In order for Germany to make a payment (to debtor countries post ww1) they either had to have money lent to it (made up of fiat ledger sheet money) from Wallstreet or have machinery it made purchased from it by developing nations who only had the money to buy said machinery because they were given loans from Wallstreet to do so.
Fiat ponzhi scheme in full effect after WW1. All the "growth" is based on fiat loans which need to be paid back with yet more fiat loans.
This is the thing that's so hard to fathom. There is only so much value in the world and when we use Fiat moneys we base a medium of exchange on something which is not the value itself but an lesser representation of it. These representations need to be paid back but because there is only so much value in the world. it can only be paid back with fiat leading to an endless cycle of loans to pay back loans.
If all the value in the world is represented by 1 then Fiat is over and above this. You would need to create more value in the world to truly pay it back without a fiat loan. You would need more land, more Gold, more energy, more of the actual valuable assets.
What a head fuck.
"When
Germany made a reparations payment, it informed the BIS that the Reichsbank
had credited the BIS’s account in Berlin. The BIS then informed the national
banks of those countries receiving reparations, such as, for example, Britain, that
the monies were available to draw on, if they so wished. If they did not, in case
the movement of substantial sums might affect exchange rates, the funds
remained in the BIS’s account. In the meantime, the BIS used the funds
earmarked for Britain to buy securities—which it could sell if and when Britain
wanted to draw its monies."
#macro #politics # gold #bitcoin #plebchain #ureka #nostr #grownostr