Monetary Science and Basic Economic Law Premier Ark, LLC — Copyright 2009 Click Here To Download Now

The Great Credit Contraction

An autopsy on the worldwide monetary and financial system

The Book

The Great Credit Contraction

The Great Credit Contraction eBook - an autopsy on the worldwide monetary and financial system.

Dear Fellow Holder of Capital, I want you to imagine this scene. For years you have been taught the sun revolves around the earth. Your boss believes it, your preacher believes it and your elected politicians believe it. This idea has been a foundational pillar for at least three generations and society has been ordered around it.

One day while the sun is still rising and there's just a few puffy white clouds in the sky you hear the assertion that the earth revolves around the sun. A logical and rational argument is made to explain the movements of the celestial objects. It seems persuasive but your boss, preacher and elected politicians argue against it. As time passes they are proven wrong. Many of their decisions based on that fundamentally flawed premise become worthless. The consequences cannot be averted because physical law is at work.

At all times and in all circumstances gold remains money and as a tangible asset cannot become worthless. Fiat currencies such as the FRN$, British Pound, Euro, Yen, etc. are merely illusions and can become worthless. These are two undeniable premises. Therefore, in the financial solar system the fiat currencies revolve around gold. The current financial crisis, a credit contraction of epic proportions and the largest in the history of the world, is a predictable consequence of economic law. The system does not collapse but evaporate.

Your boss, preacher and elected politicians are probably scrambling in a panic. You may be also. For generations decisions on how to allocate capital, what businesses to fund, what goods to buy or sell, etc. have been made based on a fundamentally flawed premise.

Consequences are happening that cannot be averted. Most financial professionals and elected officials are infected with the financial insanity virus. When an apple falls they sincerely expect it to go up and are frustrated when it hits the ground.

Some politicians are even attempting to repeal the economic laws of gravity. Economic reality is more than a brick wall. Economic law is like the force of gravity itself; unseen except for its influence on every action. Economic forces pay no attention to charismatic leaders or their throngs of rapid followers. Attempts to repeal economic law are futile. Politicians are being humbled by the market.

You may have a feeling of nervousness or butterflies. The second hardest thing to do is make money. The first hardest thing to do is keep it. Lately, many people have watched tremendous amounts of their purchasing power evaporate. What can be done to protect, preserve and grow one's wealth?

You may suddenly realize that it has always been the understanding and adherence to basic economic law that separates the wise from the clueless...

Do Not Fight Economic Law

Chances are, your story may sound like this one. Do you understand what basic economic laws are operating? Are you prepared to act in accordance with instead of opposition against those laws?

I know what it's like to not understand certain topics. For example, Chemistry and anything with blood are not my favorite activities. Instead, I found accounting, law and economics extremely interesting and fun. Every individual intuitively knows that economics is important but many view it as a 'necessary evil'.

Economics is a hotly contested discipline and ripe for conflicts of interest. Many just throw their arms up in disgust... especially those who need the understanding most, beginners.

The Reason Why Most Individuals Have Such Trouble With Economics Is That Correct Economics Is Rare!

Most economists are employed by large government funded institutions. Still others work for large banks. There is a status quo and they are not to disrupt it.

Let's face it: Most economists are court economists.

The stone-cold truth is... it is in the financial best interest of most finance professionals, economists and other academicians for you to remain clueless to basic economic law. There is a strong conflict of interest between you and them. If you want to retain your wealth instead of paying fees or losing it in the markets, then you have to take charge of your own education.

Here is a great example of the lies and propaganda from the 'experts' intended to confound, confuse, deflect and misdirect their audience from the key issues. On February 3, 2009 Yahoo! Finance in conjunction with CNNMoney had an article titled 'Your Questions Answered':

"Question: I am confused about *how* the government is bailing us out of debt. Where does the stimulus money come from? Is the government just printing more? - Kimberly Wand, New York City
Answer: No. The presses are not running overtime. A spokeswoman from the Bureau of Printing and Engraving said the agency's print order has not increased. In any case, that's not how the government injects money into the economy."

The Adjusted Monetary Base is comprised only of currency (banknotes and coins) and commercial banks' reserves with the central bank. As such, it is an extremely narrow definition of currency consisting of only the most liquid forms of currency. Why did the answer not even mention the dramatic increase in the Adjusted Money Base? Because the intent behind the propaganda article was most likely to confound, confuse, deflect and misdirect so that your wealth will continue to be confiscated and transfered.

The entire article had more cow patties than a pasture. Worse yet, as The Onion satirizes, some powerful voices in the press present multiple vociferously argued viewpoints undergirded by a single fundamentally insane premise.

So how do you understand and make the laws of economics your friend?

I will tell you but, first let me share with you a quick story...

Hi, my name is Trace Mayer. When I was five years old I wanted a bicycle and I asked my father for it. He replied, "How are you going to buy it?" I collected cans and sold Otterpops to the construction workers until I purchase my first bicycle.

From that time on I had a passion for entrepreneurship. When I wanted something I would figure out how to earn the money and buy it. But being frugal eventually I found I had excess earnings and needed to figure out what to do with them. Like you I got frustrated with and attempting to increase my investing results. Through study, trial and error I began discerning economic laws that helped me to increase my investment returns.

With a passion for entrepreneurship and investing I would often discuss economics with various family, friends and acquaintances. Eventually at their request I started a website to share my expertise.

With the current predictable consequences in the financial markets I have been extremely agitated at watching the life savings of many family and friends evaporate. So much of this financial pain could and can be avoided with only a little education on basic economic laws. Therefore, I resolved to write this book to meet this need in the market and hopefully all who read it will be better informed citizens who can exert their influence to stop throwing the wealth of society into a giant black hole.

From 2-3 Visitors Per Day To Thousands

I started my website as a hobby and labor of love. I immensely enjoy it and get a real kick out of speaking at various investment conferences. I am still surprised that so many people read what I have to say. I am sure not everyone agrees with everything I say. I doubt I even do as I read some of my earlier work. Like you, I am constantly evolving and advancing in my understanding.

I started reading public financial statements by various companies. I finished all of Warren Buffett's Letters to Shareholders. Then I moved into reading the teachings of top economist

However, it was not until I started writing about and publishing my ideas to the public that I began to encounter opposition to my ideas. The fine intellects I clash with have contributed greatly to my development because I have to understand, refine and articulate my position in logical, coherent and rational written words. Consequently, I must better understand the assertions.

It did not take long until I had created a library of writings on monetary, economic and geo-political topics. The readers of my website often complimented me on the quality of my work.

However, I began to think of the new visitor who had never been to my site. With hundreds of pages in my archives on all different subjects how could the new visitor get an organized curriculum to understand the basic economic laws at work? What foundation could be laid for when they read new articles?

INTRODUCTION: THE GREAT CREDIT CONTRACTION eBook

Understand The Basic Economic Laws To Protect, Preserve And Grow Your Capital.

After a presention at an investment conference I received a lot of compliments on the content. Summarizing the event to my thousands of readers who were not able to attend I asked a seemingly innocent question: "I think I need to develop a foundational document of about 45-50 pages to provide a solid grounding in the principles at work. While most of the information is available it is scattered and unorganized throughout about 100 posts which could be formidable for a new reader. If you would find such a document valuable please leave your comments."

Well, that was enough market research for me so I began working on The Great Credit Contraction.

When most individuals begin studying economics they are bombarded with incongruent ideas that confound, confuse, deflect and misdirect their attention resulting in befuddlement and it only sets them up for failure... financial injury... or both.

I have organized and written The Great Credit Contraction with three principles in mind:

21 Topics Revealed In The Great Credit Contraction

When you read it, you will be BLOWN AWAY with how simple monetary science and economic law really is. Here's just a taste of what you will discover...

Six Reasons Why You Will Be Delighted With Your Copy Of The Great Credit Contraction...

To Your Financial Success,

Trace Mayer, J.D.
Monetary Scientist

Return to the front page