"Money"

The Greatest Hoax On Earth

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BY Merrill Jenkins

 

FORWARD

It is difficult to recall a period in history of like proportion to our present months and years when so much honest investigation of a world-wide problem has yielded so little hope for a sensible solution. Inflation is the problem! Money is the tool that has produced it! Merrill Jenkins, in this book, " MONEY, '' THE GREATEST HOAX ON EARTH, is the man who explains it-as it has never been explained before!

Concerning the causes of inflation, economists disagree, businessmen disagree, labor leaders disagree, and of course politicians disagree. Something appears to have ensnared the reasoning power of the very elite, for surely they are of honorable intent and would not hesitate to shape the avenue of escape if they but saw it. Clearly, the issue has the governing communities around the world buffaloed. The calamity of a currency collapse is feared by all, yet no one has stepped forth to point to the foe in ambush, the real cause of inflation-no one, that is, until Merrill Jenkins, self-styled - monetary- realist " and economic observer.

From a point outside the pale of immediate involvement, he has been able to see the economic forest through the trees. He has been able to clarify great chunks of misreasoning with a single re-definition of a common economic term. His glossary, for instance, cuts to the heart of all of the hazy thinking that has been going on in economic circles everywhere.

The mesmerism that would engulf thinkers on this subject makes it almost appear that some strange economic infection from outer space has now invaded the earth to the point where our leaders find it necessary to ask all of us to unite in a solid front to fight this mysterious enemy which threatens our life style as we know it, if not our very lives themselves. Has not each of us asked himself how could it possibly be that we are in such a predicament.

After reading this book, one feels suddenly prepared to see through the disarray of conflicting opinions that disport themselves on this subject in every learned quarter. Reward enough for reading it. It is predicted that you too will find the clarifying truth that this book unfolds simple indeed. Simple, yes, but profound nonetheless, and since its base is moral, not always so easily entreated.

Mr. Jenkins sets forth his exposition directly and persistently in textbook fashion, stating his radical premise time and time again, supporting that premise from one viewpoint and then from another, and then stating the premise again. There can be no logical escape. And so it must be, in order for this book to do its teaching job, since so many of our preconceived notions about the all-too-common commodity ''cash" have to be patiently uprooted and replaced with the facts-old facts, admittedly, yet understood by so few throughout the world today.

Money in the United States today is totally without backing and is therefore virtually worthless, Mr. Jenkins tells us, from every conceivable angle. The same can be said of money in most other countries of the world, and this is the reason, pure and simple, for the currency crisis that presently envelopes the globe, according to Mr. Jenkins. Instead of money representing wealth in a banker's vault, there is no wealth on hand to redeem his money. Yet day in and day out the banking industry continues to create unbelievably huge sums of it in order to profit handsomely from its loan. This is the little understood financial process which shapes our economic path as individuals and as nations, accounting for the demoralizing inflationary effect we find almost everywhere.

The great divergence in Merrill Jenkins' analysis is that he lays the blame for our resent economic woes directly at the door of the banking industry, principally the Federal Reserve

Banking System which he insists is not a part of the federal government in any way in spite of its name. Whereas everyone else blames the government for the money mess (logically enough since we seem to be dealing with the "coin of the realm''), Mr. Jenkins cuts through the smoke to the fire which Is controlled very systematically by a few privileged entrepreneurs. Even the government pays tribute to these powerful few, according to Mr. Jenkins.

II

It apparently accomplishes little these days to attack that which the people have set up to reign over them with absolute authority, namely their government. If inflation has been directly caused by government, so the reasoning goes, then it must be somehow proper that we have it with us. Hence the reluctance abroad to come to grips with the monster. Mr. Jenkins points the finger in another direction entirely, away from the "holy land'' of government to a private sector of society, the bankers, and in so doing he should gather the support of the multitude. In due course the seeker for an answer will most assuredly discover that his government gave the privilege to the banking industry in the first place, and for not the purest reasons. But then, in the final analysis, the seeker for the whole truth will find the basic elements of fraud in his own thinking, the desire to have something for nothing, shadowed forth in the government he condones.

Merrill Jenkins began searching out the facts systematically some five years ago, following whatever meager trail of logic and evidence he could find, to the point where he has been able to piece together the truth in this book. His efforts to fully substantiate his conclusions have been exhaustive. His confrontations with high officials in the banking industry, have further convinced him that his facts are straight and his logic sound. He relates that money as a medium of exchange has degenerated to such an extent that even eminent international economists cannot agree on what money nowadays really is or just how banks create it. The world of currency is indeed ''stranger than fiction, at first glance, a mystery beyond belief! At second glance, Mr. Jenkins' glance, a simple everyday garden variety type of economic phenomenon.

F. Andrew Bell

(Businessman and

Free-Enterprise Proponent)

III

 

A PRE I.M.F. SEMINAR OF EMINENT ECONOMISTS COULD NOT AGREE ON WHAT "MONEY" IS OR HOW BANKS CREATE IT. Front page of Wall Street journal 9-24-71

$

This book answers the question: What is ''MONEY" and where does it come from?

$

"Money' in the United States is: Make-believe "Dollars"; paper and ink records of numbers preceded by a dollar sign ($) in bookkeeping entries, accepted by the people as imaginary mediums of exchange. whose volume increases daily with official and individual conjurings; are seigniorage, credit, inflation, money, and totally intangible, cannot be sighted, heard, smelled, taste6 or touched, can exist in human thought only, and are shifted about by check and credit card to "settle by imagination" ninety five percent of all indebtedness.

$

Anyone UNAWARE

is UNAWARE

of being UNAWARE!

IV

 

IN 1933 AS IT WAS:

A MERCHANT EXCHANGED WEALTH FOR DOLLARS, BORROWED FROM, THE BANK-AND COULD EXCHANGE DOLLARS FOR WEALTH AT THE BANK.

A BANK WAS OBLIGED TO REDEEM DOLLARS FOR WEALTH ON DEMAND, THEREFORE-THE BANK HAD TO HAVE A PLEDGE OF WEALTH FROM THE BORROWER BEFORE LENDING ITS DOLLARS.

40 YEARS HAVE ELAPSED AND IN 1973 AS IT IS:

A MERCHANT EXCHANGES WEALTH FOR DOLLARS BORROWED FROM THE BANK-BUT CANNOT EXCHANGE DOLLARS FOR WEALTH AT THE BANK.

THE BANK IS NOT OBLIGED TO REDEEM DOLLARS FOR WEALTH ON DEMAND, BUT-THE BANK STILL INSISTS ON A PLEDGE OF WEALTH FROM THE BORROWER BEFORE LENDING ITS DOLLARS.

PLEASE-JUSTIFY-OR FIND THE ERROR!

IT CANNOT BE JUSTIFIED-AND THERE ISN'T ANY ERROR!

IT IS SIMPLY PROOF POSITIVE THAT THE PUBLIC IS NOT AWARE OF THE OPERATIONS OF ITS MONETARY AUTHORITY AND COMMERCIAL BANKS.

DO NOT LAY THIS BOOK DOWN UNTIL YO U ARE AWARE!

V

 

A dictionary is an alphabetical list of words.

This list of words is intended to convey the maximum in understanding. The object of the list is to set bounds to ideas. By reason of confining these ideas within limits, it makes them easy to understand.

It is a simple truth that most of our ideas are mere clusters of notions, not clearly defined. They are vague, and this vagueness often leads to considerable practical difficulties.

This is especially true in our nation where wealth and money are concerned. For centuries, wealth and money have been treated synonymously. In fact, one is tangible and the other intangible, respectively.

In all the ramifications of economic knowledge, the art of distinguishing exactly between wealth and money requires, above all, a clear idea of every item dealt with.

The needs of the middle-class public have not hitherto been considered from this aspect. Most explanations of this subject have been prepared for technicians, most of whom have little need therefor. Yet even these may profit. This will be the most interesting of all books on this subject. It is more than that: it is the gateway to all other books on economic subjects since it makes clear the words these books must employ.

Account: Bookkeeping records where wealth and "money respective identity.

Assets: Wealth in possession.

Bank: Wealth depository.

Banking: A system of renting capital to facilitate progress and expansion of wealth production.

Banker: One who operates a bank.

Barter: Wealth exchanged in direct exchanges.

Bearer certificate: Written claim on wealth.

Capital: Wealth used in the production of more wealth

Capitalism: A system in which capital and labor are used cooperatively in the production of wealth.

Capitalist: One who employs capital and labor in the production of wealth.

Cash: Currency.

Check: Written order to transfer a record of debt.

Circulation: The act of passing from person to person.

"Circulation": The "money volume" conjured and accepted to date.

Coins: Pieces of precious metal with weight and fineness of specific commodity stated on them.

Collateral: Wealth pledged to guarantee repayment of a loan.

Commodity: Material thing produced

Consumer: One who uses or consumes production.

Cost: Human exertion required to obtain wealth or service desired.

Credit: Imaginary demand, inflation, money and seigniorage.

Currency: Current-legal tender tokens.

Debased coinage: Coins with their metal purity content reduced to below the circulating face-value.

Deflation: Repudiation of -legal tender.

"Deflation": Reduction of the legal tender

Demand: . Supply-wealth.

VI

 

Devaluation: Official reduction of the legal tender token's parity in relation to a commodity.

Discount rate: Fed's charge to its member banks for borrowing its "dollars. "

Dollar: An expression of measure to facilitate a cross reference between wealth and credit- imaginary demand -inflation money - seigniorage.

Dollar Bill: Paper token representing one imaginary demand

unit- "dollar."

Economic Rhetoric: Skillful use of the artificial elegance of language in speech

to psychologic

ally create "dollars."

Evaluation: Condition in a free market where both parties to an exchange consider the worth of wealth received greater than the value of the wealth exchanged.

Expropriation: Transfer of wealth ownership from producer to money creator by fraud.

Falling Cost Level: A decreasing amount of human exertion required to obtain the wealth or service desired.

Falling Dollar Parity: An increasing amount of dollars required to obtain the wealth or service desired in competitive bidding because of a decreasing amount of human exertion require8 to obtain the dollars to be exchanged to obtain the wealth or service desired.

Falling Price Level: A decreasing amount of human exertion required to obtain the wealth or perform the service to be exchanged to obtain the wealth or service desired.

Federal Reserve Note: A paper token representing imaginary debt--dollars" accepted by the people as a medium of exchange, due to legal tender law.

Flat Media: Non-redeemable tokens.

Fiat: Money as a medium of exchange.

Fractional Reserve: A means of perpetrating fraud whereby imaginary debt is considered a reserve supporting the issuance of additional imaginary debt.

Free Enterprise: The ability to direct ones exertion to produce a product or perform a service and exchange that produce or service, in competition with others, in a free market, in the absence of government restriction against any activity that is not directly restricted by the pe6ple themselves in open referendum.

Free Market: One in which the public is able to exchange production or service by competitive bidding,. open to all, in the absence of government restriction against any commodity that is not directly restricted by the people- themselves in open referendum.

Imaginary Demand: Credit-inflation-money-seigniorage.

Inflation: Credit-imaginary demand =money-seigniorage.

Inflationary Effect: Failing "dollar parity.

Interest: Money charge for ' the use of borrowed money.

Inventory: Goods on hand for exchange.

Invisible Confiscation: Expropriation of wealth by seigniorage.

IOU: Personal note

VI

Page VII is missing

Labor: All human exertion engaged in the production of wealth or performing a service.

Loan: Permission to use dollars.

Medium Of Exchange: Anything accepted in exchange in lieu of the wealth form desired.

Money: Psychologically created entity credit Imaginary demand-inflation-seigniorage.

Moneyism: The institution of imaginary debt as a medium of exchange.

Moneyist: One who provides money in place of capital for use with

labor in the course of production.

Money Supply: Contradiction-money is intangible-supply is wealth.

Note: Certified claim on wealth.

Ostrichism: A belief that knowledge ignored does not exist and cannot

effect anyone.

Parity: Value of any material thing expressed in terms of any other material thing.

Price: Human exertion required to obtain the wealth or perform the service to be exchanged to obtain the wealth or service

desired.

Price": Money parity to wealth.

Producer: One who produces wealth.

Profit: The wealth production in excess of consumption during successful efforts of capital and labor.

Realist: One who seeks to recognize, understand, and acknowledge natural laws and their invincibility to violation.

Redemption: Actual settlement in wealth from the creator of dollars to the dollar token holders.

Rent: Wealth charge for the use of borrowed wealth.

Resources: All material things outside of man and his products, potential wealth, latent wealth.

Rising Cost Level: An increasing amount of human exertion required to obtain the wealth or service desired.

Rising Price Level: An increasing amount of human exertion required to obtain the wealth to be exchanged to obtain the wealth or service desired.

Savings: Unexpended wealth accumulated.

Seigniorage: The difference between the circulating value of legal tender and its worth in a free market.

Services: All human exertion as useful labor not engaged in producing a product.

S. D. R.: Special Drawing Rights-unit "quantity" of imaginary gold.

Supply: Demand-wealth.

Tax: Assessment for the support of government.

Token: Any material thing representing what it is not.

Valuation: Act of determining the value of wealth or services in terms of other wealth or services.

Value: Worth.

Wages: Labor's share of profit.

Wealth: All material things produced by human exertion having

exchange value, - demand - supply.

Worth: Degree of human satisfaction derived from use or consumption value

VIII

 

ECONOMIC TRUTHS

1 Retaining the God-given right to distribute one's own wealth Is the only guarantee of freedom from tyranny.

2 Money accepted as a medium of exchange subjects people and their government to the influence of its creator.

3 Money is - credit - imaginary demand - inflation - seigniorage.

4 More cannot be returned to an only source, than is taken from it.

5 A contract cannot protect anyone who lacks the wealth with which to force its fulfillment.

6 Supply and Demand are Wealth and cannot be imbalanced.

7 During an inflationary effect "prices" and employment rise together.

8 During a deflationary effect "prices" and employment fall together.

9 Whatever, during any exchange, is accepted as a medium of exchange, in lieu of wealth, is imaginary demand.

10 Wealth is material-money is psychological.

11 Money can be created or destroyed in the human mind.

12 Inflation cannot be controlled.

13 Money created in the human mind, has to be accepted by all others to function, once money is generally accepted all people will create it in volume to satisfy their desires, and control is impossible.

14 Money accepted in exchange for wealth is subconscious fraud.

15 Rent is material -interest is psychological.

16 Rent is a wealth charge for the use of borrowed wealth.

17 Interest. payment would require that more be returned to an only source than was obtained from it.

18 Interest is a money charge for the use of borrowed money.

19 Wherever money is accepted as a medium of exchange wealth and freedom are forfeited.

20 Money is accepted in exchange for wealth only until the psychological nature of money is exposed, or until wealth expropriation consumes most of production and the public begins to starve.

21 Where freedom reigns, those who do not produce food directly, have to produce wealth or perform service to exchange for it.

22 Wealth exchanges freely on historic worth, money exchanges due to legal tender laws and the public's ignorance of its true nature.

23 Money is a force of evil.

24 Attempts to control and circumvent free market natural laws, causes hidden free market transactions.

25 Wealth is supply or demand by use or viewpoint.

26 As the exchanges of money (imaginary demand) for wealth increase, the parity of money falls.

27 Inflation is possible without the inflationary effect only at the expense of the standard of living, until wealth expropriation consumes most of production and the public begins to starve.

28 Inflation held as savings does not cause the inflationary effect.

29 Inflation feeds on itself and accumulates at an ever increasing rate.

30 Money may exchange for wealth but it can never be wealth.

31 All money is imaginary and its volume cannot be measured.

32 Wealth only as media makes inflation impossible.

33 Inflation ends with deflation.

34 Money is valueless unless accepted in exchange for something.

IX

 

35 Wealth has worth is use, consumption, or as media-money depends on imagination and is usable only as a medium of exchange.

36 Deflation can be honorable only by redemption.

37 The deflationary effect is possible without a deflationary exchange of tokens.

38 Money has to have parity to have exchange value.

39 Wage and price controls obscure the inflationary effect but cannot control inflation.

40 Parities are determined by exchanges developed by competitive bidding with respect to return on labor, variations in time, location and circumstance.

41 Exchanges determine parities.

42 Wealth supports independence-money enslaves.

43 Government regulations of the use of capital inhibit free enterprise and cause economic decline.

44 Conspiracy to expropriate wealth with money assures the eventual destruction of the conspiracy.

45 The main economic function of money is the expropriation of wealth.

46 Unless wealth exchanges for wealth directly credit extension or wealth expropriation is the result.

47 Take away all that a man produces and he stops working.

48 Supply can never exceed demand because a quantity cannot exceed itself.

49 A fractional reserve monetary system embezzles production within its sphere of influence.

50 Controlled prices oppose competitive parities.

51 No one can discover and disclose a truth based on a false premise.

52 Money expropriates wealth.

X

PAGE XII

 

Wages: Confiscated by government for distribution according to individual wants.

Private distribution in proportion the contribution to production.

General Competition and private enterprise to give way to direction by government.

No individual rights except as granted by the government.

Private enterprise and competition in the open market. A free field and no favors. Recognition of the God-given and constitutional rights of the individual.

The author believes the trend in the United States is hell bent in the direction of socialism, and can only be reversed by immediate, decisive congressional action in the direction as outlined by his interpretation of natural economic truth and the immediate abolishment of all legal tender laws.

XIII

Chapter Page

Free Enterprise-Free Coinage System .................................................................................................................12

Deposit Credits on Pledge Notes .........................................................................................................................36

Paradox ................................................................................................................................................................37

Free Market ..........................................................................................................................................................41

Controlled Market ................................................................................................................................................42

Treasury Bonds to the Fed.................................................................................................................................... 64

Ostrichism ............................................................................................................................................................70

Invisible Government ...........................................................................................................................................73

The Fractional Imaginary Reserve System ..........................................................................................................103

Runaway Falling Dollar Parity ...........................................................................................................................120

0ur Currency Must Be Redeemable.....................................................................................................................140

XV

 

Chapter Page

67 The S.D.R.: nonsense! 212

68 A new "price" for gold? 215

69 What will the new ''price'' of gold be? 218

70 "Money" expropriates wealth! 222

71 It is 'what'-not 'who'! 226

72 Preserving one's assets-liquidity 230

73 Why hasn't the monetary collapse happened yet? 237

74 How to help yourself 244

Summary

CHARTS & TABLES

Most charts and tables were omitted

XVI

Realist 1

Chapter I

Realist

Realist: One who seeks to recognize, understand, and acknowledge natural laws, and their invincibility to violation.

Being a realist one must suffer through opposition at every turn. It is necessary to fight a

lifetime of indoctrination o acceptance of what was offered without question: accepting the teachings without question, and committing them to the personal memory data bank. Our

minds have tremendous capacity for data processing, and deductive reasoning. It is unbelievable that the human mind could conceive of, construct, and make operate as his servant, a machine able to outperform the human mind. Unbelievable to me, for I am sure there are those who do believe that a computer can outperform the human mind. But just as man has made machines that can lift greater weight, make sound heard round the world, and carry him through the air, man has also made a machine that could exceed the human brain in some functions; but never will a computer be built that can outperform the human mind.

The computer is only as intelligent as the information man feeds it. This marvelous piece of machinery is limited by the facts it has stored, and must draw upon to compose its findings. It seems the human brain has the same short comings, it can only be as intelligent as its data bank will permit.

One of the first things a realist has to concentrate on is to question every thought and idea for its base in fact and logic. Our vocabulary proves to be the big obstacle to rapid deductive reasoning. The following short list of units of measure, mile, ton, and pound will help to illustrate that using them efficiently in a calculation of the mind is impossible without using other words in conjunction with them to give specific meaning.

Mile: A nautical mile is 800 feet longer than a land mile.

Mile: A land mile is 800 feet shorter than a nautical mile.

Ton: A long ton is 240 pounds heavier than a short ton.

Ton: A short ton is 240 pounds lighter than a long ton.

Ton: A register ton is 100 cubic feet.

Ton: A displacement ton is 35 cubic feet.

Ton: A measurement ton is 40 cubic feet.

Ton: A Freight ton is 40 cubic feet.

Pound: A dog pound is an enclosure.

Pound: A troy pound is 5,760 grains.

Pound: A avoirdupois pound is 7,000 grains.

Before being able to do realistic thinking and reasoning, we must at least give the mind a vocabulary of clearly definable words, and as extensive a supply of useable data as we would a computer. No word should be accepted for use unless it has a definition, and that definition only. No word should ever have two definitions. If any word can seem to have two or more definitions, then it is evident the definitions are not definitive enough.

Nothing can do more to incapacitate our minds for clear thinking and reasoning than words with dual or multiple meanings. The words ''money" and "dollar" have been the most responsible for our confusion concerning economics.

Money is not wealth. Money is a psychologically created entity (credit) (inflation) or (imaginary demand) medium by use.

Wealth is any material thing produced by human exertion having exchange value (supply or demand).

The method of measurement for clear thinking and evaluation of use value on all commodities should be by weight or volume (quantity) and purity.-Almost any quantity or mass can be described by the use of these methods or a standardization of systems now existing.

 

"Money" The Greatest Hoax On Earth ........2

Wealth as a medium of exchange should enable storage of a large amount of use value in

a small space to be easily transportable, be divisible into small unit quantities without destruction of its use value, and be durable against all potential hazards. Units marked as to quantity and commodity purity, and attested to by authority, should be acceptable throughout the sphere of that authority by consenting producers.

Money is imaginary debt, and is intangible. It cannot be measured by any quantity standard, volume, weight (density), or purity: therefore one had to be invented, and it was the dollar unit.

Monetizing debt is a means of deferring an obligation into eternity, and in effect thereby expropriating the wealth of the producer; and to apply the unit dollar to wealth was essential to this cause.

The only fitting definition for the word dollar is: an expression of measure used to facilitate cross reference between wealth and money (credit) (inflation).

Realists recognize the difference between wealth and money, and the consequences of money creation and use; and also the obvious law it demands be acknowledged:

Jenkin's economic truth # 9

Whatever during an exchange is accepted as a medium of exchange in lieu of wealth

is imaginary, demand, (money), (credit) and (inflation).

Chapter 2

Errorists

An Errorist is one who by choice or otherwise adopts and perpetuates an idea that is in violation of natural law.

One who believes only in the "here and now," and in what appears to be true.

One who is prone to accept convention as being the supreme test.

One who is not concerned with the "final outcome" of any word or deed, but only that "on the surface" it O.K.

One who completely ignores consequences in order to be expedient. One who jumps to a wrong conclusion.

One who fails to observe available historical data and use it in his calculations.

An errorist's conception of the value of money is what you can get for it. The error is in ignoring the factor of time completely. When money is exchanged for goods, the money is being used as a medium of exchange. The time factor is concerned with the fact that "use value" of money is less than its "exchange value". It must go through another exchange before its holder will have the commodity he wishes to use or consume. The interval between the initial exchange (receiving the money for personal production) and the final exchange (passing the money on for the produce of another) may be very short indeed. Some of us have felt we have it spent before we receive it. This very short interval leads to a conclusion that money is just as good as wealth, but we fail to observe that an exchange of wealth is final. An exchange for money requires an interval, and another exchange, and thereby creates a condition that is in direct violation of natural law by allowing wealth (supply) to exchange for credit (inflation) (imaginary demand).

To illustrate the everlasting effect of this monster once created, let's look at just one transaction and the thing it sets in motion.

"B" is an owner of wealth, a producer of commodities in the capitalist, division of labor, system of employing wealth and labor in the production of goods for exchange.

"A" is also a producer exactly as "B".

 

Errorists .....3

If "B" sells his goods to "A" for gold or silver coin of commodity value, the transaction is complete because they exchanged wealth for wealth. The gold or silver coins are wealth (commodity production) and a medium of exchange that can be used anywhere, anytime to purchase other goods; (there isn't any promise involved). the gold and silver are wealth itself, having use value comparable to its exchange value.

However, if "B" should sell his goods to "A" and receive money, he is receiving Imaginary demand with use value less than its exchange value.

''B" buys from "C" to finalize his exchange and acquire the commodity with the use value he desires.

''C" now has the money with its exchange value greater than its use value.

"D" sells his produce to "C'' and receives money.

"D" has money (exchange value greater than use value).

"E" sells produce to "D".

"E" has money (exchange value greater than use value).

"F" sells produce to "E''.

"F" now has money (Exchange value greater than use value),

''Exchange value" (money) greater than "Use Value'' (production) Is -INFLATION -(imaginary demand).

This can go on forever and ever, and the final exchange is postponed far into the future. The violation of the natural law of competitive production parities is that this new element money" has become a perpetual unquenchable imaginary demand, as more and more money is created, the "failing dollar parity" drops lower- The productivity of people increases at a natural pace. The money supply increases at an ever increasing rate, and this imbalance between wealth (real demand) and imaginary demand (money) causes lowered "dollar parity" (money exchange value decreasing as volume of money increases) because of increased dollars bid per unit of production.

With dollar volume rising inexorably and production conforming to natural laws, the conflict always ends in eventual "falling dollar parity" to the point of economic collapse. Historic data on this are very conclusive. But to anyone not concerned with historical data, money in lieu of wealth could not matter less.

This "money" hoax once created does not disappear. It hangs over the economy, and is essentially invisible. Its effect builds, over the years, but goes ''undetected" until the dollar's parity starts changing with a rapidity that becomes noticeable. To illustrate this, let's take some figures that are current at this writing.

The budget deficit for 1971 is estimated to run up to some $20 Billion.

$20,000,000.000.00 365 = $54,800,000.00 a day.

54,800,000-00 24 = 2,283,333.00 an hour.

2,283,333-00 60 =38,000.00 a minute.

38,000-00 200,000,000 people = $0.00019 (19/1000ths) of a penny per minute for every man, woman, and child in the United States.

OR:

$0.00019 X 60 = $ 0.01140 an hour.

0.1140 X 24 = 0.27360 a day.

0.27360 X 7 =1.91520 a week.

1.91520 X 4.3 = 8.23536 a month.

8.23536 X 12 = 98.82 a year for every man, woman, and child in the

United States multiply by the number of members in your family to find the deficit increase for just this one year. The increased burden placed on your family because of the irresponsible

creation and use of "MONEY" instead of gold and silver coins of commodity value.

The impact of 284: per day increase in the federal debt to an individual just doesn't impress him as being any threat. At what point will it appear as a threat?

We traced only one set of transactions, but, of course, the total number of persons in the act of exchange at one moment is fantastic. In 1942 with a population of approximately 135 million people, there was an estimated 50 billion dollars in circulation, or between 350 and 400 dollars per person. At present, there are 200 million people with a money volume

 

Use Value: Worth .....4

Somehow the idea of money in our mind is that money is what it "is not," and it is this belief supported by our faith in the government, that gave us the monetary authority, that makes us give up our wealth for this worthless intangible.

Chapter V1

FREE MARKET

Parities of commodities: fish - eggs - gold - furniture.

Supply and demand always equals 100% - Cannot imbalance.

Relative labor required and 1~cation affect economic value (parity).

"Supply" and "demand" are one and the same thing (wealth).

People's "sudden" desire for goods and services cannot cause imbalance, for wealth used as "demand" is also "supply."

Excess of production over consumption is inventory for exchange.

Excess of production over consumption and exchanges, converted to a relatively stable commodity, which will not spoil becomes savings.

Wealth commodities as savings become excellent medium of exchange (wealth media).

A commonly accepted, widely recognized, stable store of value, easily and infinitely divisible, impervious to time and weather develops as a common commodity, usually gold and often silver.

Parities between all other commodities can then be more easily expressed in terms of their parity with the common commodity, a process known as pricing.

Gold and silver coins of specific weight and purity have been used as wealth mediums of ex. change (media) for thousands of years.

Inflation cannot exist in any economy using wealth media exclusively.

Population needs and produces goods with exchange value (wealth).

Anything produced by human exertion having exchange value is wealth.

"Needs" create employment in "production."

"Production" provides the goods to be used or consumed (supply).

Supply in excess of consumption is potential "savings."

"Savings" in the form of gold and silver coin is "wealth."

"Wealth" exchanged for "wealth form" desired directly is "Barter."

Gold and silver in coin form are wealth media.

Gold and silver coins as wealth media are potential real "demand."

Gold and silver coins can be melted to become "supply."

Gold and silver coins used to "purchase" are real "demand."

Gold and silver coins melted for use are real "supply."

Gold and silver coins are either potential "supply" or potential "demand."

Purchasing media in any form of wealth are either potential supply or potential demand.

A market using only wealth media is a "free" market.

Inflation is imaginary purchasing media which cause an imbalance of imaginary demand vs. supply (wealth) (real demand).

Since in a "free" market all media are either "supply" or "demand" an imbalance cannot develop or exist.

Inflation cannot "develop" or "exist" in a "free market."

The law of "competitive bidding" governs the "free" market unassisted.

"Price" is the parity between purchasing media and the commodity desired.

Price parity is the "free" market, "competitive bidding" condition indicator, and when a commodity's parity rises in relation to others, it leads to increased production of that commodity.

When a commodity's parity declines in relation to others it leads to decreased production of that commodity.

 

"Money" mental block .......5

Trying to understand this condition of being able to absorb and to become concerned and how to bring about this condition in people has led to some interesting conclusions Most people must have a strong barrier against accepting anything that clashes with an idea or concept already considered and accepted. Just as an object in motion tends to remain in motion and in the same direction; so it must be with accepted ideas. For some people the degree of conviction on the accepted idea must be so strong that to even have any new challenge to that idea considered it must be presented in exactly the right way. Until the individual will consider the new proposition there isn't the slightest chance it can be accepted. Until it is accepted, the degree of awareness to its contention cannot be expected to create any degree of concern.

After you have arrived at a point in your presentation that causes an individual to consider the new proposition you are then faced with how well he will go through the mechanics of objective consideration. Only by associating himself with the ultimate effect the new concept could have on him personally, only by becoming personally involved with the idea, will the idea be considered with a degree of effort that will have a positive reaction. Too many times, when you think you have really brought-home an idea to someone are you faced with a response of: "I know; but why are you so excited about it?" Which indicates to you that somehow he didn't get it, he still does not understand, because if he did he would not have asked: "Why are you so excited?"

You can only try again to somehow present the proposition in still another way to try to penetrate the "new concept" rejection barrier and transcend the acceptance threshold to obtain the degree of awareness necessary to bring forth the amount of concern you feel you should have generated.

The fact that the "dollar" is no longer redeemable, is so fantastically significant that when the degree of awareness necessary to trigger the collapse of the hoax is finally attained in the necessary amount of the population the result will be absolutely unbelievable to millions of people, who have been exposed to this fact over and over again. People seem to want any new proposition to be unacceptable, with such dedication, that they will jump to accept the first thought their mind conjures up, which would tend to contradict the new proposition. In the case of the "dollar" they cling to a belief that it doesn't make any difference whether the "dollar" is redeemable or not as long as the people think it is, it still works" the same. This conclusion is as ridiculous as ridiculous can be, and yet they will jump at it, and not go any further in their consideration. Only an objective consideration carried to the absolute extreme should ever be trusted as a basis for a conclusion.

Only with the cooperation of the individual can the speaker reach the individual with the new proposition with any hope of its acceptance. The ultimate in success is when the speaker making the correct presentation meets the individual with an open mind, and a willingness to consider the material objectively on its own merit.

In the case of the "dollar" the accepted ideas have been in the people's minds for so long that even the consideration to consider is very hard to come by. The longevity of the hoax has just about justified the acceptance of the idea; that if people believe in "dollars" that is all that is required. It is easy to see the strongest point that supports that belief, it is the fact that the producers of the wealth must pledge or exchange wealth to obtain "dollars" and so it "holds" they must be worth the wealth it "costs" to get them. Somehow it hasn't crossed the minds of most people to wonder who obtained the "dollars" first, and by what means was the receipt of them justified. Where did the "dollars" originate? Who were the first individuals to use the very same "dollars" they are using? Those are the questions the "truth" answers, and it only takes five seconds for true contemplation of the "truth" to convince the most diehard of die-hards that "dollars" (money) is the greatest hoax on earth.

 

"Money" The Greatest Hoax On Earth .........6

To arrive at a true acceptance of a fact an individual must be willing to examine his thinking and reasoning with that of the speaker on a strictly non competitive basis. A purely objective approach to trying to arrive at a greater understanding of the truth by considering all information. The very instance of anyone interrupting a speaker to say: "I do not agree with you" would have to be evidence that either the statement is made because the speaker's information is being considered against preconceived conclusions, or that the information is not new and had been heard and considered earlier. It is evident to the speaker, that if he sees genuine shock and disbelief at the first mention of his fantastically unbelievable truth, that the disagreeing member of the audience had not heard it before and was disagreeing on the basis of preconceived conclusions and therefore was not truly considering the proposition at all.

Only a genuine desire to learn, lowers the rejection barrier to allow new facts across the threshold of the mind.

Exposure to facts plus consideration equals awareness. Awareness plus acceptance of responsibility equals concern.

Chapter IV

"Dollars" are not backed.

The "dollar" is not "backed" by the wealth of its creator. It is not backed' by the wealth of a depositor that deposited wealth, to cause its issue, because that was the way it was done originally when we had private banking, and all certificates issued were bearer certificates redeemable in the wealth so deposited.

The nature of the "dollar" was changed over a period of years so surreptitiously that few people today really understand the nature of the change. A dollar was a name applied to a silver coin of 371 grains of silver .999 fineness. A dollar was a name applied to a silver coin of 378 grains of silver .999 fineness. A dollar was a name applied to a gold coin of 13.7143 Grains of gold .999 fineness. The gold coins were discontinued in 1934. The silver coins were discontinued in 1965 but the memory lingers on, and now the "memory" is called a "dollar". While the gold and silver coins still existed as legal currency, paper certificates redeemable in those gold and silver coins were issued for use as proxy representations.

People did not object to paper certificates, and in fact preferred them in place of heavy coins as mediums of exchange in the market place, The removal of the gold and silver coins as legal tender left the memory of them in the mind, and the paper to facilitate that memory and to help keep it "alive". Now we trade "dollars" that are solely imagination and somehow most people cannot see anything wrong in that. Now we are told that it is the Gross National product (G.N.P.) that "backs" the "Dollar" and we cannot find too much wrong with that because it surely does seem to be purchasable with "dollars"

There, in as concise a statement as can be provided, is the answer, the dollar used to be redeemable in produced wealth, now it can only be used to purchase wealth. The old certificates could be used to purchase wealth and could pass from one producer-consumer to another producer-consumer and whoever at anytime wished to redeem his paper for the wealth in reserve for its redemption had merely to present it for redemption and he would receive the gold or silver coins. Without the silver and gold coins in reserve now, the redemption is impossible and only purchases can be made with "dollars". Without redemption "dollars" accepted are "bad checks." Just as redeemable dollars or non-redeemable "dollars" can be used to make purchases, so can good checks or bad checks be used to make purchases

The bad check can make many purchases and bear many endorsements but one day it will be presented for payment, and when that payment is refused its "bad check" nature will be exposed.

The "bad check" is returned through a reverse course to the issuer who is asked to make restitution, and we have laws to enforce that restitution. The "dollar" however, is accepted as being the good check and is never presented for payment. It is accepted as the payment itself The constitution of the United States stipulates that no state shall make anything except-gold and silver coin as a tender in the payment of debt. If we did present the "dollar" to the bank and ask for specie payment it would be refused, and just like the "bad check" its true nature exposed, except that we do not seem to object to this condition. We would not take it back to whoever we received it from and demand restitution, because we can use it to purchase with and obtain the production we desire by purchase, even when redemption is refused. Eventually we accept the contention that the "dollar" is "backed" by the G.N.P.

 

"Dollars" are not backed ...........7

Sometimes it is stated by government that the "dollar" is "backed" by the full faith and credit of the government. If thought were applied to the use of the word "backed" it would lead to the remembrance that the dollar used to be "backed" by gold and silver; then "backed" was used to express "redemption". If "backed" means "redemption "then where is the G.N.P. stored that is held in reserve for the redemption of "dollars"? There isn't any! Then the "dollar" is not "backed"!

The "dollars" of today are only accepted as "purchasing units" because of the confidence of the people that is based on residual memory of their past worth in redemption. When the "bad check" nature of "dollars" is exposed their purchasing power will all but disappear.

When we pledge wealth to the bankers to get "dollars" we feel that since it cost us wealth pledges to get "dollars" they must be worth that wealth, or why are we doing it? We pledge the wealth to the bankers to get "dollars", but we use them to purchase production from our fellow producer consumers. They in turn can only use dollars to purchase from other producer consumers etc. etc. No one can return those "dollars" to the banker, demand production, and get it. There isn't any production produced by the banker or held by him in reserve for the redemption of "dollars" so why do we pledge wealth to him to get "dollars"?

We believe that it is the "dollars" that were deposited by other producer consumers that we are borrowing and therefore we think that the wealth we pledge to the bank is to guarantee the repayment of those "dollars" to the depositors of the bank. It is our lack of knowledge of the fractional reserve system that allows this mistaken idea. The depositor's "dollars" deposited are the, 'fractional reserve" "backing" for the "numbers" written by the banker (newly created "dollars"). It is these newly created "dollars" (numbers) that we borrow, not the ones deposited by the producer-consumer-depositors of the bank.

The new "dollars" cost the banker nothing to create so why should we pledge him anything to get them; why don't we pledge our wealth to the producer-consumer that will give up wealth in exchange for those "dollars". The banker will not give any production to redeem his created at no cost "dollars" so why should we pledge our wealth to him to get them?

When we write a check to pay for a purchase we must have the full amount of our check on deposit in our account to redeem it, or we are subject to prosecution by law. Why is the banker allowed to issue "dollars" with only a fraction of the amount on deposit and that fraction is the "dollars" deposited by others, not his money? The banker creates and issues "dollars" that are only numbers in a book as "deposit credits" and issues metal and paper tokens to represent those numbers as currency (coins and bills).

The meaning of the word dollar has changed, from being a word to describe a portion of wealth held in reserve for the redemption of its tokens, to the use of the word and its representative tokens today as being the "wealth" itself in imagination. Today we pledge wealth, to the prestidigitator creating the illusion, with pen and ink purchased with the illusion, to obtain the illusion from him. It is such a diabolical procedure to define that we do it and accept a belief that somehow the banker is performing a service when in fact he is expropriating our wealth as fast as he can create the "dollars" and exploit our lack of knowledge of what he is really doing. The "dollar" is not "backed", it is not redeemable and therefore it is worthless and if accepted in exchange, it is in ignorance of its true nature.

 

"Money" The Greatest Hoax On Earth ............8

Chapter V

Use Value: Worth

The worth of goods and services is the human satisfaction obtained during use or consumption; the amount of warmth extracted from a ton of coal; the amount of hunger relief felt after consuming a good meal; the pleasant sensation of drinking a glass of good wine; the reward of love and affection after presenting a loved one with an ornament constructed of silver or gold, or a gift in any form of precious metal and jewels. It is the direct pleasure felt from services of others, such as musicians; the enjoyment of the music; the value of the services of an attorney representing you in court. If it were not free, the worth of air would be life itself.

Exchange Value: Valuation

The worth of any product is the ability to satisfy human desire. The exchange value is the worth of the ultimate goods you can exchange it for directly or by a series of exchanges. A bald man has little need for a comb. For him it would not have much "worth," but exchanged for a coin, the coin exchanged for a shoe horn, he would have a product with use value he could exercise. The "worth" of the comb to him was its "exchange value."

Mutually Acceptable Worth: Evaluation

Using the same example a bit further, and assuming the party with the shoe horn had two of them, but was without a comb, one of the shoe horns was of little worth to him. If he and the bald-headed man exchanged directly, they would have both surrendered goods of less worth to them respectively, and obtained goods of greater use value to each of them respectively.

The valuation of the product surrendered was less to the party surrendering it than the worth of the product obtained on both sides of the exchange.

Free exchanges only occur when each party feels he is getting more than he is giving up. Examples: John produces food, Walter produces furniture, John sells his surplus food for coins, Walter sells his surplus furniture for coins. In John's case, surplus food would require refrigeration -selling his food for coins, he can save that expense, so "cash on hand" is more "desirable" than "inventory". In Walter's case, his surplus furniture would require warehousing; selling his furniture for coins, he can save that expense, so "cash on hand" is more "desirable" than "inventory"

When John requires a new sales counter in his food shop, he exchanges "cash on hand" to purchase the counter from Walter. The counter is a tool in his business, and will be instrumental in increasing his sales, therefore he values the new counter more than the coins he is surrendering.

When Walter gets hungry, and desires food, he cannot eat the coins, so he exchanges his cash on hand" to purchase food from John. The food will satisfy his hunger which the coins cannot do directly, so he values the food more than the coins he is surrendering.

This mental exercise of " Weighing- in-the-mind " the relative worth of the goods and services desired relative to the valuation of the goods and services to be surrendered is done subconsciously by most people.

The "worth" of "money" was its "exchange value" and it just wasn't of any concern to anyone that the "worth" of "Money" itself is ZERO.

"Money" is like air, in that we cannot 11 see" it or feel the texture of it, but we can use it, and we can feel the effects of its being there. Air is free until man exerts himself, stores it in a bottle, under pressure, and it is wealth, a product, "compressed air".

Money is an intangible created by authoritarian edict placing a face valuation in excess of wealth worth on tokens. The differential created is "money" and cannot have substance unless it is fully redeemable into wealth in amount of the differential, and then it no longer is money.

Page 9 is missing

"Money" The Greatest Hoax On Earth ...........10

The "free" market adjusts itself naturally to maintain relatively stable commodity parities. Wealth converted to "media form" increases in competitive parity with its "supply form" and will not be converted back to "supply form" in a free market.

The "wealth content" of token media are converted to "supply" when competitive bidding causes its "wealth content" parity to rise in relation to its exchange value parity with the "wealth content" "supply form."

The accumulated volume of wealth media increases automatically in response to "free" market forces.

Population growth increases the need for increased production.

Increased need provides employment opportunity for the increased population.

Increased production leads to greater, over-all volume of accumulated wealth media. There are absolutely no fixed parities in a "free" market. Any "fixed" parities would prevent market self-regulation. A "free" market must have "wealth" mediums of exchange and no fixed parities. Media with a commodity fineness and quantity designations are valid and real.

Money" and "dollar" terminology completely prevent the operation of a "free" market. A 1964 Kennedy "half dollar" contains "free" market wealth (silver) of 90% purity (fineness).

A 1964 Kennedy "half dollar" consists of "free" market wealth equal to 90% of its "demand value" expressed in "dollars."

"Money" is the difference between "demand value" and "free" market "wealth" value of a medium of exchange.

The "wealth" part of each coin is either "Supply" or "demand."

The "money" part of each coin is total inflation (imaginary demand).

The very existence of "debased coinage" creates an imbalance equation of "supply" vs. "imaginary demand."

The imbalance present in a coin remains as long as the coin exists.

A 1964 Kennedy "half dollar" is 90% wealth plus 10% "money" (inflation).

A 1965 Kennedy "half dollar" and all those through 1969 are 40% wealth (silver) plus 60% "money" (inflation).

A 1971 Kennedy "half dollar" is 3% wealth (copper- nickel), 97% "money" (inflation). In the 1964 coin the imbalance created is 10% "money" (inflation).

In the 1965-69 coin the imbalance created is 60% "money" (inflation). In the 1971 coin the imbalance created is 97% "money" (inflation).

BUT BY DOLLAR TERMINOLOGY, THEY ARE ALL EQUAL! An old "silver dollar" is 90% wealth (silver) plus 10% money."

The new Eisenhower dollar (for circulation) is 3% wealth (copper-nickel) plus 97% seigniorage "money" (inflation).

A "one dollar" paper token (bill) is 6/ 10ths of I% wealth (paper and ink) plus 99.49/6 1. money" (inflation).

BUT BY THE "DOLLAR TERMINOLOGY" THEY ARE ALL EQUAL!

"Money" itself is "'inflation" and can only be eliminated by a return to "wealth" mediums of exchange.

"Return" to the use of gold as the "primary commodity reference" and "medium of exchange" has been the solution to every financial collapse in 6000 years.

We the people must be "free" to trade with wealth!

People not free to trade with wealth become slaves to the "money" creators.

 

Rent- interest- free Coinage ............11

Chapter V11

Rent - Interest - Free Coinage.

It is impossible to pay all the rent or all the interest owed unless the people themselves control the quantity of our medium of exchange.

Borrowing wealth Is practical if wealth can be returned, plus a rental fee In ''wealth form" otherwise: We cannot return more to a lender than he lends.

If a person borrows the production of another, it can be repaid with a "surplus'' of the borrower's production as a "rental fee."

Any contract made payable in wealth can be repaid in wealth, plus rent, In wealth form.

People produce wealth, and wealth is a "real" medium of exchange.

People's labor produces wealth, and any wealth borrowed can be repaid with "new" wealth produced.

The secret is that we "must" be able to repay In newly produced wealth fashioned into medium of exchange "form."

The "quantity" of wealth in medium of exchange form "must" be "expandable" by the individual actions of people responding to "free" market forces.

People must be free to decide "when" and "if" they desire to convert their wealth into medium of exchange form.

If we are forced to use a medium of exchange whose "quantity" is "regulated'', then we are slaves to that "regulator," because: we cannot return more than we borrow, from an only source.

Interest is a "money" charge for the use of "money.

Money is a psychologically created monetary unit accepted by the public as a medium of exchange.

Money hasn't any physical being, it does not exist.

Monetary terminology has be devised to facilitate description of its units in terms of "dollars."

Quantities of it are represented by minute quantities of wealth in the form of metal and paper tokens.

Money confers all its power upon its creator!

Acceptance of money enslaves labor to the will of the money creator.

Money accepted in exchange for wealth grants to its creator the title to that wealth.

A contract to repay borrowed money plus interest is impossible for the borrower to fulfill.

The borrower could only obtain the money for interest from a creator and "It" "borrowed" would be "new principal."

FREE COINAGE

A free coinage system is where the government operated mint is limited to controlling only the quality of the coin it produces; the quantity produced is dependent upon the amount of precious metal submitted by the people for coining.

"Free coinage" guarantees a "free market."

When government itself or any monetary authority decides the quality or quantity of coin to put into circulation, there is no longer "free Coinage" or a "free market"!

 

Rent-interest .........13

Chapter V111

RENT-INTEREST

If a farmer lends his neighbor a horse, a plow, and a bag of seed, it is easy to see how it is possible for them to be returned with a little something extra. The neighbor can return the horse, the plow. and the bag of seed, and perhaps an additional bag of seed, or some flour, or some bread. or anything of wealth the neighbor may feel is an honest value to repay the farmer for the use of the capital borrowed.

The additional wealth returned for the use of capital borrowed is called rent. Rent is a material thing, it exists, it is produced by labor and has the ability to satisfy human desires, and is exchangeable. It is wealth.

Throughout history, rent has existed as an honorable thing, to be paid by the borrower, as a condition of the use of another's capital.

All capital is wealth, but not all wealth is capital. To be capital, wealth must be used in the production of more wealth. It is from this increased production of wealth that rent is paid.

Rent is payable because it Is produced with the aid of the capital supplied by the one to whom the rent is payable and it is the earned share of the Increased production. The rent may be paid in any form of wealth mutually agreed upon. It may be the direct product, wheat, seed, or the intermediate flour, or the final product bread, or it may be paid in gold or silver.

It is essential to understand that rent is an obligation for the use of capital, that can be satisfied by the borrower with some product of the borrower's own labor., wealth. It is essential to see that it is the farmer's production, in whatever form, that settles the obligation.

The source of rent is the use of the borrower's labor, with the lender's capital upon the resources of the earth.

The limit to the amount of rent that can be paid is found by the amount anyone is willing to pay for the use of capital. Actually, all the production produced could be rent If the borrower were willing to labor for "no return." In fact, it is this area of agreement between the laborer and the providers of capital that actually sets the level of wages in a free enterprise system. Rent is wealth and as such is produced by labor, and is only limited by that production.. As long as labor can produce, rent can be paid. The millions of laborers In the United States are individual sources of rent through their labor.

Interest is a money charge for the use of money. Interest is a money charge because it is always expressed in monetary terms. If the "Interest" charge was expressed in wealth terms, it would be "rent," and not interest. Rent is a material thing, interest is psychological. Interest is expressed in monetary terminology and money is a psychologically created unit that does not exist physically in our universe.

Money is a figment of the imagination, created in one mind and accepted in the minds of others through the medium of representative tokens. The tokens are material substances, endowed through the power of persuasion with values related to substantial amounts of actual wealth, yet are of infinitesimal amounts of wealth in themselves.

The United States monetary unit is the "dollar" variously related to wealth as 420 grains .900 fine silver, 412.5 grains .900 fine silver, and also as 25.8 grains .900 fine gold, and 15 5 / 25ths grains .900 fine gold. Amounts of these dollars are recorded in books as paper and ink entries, preceded by a "dollar" sign ($) as $6.4 million ($6,400,000), etc'., and these marks in the book are the birth of the amounts so recorded. Today, only one entity has this power to so create dollars by the mere entry in a book.

When dollars were created by the old national banks, they were limited in the amounts they could create and get away with, because in those days there were tokens existing, and in circulation, that were wealth in amounts equal to nearly the value of wealth expressed by their monetary denominations.

 

"Money" The Greatest Hoax On Earth ..........14

Since the paper dollar tokens were only worth $0.006 (their cost to produce) but were freely exchangeable at the banks for the metal tokens which were nearly the actual wealth and only a small percentage of imagination, the mental persuasion was accepted by the people and the dollar became an entity in thought. The justification for paper currency was that the actual wealth they Were valued in relation to, was on deposit, in. reserve, and readily available for the redemption of the paper bills.

Unlimited creation of dollar units by entering an amount in a book was not possible, because the volume of tokens of near value required to service specie demands was not possible to create without the labor of the people. The system did occasionally collapse, as bank runs developed from just such "non service" of specie demand.

To be able to create unlimited amounts of dollars and not have the natural law reaction, bank runs, and failures, it was necessary to charter a United States central bank. In 1913 the Federal Reserve System was born out of the Federal Reserve Act, and the power to create dollars was given to this one entity (a monetary authority).

Step by step the use of gold tokens was made unlawful by executive order. By 1965 the coinage act had taken silver out of tokens, and by 1971 there were no longer any metal tokens with wealth content above 3% of the value of wealth expressed by their monetary unit denomination. With the marks in the book only redeemable by the paper bills and tokens containing 3% of the wealth they had to be accepted for, the entity was indeed the most powerful force in the United States.

This one entity could create and issue money, with wealth no longer lawful, only money as a medium to settle contracts, and a transactions conducted with an imaginary medium. Mass hypnosis was created on a gargantuan scale, with everyone depending on figments of the imagination to conduct their business, their lives, and their fortunes. Everyone was dependent upon this single entity and its continued creation of the monetary units by simply writing down an amount in a record book preceded by the mystical sign "$".

It is extremely essential that the observation be made that all dollars created are created in this manner by this entity's system in its books. All dollar credits wherever obtained had their origin in this entity's books and were distributed from there.

When the Treasurer of the United States creates a bond and sells it to the Fed, the Fed transfers dollars created on its books to the credit of the Treasury in its checking account at the commercial bank. The Treasurer writes checks on this account and when the checks are presented at the bank for payment, the people receive credits transferred from the Treasury's balance in the record book to their balances in their account record book at their bank. If people want cash dollar tokens for their government checks, the bank issues federal reserve notes provided by the Treasury for the purpose. Fed notes are paper bill tokens that represent the monetary unit dollars, created by the entity (Fed). Metal tokens (cupronickel), not silver and gold are also provided by the treasury for issuance by the federal reserve system banks.

The Fed who creates dollar balances on its books, out of thin air, does not have to provide the tokens that are the material representations of the monetary units they create. The tokens are provided by the treasury to convey to the people that the debt they represent is an obligation of the United States government and hence the people (we owe it to ourselves).

The tremendous effort to confuse the people is self-evident on any federal reserve note. A note is an IOU and a federal reserve note should indicate that the Fed owes the holder. The Fed is a private corporation and the government of the United States does not owe any shares of the Fed stock; but the Fed notes are endorsed by officials of the treasury, making them appear as obligations of the people. Making them appear as obligations of the people makes the people think they owe it to themselves.

The real truth is so fantastic that only a few people in the entire United States really understand the facts.

 

Rent-interest ............15

The Fed creates the imaginary units on its books, it buys government bonds with them and the records remain on the books that the treasury must pay the money back, plus interest. Anyone holding a dollar bill token has a minute amount of wealth, as a material thing, which represents a much larger amount of debt on the books of the entity. The holder has permission to use it to acquire the wealth of another using the record of debt as a medium of exchange in lieu of wealth. All the while this dollar circulates it represents one dollar of debt owed to the entity for something the entity purchased. Precisely: All the while a dollar token circulates or a dollar record exists on the books of the entity, it represents a dollar of debt owed to the entity, for something the entity purchased with imaginary media they created at no cost at all to them!

When the Fed creates a dollar balance on its books, it Is a record of debt owed to itself by whoever they transfer that created dollar credit to. They create an amount of imaginary units in their record book, and immediately it becomes a pen and ink written record of debt owed to them by merely putting pen to paper.

When someone accepts a transfer of that record from the books of the entity, they accept a responsibility to pay it back: they incur a debt. Part of the confusion starts right there-the transfer is not called a transfer of debt, it is referred to as a transfer of deposit credits. The recorded debt is passed from account record to account record by written orders called checks. The transfers may move the debt from place to place, but the linkage, no matter how long it may become, always connects the debt to the federal reserve banking system that created it.

Withdrawal of cash from an account record consists of accepting the paper bills or cupronickel tokens, which are transferred from person to person as a medium of exchange composed mostly of records of debt. The fact that the tokens themselves are of minute wealth value does not alter the fact they are representatives of dollars and dollars are created by the Fed, and are all debt! We are using debt itself as a medium of exchange, and the entire debt was "Fed created."

The people incur debts to business establishments for time purchases. The businesses in turn borrow from their banks, and their banks borrow it from the Fed. People borrow from their life insurance company. They borrow against the cash surrender value of their insurance policy. They get a check in the mail, deposit it in their bank, and some dollar "credits" (records of debt) are transferred to their account from the insurance company's account.

If the Fed bought some of your wealth with Fed notes directly, you would be receiving records of debt that you owe them for the goods they just purchased from you. You gave them your wealth for pieces of paper that represent debt owed to them, even though the papers are marked "federal reserve note" and in your, mind you think the paper is an IOU of the Fed. If you accept it as a Fed IOU then why is it endorsed by your Treasury's officials? - (deliberately to create that idea in the public mind, that it is a U.S. Government obligation). It cannot be said more simply than that. With the Treasury officials' signatures on Fed notes they appear to be obligations of the people of the United States. When the citizen gives up wealth to anyone and receives "dollars" (records of debt) in payment, he has received Fed U.O.Me's, and has accepted them as the obligations they are, with knowledge or in ignorance.

With a single entity as the only source of U.O.Me's, and the entire United States economy operating on U.O.Me's, the economy is certainly at the mercy of the U.O.Me. creator! (The Fed system.)

When the treasury creates a $50 million bond and turns it over to the Fed for a $50 million U.O.Me. transfer to the treasury's account, the bond states clearly the treasury must return $50 million in U.O.Me's plus interest to the Fed in 30 years. The treasury gets $50 million U.O.Me's and must return $140 million to the Fed. The bond is denominated in dollars (U.O.Me's). The interest is 6% annual interest for 30 years. The interest is to be paid in U.O.Me's and the Fed is the only source of U.O.Me's. It can never be paid because the additional $90 million interest cannot be created. The Fed creates U.O.Me's.

 

"Money" The Greatest Hoax On Earth .............16

All they create could conceivably be returned but the wherewithal to pay interest does not exist. Wealth payment is unlawful, and U.O.Me's are not obtainable from any other source but the Fed system. If you tried to borrow U.O.Me's from the Fed with which to pay them the interest charge, the borrowed U.O.Me's would be a new debt.

Unlike rent, which is a share of the increased production paid to the owners of capital for the use of capital, and obtainable by anyone with labor, interest is a money charge for the use of money (U.O.Me's) and is totally impossible to obtain.

Interest is a figment of imagination, imposed as a charge, on the borrowers of figments of the imagination (money) for the use of figments of the imagination (money), and as such does not exist.

Interest is a psychologically induced idea in the minds of humans, along with money (U.O.Me's), to confuse, confound, and leave them helpless to prevent total expropriation of the fruits of their labor.

Chapter IX

Monetary Authority

When people produce goods by means of human exertion and exchange goods because of the division of labor, all exchanges are final and complete. If one party to an exchange makes a subsequent exchange with his "purchased" (medium of exchange) goods that again, is another final and complete exchange. The important thing is that each exchange involved the use of human exertion to produce the product or service exchanged. Each party was free to decide how much of his human exertion "result" he would exchange for the human exertion -result" of the other exchanging party. It is the natural way and has the benefit of automatic "free market" regulation.

When a "monetary authority" is created with the distinct commitment to create a purchasing media that is to be used by all, in all exchanges, Ad is to be accepted in exchange for the "result'' of human exertion, but does not itself have to expend any human exertion in the creation of the media, then an extremely serious condition of FRAUD is the result. "

In the case of the Federal Reserve System in the United States, a privately held corporation chartered for profit it is felt that since the Fed claims to be turning over 100% of its net profit to the U.S. Treasury, that this FRAUD is condoned, because the ill-gotten gain is returned to the people." It should be pointed out that the Fed has not ever been audited, except by itself; but there is a more exact way to prove who benefits from the expropriation of wealth.

We are all guilty at times of not looking deep enough into things to discern the truth, yet divine guidance informs us that the truth shall set you free. We were told for years that the Fed was an arm of the government, then gradually it began to filter through that when we were told: "the Fed stock is owned by its member banks,'' and we stopped thinking at that point, everything seemed alright; but just a little extra effort revealed that the stock of the member banks were owned by humans (people). Through control of the directorships of the member banks a small group of people own and control the Federal Reserve Banking System.
Who really benefits from the operations of the Fed, the people as a whole (the wealth producers of our country) or this small group of people fortunate enough to own the money making machinery?"
When a "monetary authority" is created, by congressional charter and endowed with the responsibility of "creating" and managing the monetary media (dollars), the government creating that monetary authority becomes subject to "control'' by the monetary media

 

Monetary Authority ..........17

(dollars) that are Its output. The treasury causes US.. Bonds to be created at the bureau of printing and engraving and sells these bonds for "dollars" created by the Fed. The bonds bear Interest. The bonds are bought with "dollars" by the Fed, the Fed ends up with the bonds created and sold by the treasury. Regardless of how many ways they try to fool the people, the fact remains, the U.S. Bonds are held by the Fed, paid for with the monetary media "dollars" created by the Fed. The federal reserve notes that are the paper tokens that represent "dollars" are also printed at the bureau of printing and engraving, and are turned over to the Fed for distribution.

The treasury creates bonds at no human exertion (no wealth backing) people supply the materials and perform the labor, and are paid with "dollars."

Treasury sells bonds for Fed created "dollars".

Treasury owes interest on the bonds to the Fed.

When the Fed Open Market Committee sells treasury bonds into the banking system, temporarily, repurchase agreements guarantee that the Fed maintains ownership.

The Fed purchased the bonds with "dollars" created at no human exertion (no wealth backing) (people supply the materials and perform the labor, and are paid with a small amount of what they produced).

The Fed has the bonds.
The Fed collects interest on the bonds.
The Fed has the fed notes for distribution by lending, with the interest earned, as profit.
When and if the Fed sent its -profit" to the treasury, the treasury would have to return it "post haste" as payments of principal and interest.
If the Fed is an arm of the government, why does 'it ridiculously hold its "own" bonds and pay itself interest?
If the Fed is an arm of the government why does it hold certificates giving the Fed the ownership of the "treasury's" gold.
If the Fed sends its profit to the treasury, why doesn't it send the bonds back?
Every "dollar" the Fed creates is loaned by its creating bank at interest. The amount of "dollars" created to date, and on the books of record is well over two trillion dollars, even at only six percent that is one hundred twenty billion a year. The profit from that alone should have paid off the federal debt long ago. If the Fed could be audited by anyone outside its own organization we would not have to reason these things out, we could learn the truth first hand.
The Fed refuses to allow itself to be audited by the people, for what reason? (it audits itself, what has it found out?)The Fed owns the "nation's" gold. For what reason? Why doesn't it give that to the treasury?
The people are not permitted to speculate or invest in gold. For what reason?
The people produce all the wealth, but are not allowed to have wealth backed media. For what reason?
The Constitution of the United States specifies gold and silver coin as media; but we are required to use metal and paper tokens. For what reason?
The legend: "The United States of America promises to pay to the bearer on demand dollars," has been removed from the paper currency. For what reason?
It is the observation here that looking at this entire situation objectively, it can be likened to a number of horse drawn carts, drawn into a tight circle. Some will see a horse in front of every cart, and some will see a cart in front of every horse. It is respectfully submitted here that as long as the Fed holds the gold of the nation it is the beneficiary of the present. As long as the Fed holds the treasury bonds and is receiving the interest therefrom it is the beneficiary of the present. As long as the Fed banking system can create all the "dollars" it desires to, without having to put up any wealth at all to back those dollars, it is the beneficiary of the present.
It is the contention here that those people who own the Fed operate it for the benefit of themselves, for profit, and that the people (the wealth producers) are the victims of money the greatest hoax on earth!

 

"Money" The Greatest Hoax On Earth ..........18

Chapter X

Gold-Paper Currency

The considerable amount of value able to be stored in gold coins makes them highly desirable. For safekeeping they weir usually stored at a local depository, and the depository claim certificates used in their stead for exchanges. As long as the gold represented by the certificate was stored (held in reserve) to be released only upon surrender of the certificate, the certificate could be used as though it were as good as the gold itself (as proxy for the gold). "Inflation" could not occur as long as the certificate was recognized as being the bearer certificate "redeemable" in gold not the gold "itself", and the gold a as held in reserve for its redemption. With certificates in active use, depositories found that 90% of the gold behind their issued certificates remained in the vaults constantly; only about 10% at any time being withdrawn for use or transport. Different depositories honored each other's certificates if and when they were tendered for redemption and settled the balance of payments by shipping gold as required; from this the banking system evolved.

Eventually, the depository officials increased the amount of certificates they issued-issuing certificates in excess of gold on deposit; this was, of course, very unethical but since they were lending these certificates out at interest it was also very profitable. All the certificates promised redemption in gold, so those for which there was not any gold on deposit could not be told apart from those that did have gold on deposit. "Inflation" existed but was not readily apparent.

The ''certificates" issued in "excess" of gold on "deposit" were "imaginary demand" and not real demand and were '"inflation." The parity between all commodities and the common commodity (gold) changed because of this and this change of parities is the "inflationary effect" (falling dollar parity), known, in error, as "rising prices".

As long as the gold redeemable bank notes," as they became known, circulated within a district, and the various banks honored each other's certificates, and as long as none went ''too far" in the issuance of bank notes beyond the deposits of gold on hand, the "inflation" had the effect of creating a "boom" in business. Nothing will remain in balance forever, and when an unfortunate bank found itself with demands for redemption of its certificates in excess of its deposits in gold, it faded. When banks failed, it was quite evident the people holding bank notes that could not be redeemed had lost their savings. Unlike token "coinage" which becomes accepted as wealth itself, the bank notes became totally worthless.

Lincoln issued United States notes to pay for the Civil War. These notes were not redeemable in gold but by accepting them in exchange for goods, citizens in effect were paying their future taxes in advance. The notes were usable in the settlement of taxes. Held by the initial receiver until their return to government was non-inflationary, the notes were simply evidence of a loan Of goods and services to government. Used as mediums of exchange they were pure inflation, the goods they originally represented long since consumed, they were only records of debt, not tokens of wealth. They bore notification:

This note is legal tender at its face value for all debts public and private except duties

on imports and interest on the public debt.

The words "legal tender" mean lawful money" and the people accepted that, and exchanged their wealth for them and generally considered them as good as gold, even though they bore a legend that said banks would not accept them as payment of interest on the public debt. The bankers did not like this interest-free media in circulation, and in competition with their issue. They managed through influence in government to keep the issuance of United States notes by Lincoln to under 400 million dollars. Cost: one bullet.

 

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Lincoln printed the United States notes to pay for the war only because he did not like the high interest rate the bankers wanted to lend him their money creation. The bankers wanted government interest bearing bonds as collateral for the loan. Lincoln figured if he could create the bond, he could create the currency directly and save the interest. If the bankers could fool the People with their creation, he could fool them with his creation.

Lincoln's currency (total fiat) was able to circulate BECAUSE the people believed it was worth the goods they were exchanging for it, and they were exchanging goods for it because they believed it was good! Any "money" most command this "belief' for it to function at all- The people must have faith in the money for the money to be able to expropriate their wealth without their knowledge. They must be fooled all of the time.

This is accomplished by having "specie" (gold and silver coin) available for redemption of the bills when requested. Only a small amount of coin is required, because the demand is never very great; and if the people can get the gold they do not want it, (it is too heavy to carry about). It is only when it is "denied" that runs on the banks occur. Many tricks were perpetrated on bank's local depositors during the 17th and 18th centuries-bank agents incognito asking hotel clerks to "convert" large bills to specie for them at the bank. When the clerk arrived he found the bankers auditing their gold and silver coin with large stacks being counted, boxed and taken to the vault, other boxes being brought out for counting, etc. After Lincoln's experiment with "fiat," which still exists and is in circulation today, until 1913 the country had an assortment of currencies, some backed and some unbacked but "all" redeemable for gold or silver coin or goods amongst the people themselves.

The people used gold and silver coins (wealth) in their daily exchanges, even the paper bills could be exchanged for gold and silver coin at the bank. In absolute fact, the people held the "wealth" of the "nation" in their hands. The unbacked paper was named ''dollars" and gold coins were "dollars" and silver coins were "dollars''. "Bad" circulated with "good" unnoticed by the people, providing the bankers with unbelievable power over the lives and destiny of the people.

Chapter X1

MEDIA

To understand economics is easy-learning the basic truths may be very difficult as It involves more unlearning of old -beliefs than it does relearning of ancient concepts of classical economy.

Man applies his labor in the production of goods and services at many levels, but to make it easy, we will try to follow what is known generally as a wage-earner. Human labor applied in production for wages is his service that he performs. His labor in combination with other laborers plus perhaps the capital of still another results in a product or products. These products are the goods produced.

The cooperative enterprise will sell its product on the market, and receive the product of the purchasers in exchange. The only way that an honest free market can be operated is if the medium of exchange used to effect the transactions is itself a material thing, produced by labor, and having use value itself. If the medium of exchange received is not what the seller can use directly, it is still o.k. as long as it is something that will be accepted by others in exchange for the things the owner wants, and will use directly.

This medium can then be used by the seller to distribute to his workers in proportion to the amount of their contribution in labor that went into the product just sold, their wages." The laborer receives his wages in this medium of exchange, and can then use it himself to obtain the goods and services he will seek from the market. Since this medium he received was in proportion to the amount of labor he had put into the production what was sold, he can obtain the approximate equivalent of production from any other producer selling in the market place.

 

"Money" The Greatest Hoax On Earth ..........20

The medium of exchange he brings into the market represents supply he produced, that is, was, or will be offered in the market place for sale. There can never be more media than there is supply because his medium is supply (it has use-value) itself.

Some humans work harder and longer than others, and produce relatively more than others, therefore some laborers earn much more than they consume, and end up with a surplus of media. This surplus of media is their savings. Those with savings may put those savings into a joint venture as capital, and participate in the manufacture of more products for sale in the market place. The savings so employed as capital (the tools of labor) may bring him a handsome return eventually as the capital's share of the venture's profit when the product is sold in the market. Man employing his labor and his capital in wholesome capitalism may in time accumulate a fortune, and he deserves it.

With a fortune in savings employed as capital in industry, he can retire- and enjoy the retirement. The man with a savings fortune may elect to have others invest his savings for him and be willing to allow them a share of his savings earnings for their service. One such place is a savings and loan association. He can place his savings media in their care, and agree to let them employ it for him. The savings and loan will guarantee a certain amount of earnings for a given period of time; the longer the time in the arrangement, the higher the return the savings and loan is willing to pay generally.

The savings and loan association may lend his savings to another party, who needs it as capital for an enterprise, or lend it to someone as a mortgage on a home, or for any reason whatsoever. It can never be inflationary because it is in itself supply or demand. The borrower at the appointed time may repay the loan with the extra product media which are the capital's proportionate share of his production proceeds, and the savings and loan association may lend them out Win. As long as only one party-the borrower-or the owner can use it during any given period. The media cannot ever be inflationary for they are supply in itself.

The saver with his fortune in savings may elect to put his savings media in a bank where they can be demanded back at anytime (demand deposit), that is, be readily at his disposal if he needs them. The bank can then lend his funds to someone as capital, or for any purpose, and they will be non-inflationary. The bank must take care to maintain enough of its depositors' media on hand at all times to take care of immediate daily demands. With care, a bank can loan out a good percentage of its depositors' funds, and earn a good premium meantime with which to pay its depositors for the use of their savings, and a good earnings for their own services. There is no chance of inflation anywhere along the line, since the media employed were at all times supply in itself, already existing, and ready to fulfill any function they were called upon to perform, be it media in exchange or a useful. commodity for use or consumption.

Any man who wishes to start in business and needs capital to do so may go to the bank, and by proper application, satisfy a banker that he is a good risk, and have the banker make him a loan of some of the banker's depositors' savings deposits. The borrower may repay the bank on a by prearranged basis and the premium charged for the loan may be divided by the bank as some for its own, service, and some for the use of the depositors' savings.

Anyone wishing to buy a house may obtain a mortgage from a savings and loan association by proper application, and credentials, and have the savings and loan lend him depositors' savings. As long as the borrower has the savings, and no one else can use them, the entire banking or loan transactions are thoroughly sound, and have no detrimental effect upon the market or the economy.

The borrower borrows media that are demand or supply in itself, and he pays back the loan with media that are in excess quantity (loan + premium), and are demand or supply per se. (continue)