6139008-History-of-Money

debt, it is necessary to destroy part of the money supply. Actual and impending losses give rise to a desire for additionalliquidity in the financial system in the form of more “fiat” money. Until that liquidity is obtained, bankruptcies and pricedeflation will set in. The losers are always the employees, shareholders, tax payers, the unemployed and the masseswhen public assets have to be sold off for a penny on the $. The money supply shrinks and unemployment and povertylevels rise. So too does homelessness, crime, drugs trafficking, and other effects that lead to a loss of general socialcohesion. We follow the cycle into its recession phase. No matter that there is available a plentiful supply of labour, rawmaterials and productive machinery, to do what is both desirable and physically possible is no longer "economicallypossible" since "there is no money. There is no money because Bankers, out of concern for their own assets and at timesfrom fear for the survival of their system, have dictated that there is to be no money. In due course however, assurpluses begin to decline and some debts are cleared via bankruptcies, sale of collateral, bank bail-out at taxpayerexpense etc., it is essential for the survival of the system that growth be resumed and the recovery phase of the cyclebegins. Despite the resulting economic and social havoc, and notwithstanding the run down of surpluses, the temporaryreduction of private indebtedness by repayment of loans and/or transfer to the banks of assets previously offered ascollateral against loans, or by loan write-off, the total of underlying debt simply continues to grow unremittingly. In duecourse banks used again their immense power to influence governments and there followed another great "bailing out" ofthe Bankers at taxpayer expense, i.e. a debt boomerang situation. In the recent past, the US government, along with theIMF, transferred $47.5 billion to bail out major US banks, such as Chase Manhattan, which had been "exposed" by theirspeculations to the Mexican currency crash in 1995.However, since all debt is borrowed money, in order to write off a debt, it is necessary to destroy part of the moneysupply. It may be that the debt was structured as a bond issue rather than a bank loan; it doesn’t matter. Thebondholders exchanged money balances for those bonds when they acquired them. If the bond is cancelled, this money islost. Actual and impending losses give rise to a desire for additional liquidity in the financial system. Here, only money willdo. A subsequent deflationary cycle will start until new fiat money is injected. Haven’t you ever wondered ""WHY"" alending institution which has large office spaces (multiple offices/divisions,) a sea of accountants; auditors; lawyers; andother professionals on staff, would turn the alleged account over to a smaller (in many ways, miniscule in comparison)entity? Are they not equipped to deal with such matters as collecting on their own, legitimate, real obligations? ""Howcould that be?"" you might ask. This is going to blow you away. The original alleged creditor never loaned you anything,we discussed this as “fiat” money. If they had issued real funds, the ''creditor'' would have a transaction receipt showingwhat account the dollar credits were transferred from to verify the debt. This is called Verification. The original''alleged'' creditor is not going to EVER attempt to make that claim in a court. Because the exchange of public fundsNEVER occurred they are counting on ignorance and gullibility to make you surrender to their whims. The alleged creditorhas already made out quite well having the customer for a client paying interest on money created from nothing. Whenthey give the account to a third party debt collector they made out again. Central banks are engaged in a desperate battleon two fronts. On one front, the central banks preside over the creation of additional liquidity for the financial system inorder to hold back the tide of debt defaults that would otherwise occur. On the other, they incite investment banks andother willing parties to bet against a rise in the prices of gold, oil, base metals, soft commodities or anything else thatmight be deemed an indicator of inherent value. Their objective is to deprive the independent observer of any reliablebenchmark against which to measure the eroding value, not only of the US dollar, but of all fiat currencies. Equally, theiractions seek to deny the investor the opportunity to hedge against the fragility of the financial system by switching into afreely traded market for non-financial assets.It is important to recognize that the central banks have found the battle on the second front much easier to fight than thefirst. Last November 2000, the estimated the size of the gross stock of global debt instruments at $90 trillion for mid-2000. How much capital would it take to control the combined gold, oil and commodity markets? Probably, no more than$200bn, using derivatives. Moreover, it is not necessary for the central banks to fight the battle themselves, althoughcentral bank gold sales and gold leasing have certainly contributed to the cause. Most of the World’s large investmentbanks have over-traded their capital so flagrantly that if the central banks were to lose the fight on the first front, thentheir stock would be worthless. Because their fate is intertwined with that of the central banks, investment banks arewilling participants in the battle against rising gold, oil and commodity prices. Central banks, and particularly the USFederal Reserve, are deploying their heavy artillery in the battle against a systemic collapse. This has been their primaryconcern for at least seven years. Their immediate objectives are to prevent the private sector bond market from closingits doors to new or refinancing borrowers and to forestall a technical break in the Dow Jones Industrials. Keeping the bondmarkets open is absolutely vital at a time when corporate profitability is on the ropes. Keeping the equity index on aneven keel is essential to protect the wealth of the household sector and to maintain the expectation of future gains. For aslong as these objectives can be achieved, the value of the US dollar can also be stabilized in relation to other currencies,despite the extraordinary imbalances in external trade. In summary, "Money" is: Make-believe "Dollars"; paper and inkrecords of numbers preceded by a dollar sign ($) in bookkeeping entries, accepted by the people as imaginary mediums ofexchange, whose volume increases daily with official and individual conjurings; are seignorage, credit, inflation, money,and totally intangible, cannot be sighted, heard, smelled, tasted, or touched, can exist in human thought only, and areshifted about by check and credit card to "settle by imagination" ninety five percent of all indebtedness.The Fed Is Slowly Destroying AmericaThomas D. Schauf, CPA, is a national speaker to Certified Public Accountants and businessleaders. Mr. Schauf's expertise includes banking, the economy, business appraisals,mergers, and acquisitions. Here’s what he says: “Our government never had a chance...withpolitical corruption ravaging its Constitution.” The real facts don't lie...and neither do governmentThe Hidden History Of Money & New World Order Usury Secrets Revealed at last! Page 392