Money is actually nothing but worthless paper created and handed out to us to make us believe we are working for something of value. But money has no value. Even the Treasury admits this, “modern money is known as ‘fiat money’, it is artificially created, has no value in itself and the basis in its use for exchange is typically a government edict.” – FOI request to HM Treasury.
Money has no value because it can be created and there is NO LIMIT to how much can be created. The reason gold and silver have value is because there is a limit. If we want more gold somebody has to go and mine it, and there is only a certain amount of gold available in the world. If a country needs more money all the central bank has to do is type a few numbers into a computer and that’s it, instant money.
The central bank controls the production of a country’s money (inflation) and interest rates. Effectively it controls the nation’s economy. This is why in 1790 Mayer Amschel Rothschild stated,
“Let me issue and control a nation’s money and I care not who writes the laws.”
On all notes it says: I promise to pay the bearer on demand the sum of xx pounds.
In the past this would have resulted in the bank changing it for sovereigns which were gold coins. But if you take this note to the BoE and ask them to come good on this promise today, they will tell you that they can only convert it to other pieces of paper. So all our notes promise, is that they can be changed into smaller denominations. All real value has been removed from them and it is now left to the monetary policy of the central bank to create a value.
Money is actually debt. It sounds impossible but it’s true. Every time a central bank creates money it exchanges it for the same amount in government bonds. These bonds have interest on them, so the government has to pay this interest (debt) back to the bank or whoever the bank sells the bond to. But the money to pay this extra debt doesn’t actually exist. So how does it get paid? Well the only thing to do is borrow more money. Of course this then creates more debt, so then more money has to be borrowed. It is a never ending cycle in which only one thing is certain, DEBT and lots of it.
But it gets better because with fractional reserve banking ALL banks can create their own money!
When money is deposited in to a bank (for example £100), the bank sets aside 10% of it as reserves. The remaining £90 can now be lent out. What happens from here is magic money creation, it really is amazing. When this £90 gets lent out, the person who is borrowing it signs a contract to promise to repay the debt. This promise then becomes an asset. So the £90 that hasn’t been repaid yet can be written down as being an asset so it can then be used to create more money. Again 10% is set aside as reserves (£9), which leaves £81 to be lent out. Then again the promise to repay this £81 becomes an asset which can be used. So 10% is set aside for reserves then the remainder is lent out, and so on.
All of this money is created from the original £100 deposit. None of it actually existed, it was created by the bank and written into existence. The money was created from a debt. This is important to understand because it means that every note and coin you own is actually a debt that somebody owes to somebody else. Without debt there is no money.
This creation of money is fraud. When a loan or mortgage contract is signed both parties have to offer up something in exchange, this is called consideration. “In a contract, one consideration (thing given) is exchanged for another consideration” – Black’s law dictionary.
When you take out a loan you put up something as collateral, such as your house. The bank however brings nothing to the table. It offers nothing of its own, because the money it gives to you is created out of thin air, it doesn’t exist until the bank creates it for you. This effectively voids the contract and the bank has committed fraud.
In an important case in America in 1969 a man called Jerome Daly effectively proved the above when he was taken to court by a bank for falling behind on his mortgage. Daly stated in his defense that he owed the bank nothing because the bank had offered nothing as consideration in the contract, which makes it void. He even got the manager of the bank to admit that the money hadn’t existed and that it was created upon the books.
This procedure happens with every loan that is taken out, money is created by the bank in proportion to the money it has in its reserves. This voids every loan contract because the bank offers no consideration. The money was never theirs because it never existed. This fraudulent money creation is the basis of our economic system. Now ask yourself this, what would happen if people didn’t pay back their loans? Well the banks would collapse because the proportion of their reserves are so small in comparison to what they have lent, that if people started to withdraw their money they just wouldn’t have enough to return all the deposits of their customers.
So what does this mean? Well it means that money is basically debt, because without debt, someone taking out a loan, there is no money creation. Money is created from loans. So what would happen if we paid off this debt? Well there would be no money for a start. But of course we are forgetting about the interest that is applied to every loan. The money to pay this doesn’t actually exist. So there is not enough money in existence to pay off the debt.
By understanding this we can realize that we can never all be rich, we can never all live comfortably. Because to have enough money to do so means that somewhere somebody had to borrow that money. So somewhere that person owes the money that we have. The system is designed for one thing only, and that is to transfer wealth to the banks.
What this money creation leads to is a continuous cycle of inflation. This in turn leads to the currency always losing value, because the more there is of something the less it is worth. The supply of money outstrips the supply and demand of goods available.
Let’s compare the value of £1 in 1974 to 2002 by using the governments own figures from the document, Inflation: the value of the pound 1750 – 2002 by Grahame Allen. According to this paper the pound has decreased in value by 86% while at the same time the prices of goods have increased. The document states that goods have risen in price every year since 1945.
Perpetual money creation is perpetual inflation which perpetually decreases the value of the currency.
This system of debt creation does one thing and one thing only, it makes slaves of the government and of the people. It means you have to go out and do the menial work for the large multinationals to get more money to pay your debts. It creates economic slavery. Our whole economic system is based on debt. So remember the next time the government talks about decreasing debt, the only way it can be done is by decreasing the money supply. When you do that you get deflation.
There is no way to beat this system, we can never win.
Or can we? Abraham Lincoln had the idea of a government creating its own money, not the central bank. By doing this the money wouldn’t be created out of debt, there would be no debt attached to it. Furthermore the money would be controlled by the government. The bankers didn’t like Lincolns idea however and they attacked it in an article in the London Times:
“If this mischievous financial policy, which has its origin in North America, shall become endurated down to a fixture, then that Government will furnish its own money without cost. It will pay off debts and be without debt. It will have all the money necessary to carry on its commerce. It will become prosperous without precedent in the history of the world. The brains, and wealth of all countries will go to North America. That country must be destroyed or it will destroy every monarchy on the globe.”
Unfortunately the bankers defeated Lincoln’s system and installed their own. They have successfully created a system that is based on debt that we can never be free from. This system destroys the value of the nations currency while enslaving the population in a never ending cycle of debt and concentrating wealth in their hands.
Money? Don’t make me laugh.