6139008-History-of-Money

At the CREATION level, where money first comes into existence, there are two main types of currencies:• COMMODITY BACKED MONEY (e.g. gold note)• CREDIT BACKED MONEY (i.e. home loan)• There is also the CIRCULATION level, checks, coins, notes, digital transfers etc. This paper does not deal withthem because they are less relevant forms for moving money born at the CREATION level.Commodity money is backed by, guess what?, commodities; it is redeemable, by the issuer for commodities. The modelfor commodity money is the IOU which is also redeemable by the issuer. Credit Backed money or debt-base money iscreated from nothing and is a commodity substitute, an IOU but more like a prepaid-rain-check redeemable sometime inthe more distant future with something that doesn’t exist yet, won’t exist for quite some time, is less well defined and hasmore loopholes. As you get up to speed here you will come to realize that virtually all of our money today is credit money,and commodity money has been abandoned. Here’s how. When Smith lends a bushel of corn to Jones, Jones gives an IOUto Smith. However, when the Bank lends money to Jones for a house, the Bank gives an IOU to Jones because the bankcreates the money out of nothing, i.e. the Bank’s note does not represent a commodity but if Smith is not willing to acceptJones’ IOU, then Jones has to go to the Bank because Smith must accept the Bank’s IOU Federal Reserve Note by thepower of fraudulent legislation, i.e. “THIS NOTE IS LEGAL TENDER FOR ALL DEBTS, PUBLIC AND PRIVATE.” Is written onthe privately issued Federal Reserve Note that you have in your pocket, a.k.a. US paper currency. When Jones pays offhis loan, the Bank un-creates the money. The bank’s money is an IOU that is not redeemable by the Bank, i.e. the Bank’sIOU or Federal Reserve Note must be passed from person to person like a hot potato or returned to the Bank to satisfythe debt.If Alan Greenspan doesn't know what money is, this is a likely cause: his money never had a definition to start with.People are local, communities are local, crops are local, rivers are local, lakes are local, the climate is local, mineraldeposits are local, forests are local, and even the oceans are local, as you might find if you compare swimming in theCaribbean to swimming in the Antarctic. Only corporations, it seems, are global. Commodities vary from one region to thenext. In the tropics they grow bananas and coconuts. In the mountains, coffee. Some regions have mineral deposits orfish and others do not. Each region has its own set of commodities. It should be clear then that, if commodities are local,and if Real Money is commodities, then Real Money is obviously local.By extension then all legitimate currencies have to be local. Talk of an international currency is subversive imperialist talk.Globalization may have its homogenizing effects and you may find Nike-wearing computer hackers from Argentina to theNetherlands, but climate is local and crops and mineral deposits will always be local. And money is local. If the presentsystem is left in place, the US will end up with one region and that will look like New York City. Already the east coast ofthe US has merged into one large city and the west coast is going the same way. When the Local quality of money is notrespected, large metropolitan areas will inevitably colonize and degrade or destroy outlying territories. When you see aflock of Wal-Marts in Britain or a Red Lobster in Zimbabwe, that’s the first sign of infection. That is because areas like NewYork who produce nothing but money and consume everything else, create more (credit) money than the surroundingareas, so colonization such as they have done in Atlantic City, Miami, and Key West to mention just a few, becomesirresistible. When New York investors focused on Atlantic City for example, they created a boom which Americans areinclined to believe is good, but when the investors pulled out they left the town to decay, leaving hundreds of acres ofrotting housing and hotels for the locals to deal with. They did not return the property to its pristine state before they left.For more on this, see “Money is Local”. A national mutual credit system could prevent the economic colonization anddestruction of communities, as well as the economic subjugation mentioned above, where outsiders such as Mr. Dubya,decide school policies for areas where he does not live and will never have to send his kids.All money is not equal. Themoney has its highest value at the time it’s created by the Federal Reserve Bank and lent to the Government. As theGovernment starts spending this money, its value slowly decreases. A one dollar Federal Reserve Note issued in 1913could buy a lot more than what it can buy today. On the other hand, a 1913 gold coin can buy about the samecommodities now as in 1913 or as in ancient Rome! In 1913, Congress passed the Federal Reserve Act creating ourcentral bank. Most Americans don't know that this organization is a private corporation established to control America'smonetary system through the banking industry.In the last several years, our privately owned central bank has helped to push through two major pieces of legislationexpanding its power over not only the banking system, but the stock market, insurance and real estate industries as well.Let me explain. When the stock market crashed in 1929, Congress passed the Glass-Steagall Act separating thecommercial activities of banks (savings, checking, deposits and loans) from that of investment banks that bring newstocks and bonds to market, offering them to investor through their in-house stockbrokers. The Federal Reserve workedvery hard with the Clinton Administration to pass the Banking Modernization Act in 1999 which erased the Glass-SteagallAct of 1929. Furthermore this law expanded the functions of commercial banks to not only syndicate securities but to alsosell both personal and commercial insurance as well as real estate, thus creating what is termed, "financialconglomerates." Now let's understand what really took place. When Congress passed the Federal Reserve Act in 1913, thisprivate group of bankers only got control of our monetary system via the banking system. They did not have control overthe insurance industry and stock markets. By passing the Banking Modernization Act 86 years later, they now havecontrol over ALL of these areas worth trillions of dollars. That same year, Congress also passed the Gramm-Leach-BlileyAct with very little fanfare. Former Treasury Secretary Robert Rubin, now a co-Chairman at Citigroup which is a financialconglomerate, praised this bill as being necessary and critical. What it really did was amend key banking laws such as theBanking Act of 1933, the Bank Holding Company Act of 1956, the Federal Deposit Institutions Act, the CommunityReinvestment Act of 1977 and the International Banking Act of 1978 to substitute the Federal Reserve as beingThe Hidden History Of Money & New World Order Usury Secrets Revealed at last! Page 115