Its All One Giant Inflation Pyramid Building Since 1933 | Rafi Farber

Donuts. Package of six. How much? $1.12. Too much. Aspirin. Price? $3.40. Oh, please. Hey guys, Raf here from The Endgame Investor and today we’re going to talk about Scrip from the 1930s. And what is Scrip? It’s just another word for a derivative. And this reasoning will help you understand why a currency reset cannot happen if you are deriving the value of the currency you are resetting to from the current currency, which is the US dollar. So any attempt to reset the system by creating a new derivative layer or a Scrip layer on top of the dollar itself, for example, in CBDC, Central Bank Digital Currencies, or any other scheme that will derive its value from the present price array will necessarily fail by speeding up the inflationary process.

And we’re going to go into a book called The Diary of the Great Depression from a diary of one Benjamin Roth, who was a Jew who lived in the 1930s in Youngstown, Ohio. And he’s writing in March 1933 about the national bank holiday that took place right after Roosevelt’s inauguration and the plans to restart the monetary system by issuing Scrip or derivatives off of bank deposits or bank books that could not be withdrawn because there wasn’t enough money in the banks. So we’ll read two entries from March 1933 and you’ll start to understand why nothing has really changed.

So this is page 99 of Great Depression, a diary by Benjamin Roth, edited by two other guys. I forgot who led better or something. I don’t really like their editorial comments. I just like the diary itself. And Roth is not a monetary expert. He’s trying to learn as he goes here. He is a lawyer. I think he died in 1978 at the age of 84. And this diary was published by his son, Benjamin Roth, I believe. So here we have March 9th, 1933. This is the second day, he says, of the national bank holiday, passes quietly.

All Youngstown banks are open to make small change and to transact routine business, but no withdrawals are permitted. Which means that bank deposits, which are derivatives of dollar notes, physical cash dollar notes, cannot be withdrawn. Plans are being made to issue Scrip against bank collateral, such as notes, bonds, and other liquid assets. Now note that sentence, issue Scrip against bank collateral, such as notes, bonds, and other liquid assets. So if you have notes or bonds or other liquid assets in your deposit account, whatever it is, but you cannot withdraw it, then they’ll say they’ll issue Scrip against those assets, which you can withdraw.

Now, the simple thing to notice here is that the Scrip is not just issued willy nilly off of no base. It always has to build off of the previous layer of the pyramid that cannot be withdrawn because otherwise it wouldn’t have any definable value at all in terms of other goods and services. Because once again, the regression principle of money in order for prices to make any sense at all, it has to reach back into the past. So any new current system, which in this case would be Scrip against liquid assets that cannot be withdrawn because they’re locked in a bank, they have to be based on the original notes and bonds and other liquid assets.

He continues, it is not known yet whether the Scrip will be issued by the government or by local bank clearing houses. I hope it will be issued by the government because then it will be received everywhere and payment of obligations. It is also pretty generally agreed that we are in for a period of currency inflation. So here Roth is right, and he says that any issuance of Scrip against current assets locked in banks will be inflationary and explains why. A few sentences down, I’ll read starting here, one thing is certain, if bank depositors are permitted to draw out a portion of their deposits in the form of Scrip, then we are in for a brief spending spree and rising prices.

People need almost everything and also they will not consider the Scrip seriously as money. If I get any surplus Scrip, I will use it to reduce fixed obligations such as loans on insurance policies, mortgage loans, et cetera. So what he’s saying here is if people have assets locked in a bank and they cannot withdraw them and there’s a currency reset so that people can take out Scrip against assets that are in a bank account, then what people are going to do is they’re going to pay down obligations with this Scrip because they won’t consider it money to be saved.

And so imagine in the scenario where a CBDC is issued against dollar deposits in bank accounts, instead of having dollar deposits, now you have CBDC deposits deposited at the Fed, which controls it centrally. That is the same situation as this. It’s just a different derivative layer, which means that prices go up even faster than they were before. So the whole theory that hyperinflation will be used as a basis to introduce CBDCs into society does not make any sense because if the dollar is hyperinflating and the Scrip based on the dollar, which would be the CBDC, it’s just blockchain powered Scrip, but it’s the same thing as any other Scrip.

That means that the rate of price increases will accelerate even faster under a CBDC regime than they did under a hyperinflating dollar regime. So obviously it will not function as a reset. Now, if you’re still having trouble understanding what Scrip is, well, just think of it in terms of a gift certificate. Let’s say you have a gift certificate to Amazon or to Costco or whatever. That gift certificate is denominated in terms of dollars and is redeemable in goods and services, which are valued in dollars. But that card or that certificate, or that was Jeffrey dollars that you can get at Toys R Us in the 1980s and 1990s, that is Scrip.

It’s denominated in the previous currency, but it’s not issued by the central bank. So the store itself can issue it. And then you have liquidity that’s only redeemable in terms of goods and services for that store. But then when you take a step back, if you have a store issuing Scrip off of its own goods and services that it has in its store, then the dollar itself, which is just a note, is really just itself Scrip issued against gold. And every time you go up a layer in the pyramid and issue another form of Scrip against a previous layer in the pyramid, right, the dollar is Scrip issued against gold.

Bank deposits are digital Scrip issued against dollars. And then a Scrip from a bank is Scrip issued against the bank deposits that can’t be redeemed in dollars. So you just issue another layer on top of the pyramid keeps going higher and higher and higher. What we are talking about a reset is not a building of another layer in the pyramid. It is the destruction of the entire pyramid, destroying all versions and all layers of Scrip until you get down to the very base of it. And then you can redenominate all prices in terms of actual money and not Scrip.

And every time a new layer is issued, prices go higher. But let’s go into the next entry here and you’ll see what the problem is. March 9th, 1933, same date, later in the day. Scrip was issued yesterday by Truscan Steel Company and General Fireproofing Company in payment for wages. So these companies gave their employees Scrip to be able to buy back some product produced by these companies instead of dollars. I saw today some of the General Fireproofing Scrip. Legally, it is a promissory note to bear payable on or before six months is issued in $1 and $5 denominations.

The point here being that all Scrip is denominated in the previous layer of the pyramid, in this case in dollar denominations. That’s what the Scrip is denominated in. Therefore, the CBDC would be denominated in the same dollars and any other layer on top of that would be, and it would just speed up the rate of hyperinflation. Anyway, it continues. The Truscan is also a promissory note payable against frozen bank assets. This Scrip is being refused in many cases because circulation is limited. Plants issue Scrip on a national scale are awaiting the President’s message to Congress this noon and now we come to the scary point of this entry which brings us to the solution to this problem which I’ll get to in a second.

In the meanwhile, the U.S. takes action against gold hoarders by demanding from each Federal Reserve Bank the names of persons who withdrew gold after February 1st, 1933. These persons will be shamed by publicity into returning gold or will be taxed so we see here that every time there is a new layer of the pyramid being built because the previous layers cannot function anymore, the government or some other entity issues Scrip based on the previous layers of the pyramid. That’s when people at the base of the pyramid get discriminated against and harassed and threatened for punishment and public shaming just like something out of Mao’s China.

And what is the solution to that? Well, that is the Dirty Man Safe. Instead of showing me the landing page, the link is in the description below. I will show you an actual Dirty Man Safe that I have here. I have an extra one with the original plastic wrapping I got in the packaging. We can open this thing up. This is a PVC pipe or something like it and it is weatherproof. And if you look inside here, you pull this out, you get the Dirty Man Safe. This is the Dirty Old Man.

It’s still got the plastic wrapping and there is this cord here, this metal cord, which you can pull up, used to pull up. This over here that I’m holding keeps the dirt out, obviously, and makes this very easy to pull out in emergency. All you got to do is find the cord and pull and then you got it out of the ground. And here is where you store all your stuff, your gold or your silver or whatever it is or your will or your ammunition or your weapons, etc., etc., all assuming it is legal, of course.

And here we have instructions and all the other stuff that goes with it. But I did the calculations. You can fit just a little bit less than a million dollars worth of gold in this thing. I don’t recommend doing that, but I do believe that everyone should have some amount of gold and silver in their Dirty Man Safe. Use the code EndGame10 at checkout for 10% off and through that code you will support this channel and I appreciate your support as always. And the final thing I wanted to mention here is that from these entries about Scrip, we can see that the current pyramid that we are on in the year 2024 is just a continuation of the pyramid that began in 1933 when Roosevelt tried to restart the monetary system, which he did successfully, but that success came at the price of 90 years of inflation that we are still experiencing today, which is just Scrip over Scrip over Scrip and gift certificates over gift certificates over gift certificates that still has to fall in its entirety.

And when it does, the gold owners and the silver owners will be able to buy up a big portion of the goods and services that are available in the world, and that, my friends, will be the real reset and not a central bank digital currency or another layer of Scrip on top of fantastic layers of Scrip that have already been built up for 90 years. We’re talking about the collapse of the pyramid, not the building up of it to another layer of hell. And when it does fall down, you’re going to want, among other things, a dirty man’s safe because the gold hoarders are going to be blamed for everything.

And if you enjoyed this video, then sign up to be my patron on Patreon for as little as $3 a month where we discuss religious lessons in gold, silver, and government. And this week, we’re going to deal with why drafting people into the army is completely forbidden according to biblical law. Have a nice day, enjoy your Scrip, enjoy your real money, and if you want to support this channel, enjoy your dirty man’s safe. [tr:trw].

See more of Rafi Farber on their Public Channel and the MPN Rafi Farber channel.