6139008-History-of-Money

pay their ever increasing debts and taxes. This increase, in prices and wages and taxes, is called "inflation". IlluminatiBankers, politicians and "economists" blame it on everything, but the real cause is the usury levied on money and debt bythe Illuminati Bankers. This "inflation" benefits the money-lenders since it wipes out savings of one generation so they cannot finance or help the next generation who must then borrow from the money-lenders and pay a large part of their life'slabor to the usurer. With an adequate supply of interest-free money created by the sovereign Government, littleborrowing would be required, and prices would be established by people and goods, and not by debts and usury.The financial system that the World has evolved on is the privately owned Bank of England USURY model and it is notsustainable. It creates nearly all money as debt. Such money only exists as long as someone is willing and able to payinterest on it. It disappears, wholly or partially, in recurring financial crises. Such a system requires that new debt mustbe created faster than principal and interest payments fall due on old debt. A sustainable financial system would enablethe real economy to be maintained decade after decade and century after century at its full employment potential withoutrecurring inflation and recession. By this standard, a financial system that creates money only through the creation ofdebt is inherently unsustainable. When a bank makes a loan, the principal amount of the loan is added to the borrower'sbank balance. The borrower, however, has promised to repay the loan plus interest even though the loan has created onlythe amount of money required to repay the principal-but not the amount of the interest. Therefore unless indebtednesscontinually grows it is impossible for all loans to be repaid as they come due. Furthermore, during the life of a loan someof the money will be saved and re-lent by individual bond purchasers, by savings banks, insurance companies etc. Theseloans do not create new money, but they do create debt. While we use only one mechanism-bank loans-to create money,we use several mechanisms to create debt, thus making it inevitable that debt will grow faster than the money with whichto pay it. Recurring cycles of inflation, recession, and depression are a nearly inevitable consequence. If, in the attempt toarrest the price inflation resulting from an excessive rate of debt formation, the monetary authorities raise the rate ofinterest, the result is likely to be a financial panic. This in turn may result in a sharp cutback in borrowing. Monetaryauthorities respond to bail out the system by increasing bank reserves. Governments may also respond by increasing thepublic debt-risking both inflation and growing government deficits. Let's keep something in mind while reading this folks,increasing the money supply is not in and of itself a bad thing. However, the way the Fed does it is ridiculous. First of allevery dollar introduced into the economy is based on debt! New money cannot be created unless new debt is created.Second of all, the Fed year after year increases the money supply greater than the output of the economy. Let's say theeconomy grows by 3% in one year. The money supply should then grow by 3% in order to not have deflation. Does thegovernment increase the money supply by 3%? Nope, it increases the money supply by 4-6%. That extra 1-3% is moneythat comes right out of your monetary assets’ purchasing power, a hidden tax. This is why there has been a total of1500% inflation since the Federal Reserve was established in 1913. Keep in mind this is LONG TERM inflation I amtalking about. Not short term inflation, which can be caused by market forces. I think short term inflation is asmokescreen for the cause of long term inflation as they can easily be confused by the common man.Laurence Ball, assistant professor of economics at Princeton University and a visiting scholar in the ResearchDepartment of the Philadelphia Fed: “While economists disagree about many issues, there is near unanimity aboutthis one: continuing inflation occurs when the rate of growth of the money supply consistently exceeds the rate of growthof output (of the economy)”. From: What causes inflation? (http://www.econ.ohio-state.edu/hineline/econ520/ball.pdf).Money loses its value when it is created and put into circulation (spent) faster than the growth in productivity in the localeconomy (versus just being created and held as a reserve).This tells us that long term inflation can only be caused be one thing and one thing alone: increase of the money supplygreater than the output of the economy. Who controls the money supply? The Federal Reserve of course, and thereforethe Federal Reserve deliberately causes inflation every single year. Why? Simple, to insure that the banking industrymakes billions of dollars a year off of money that they create from nothing. Laurence Ball of course goes on to say in hisarticle that ending inflation would be bad because it would cause a recession. This is to be expected since he is in bed withthe Fed so to speak as he is a "visiting scholar".Alan Greenspan: "The abandonment of the gold standard made it possible for the welfare statists to use the bankingsystem as a means to an unlimited expansion of credit.... In the absence of the gold standard, there is no way to protectsavings from confiscation through inflation. There is no safe store of value.... Deficit spending is simply a scheme for the"hidden" confiscation of wealth.... [Gold] stands as a protector of property rights."The central bank scam is really a hidden tax, but one that benefits private banks more than the government. Thegovernment sells bonds to pay for things for which the government does not have the political wisdom or will to raisetaxes to pay. But about 10% of the bonds are purchased with money the central bank creates out of nothing. Thegovernment then spends this new money. Once deposited, private banks use these new deposits to create ten times asmuch in new fractional reserve loans. This provides the economy with the additional money needed to purchase the other90% of the new bonds, without drying up capital markets and forcing up interest rates. By borrowing the money (i.e.selling new bonds), the government spreads the inflationary effects out over the term of the bonds. Thus there is little tono immediate inflation. More money in circulation makes your money worth less. The politicians get as much money asthey want, and the people pay for it in inflation, which erodes the purchasing power of their savings, fixed income andwages. The perverse beauty of the plan is that not one person in a thousand can figure it out because it's deliberatelyhidden behind complex-sounding economics gibberish. The full effects of the inflation are only experienced much later -too late to stop.The Hidden History Of Money & New World Order Usury Secrets Revealed at last! Page 109