6139008-History-of-Money

owned by the people or is private. Thereare basically two types of FIAT moneywhich float in the economy, waiting to bespent:• Government created, debt-freeand interest-free notes (currencyand coins on which no interest ispaid to anyone)• Private Bank cyber account, i.e.US dollar Deposits in banks,created through debt and loans.Over 98% of money in the USand Canada is now in theform of debt on whichinterest is paid to the privatebanks.The bank notes issued by the centralbanks represent only a small portion ofall the money circulating in the economyat any one time like a hot potato, theother one being money sitting in varioustypes of bank accounts. The amount ofmoney in circulation can be measured ina number of different ways. Some of these different measures, which are called monetary aggregates, are describedbelow.“M1”: The currency bank notes & coins in circulation + personal chequing accounts + current accounts at banks, i.e.demand deposits, the highest form of liquidity.“M2”: A broader measure which includes “M1” + personal savings accounts + other chequing accounts + term deposits +non-personal deposits requiring notice before withdrawal.“M2+” or “M3”: An even broader measure of money which includes “M2” + all deposits at non-bank deposit-takinginstitutions + money-market mutual funds + individual annuities at life insurance companies.“M2++” or “M3+”: An even broader measure still which includes “M2+” + all types of mutual funds + CSBs. As ofMarch 1, 2006, M3 is no longer disclosed by the FED because it is trying to hide the fact that it’s creating huge amounts ofmoney from nothing which will cause hyperinflation in the future.Liquidity means the ability to meet all contractual obligations such as interest or capital payments when they are due.Money is, by legislation, the thing that legally discharges all contractual obligations. Money is, therefore, the liquid assetpar excellence (i.e. available cash or the capacity to obtain it on demand, e.g. a bank increasing its liquidity by shorteningthe average term of its loans). If money is to do all the things we want it to do, its value must remain reasonably stableover time. However, fiat money (money not backed or represented by real collateral) loses its value or purchasing powerand this loss is referred to as the inflation rate. This leads to the term “real interest rate” which is the difference betweenthe inflation rate and borrowing interest rate. How and when is money created? Money is created at the central bankand local bank levels (and other lending institutions) in the following way:• The value is first provided to the bank through the borrower’s promissory note such as bonds that the governmentprints and mortgage papers that we sign, i.e. the borrower’s promise to pay in writing (the borrower being thegovernment or other mega-borrowers in the case of the central bank, and you & I in the case of a local bank)• The bank deposits the note as an “asset” in their accounting system and the borrower’s own note is used as thevalue to fund the "loan" by issuing a cheque to the borrower! That’s what I call a “rip-off” in street language, fromthe borrower’s point of view!!!• MONEY IS CREATED WHEN THE GOVERNMENTS OR YOU & I BORROW IT!• We pay interest on “cyber money” created without collateral, i.e. “fiat” money.• To illustrate interest, the word mort-gage word is derived from Latin ‘mort’ - death, and the Old Norman ‘gage’ –grip, i.e. “death-grip”.• MONEY IN CIRCULATION IS MONETIZED DEBT, i.e. I OWE U or promises to pay!• NOTE THAT MONEY TO PAY THE INTEREST IS NOT CREATED, i.e. SOMEONE ELSE NEEDS TO BORROW THEMONEY WITH WHICH YOU PAY YOUR INTEREST (starting to sound like a Pyramid Scheme or a Tower of Babelwhich ends up with depressions, bail-outs, bankruptcies, failures or countries and individuals selling their assets tothe mega-banking dynasties at bargain basement prices, i.e. economic slavery and after that, the next step isbondage!) or the bank must use collected interest to acquire services from the borrower, i.e. we are working forthe bank!!!• SO THESE GUYS HAVE TO KEEP ATTRACTING GOVERNMENTS AND PEOPLE INTO DEBT OR FORCE THEM INTODEBT TO KEEP THIS MONEY MAKING MACHINE GOING!!!• At the same time each time a loan is repaid or written-off, money is destroyed or taken out of circulation in thisdebt-based money system thus reducing the liquidity flow into the economy.The Hidden History Of Money & New World Order Usury Secrets Revealed at last! Page 136