“Ask in faith through the power of the keys and you will receive.”

INFLATION OR DEFLATION?

Originally Published December 1974

In the great economic depression of the late '20s and '30s, the post-World War I depression, they had no economic guarantees on wages, no price supports, nothing to keep wages and prices up. So when the economic crash came, the war boom burst immediately, because of the production slowdown caused by the end of the war.

A lot of people were out of jobs and there was no social security, no guarantee of wages, nothing for the poor man except starvation. They either cut his wages way down or threw him out of work entirely. When people didn't have jobs and had very little money, the prices also fell, because people didn't have enough money to buy anything.

They couldn't even buy necessities, much less luxuries. Many industries virtually went out of business, not only the war businesses, but the appliance businesses, etc., went broke too! The auto business was one of the first places where people cut their spending, because it's a luxury to buy a new car, and if everybody does that, then the auto business can go broke because nobody buys a new car. They keep the old cars, the old refrigerators, and the old houses as well.

They just kept the old ones and patched them up because they didn't have any money to buy new ones, which is what they should have been doing in the first place. So the car industry nearly went broke, and some makes did. Only the big money boys survived, like General Motors, Ford, etc., and they bought up many other makes of cars.

The more industries that went broke, the more people there were out of work, and therefore, the more people there were that didn't have money to spend! It was a vicious cycle, a downward spiral that just couldn't stop, and industry kept cutting prices to where people could afford to still buy. This meant that both wages and prices spiraled downward, prices following wages so the people could buy something. This was the deflation. When both wages and prices are lowered, then your money actually buys more, so its value is actually higher.

The end of that downward spiral was that all the poor wound up with almost nothing and near starvation, except for the public works programs that FDR put on where they were working for one dollar a day on a "make-work" project. He just decreed that certain dams be built and certain places be reforested and bridges and roads be built, all kinds of big "work projects" where they sent thousands of people out to do these jobs. It was called the WPA: Works Projects Administration.

This [Depression] resulted in the poor man and little businessman losing everything. They were gobbled up by big business, the big corporations and big banks who had enough money to buy them up.

The only people who benefitted from the Depression were the ones who had lots of money. The Depression really favored big business--the guys who had lots of money to survive because their money was worth even more. This was deflation, which benefitted big business.

So the big powerful labor unions, the politicians, the middle class and the little businessmen who had been wiped out determined they'd never let it happen to the common man again! From that time on there were going to be guaranteed wages and guaranteed unemployment insurance with the government footing the bill, along with big business having to pay part of the bill. Big business then, of course, insisted that they also have guaranteed prices. So they put so many safeguards on the wages and prices that they'd never collapse again like they did in the Depression.

But what they actually did was to virtually guarantee perpetual inflation, that wages and prices would continue to rise and never go down again! Every time big business hiked their prices, labor would hike its wages, and then business would say it had another excuse to hike its prices because wages went up. It became a vicious cycle, an inflationary spiral. It was impossible for prices and wages to decline because they were guaranteed by governments who never wanted to see another depression.

So what resulted was a permanent inflationary spiral of prices and wages, and a permanent constant inflation of money so that the money continues to buy less and less and less, and its value goes down and down and down. The higher the wages and prices go up, the less your money can buy. The higher the prices go, the higher the wages go, but the rich make sure the wages are never able to catch up with the prices. So they just keep going up and up and up and the money buys less and less, until finally the money is worth almost nothing compared to what its value used to be.

The strange thing that's happening is that the inflation is picking up speed right along with the depression, just the opposite of what happened in the Great Depression. This time they're not only going to have a big depression, or economic collapse, which in days past benefited the big money boys, but it is also going to bring about the collapse of big investors, governments, everybody! It's going to take the money down with it--and capitalism!

The dollar ("Green Paper Pig") is expanding just like when you blow up a balloon. There's actually no more balloon there than when you started. It's just getting thinner and thinner and filled with more and more hot air and stretching further and further till it bursts. Finally it can't stretch any further and it explodes!

Big investors are now buying food commodities along with gold. They're not only buying this year's crops, which haven't even been harvested yet, but they're also buying next year's crops because they want to make sure they're going to get them at this year's prices.

Before the governments will collapse or allow their big banks or big business or big money boys who run the governments to collapse, they'll start a war. They're going to blame it all on the oil, like they're doing right now, [saying] that the inflation is all because of the oil prices.--Which isn't true! But at least it's a good excuse to take people's minds off their domestic problems, like Hitler and every other dictator has always done. They start a war with somebody else and then they promise the people that if they can get that oil they can control the economy, and that a war will boost industry, create jobs and circulate money. So they promise, "We'll have another boom!" But it's not going to work this time!

The whole world's present economic and governmental systems along with its military machines and superpowers, is going to explode and collapse. Probably the Antichrist will then arise and pick up the pieces and become the "savior" of the world with a new system of government, economy and religion--the Imitation Messiah!

David Berg

Edited by Almondtree Productions