(The Epoch Times)—Who doesn’t know them: the blood-sucking vampires, the eerie undead, immortalized in countless films, and inspired primarily by Bram Stoker’s novel “Dracula” (1897). Just think of iconic movies like the silent film “Nosferatu—A Symphony of Horror” (1922), “Dracula” (1958) with Christopher Lee, Roman Polanski’s parody “The Fearless Vampire Killers” (1967), or “Nosferatu—Phantom of the Night” (1979), starring Klaus Kinski as Count Dracula.

Vampires are demons who rise from their graves at night, seeking to drain the blood of innocent victims. Not only do they steal the life force that sustains them, but they also spread their curse. Many victims, bitten by vampires, are “turned,” becoming undead themselves, thus joining the vampire’s dark domain.

The enemies and hunters of vampires face a formidable challenge: vampires can disguise themselves, transforming into creatures like wolves or bats, and often display immense, superhuman strength. They can only be repelled by traditional defenses—garlic cloves, rosaries, holy water, or the Christian cross. But truly destroying a vampire requires decapitation, driving a wooden stake through its heart, or bright sunlight that turns them to dust.

The vampire is an ancient and widespread myth. The image of a blood-sucking undead creature, or similar concepts, has existed across many cultures. This demon embodies superstition—acting as a projection of primal fears, the inexplicable, and evil as the counterpart to good. The notion of a creature that emerges at night, drains its victims’ blood, and draws them from light into darkness is undoubtedly a profoundly threatening one.

When you reflect a little longer on the horror story of the vampire demon, you will inevitably begin to see parallels (or at least points of contact) with the fiat money system that exists worldwide today.

Under Cover of Darkness

It takes place under the cover of darkness: It is fair to say that the vast majority of people are unaware of how today’s fiat money system is structured, how it operates, or what its effects are. Students in schools and universities are, for the most part, left in the dark about it, and the consequences of the fiat money system, therefore, take most people by surprise—unprepared and relentless. Indeed, how many people know that our current fiat money system is a system in which the state’s central bank holds a coercive monopoly on the creation of fiat central bank money, while commercial banks issue their own fiat commercial bank money based on central bank fiat money.

Who knows that fiat money is literally created out of thin air, representing a form of money creation that has no connection whatsoever to “real savings”? And who explains to people that, from an economic perspective, expanding the fiat money supply is inflationary, leading to uneven higher prices for goods and services compared to a situation where the money supply had not been increased? It is also unknown to many that the issuance of fiat money via the credit market causes a misallocation of capital, initially triggering a boom, only to be followed by a bust; that it drives economies into excessive debt; and that it allows the state to grow ever larger at the expense of the freedoms of citizens and entrepreneurs.

In short, for most people, the damage caused by fiat money is unknown; it creeps upon them under the cover of darkness, like a vampire.

Vulnerable Victims and Life Sucked Away

The victims are often helpless and unaware, with the fruits of their labor effectively being siphoned away. Fiat money has something vampire-like about it, enabling one group (those allowed to create fiat money) to live at the expense of others (those forced to use the monopolized money). The first recipients of newly-created fiat money are the beneficiaries. They can use the new money to purchase goods and services whose prices have not yet risen, making them wealthier.

As the money changes hands, it increases demand, and prices of goods rise accordingly. As a result, the late recipients of the new money can only buy goods at higher prices, leaving them at a disadvantage. The first recipients improve their position at the expense of the late recipients. The most severely affected are those who receive nothing from the newly-created money supply—they are, in effect, the ones “sucked dry.”

The vampire-like redistributive effect of fiat money, which operates in the shadows, particularly benefits commercial banks that create fiat commercial bank money, as well as those in a position to take out new bank loans in fiat money.

First and foremost, it is the state and those who benefit from it who are among the biggest winners of the vampire fiat money system. The state finances a significant portion of its expenditure with newly-created fiat money, using it to pay its representatives, employees, and their pensions, as well as the companies from which it purchases goods and services. The state and its beneficiaries are among the early recipients of the newly-created fiat money, making them the primary beneficiaries at the expense of the many who are not closely connected to the state.

One might argue that a redistribution of income and wealth, brought about by the increase in fiat money, would also occur in a commodity or precious metal money system. This is true in principle, but the increase in, say, a gold money system, would be less pronounced than in a fiat money system. The fact is that the latter was deliberately chosen for its vampire-like nature. It benefits the state, banks, and big business at the expense of the general population, keeping them below their economic potential.

Creating Minions

Like a vampire, fiat money infects its victims, turning them into accomplices of the fiat money system. Fiat money quite literally enslaves its users, making them dependent. For instance, fiat money incentivises firms and private households to incur debt and live beyond their means, made possible through artificially low interest rates. People are also encouraged to invest in assets (such as houses and companies) because the chronic inflationary nature of fiat money ensures a continual rise in asset prices. Once people are lured into exposure to fiat money, their economic and financial well-being becomes dependent on the continuation of the inflationary fiat money system and on it being “rescued” by the state and its central bank during times of crisis—even at the expense of those who do not benefit from the system, or benefit much less.

Politicians, bureaucrats, bank employees, and companies that receive government contracts all develop a vested interest in ensuring that the fiat money system is maintained. In this sense, they become fiat money vampire thralls, feeding off the lifeblood of those engaged in productive work by claiming a share of their income.

Moreover, holders of fiat money are the ones who lose out, as fiat money continually loses its purchasing power. In a fiat money system, the central bank ensures that interest rates are kept artificially low—often negative after accounting for inflation—so that savings in time deposits, savings accounts, and bonds are effectively eroded.

Aversion to Light

The vampire and the fiat money system cannot withstand the bright light of day; both will crumble to dust when exposed to sunlight. If people truly understood the negative effects of fiat money and the damage it causes to the world, they would likely reject it—along with the production and employment structures it creates. This is likely why so little is taught about fiat money in schools and universities. Its darker aspects are concealed, with the statist education system as particeps criminis ensuring the bright light of knowledge does not shine on the fiat money system.

Remember that central bank councils are typically referred to as “the guardians of the currency,” and it is said that they “fight” inflation. Nothing could be further from the truth—much like a vampire who welcomes his guests and engages in witty conversation without revealing his true nature. Just as sunlight kills a vampire, sound economic knowledge would destroy the fiat money system, especially when coupled with a simple, well-understood ethic like “do unto others as you would have them do unto you.”

Until that day comes, investors should be aware of the serious economic and ethical flaws of fiat money. The uncomfortable truth is that long-term prosperity and peace cannot be sustained under a fiat money system. Therefore, it is in everyone’s best interest for the bright light of truth to expose and thus end the fiat money system. But how can this be achieved?

By proactively and honestly informing people about the evils of fiat money; by advising them to reduce their dependence on it, both in their lives and their savings; and by promoting a free market for money, while encouraging technological innovations in the monetary sphere that lie beyond the state’s control. Together, these efforts will act like a ray of sunlight striking the vampire-like fiat money system—ultimately causing it to crumble to dust.

#1 The number of Americans filing first time claims for unemployment benefits just hit the highest level in over a year…

The number of people filing for unemployment for the first time was at its highest levels in more than a year, partly due to storm damage and labor stoppages.

Initial jobless claims for the week ending Oct. 5 came in at 258,000, up 33,000 from last week’s level of 225,000, and the highest since it hit the same level in August 2023, data from the Labor Department shows.

#2 According to Primerica’s latest Financial Security Monitor report, the percentage of middle-income households that “rate their personal financial situation negatively” has hit the highest level that they have ever recorded…

Primerica’s latest Financial Security Monitor report for the third quarter found 55% of middle-income households now rate their personal financial situation negatively, a 6-point jump from the previous survey.

“For the first time in a year, a majority of middle-income households are feeling negative about their personal finances,” said Glenn Williams, CEO of Primerica. “In fact, this latest report represents the highest negative rating we’ve seen since we began fielding the survey exactly four years ago.”

#3 I am old enough to remember a time in this country when you were set for life if you had a million dollars.  Unfortunately, thanks to our endless cost of living crisis it now costs 4.4 million dollars to live “the American Dream” over the course of a lifetime…

You can live the American Dream, but it will cost you.

The lifetime tab for such aspirations as owning a home, driving new cars, raising kids and taking annual vacations comes to a cool $4.4 million, according to Investopedia, the financial media site.

That’s more than the average American earns in a lifetime.

#4 The company that produces more french fries than anyone else in North America is cutting production and laying off workers due to a dramatic slowdown in consumer demand…

Lamb Weston, the largest producer of french fries in North America and a major supplier to fast-food chains, restaurants and grocery stores, is closing a production plant in Washington state. The company announced last week that it would lay off nearly 400 employees, or 4% of its workforce, and temporarily cut production lines in response to slowing customer demand.

#5 At one time Boeing was flying high, but now it has decided to lay off approximately 10 percent of its entire workforce…

The CEO of Boeing told employees late Friday that the company plans to cut 10% of its total staff “over the coming months.”

“Our business is in a difficult position, and it is hard to overstate the challenges we face together,” said Kelly Ortberg, who started at CEO of the troubled aircraft maker two months ago and has been dealing with a strike by 33,000 hourly workers for half his time on the job.

#6 The banking industry continues to deeply struggle.  So far this year, banks in the United States have permanently shut down over 700 local branches…

US banks closed more than 700 branches in the first nine months of the year, forcing thousands to travel further to access vital services.

Bank of America closed the most locations of any bank, shuttering 132 between January and September.

U.S. Bank followed swiftly behind, having closed 101 of their own branches.

#7 After 75 years, True Value has been forced to file for bankruptcy and will be “selling substantially all of its operations to a rival”…

True Value, a 75-year old hardware store brand, has filed for bankruptcy and is selling substantially all of its operations to a rival, the company announced Monday.

In a press release, True Value said it will continue day-to-day operations of selling hardware and other homeware tools to its 4,500 independently operated locations during the Chapter 11 process, which includes a $153 million stalking horse bid from rival company Do it Best.

#8 Did you ever think that you would live to see a day when hundreds of 7-Eleven stores would be closing?  Sadly, that time has now arrived…

Several hundred “underperforming” 7-Eleven locations across North America are closing, the convenience store announced.

Seven & I Holdings, the chain’s Japan-based parent company, revealed in an earnings report Thursday that 444 locations of 7-Eleven are shutting down because of a variety of issues, including slowing sales, declining traffic, inflationary pressures and a decrease in cigarette purchases.

#9 Home Depot apparently believes that rough times are ahead, because they are dumping millions of square feet of warehouse space…

Home Depot is hastily exiting warehouse space, to the tune of 3.2 million square feet in a month, according to Bisnow.

Since late August, Home Depot has put up nearly 4 million square feet of warehouse space for sublease, including a 1.3M SF Phoenix warehouse and a 1.1M SF distribution center in the Inland Empire, according to CoStar Analytics.

#10 At this point, things are so bad that even Disney is laying off workers…

According to sources cited by Deadline, Disney is pushing ahead with new layoffs as part of a broader “cost-saving initiative.” About 300 employees across Disney’s corporate divisions will be impacted this week.

The layoffs of 300 employees began on Tuesday and will continue until the end of the week. They are all US-based employees who work across the company’s corporate operations, including legal, HR, finance, and communications.

If you have recently lost your job, I feel very badly for you, because the employment market has gotten a lot more “complicated” than it was in the old days.

Once upon a time, being good at what you do was enough.

But now other considerations are often more important than pure merit…

A top Oregon state official has been put on administrative leave after a pink-haired, DEI-obsessed subordinate complained he was making hiring decisions based on qualifications instead of personal identity considerations, according to a report.

Mike Shaw, who until recently served as the Oregon Department of Forestry’s second-in-command, was put on blast by Megan Donecker, the department’s former DEI strategy officer, for looking “beyond gender and identity in hiring, seeking only candidates most qualified for the job,” OregonLive reported.

He was formally placed on administrative leave Aug. 6 after Donecker filed a formal complaint, according to the Daily Mail.

Isn’t that nuts?

Our society is getting crazier with each passing day, and I am deeply concerned about where all of this is heading.

Sadly, the tough economic times that we are experiencing now are not even worth comparing to the pain that is coming if we don’t turn things around.

Our system is literally crumbling right in front of our eyes, and unless something dramatic happens economic conditions in this country will soon become extremely harsh.

Michael’s new book entitled “Why” is available in paperback and for the Kindle on Amazon.com, and you can subscribe to his Substack newsletter at michaeltsnyder.substack.com.