debt increases faster than income. The result: global debt has grown to a total of $350 trillion by 2021, according to Polleit. The money supply has been increased by 43 percent in recent years by the US central bank, the Fed, and by 20 percent by the European Central Bank, the ECB. The euro has therefore lost around 40 percent of its purchasing power over the past five years.

A system of economic dependence: Fiat Money

Supply bottlenecks, lockdowns and the war in Ukraine have caused a shortage . The “negative price shock” now meets a money supply hangover. Because this expansion of the money supply by the central banks has been leading to extreme inflation. According to the economist Polleit, the fiat money system is a unit made up of different actors. And these actors have an interest in the economic dependence of companies and the population. The majority is made dependent on what Polleit calls “collective corruption”. This is an existential interest for banks and the financial sector. Because they are known to print new money out of thin air.

In order to prevent the system from collapsing, trade bans are imposed or interest rates are manipulated. People are now noticing the rising prices of consumer goods. Terms such as “green inflation” are intended to hide who the actual scapegoats are. Because supply chain problems, greedy entrepreneurs or “Putin’s war” are not responsible for this, but solely the central banks.

When inflation rises, confidence falls

High inflation lowers confidence, Polleit explained. Central banks are therefore raising interest rates to maintain confidence in hiding the swindle. When hyperinflation occurs, as happened in Argentina, Brazil and Ukraine, for example, fiat money is destroyed. High inflation, on the other hand, can be used for years (5-15 percent per year), which Polleit has shown using the example of Turkey since 2008. The higher money supply led to sharply increased prices for goods. Inflation has fluctuated between 10 and 24 percent over the years and is now over 70 percent.

We are facing a serious crisis

The world is currently on the way to a particularly serious crisis. The “Western redistribution democracies, as Polleit calls them, are particularly badly affected. He considers a future hyperinflation similar to that in Weimar in 1922 quite possible. As a result, the unemployment rate rose from 2,8 percent in just a few months to 19 percent and then to over 28 percent.

Today’s markets are not free due to regulations, laws and also the high taxes, according to Polleit. People are controlled centrally via central bank money. This is a kind of collectivism. That is exactly the Great Reset and the great transformation that Klaus Schwab has in mind. According to Polleit, these are neo-Marxist ideologies and the fiat money is necessary for this agenda to hide the costs of this total social restructuring. To do this, the free market must be restricted more and more, ultimately ending in a command economy. A “Chinafication” is taking place, he said.

The worst recession of the post-war period is imminent

For the time being, Polleit fears that the situation will deteriorate and, due to the anti-capitalist mood in politics, anticipates the worst recession of the post-war period. Because interest rates will not be increased massively, purchasing power has nevertheless fallen by 40 percent, which means that savings are also shrinking. For Polleit, therefore, the end of the Fiat system has begun and the euro zone will be the big loser.

State money monopoly must be overcome

Politics will not be able to solve the problem, but only a free market for money. Inflation is the result of misguided policies. A change of mindset is needed, said Polleit. The “collective corruption” must be overcome because fiat money is a “horror without end” and will not abolish itself. The state money monopoly must be actively stopped.

Reflecting on ideas that have been neglected so far could help find a solution in the future, Polleit said. Thankfully, the term “fiat money” has now become a mainstream notion, and such a positive development can no longer be stopped. If a new and well-functioning system were to be established in a country, this could lead to a chain reaction, he opined.

Image by 2211438 from Pixabay. Article cross-posted from Free West Media.

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