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Money Magic |
| Lesson 5 |
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Money Magic |
| Lesson 5 |
| Money - where does it all come from? |
Have you ever driven through an area thriving with much new construction - hundreds of new homes, new office
buildings, new restaurants, etc., and asked yourself the question: It's a very good question and one for which there is a very good answer; an answer that every American should know and understand - because, eventually our standard of living and that of our children will depend on it. |
| What you don't know can and will hurt you ! ! | Some would say - "who cares?" As long as I have my home, 2 cars, a boat, and can go out to dinner whenever I want I don't need to know anything else. This is exactly the attitude that allows strong foundations to be eroded, ultimately causing the superstructure to topple. It's like someone with cancer saying: "As long as my pain is under control I don't really care if the cancer is cured." |
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FIAT MONEY
and FRACTIONAL RESERVE BANKING . . . . . . two key tools to manipulate and control wealth. |
For those readers who wish to understand the "cancer
" that is continuously eating away your purchasing power, read on. FIAT MONEY AND FRACTIONAL RESERVE BANKING are the tools used to control and manipulate wealth. |
| FIAT MONEY - it's just make-believe | FIAT MONEY - is simply money that has nothing of substance behind it. According to Webster's New World Dictionary, fiat money is "currency made legal tender by fiat (sanction) and neither backed by, nor necessarily convertible into, gold or silver." As we discussed earlier it is a promise to repay nothing, in no specified period of time and at no interest. What a deal ! ! |
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It's a modern day version of "coin clipping" . . . . . only this time the whole coin got clipped. |
Prior to fiat money systems, monetary plunder was limited to what was known as "coin clipping." This was a process whereby schemers would remove part of the gold from a coin by shaving or "clipping" it. The shavings would be accumulated and melted to create more money. Clearly, coins that were detected as being shaved, would be shunned by the public and if too much of this funny money was in circulation, people began hoarding those coins which were still intact. Coin clipping, to be sure, was awkward, time consuming, detectable, and, most of all, too restrictive. A broader, more encompassing system was needed that would be easier to administer and insure tighter control; i.e. a fiat money. |
| Looking at barter helps us to understand that an exchange must include value. | In an earlier section we discussed how, in a barter transaction, parties to the transaction are willing to exchange items that have some element of comparable value. One party might even be willing to accept a promise (note) to provide the barter item at a later date for the benefit of obtaining the item desired today. What no one in his right mind would do is accept a note from someone who he knows has absolutely no intention to repay; i.e. from a thief. |
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U.S. money used to be gold and silver . . . . . until FDR took away the gold. |
In the case of our national currency, the conversion from real money to fiat money was done by government mandate when, in 1933, the U.S. government essentially declared bankruptcy due to its inability to pay its obligations in gold. Because of this, President Franklin Roosevelt declared an emergency and simply confiscated the gold of the American people. From that moment on, until reversed in the 1970's, Americans were prohibited from owning all but "collectible" forms of gold. Foreigners, however, could buy all they wanted and gold whistled out of the U.S. as they bought from the U.S. Treasury at below world market prices. Prior to the 1933 gold recall U.S. currency bore the following inscription: |
| " Redeemable in gold on demand at the United States Treasury or in gold or lawful money at any Federal Reserve Bank." |
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This left Uncle Sam holding the gold and the American people holding the bag. |
After the recall the reference to gold redeemability was eliminated. This action represented the end of money circulating in the US since the only "currency" left to use was nothing more than Federal Reserve Debt. In 1964 all reference on our currency to "redeemability" or "lawful money" was eliminated since, after the recall of gold, astute individuals began sending their bills in to the Treasury and asking that they be replaced with lawful money. This presented an embarrassing situation for U.S. government as, in fact, there was nothing left to which these notes could be converted or redeemed. The Federal Reserve "Note", in other words, is not even a note since it promises to pay nothing. It is, in fact, a sham, a scam, a lie. |
| The significance to the money masters of having created a fiat currency is that they now have in place the ultimate tool for total monetary control. With gold out of the picture and the American people no longer allowed to possess real money, the stage was now set for total monetary control. |
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That's right ! ! Our modern day money is an empty promise from the Federal Reserve that will one day leave its holders financially destitute. |
FRACTIONAL RESERVE BANKING - is the process by which banks create fiat money. THAT'S RIGHT ! ! By keeping a portion or "fraction" of each deposit as part of its reserve, banks can then lend out the remainder at interest. Large bank loans are made available to the borrower as a credit or "deposit" to his checking account. This new deposit then becomes the basis for further money growth as only a fraction of it needs to be kept in reserve; . . and on, and on. |