6139008-History-of-Money

The real gold and silver coins have intrinsic value, but the promissory note doesn’t if it’s not backed by a commodity forwhich it can be redeemed. In this case, the bank or issuer of the promissory note is creating money from nothing andis being allowed to charge interest and ask for the return of this “fake capital” from someone wanting to borrow some ofthese notes or credits.Creating money from nothing and charging interest on it is unimaginably profitable! It’s not the source ofneeded money which is inflation's cause, but 'the way in' which it is produced and used and the interest thatis paid on it to the private Central Bankers. This "inflation" benefits the money-lenders since it wipes outsavings of one generation so they can not finance or help the next generation who must then borrow fromthe money-lenders and pay a large part of their life's labor to the usurer. Usury and fiat money issued fornon-productive use cause inflation.Robert H. Hemphill, Credit Manager of Federal Reserve Bank, Atlanta, Georgia: "This is a staggering thought. Weare completely dependent, on the Commercial Banks. Someone has to borrow every dollar, we have in circulation, cash orcredit. If the Banks create ample synthetic money, we are prosperous; if not, we starve. We are, absolutely, without apermanent money system. When one gets a complete grasp of the picture, the tragic absurdity, of our hopeless position,is almost incredible, but there it is. It is the most important subject intelligent persons can investigate and reflectupon...It is so important that our present civilization may collapse, unless it becomes widely understood, and the defectsremedied very soon."DENNIS KARNOFSKY, Chief economic adviser St. Louis Federal Reserve Bank: "....what is a dollar? It’s justsomething artificial we throw out there....what you’re doing is you’re fooling people...."Daniel Webster: "Of all the contrivances devised for cheating the laboring classes of mankind, none has been moreeffective than that which deludes him with paper money."The bank who created the money and credit does not have the equivalent net assets which represent the money andcredit it issued. The bank uses your or the government’s promise to pay as the asset against which it issues themoney and credit. Note that the money it issued is also a promise to pay or promissory note. Let’s illustrate thiswith an example of some stores who issue coupons. Well, we can trade these coupons with whosoever agrees to acceptthem. Eventually, one day, the store which issued the coupons will have to redeem them for merchandise on demand,unless the store goes bankrupt or shuts down. One way for the store to go bankrupt is to issue coupons worth more thanthe value of its redeemable merchandise. In the case of the central bank (a monopoly) owners who issued the bankmoney notes or credit, we must remember that they created this money out of nothing, i.e. never owned an asset againstwhich they issued their money and credit, and they never have to exchange their notes for a product or service, i.e. theyare non-redeemable. So, what can we do with this non-redeemable money? We can purchase goods, services, lands &mineral resources as long as the seller is willing to accept it. The central bank keeps collecting interest on this money aslong as it’s in circulation; a real rip off! When a bank has too many bad debts or not enough outstanding loans on which itis collecting interest, or if it’s invaded like in the case of the Bank of Iraq, it becomes unable to meet its own interest &payment obligations and goes bankrupt and its issued currency becomes worthless.Carroll Quigley, Professor, Georgetown University, in his 1966 book entitled Tragedy and Hope, A History of the World inOur Time, President Clinton's mentor writes:"The powers of financial capitalism had [a]far-reaching [plan], nothing less than tocreate a World system of financial control inprivate hands able to dominate the politicalsystem of each country and the economy ofthe World as a whole. ...Their secret isthat they have annexed fromgovernments, monarchies, and republicsthe power to create the World'smoney... This system was to be controlledin a feudalist fashion by the central banks ofthe World acting in concert, by secretagreements arrived at in frequent meetingsand conferences. The apex of the systemwas to be the Bank for InternationalSettlements in Basel, Switzerland, a privatebank owned and controlled by the World'scentral banks which were themselves privatecorporations. Each central bank... Sought todominate its government by its ability tocontrol treasury loans, to manipulate foreignexchanges, to influence the level of economicactivity in the country, and to influencecooperative politicians by subsequenteconomic rewards in the business World."The Hidden History Of Money & New World Order Usury Secrets Revealed at last! Page 107