Benjamin Montgomery

How To Steal In Day Light or A Lesson From The Fed. In Winning Monopoly

with 2 comments

In the past week the Federal Reserve has had to “save” the financial system of the United States from collapse by providing “capital” for companies that were too “big” to fail.

Capital: 4. (Polit. Econ.) That portion of the produce of industry, which may be directly employed either to support human beings or to assist in production.

Capital is what is produced in excess of what is needed in the present.  In essence capital is the same as “savings.”  The US government just recently projected that it is running a $400,000,000,000.00 deficit for the year, which begs the question, where is this “capital” (savings) that they are providing coming from?  The answer is very simple.

To relate this to something most of us have experienced I am going to use the game of monopoly.  In monopoly you have a banker.  This person generally makes change, pays players after they pass go and handles the property transactions.  The Federal Reserve in the United States, to a large degree, is the same as the banker in monopoly.  They control an infinite supply of paper currency.

So imagine you are playing monopoly and everything is going normal and as each player passes go they receive $200.  This is fair, everyone is getting the same amount of money to play the game with and purchase property.  Property values might begin to rise, but everyone also has more money so no one feels cheated.

The game is going well some people are making good deals and have more money then others, but the game is fair.  Then everyone takes a break to get something to drink.  On this break the banker and one other player start talking and end up hatching a plan.  The player that is not the banker will distract all of the other players during the game.  When this happens the banker will slip an extra $500 bill into the co-conspirators cash stack.

The game begins again and the player points to the TV and says “check that out, the world is going to get hot and everyone is going to die” everyone turns and looks.  When this happens the banker slips $500 dollars to the player.  Everyone returns to the game.  They all have the same amount of money so everything seems normal.  The player with the extra $500 turns to one of the other players and says “Hey can I buy Connecticut Ave. from you for $400.”  $400 is a lot more then the $120 that the player had paid for Connecticut Ave. before, so he agrees.  The conspiring player again points to the TV and says, “Look the crazy people over there are going to kill us all.  Let’s kill them first”  Everyone again looks.  Then the banker slips the player another $500.  He uses this to buy more properties. Again no one notices as the amount of monopoly dollars they have did not change.  This continues until one player gets suspicious and does not turn his head.  He sees what is happening.  He says wait a minute that is not fair.  However, at this point the conspiring players have bought nearly all of the property and no matter where the other players land they have to pay rent to the banker or conspiring player.  Everyone goes bankrupt except the banker and co-conspirator who end up with everything.

In the coming months we need to not be distracted and remember to watch the guy who controls the supply of money.  If we are not diligent and let the banker and the co-conspirator continue their plan we will be left in the same situation as the losing players at monopoly.  We will still be holding dollars, but we will be paying more and more of them to get less and less.

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Written by benmont1981

September 17, 2008 at 6:07 pm

Posted in Uncategorized

Tagged with ,

2 Responses

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  1. I like that, thanks!

    joe

    September 17, 2008 at 8:23 pm

  2. Thanks

    benmont1981

    September 17, 2008 at 8:42 pm


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