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I. M. F. nnnn141

If paper is to be used at all It must have some fixed amount of some commodity it can be redeemed for by its issuer.

Parities between currencies must be totally flexible at all times, but the specific redeemability of all currencies must be the exact amount of the commodity they represent.

In that way it will be the redeemable commodity's parity with the other commodities that must decide the currency's parity; as it must be.

Only commodities have "use value" and it is the commodity obtainable with a currency that decides the use value of a currency-no commodity-no use value. Currency must be redeemable.

Money per se is a nonentity, it has no substance or being.

Currency must be a bearer certificate redeemable for a fixed amount of some commodity, otherwise it would only be worth its own negligible use value.

A simple table that would only have to be expanded to include all currencies, would tell at a glance the relative parities of all currencies Into one common commodity, and would remain stable for long periods of time, example:

I Dollar =0.0286 ounces of gold .999 fine.

I Pound =0.0572 ounces of gold .999 fine.

I F r Fr. =0.00572 ounces of gold .999 fine.

I guilder =0.00572 ounces of gold .999 fine.

I Sw Fr. =0.00715 ounces of gold .999 fine.

I D. Mark = 0.00715 ounces of gold .999 fine.

I Yen = 0.00009533 ounces of gold .999 fine.

Without any common commodity or common currency it would be necessary to list each currency separately in a table with all other currencies to record the various parities.

''Currency terminology" is the means by which the people of the world are burglarized without their knowledge. Before the invention of "paper and ink money," the world used precious metal coinage." The ancient trading nations used coins of precious metal in comparable value units. The coinage, so standardized, facilitated easy trade between nations, Purity of coinage meant that weight differential was equivalent to value differential. Ships, long at the bottom of the sea, have been found with chests full of these coins still on board. Coins were used as mediums of exchange in international trading. A Chinese merchant could sell goods to a merchant of-India and receive Indian coinage. Because it was a compatible fineness of precious metal, it did not cause confusion. An Indian merchant could sell goods to a merchant of China and receive Chinese coinage. Because it was of compatible fineness of precious metal, it was accepted readily. Eventually, a Chinese merchant could purchase goods from India and pay with Indian coinage received earlier. An Indian merchant could purchase goods from China and pay with Chinese coinage on hand.

Because "tokens" (that represent extended credit) were not used, there could never be an imbalance of trade (deficit). A nation exporting more than it imported, acquired a .. surplus" of precious metal coinage from other nations, (wealth) which was "payment" for the goods they sold. A nation importing more than it exported, developed a deficit in its precious metal assets, which represented payments made for goods purchased. To rob the people in the "old" days, coins were clipped and/or debased. But debasement was discernible, and could only be used for a limited time before it became common knowledge.

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By adopting "currency terminology," and creating ''tokens" to represent quantities of precious metal, the time could be extended. Precious metals had naturally come to be used as common commodity standards. It was natural to use a precious metal standard to which to tie the created currency. For thousands of years, "tokens" of all sorts have been used to replace debt. However, final settlement was always accomplished by the shipment of precious metal. Each nation exchanged the precious metal for the return of its tokens. The (deficit) imbalance of trade nation would ship precious metal to repatriate its "tokens." The surplus balance of trade nation would ship "tokens" back to the nation of origin for the precious metal. It is important to note that this was quite natural.

When a nation purchases goods from another nation it should expect to have to "pay" for them. Originally then: The trading mediums were coins of comparable fineness of precious metal commodity. In the "second phase," "tokens" were used which were "bearer certificates" tied to precious metal in fixed weights and fineness. Now in the third phase we have a system that has brought world trade to the brink of disaster.

"Currency terminology" has facilitated the abuse of the precious metal commodity standard. The direct ties between the currencies and specific weights and fineness of precious metals has been abandoned. The currencies of the world today are tied to "dollars," and only "dollars" tied to gold. The currencies are now subject to twofold inflation, their own, and the "dollar" inflation. The tit to gold is so loose it can be manipulated by the international bankers to suit themselves. The International Monetary Fund (I.M.F.) is the means by which the central banks mask their collusion. Collusion to manipulate the monies of the world to their own personal advantage. With parities set between the ''dollar" and all of their currencies, the link to gold is infinitely variable. The "dollar" being declared redeemable in gold, it is used as a means of settlement in place of gold.

The banking systems in some countries have greater control of government than the banking systems in others. The Fed has greater control over the U.S. government than any other system of its government, with the possible exception of Russia and China.

The U.S. citizen-had-his right to trade in gold removed by executive order. The U.S. citizen has seen his silver coin removed from circulation, melted, and sold by government. The U.S. citizen has to use legal tender that is completely fiat.

Freedom is linked by natural law to the right of ownership. The right of ownership is linked directly to the right of disposition. The more control over his personal wealth a citizen has, the greater his freedom. The less control over his personal wealth a citizen has, the less freedom he enjoys.

The Fed has unlimited power to create the "money" of the U.S., money controls the elections of the politicians in government. The politicians control the people through manmade laws. In the U.S. the creation of "money" has burglarized the people of their wealth and put the generations to come into, imaginary debt.

Consider the $7 5 billion owed to foreign nations in relation to the $ 10 billion in gold we ''have." $10 billion in gold at $35-00 an ounce = 285,714,285 ounces of gold. Dividing 285,714,285 by 75 billion we get 0.0038 ounce of gold for each unit ''dollar." At $35.00 an ounce there should be 0.02857 ounce of gold on hand to back each "dollar.''

Considering the $430 billion "federal" debt, and dividing that into our gold on hand we get 0.0006613 ounce per "dollar."

To repatriate our $75 billion in foreign hands with 100% redeemability, we would have to sell our gold at $262.50 an ounce.

To settle our $430 billion I n "federal" debt with 100% redeemability, we would have to sell our gold at $1,512.00 an ounce.

To settle the estimated $2000 billion total U.S. debt with 100% redeemability, we would have to sell our gold at $8,000.00 an ounce.

The U.S. is positive the world would not "agree" with the "rise" we would require to reach redeemability, that is why the U.S. fights against raising the "dollar'' price of gold.

Almost all the central banks of the world have inflated their currencies but none to the degree of the United States. Countries list their monetary assets as consisting of gold and redeemable currencies. The redeemable currencies are supposed to be as good as gold and therefore are used as "backing" for their own currency issue.

The other members of the I.M.F. are forced to inflate when the U.S. exports its inflation abroad. Foreign nations must buy dollars with their currencies. When dollar parity "falls" in their foreign exchange market. The Bretton Woods agreement of parity relationships, coupled with competitive bidding, compels foreign central banks to support the "dollar." With the "gold window" shut, the "dollars" they hold are no longer redeemable for gold. This leaves these nations, with their currencies in circulation, with only the gold they have on hand, as backing for it. Figures as of November 1971 indicate Germany has $20 billion in assets, 16 billion in dollars and $4 billion in gold. If all were redeemable then $20 billion at $35.00 an ounce would be 570,000,000 ounces of gold or 0.0105 ounce per unit D-Mark. But "dollars" cannot be redeemed for gold, so only the $4 billion in actual metal can be considered and that's only 114 million ounces. 114 million ounces divided by 53 billion D-Marks outstanding = 0.0021 ounce gold backing for each D-Mark in circulation. This "backing"-0.0021 ounce gold compared to 0.0038 for the dollar (considering only $75 billion dollars) shows the D-Mark is really worth $0.58 not the $0.26 parity agreed upon by I.M.F. negotiations.

Using the "dollar" gold backing (considering a dollar circulation of $430 billion (federal debt) of 0.0006613 (285 mil. Oz. - 430 billion) per unit "dollar" a D-Mark with 0.0021 ounce gold backing is worth $3.17.

Using the dollar "gold backing" in relation to the total debt (2,000 billion "dollars" created), $ 10 billion gold or 285,7 14,285 ounces divided by 2000 billion = 0.000 14285 ounce per unit, a D-Mark with 0.0021 ounce gold backing is worth $14-70.

This ridiculous situation cannot be solved without extremely serious consequences.

Using French figures for their currency and gold assets in the same manner we find the French Franc, instead of being worth $0.20 its I.M.F. fixed parity, it is worth $0.50 or $2.73 or $12.67 as the following chart indicates.

If U.S. debt accepted as

$75 bil. $430 bil. $2,000 bil.

France Franc $ 0.50 $ 2.73 $ 12.67

Canada Dollar $ 1.82 $ 9.94 $ 46.12

Switzerland Sw. Franc $ 1.22 $ 6.67 $ 30-91

Netherlands Guilder $ 1.00 $ 5.46 $ 25-34

United Kingdom Pound $ 4.50 $ 24-59 $114.04

It is fact that things, other than gold, could be used to back the currencies of nations. Gold and silver, though, have proved to be the best suited commodities for the job. It is a fact that the nations of the world list their monetary assets as gold and redeemable currencies. They use gold and have never stopped using gold as a final settlement for debt. The other nations of the world are not-repeat not-as inflated as the United States. Gold at S 105.00 to st40.00 an ounce would allow 100% redeemability for the currencies of most other nations.

The "price" of almost any commodity today is four to eight times its price as of 1934, except gold and silver. To be near proportion gold would have to sell at $280.00 an ounce, if there had not been advancement in processing. With due respect to industrial progress it would at least be in the vicinity of $140.00 an ounce. The citizens of the U.S. should be free to trade in gold or any other wealth commodity. The freedom to trade in gold restored, and the low volume of our gold reserves, would increase its parity. At a "price' of $140.00 an ounce, and the increased parity, the rate of production would rise rapidly. The current situation can only bring disaster and eventual total distrust of paper currency.

The Fed or central bank of the United States can force legal tender on Its citizens. It can not force it on the rest of the world.

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There is collusion between the central bankers of the member nations of the I.M.F.. They would like to control the world and all its peoples. To do it, they must fool all the people all the time. This, they are finding out, is not possible. The degree of control the bankers have over the government and people of their respective nations is not absolute. The degree of control is different in almost all nations involved. In countries where the confidence in created currency is high, the bankers have a high degree of control. In countries where the confidence in money is low, and people are free to trade in gold, the bankers' degree of control is low. If the people ever really understand how they are being controlled by the money creators, the reaction toward their government could be disastrous. The only real fear the international bankers have is that the people will find out and "believe." "Telling" is not enough, the people must understand before they will "believe" and react.

The ridiculous situation we have today is a result of pushing the people to the limit and then relaxing. Over and over again we are brought to the brink of financial disaster, and then fed some political pabulum to neutralize our anxiety. At the present time we are witnessing an era of "collusion," suffering set backs. Some of the fellow members feel the people cannot be pushed any further, and are worried. Others, like the Fed, feel the game can go on much longer. When the thieves do fall out -look out!

The confrontation shaping up has tremendous potential for world wide upheaval. What happens if a world population see their life savings whisked away on a week-end It could happen if this situation is allowed to continue on its present course. It could trigger a world wide depression of such proportion as to exceed the fall of Rome. It could trigger World War 111. The risk is too great for some of the members and they think it has gone far enough. As a last-ditch effort to keep the people fooled and believing in their created money-it would be wise for them to force the United States to return to a redeemable currency. Some of the members of the collusion want this now, and others are being brought around to it. For the rest of the nations it only means a modest rise in the "price" of gold. For the Fed it means much, much more. The total amount of "dollars'' created is so vast, a rise in the "dollar" "price" of gold to even $140.00 an ounce would not be enough. We have to deflate, and that would cost a great many citizens a loss of their savings. The loss would come in one fell swoop over a week-end, and not gradually as it does during inflation. The banks would be closed for a short period and then reopened with a new currency or a rubber stamp to change the value of the old ones. The exchange would be on the order of one new one for some multiple of old ones (1-10 or 1-100 or 1-1000). The object would be to reduce the volume of circulating dollar units until a modest rise in the "price" of gold could cover. As an example:

Reduce the total units of dollars created from $2,000 billion to $200 billion by a "ten old for one new" exchange. Get the world to go along with a rise in the dollar ''price" of gold to $70.00 an Ounce. Our ten billion dollars gold would become twenty billion, and this would allow redemption to be resumed on foreign held dollars.

All this sounds simple enough, and it may be what will be tried. Let us consider first a world-wide exchange of dollars, one new for ten old. It would leave us owing only $7.5 billion to foreign central banks holding dollars. We would be "paying off" the foreign held dollars at 10% on the dollar (in gold at $35-00 an ounce). The private foreign holders of dollars would have lost 90% of their dollar savings. The citizens of the U.S. would have lost 90% of all their dollar savings. The central banks would have lost 90% of all their dollar credits on their books. But the gold in their vaults would double when the $70.00 an ounce for gold went into effect. Let us compare just two currencies all the way through this ten old for one new exchange, and a rise to $70.00 an ounce gold.

The dollar "price" of gold would be $70.00 an ounce, or $1 dollar = 0.01428 ounce gold. The D-Mark remaining at its fixed parity of say $0.25 for the sake of simplicity. At $0.25 there are 4 D-Marks to the dollar. One dollar = 0.01428 ounce gold or 4 DMarks. 0.01428 divided by 4 = 0.00357 ounce gold required to ''back" each D-Mark.

West Germany still has the 114 million ounces gold plus $16 billion. With only a 10% on the dollar in gold pay off we would give her only $1.6 billion in gold at $35.00 an ounce (before raising). $1.6 billion divided by 35 = 45,714,284 ounces plus 114,000,000 equals 159,714,284 ounces gold. 159,714,284 ounces divided by 0.00357 (required gold ''backing" per unit D-Mark) = 44,737,894,678 D-Marks. West Germany could have 44.7 billion D-Marks in circulation 100% backed by gold.

Before the exchange, Germany had $20 billion reserves, $16 billion and 114 million ounces gold. If it would have been possible to redeem all her dollars for gold, the $16 billion would have added 456 million ounces. 456 million plus 114 million equals total gold supply of 570 million ounces. At 435-00 an ounce, I dollar = 0.0285 ounce gold or 4 D-Marks. 0.0285 divided by 4 = 0.0071 ounce gold required to "back" each D-Mark. 5 70,000,000 ounces divided by 0.0071 = 80,284,507,042 or: Germany could have -had 80.2 billion D-Marks In circulation 10096 backed by gold.

The worst that can happen to the central bank of West Germany in our example is that she loses less than 5096. Before the exchange with all dollars fully redeemed for gold - she could circulate 80.2 billion D-Marks 100% backed by gold. After the exchange, getting only 10% on the dollar in gold and after raising the "price" of gold dollar wise to $70.00 an ounce, she could circulate 44.7 billion D-Marks 100% backed by gold. With the D-Mark "kept" at the same parity with the dollar as before, the German central bank loses less than 50%.

All American and German citizens lose 90% of all their "dollar" holdings. All this, based on the continued attempt to keep the same parities, would not work.

The dollar had sunk so low in value before the exchange that dollar "prices" for goods had "priced" us out of the world market. The pressure had been for the other nations to revalue their currencies upward in relation to the dollar. After the exchange, the dollar would be very "strong" due to deflation. After a deflation of this magnitude, money would be so hard to get, its parity would rise quite high. Money would "buy" a lot, but it would be scarce. Unemployment would be higher and labor very plentiful, but jobs would be scarce. Many people would be trying to raise money, selling their formerly acquired luxury possessions. Dollar parity would rise, establishing a new level, somewhere in keeping with the market conditions.

The new dollar parity would be so high and the dollar so "strong" that pressure would be on Germany to "devalue" the D-Mark, in an effort to restore "trade balance" and compatible parities again here and abroad. In an effort to restore "trade balance" with a minimum of confusion for the public of these two nations; it would demand that a new parity be established between the new dollar and the German D-Mark; an effort then not to keep the "same" - fixed parity as before. A change that would put us back in trade balance and still maintain redeemability.

To accomplish this the German central bank might change the "price" of gold, in relation to D-Marks. A new D-Mark "price" for gold of 560 D-Marks = I ounce or 0.00 1785 ounce = I D-Mark -fully redeemable. The new dollar after the exchange was $70.00 an ounce or one dollar = 0.01428 ounce gold. 0.01428 divided by 0.001785 = 8 or 8 D-Marks = I dollar. The new parity then would restore trade balance to the United States and Germany. German commodity "prices" in D-Marks would be the same as they were before the dollar change. American commodity "prices" in dollars would have dropped, due to the deflation and its new strength. The new parity $1.00 = DM 8 would erase the differential and hopefully hit it on-the-nose to return trade balance. Example: In America 4 apples = $1.00 = 4 D-Marks = 4 apples in Germany.

Then the "dollar" deflation and the dollar buys more: In America 8 apples = $1.00 = 4 D-Marks = 4 apples in Germany.

Germans would trade 4 D- Marks for $ 1.00 and buy American to get 8 apples (4 extra). German central bank would devalue the D-Mark to return to trade balance. In America 8 apples = $1.00 = 8 D-Marks = 8 apples in Germany.

This new parity change would create a new benefit to the German central bank, which should not be overlooked. It would totally erase any loss the German central bank might have sustained due to the dollar exchange. After getting the 45,7 14,284 ounces gold for the $16 billion she held (10%) and adding that to the 114,000,000 ounces on hand, Germany had 159,714,284 ounces gold. 159,714,284 divided by 0.001785 (the new gold backing of the D. Mark) = 89,492,613,885 Germany could circulate'89.5 billion DMarks 100% "backed" by gold.

It is extremely important to see that an exchange of one new for ten old dollars, handled in the manner of this example, the Fed could pay off all foreign dollar holdings with $ 10 billion gold at $35.00 an ounce (10% on the dollar in gold). The Fed would have $3 billion at $35.00 an ounce left. Raising the dollar -price- to $70.00 an ounce would increase that to-$6 billion. Fed would have $6 billion in gold reserves free and clear, with 90% of its total debt removed. The German central bank would have benefited by 9.5 Billion D-Marks extra circulation possible after changes.

(DM 80 billion circulation possible before exchange.)

(DM 89.5 billion circulation possible after exchange.) German public would have lost 90% of all dollar holdings. American public would 'have lost 90% of all dollar holdings.

There is widespread unemployment and "Inflation" in our country, and a witch-hunt on for the so-called middle man causing the trouble. The fact that the middle man does not exist has led us to assemble the facts, and present them in a way that the subterfuge impressed upon us may be forever dispelled.

The root of the trouble is that our monetary unit the dollar has been reduced to imagination. The wealth that used to be held in reserve for its token redemption (that "was" the supply," the token represented by proxy) is no longer present and the ''dollar created now is 100%, inflation itself (imaginary demand).

The created "dollars" exchange for wealth, at full "face value'' but are "bad checks" and were that from the moment of creation as bookkeeping entries.

We are told productivity must be increased to match the dollar "creation," but the truth is dollars are created in the billions with the stroke of a pen, or the push of a button, but production must be produced with capital, time, and labor.

Created dollars are inflation.- Created dollars cause higher bids when they become actively engaged in exchanges. Increased "prices" curtail exports-increase imports. Increased imports causes the exports of our inflation. (Gresham's Law acting on the excess dollars causes the U.S. to refuse redemption, forcing them to hold the dollars and issue their currencies to support those dollars).

The Bretton Woods agreement forces foreign central banks to support dollars. To support dollars they must inflate their own currency further. This "forced" inflation is added to their "original" inflation. Countries doing a "greater" amount of business with U.S. have greater inflation that the U.S. (ours is added to theirs). Greater inflation means higher "prices" than those of a neighbor with less inflation. Higher prices" means decreased exports-increased imports from "Its" neighbor with a lower inflation rate. Decreased exports and increased imports means a deficit balance of trade for the nation with the highest inflation, (except the U.S. which started it-but does not have to support other currencies).

It works its way down from nation with the highest inflation to its neighbor with the next highest until he is world wide.

Industrial progress lowers cost of production-inflating raises the cost of production by lowering currency parity.

When Africa sold gold for dollars at $35.00 an ounce, dollars were redeemable in gold at I ounce for $35.00. Africa already had the gold. Why sell gold for gold? Obviously there was some other reason for selling gold for dollars! Africa needed dollars to pay for purchases of goods produced in the U.S.- If nations could use gold coins directly instead of central bank U.O.Me's (dollars), there could "never be'' trade deficits!

Other nations did not become greater than us in technical skill; It was inflation that lowered our exports; through falling dollar parity (-rising prices'') and reduce our Ability to compete economically.

For the world monetary situation to be as it had been described here, it must be evident by now that either every central bank in the world just happens to be expropriating wealth in the same manner, just by coincidence, or somehow there is collusion. Conspiracy is a hard word for some people to accept, perhaps collusion is a better word. Collusion will do, it explains the means by which so many have been fooled by so few for so long.

The earth and inhabitants have been around a long time, and many efforts have been made in the past to "take it over," create "one world" to be operated by some elite group for its own benefit. Militarism was tried many times and failed; Politics were tried and failed; even religion. We are now in the last years of an attempt to create "one world'' by economic "take over."

The banking systems of the world are interconnected and are governed by an elite group, and the banking systems of the world in turn have strangle holds on their respective nations. The control of government by the money creator should be easy to accept, ''He who pays the piper, calls the tune" has been accepted for many centuries. What must be realized is that the power over the respective governments is maintained by the continued ignorance of its existence by the public, and the part they play in the means of control.

'The central bankers control by means of the great power of the purchasing media they create (money). Money can only function for them as long as the people will use it as their ''legal tender." The law directs they must use it, but the people, when they lose all faith in it, will resort to the underground free market (so-called "black" market). The bankers control government with their created money as long as the people obey the government and use it. If the people go back to barter, the power of the central bankers over the government collapses.

It is extremely Important that this very significant fact be understood in its fullest meaning. We the people allow this collusion to force us into a "one world" system of exploitation of the public, by our continued ignorance of the true nature and function of the created money (credit) (inflation).

If we insisted that our right to trade in wealth media be restored to us, then the parity of the created dollar would soon be tested against gold and its true worthlessness exposed. We can now see why we the people must consistently be denied the right to trade In gold.

The degree of control of any central bank over the government of its nation is then proportionate to the degree of control over the people's right to own and trade in gold, plus the government's ability to control the activities of that nation's "underground" free market.

The effects of Gresham's Law, which has created most of the concern and international monetary uncertainty up to now by causing the United States gold drain, can be circumvented in theory by creation of a new type of asset, created by a one world central bank (S.D.R.'s). If S.D.R.'s were to be universally accepted by the membership of the I.M.F., it is felt there would never be another monetary crisis. The idea is to reduce everything concerning international trade into just bookkeeping entries.

The simple system would have the I.M.F. create deposits in the accounts of members called special drawing rights, when necessary, and in the amounts required to satisfy the needs of the clients of the central banker's bank. The S.D.R. entry would be denominated in gold and be "traded" (shifted from one account to another in the ledger) as gold among the bank's clients, but no one could withdraw the gold metal for S.D.R. credits in his account. S.D.R. account credits would not be redeemable in gold, but no one would question that, because with only one central bank, all the S.D.R. credits and withdrawals would be in the same set of books, and theoretically all assets in the same vault.

S. D. R. credits can be bought with a nation's gold.

S. D. R. credits can be bought with the nation's currency.

S. D. R. credit entries can be created and distributed where needed by the I.M.F.-no charge.

S. D. R. credits can be used by a debtor nation to settle its trade deficits.

S. D. R. credits cannot be used for purchases by a nation with a surplus balance of trade.

None of the currencies of the world would be redeemable in gold, all currencies would have parities tied to S.D.R.'s. S.D.R.'s would be used to settle the balance of trade deficits, and "gold" would no longer figure in any monetary transaction. This may all sound plausible in theory, but it will not work out in practice. S.D.R.'s will not be redeemable in gold at the central bank of creation, but they may be used between nations to settle their balance of trade deficits. How, then, can a country be prevented from cheating? Our dollar is not redeemable in gold, and yet gold can be purchased with it, as long as all the people are fooled into accepting dollars. If all the people are fooled, then the currencies of nations can be used to purchase gold as a commodity for their industry, and the trade balance settled later by giving S.D.R.'s for the returning national currency. This process would effectively exchange S.D.R.'s for gold.

Without a tie to gold or redeemability of its currency into wealth of any kind, any nation could inflate without restraint, and exploit its foreign trading partners with absolutely no controlling factor except perhaps its individual appetite. All the created currency could be used to purchase wealth from your neighbor. As long as you didn't ever have to redeem your currency at any fixed parity with any wealth, the degree of the inflationary effect ("higher prices"), brought on eventually by their creation, would be your neighbor's "hard luck."

In a reverse situation, if you accepted your neighbor's currency for your production, and when it came time to use that currency to purchase his production, the relative value had dropped due to inflation, it would be "your" hard luck.

Once the trading partners became aware of the abuses that could be perpetrated they would lose all confidence in the "unbacked" currencies of the trading membership, and of course we have deduced that if the created currency is not used, it cannot be effective. As soon as this lack of confidence in the currencies of the respective memberships became a "reality" to them, they would demand some form of guarantee against it, and that is simple. The currencies would have to have a par value in some known commodity. This situation is right where we are now. The Eurasians hold some $75 billion in ''balance of trade'' surplus dollars that "were" redeemable in gold, and we have closed the gold window. The dollars are not usable to buy United States production, our inflation has driven "prices" too high, and even if they were not, to spend it here for goods would hurt their industry at home. Every effort is being made to create a balance in the exports and imports. By devaluing our dollar to make our goods cheaper, we are increasing our export potential. If our exports increase, it hurts their economy and shrinks their surplus in the ''balance of trade.'' It is easy to see they wish to maintain their position in the balance of trade to keep their industry healthy, and we wish to top it the other way so we can repatriate the dollars they hold. To repatriate $75 billion we would have to run one whopper of a surplus for a very long time. They would make every effort to stop this and try to bring about a more equal exchange of exports and imports. So with their every effort directed toward a balance in trade, how can we settle our balance of trade deficit? This dilemma can only be settled by them a wealth asset they would be willing to hold in their vaults, and that would not interfere with their industry in return for the dollars they hold.

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The whole mess could not have come into being if money did not exist. If all imports were paid for in gold or silver coin directly, and all payment for exports received in gold or silver coin, and wealth were exchanged "for" commodities, there could never be an imbalance of trade at any time.

The same condition pops up every time the creation of money is tried in the world, unless the currency is 100% backed by wealth in some form. Money will always eventually collect at some point and demand to be redeemed, if redemption is refused, confidence will fall, and its parity into all other currencies will be affected. The creator of a currency in this condition must redeem it from the holder at its full wealth parity, or he must declare bankruptcy and make partial restitution. Nations usually just repudiate the debt and devalue their currency, letting the last holder of it take the loss. It would be far more equitable, should the creator of the currency refuse to make redemption, If the holders would to the best their ability confiscate whatever is left at hand, that was originally purchased with the bogus bucks, and pay for that replevin by returning the subject currency to the creator.

There is no way that any new non-wealth creation (S.D.R.'s) can redeem another nonwealth currency (dollars) as a final settlement. It may seem to work for a time as all the people are completely fooled again, but since it is a "non-wealth" maintaining an imbalance with wealth, it will break down again in a relatively shorter time. All this is based on there being separate national currencies with their creative individual central banks being members of one international monetary bank, holder of the gold, and creator and issuer of S.D.R.'s. We must now agree that this system cannot sustain itself, as evidenced by history, unless there is a wealth commodity that can be used as a final settlement against international "trade deficits."

We must also agree that if there were no irredeemable currency a debt could not develop, because the wealth commodity used as the medium of exchange would be the final settlement.

There have been rumors of a common unit of currency, no national currencies, only one international currency and one central bank system for the world. For that time to come into being, all thought of individual nationality would have to be surrendered, and all Countries agree to place in the hands of this new one world central bank the complete power to create, issue, and control the entire money volume of the world. It is a staggering thought, and it appears absolutely impossible that any such total cooperation between all nations could ever exist; but assume for a moment that this miracle was accomplished.

This one entity, the world central bank, would have the exclusive right to manufacture and circulate the only legal tender medium of exchange. Bills of any denomination, costing only a very minimal amount of wealth to produce per unit, as little as 1/200th of their purchasing power would be in existence. A farmer on one side of a road growing potatoes could not use potatoes ' as a medium of exchange, it would be illegal. The potato farmer must first sell potatoes to the banker to get money so he can buy some onions from the

farmer across the road. The mechanic in the local garage would have to earn "money" before he could buy a meal. For the public to get the banker's created money into circulation, they have to give the banker wealth worth many times what the bankers laid out to print the money or create deposit credits. The process involves the expropriation of wealth from the producers of wealth to the creators of money (non-wealth). Once the process has been primed, people appear to be getting money from each other, and are not aware of the wealth extraction process being conducted by the creator of the money. As the money volume accumulates so does title to the world accumulate in the hands of the bankers. Nothing has changed, the inflation resulting from the imbalance of the people's production of wealth vs. the banker's creation of non-wealth media causes the inevitable loss of confidence in the money. The people reduced to working only f6r the purpose of turning everything over to the bankers for mere subsistence, resort to the underground free market and barter.

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The bankers can have the government issue death penalties for "black market" bartering; drowning was the punishment for this offense 2000 years before Christ. Unless the people have confidence in the money, the central bank must collapse. Its only source of power to exist and control is dependent on the people being fooled completely into using the legal tender they create. Only people produce wealth by labor applied to natural resources. If they choose to make their exchanges by means of barter they will be free, they will control their elected officials whose function is enforcement of the laws of private property, and the ownership of wealth produced.

That the system just described is destined to fail is evidenced by the fact that in 1968 it failed, and the free market in gold was established. It is fact that there are three gold markets: the central banks dealing with each other, the so-called free market, and the "free" free market where the real "price" of gold is what the public must pay to buy gold in legal coin form. This amounts to a known, if not sanctioned, "black market." At this time the public is losing confidence in the dollar and the economy and are putting their dollars into savings. Soon the shrinkage rate on the dollar will become common knowledge "acknowledged" by the public, and they will pull their money out of savings and buy, buy, buy anything of material value. That will precipitate a runaway falling dollar parity and it will be short lived indeed. afterward will come the depression and eventually a return to a wealth medium of exchange.

The collapse of the people’s confidence in the created money, which was forced upon them by the legal tender laws, will have a bad effect upon the government. It would be to the advantage of those who are really in charge to avert a total loss of confidence in their created money, to declare bankruptcy, initiate a deflation, returning so much wealth on the dollar and issuing a new redeemable one, if only to continue their power over us. It is inevitable, we will see a tremendous depression and a return to gold and silver as wealth mediums of exchange-it has always gone that way.

The original deposits of bearer certificates (wealth claims) made by the member banks to the Fed when they joined the system are long gone and the entire system is operating in imaginary dollars. The paper bills in use today do not in any way promise the bearer redemption in official dollars 15 5 / 21 grains .900 fine gold, but the fact that the reference is kept is proof that without a reference to some commodity, the dollar would not have any value even in the human mind. All dollars today are units of imaginary debt born on the ledger pages of the Fed basking system as mediums of exchange. The left-over belief that they are exchangeable for gold has been removed by the August 15, 197 1" declaration of nonredeemability for any holder. The belief of their worth internationally can no longer be supported in any way.

For an imaginary unit of imaginary debt to remain in use as a medium of exchange internationally, it is not enough that the belief of value is there. The medium of exchange can remain a medium of exchange only as long as it is used as one. Since they are 100% inflation and inflation causes higher "prices" they are eventually beyond useful use anywhere except in the country of c6gin by virtue of legal tender law.

For a monetary unit to be a medium of exchange, one must be able to purchase with it. Its value can be believed to be anything as stated by its issuer, but no matter what value is claimed for it, if it cannot be used to purchase anything its true worthlessness will be exposed. The dollar can be related to gold at any specified rate, but when that specification is not demonstrable in the market it will eventually lose any semblance of belief. Any currency could be declared nonredeemable as was the dollar on August 15, 197 1, and if It were still able to purchase goods of comparable value (to what it did before), it would not shake anyone's belief too such. The difference between the bearer certificates and a token representing imaginary debt is just not understood.

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The people of the world do not know, but their lack of knowledge will not affect the outcome- When the Imaginary dollar tokens are refused as mediums of exchange for goods all over the world, the people will know they are worthless without having to know the scientific, basic reason why.

The imaginary dollar whose representing tokens are no longer redeemable for gold to foreign holders are finding more and more resistance to their acceptance everywhere. An attempt is being made to substitute another thin air creation for it-the S.D.R.

Again the world will be asked to believe and the belief alone will be enough. The S.D.R. source is the International Monetary Fund (I.M.F.). The I.M.F. is an international "federal reserve." The I.M.F. has 120 members who contribute a quota of their currency and gold to join and then, having joined, borrow quantities of any other country's currency needed to settle international balance of trade deficits.

The member banks of the I.M.F. are the member country's central banks and they have their quota deposited with the I.M.F. (2596 must be in metal gold) and they can draw the various member's fiat currency -creations from the I.M.F. when needed. Special rules and regulations govern how much may be borrowed and how it may be paid back. The borrowing capacity of any member central bank is limited to multiple of its individual quota. Just as in the federal reserve system here, the "foreign" currencies originally deposited with the I.M.F. by its membership, which is comparable to the original deposits made by the member banks of our Fed in becoming members, has been exhausted. The United States

and the United Kingdom, two of the greatest "fiat" producers in the world, have exhausted the capacity of the I.M.F. to furnish them with other country's "stronger" fiat currencies. The situation is that the United States has exported its inflation to such a degree that the other members are flooded with United States fiat dollars. We have used all the foreign currencies the I.M.F. could lend us under existing rules and regulations and the only solution now is to somehow relieve the dollar glut by some sort of redemption.

The people of the world were fooled before by being induced to believe 35 dollars were worth one ounce of gold, then after absorbing that one, the wording was transposed and the people were indoctrinated to believe that one ounce of gold was worth 35 dollars. The dollar was given the preeminence of "wealth" and gold reduced to a monetary metal whose only value lay in its being able to be exchanged for dollars. It worked for many years and perhaps the repetition of that procedure will solve the present problem. That is what they are thinking. The plan is to have the I.M.F. redeem all the foreign held dollars and pay with S.D.R.'s.

The imaginary S.D.R. is called paper gold but the letters S.D.R. are the abbreviation of the words Special Drawing Rights. The rules say a member of the I.M.F. may draw up to a certain multiple of its quota deposited and 2596 of its quota must be in gold which until now has always meant "metal" gold. Any member can furnish the portion of its quota that can be its own currency-that is easy, it is only paper and ink in some form, they create the . reserves" themselves out of thin air-no problem there. It is the 25% in gold requirement that is the problem-they are all 'very reluctant to part with metal gold. Since all members no longer want to relinquish gold metal, some other solution had to be conjured up and it was paper gold, the S.D.R.

The I.M.F. would simply make-believe it had received a large portion of gold from its membership, enter the "imaginary" gold on its books as a debit, and credit each of its member central banks with a portion of it according to their needs. The United States and the United Kingdom being the most needy would get most of this imaginary gold deposit

credit. Then counting the imaginary gold -deposit-credit as a gold component of their quota and adding some "home grown" fiat, their "quota'" is upped and the drawing capacity extended, they can draw more foreign currencies. The imaginary gold created gave them special drawing rights, (S.D.R.'s) (paper gold).

It is easy to understand now why special drawing rights are called paper gold. Paper gold is imaginary gold which exists only in the mind, made plausible by a written notation ink.

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on paper at the I.M.F.-no different at all from the imaginary dollar debts created by the federal reserve and used throughout the world as mediums of exchange.

The agreement amongst the nations to accept S.D.R.'s as a settlement of debt only from balance-of-trade. deficit nations also includes that 35 S.D.R.'s will have the value of one ounce of gold (metal). That is extremely significant-the imaginary gold is equal to the metal gold in exactly the same proportion the imaginary dollar used to be. The United States has already devalued the imaginary dollar to where 38 imaginary dollars equal 35 imaginary S.D.R. gold units. As soon as they can indoctrinate the minds of the peoples of the world to believe that one ounce of metal gold is equal to 35 S. D. R.' s (paper gold) we shall be off and running again with S.D.R.'s having the preeminence of "wealth" and metal gold's only value being that 35 S.D.R.'s can be bought with one ounce of it! The rule that the imaginary S.D.R. credits can be purchased with metal gold, but that metal gold cannot be purchased with S.D.R.'s is also significant. The I.M.F. knows the difference between imaginary gold and metal gold but they will endeavor to keep the people from thinking that there is any difference. The S.D.R. supposedly can only be used to settle the debts of nations with balance of trade deficits to "surplus" nations. They were created to "help" the nations with chronic deficits in their balance of payments. Deficits are formed when more of a nation's fiat currency is used to make import purchases than is received in payment for exports. (economist's reasoning)

If a nation were to use its fiat currency to purchase all the gold obtainable from its neighbors and settle the resulting deficits in the balance of trade with S.D.R.'s, then it seems quite clear that paper gold was exchanged for metal gold without violating the rules of the make-believe game.

There isn't any difference between a make-believe dollar and a make-believe S.D.R.-they are both imaginary but the S.D.R. is supposed to take over for the dollar because the dollar is failing to keep the world fooled as to its value in making purchases. The S.D.R., not being any different from the dollar, will fail just as miserably as the dollar and for the same reasons.

An effort may be made to make the S.D.R. more believable than the imaginary dollar by the use of logical -sounding, fabricated, confidence -game- type justifications. It may be said that true value comes from scarcity and the amount of S.D.R.'s created will be limited, which will assure stability of value over a long period. By keeping the quantity fixed at some point, the S.D.R. may be said to be a perfect reserve unit with which to settle balance of trade deficits between nations. It may be used as the perfect reference for the setting of currency parities between member countries of the I.M.F. It may be further attempted to lower the value of metal gold in relation to S.D.R.'s until no amount of metal gold would purchase any S.D.R.'s. Then indeed, would the S.D.R. be the sole official measure of wealth" in the world.

Throughout history, the fact has remained that people still have to eat, and though it has been said that you cannot eat gold, it was vividly brought home to the people of the big cities during the last depression that you do not eat without it. Food produced by labor is wealth, real wealth-shoes, clothing, shelter, and all other necessities are wealth, real wealth. All imaginary mediums of exchange expropriate wealth and when they expropriate enough of it, the producers of wealth refuse to use the imaginary media and return to bartering; you cannot fool all of the people all of the time. For any medium of exchange to function at all, it must be able to be used to purchase the people's produced wealth. No amount of referencing any imaginary unit to gold or to itself can make that value valid unless it will stand the test of time in the market place.

Although there isn't any difference between dollars and S.D.R.'s with reference to their origin or value (they are both psychologically created and of zero worth), there is profound difference in the distributions of the wealth they expropriate. It is this difference that will make the S.D.R.'s downfall extremely faster than that of the dollar.

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Because of the continued ignorance of the people, the monetary unit currencies of the world, which are all representations of imaginary debt, exchange for wealth, not for the metal gold in the vaults of the expropriators, but for food, clothing, etc., of the people themselves. The people honor the receipt of these imaginary units and exchange them amongst themselves and are in effect victims of subconscious robbery thereby. It is thoroughly understandable that since the people give up their wealth to accept an imaginary debt representation, they would expect to get wealth from someone else when they tender the imaginary debt representation.

The significant thing we should see is that although each currency created by its own central bank expropriates wealth to its creator, from its own users within the sphere of influence of that particular central bank,-the dollar, being the "reserve " currency, was able to rob all peoples of the world directly and their respective central banks indirectly, (by their requirement to support the dollar). The dollar as a nonredeemable imaginary debt unit is created by the Fed, its only source, and expropriates all wealth it exchanges for, and in the name of the Fed. This one-sided condition could not be allowed to continue-whoever has the privilege of creating the reserve currency gets all the proceeds of its distribution.

If we switch now to S.D.R.'s created by the I.M.F., and some 120 central banks make up the membership of the I.M.F., no one single central bank (Fed) will reap all the proceeds. The effort has already been announced that the S.D.R.'s when created will be apportioned to the membership according to need. The need will be determined by the relative volume of deficits in the balance of payments a nation has. Understand then that any member nation's central bank can create its currency, purchase all it wants from any fellow members in the world and when its overextension catches up with it, can. get S.D.R.'s from the I.M.F. with which to settle its debts.

Where "money" is accepted as a medium of exchange wealth and freedom are forfeited.

Jenkins economic truth no. 19

If we understand that the Fed through the creation of imaginary debt dollars and the people's acceptance of their "money" controls the people and their means of production through ownership purchased with the "money," we should be able to understand that the I.M.F. is designed to be the Fed of the world and it is planned for it to control the peoples of the world and their means of production through the medium of the S.D.R. which they create. The hierarchy of the I.M.F. is moving toward the take-over of the world just as the heirarchy of the Fed took over control of the United States. Just as in the United States where the great mass of people have the popular vote and will not vote themselves off the even to regain their freedom, so it is Twit the member nations of the I.M.F. If they can all be kept busy trying to get all they can in the way of S.D.R. purchasing power free (through the medium of using their own "creation" to create debt and S.D.R.'s to settle it) they will not see the trap.

"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. Jenkins economic truth no. 20

Imaginary monetary units may be created by any central bank but wealth is still produced by people. To get the wealth from the people in ever increasing volume It Is necessary to create money in ever increasing volume and natural law lowers Its Psychological value as its psychological volume increases. People only see the lowering of its psychological value as a rise in "prices" and the rise in "prices" result in higher costs which lowers the return on production. As the people gain less from production, sold for money, the psychological nature of money becomes evident-the people see the value of all things going up in relation to money and even though they may never understand fully why it is becoming worthless, they are aware that it is becoming worthless. Every effort will be made to purge themselves of money and return to exchanging wealth media.

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profitable. Monetary units of currency are commonly referred to as money. Money can be counterfeited. All money is counterfeit, some legal, some Illegal.

Wealth cannot be counterfeited. Wealth and money are completely different. Wealth is a material substance. Money Is only an "Idea" in the mind of man. A monetary unit, in the form of a paper bill, is a substance, therefore wealth in small quantity (a token). A monetary unit, In the form of a metal disk is a substance, therefore wealth in a small quantity (a token).

" Money" is the "differential" between the "free market value" of the wealth "in" a token, and the "monetary unit" it is, this is called seigniorage. A monetary unit such as a -c1ollar" is an expression of quantity in terminology designed to represent this differential. The "dollar" is the monetary unit of the United States. The "dollar" is the monetary expression of quantity to facilitate cross-reference between wealth and money.

To create the link to wealth a declaration is made. The dollar is worth I/ 35th of an ounce of gold. The "dollar" doesn't exist as material substance at all, It is just an expression, Gold is wealth and recognizable as such, anywhere in the world. By turning the "declaration" end for end, an interesting effect is obtained. 1 / 35th of an ounce of gold is worth one "dollar"! We now have monetized gold. Gold now has a value in "dollar" terminology.

Wealth and money have integrated in the mind of man. They are interchangeable in the market place. Money can be created in the mind by those with license: but wealth must be produced with labor.

Being exchangeable for wealth and being redeemable for wealth are two distinctly different conditions. A one-dollar "silver certificate" was redeemable and exchangeable at the same time. Only the creator of a bill can "realistically" redeem it (regain possession), but anyone can exchange it. This difference is of preeminent importance to the understanding of the basis for fraud in monetary systems.

A monetary system with 100% redeemable currency and precious metal coinage could theoretically work. It would have to be monitored constantly to prevent illegal counterfeiting and any over issuance of currency. With wealth in reserve, for every "token" outstanding, inflation could not occur. Paper currency would be accepted and, in fact, preferred to the precious metal coinage. Money, although existing in the currency, would not be detrimental because of the token redeemability. Suspending redemption, in "whole" or in "part," immediately results in fraud. "Unbacked tokens" entering the market place, instantly extract that amount of wealth for which they are exchanged. The "wealth" extracted becomes the "property" of the money creator and the "evidence" of fraud. If the wealth is held in "reserve" for the redemption of the token it is not fraud. If the wealth is not held in "reserve" for the redemption of the token it is fraud. The "receiver" of an irredeemable currency is embezzled of his wealth when he accepts the tokens. He perpetrates the embezzlement when he "passes" the currency "on" for someone else's wealth. Unless 100% redemption is obtainable "on demand" for all tokens created, a monetary system is fraud. Unless -a monetary system has only redeemable currency, there isn't any control on the amount of legal embezzlement that can be committed. Token redemption for wealth "on demand" is the only discipline that can make a monetary system function honestly. This is true whether the monetary unit is "dollar," "D-Mark," "Swiss francs," "Belgian francs," "S.D.R.'s" or anything else to come in the future.

The Bretton Woods agreement created a "two-stage" separation between some currencies and gold. Trading for dollars directly is only one stage removed from gold-dollars were redeemable in gold. For the I.M.F. members their currencies were linked to gold only .. through" the dollar. Trading for D-Marks is "two" stages removed from gold, the DMarks' value in dollars is required to find its value in gold. The system has fallen apart because of abuses to the system, possible because of the loose linkage. The dollar was inflated (produced in quantities 200 times the official ratio between monetary units and Ounces of gold). The "200 times" factor was only possible because the redemption was reduced and then eventually suspended.

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The dollar remained a monetary unit of exchange denominated In gold but not redeemable in gold. The failure of the dollar has created world financial crisis. Replacing it with another duplicate category unit will not solve the problem Replacing he "dollar" with "S.D.R.s" denominated in gold but not redeemable in gold simply does not alter the situation. The world is now in financial chaos because of the dollar embezzlements, continuing the felony with S.D.R.s will not repay the victims, but only create more.

Using S.D.R.s as an international reserve asset currency is ridiculous. S.D.R.s are not even tokens, they are only paper and ink bookkeeping entries." An international exchange asset to be a "settlement" of debt has to be wealth.

With 120 nations creating currency, all tied to a common "asset" (S.D.R.s) and S.D.R.s not redeemable in anything, no one ever has to pay. With only S.D.R. bookkeeping entries to keep track of who owes who, the "race" would be on to see who could steal the most (obtain the highest "debt balance" on the books). The really significant thing is that the I.M.F. members' "central banks" would be stealing from the people as a whole; in collusion together to create just one monstrous "debt ledger" of "monetary unit records'' that could never be settled." Any nation could create its currency, buy what it wanted from any other nation, and have the payment deferred forever, as a "debt entry" in the S.D.R. ledger. Every nation that was a member of the "group" could do the same. Keeping the people's (wealth producer's) -faith" in the monetary unit would be all that is required to keep them giving up "their" wealth, but with an undisciplined creation of all currencies by their central banks, hyper currency debasement would be present. Hyper currency debasement with resulting falling currency parities would make precious metal coinage impractical. Central banks would have to use the most inexpensive materials for the fabrication of paper and ink bills and base metal tokens. Silver and gold coins would have to be withdrawn from circulation.

Coinage, anywhere in the world, with "any" wealth value would keep rising in relation to paper and ink bills. Currencies changing value rapidly in relation to commodities would not have compatibility with other relatively stable currencies (less inflated).

The fiat currency of one nation would seek out any other nation's redeemable currency with a higher "free market wealth value," and no "exchange controls," and any nation with a redeemable currency and no exchange controls would be flooded with flat currency seeking exchange. Arbitrage would be practiced on a grand scale, even where only a small profit could be obtained. Any nation that tried to maintain a gold redeemable currency, would also have to have exchange controls.

The stable currency "nation" would only accept fiat currency when "It" had a bill to pay in that currency. "It" would only accept "that" fiat currency in exchange for some product sold. Every effort would be made to prevent an accumulation of "surplus" fiat currency. This form of control affects trading directly and imposes natural restrictions every bit as limiting as direct barter. No one in a stable currency nation would want to hold a fiat currency for any period of time unless temporarily blinded by high interest temptation. Fiat currency would be held only if it had been obtained at a large discount.

Eventually a common commodity would become mutually acceptable in trade and more efficient than money. A wealth media system, using a mutually acceptable common commodity, would prove far superior to the degenerated fiat monetary system. "World trade'' would assure that if any country maintained a gold standard, all countries would eventually have to. If all countries cooperated to go off the gold standard entirely thew-there could not be any "wealth mediums of exchange" (silver and gold coins etc.) in circulation at all-because they would compete with the fiat, be subject to Gresham's Law, and disappear.

Money volume, under total world fiat, would increase so rapidly in relation to production-the differential between wealth and money would become compounded-and the world would become hyper currency debased, which would drive the people (wealth producers) back to barter. With legal tender "enforced" and "wealth mediums of exchange" "outlawed" -people would resort to the "underground free market" (black market) for their trading.

With great multitudes of people ignoring regulations" to trade in the black market big industry would cease to exist, and industrial progress would grind to a halt. People will not work for money that changes value so rapidly, "price" tags would have to be changed twice daily. Business itself could not exist under those conditions. Deflation would have to take place, and a new redeemable currency installed.

The reason for the dollar's longevity as a monetary unit, denominated in gold, and not redeemable In gold is: The overwhelming majority of the people cannot see the significance between mere exchange and exchange with eventual, redemption. Those who do comprehend, cannot readily convince others that the dollar is a "record of debt," and not a "bearer certificate" "claim on wealth" in reserve.

People can only "see" that the dollar will still buy gold. So what! The banks will not give gold for dollars. The significance is: That the people can only get gold from each other for dollars, but the issuer of the dollars will not give gold for their own creation. Interesting that: Dollars can be had for wealth at the bank, but the bank will not give wealth for dollars. That is the case with S.D.R.'s also, they can be "had" for gold, but gold cannot be had for them.

A good business man knows that a buyer will not attach a greater value to an item than the seller does in "pricing" the item, yet - the people will give up wealth to get dollars but the creator of dollars will not redeem "them" for wealth, or anything except other tokens.

Dollars are In reality 'Just expressions of quantity recorded on paper with ink in banking and personal ledgers. They are disbursed and transmitted from place to place by means of ink marks on pieces of paper called checks and drafts. When people desire to hold "dollars" for cash transactions in the market, they "cash" checks. What is received are "tokens" in the form of bills and coins denominated in "dollars." These coins and bills are not "dollars" themselves-" dollars" do not exist. Tokens are labeled "dollars" and are marked "legal tender. "legal tender means lawful money (Webster). "Lawful money" has never been defined by the Congress of the United States. Millions of people throughout the world believe dollars exist, and have been using them for years. This belief, that something is what it is not, existing for generations is extremely difficult to correct. Everyone from a very early age has believed that money is wealth is dollars. Now it is necessary to prove to them that dollars and money do not materially exist and in no way resemble wealth. Every cell in their brains rebels against the thought that dollars are not wealth.

Dollars only appear to have worth because they are exchangeable for wealth among people because people believe they are wealth. If the people ever stop believing in dollars, the dollars will cease to be exchangeable, and a century-old hoax will come to an end.

Over 2,000 billion dollars "exist" as entries on the books of account to date. A debt claim against the production of generations of people as yet unborn. This debt can never be paid and with only 10 billion dollars in gold (to cover 2,000 billion), a settlement now would only net ½ of 1% or ½ cents on each dollar. Yet the people still believe, and still accept worthless scraps of paper with ink markings as fair exchange for their wealth. If these scraps of paper bore ink markings promising redemption of known quantity of known commodity they would be honest contractual notes but as irredeemable notes, officially acknowledged to be "good" only as long as people believed they were-they are worthless 11 records of imaginary debt" that can never be paid. How long it will take the people to be able to see this hoax is indeterminable, but the end result is inevitable, and the longer it takes, the more messy it will be.

Those who see, and would like to expose the hoax are outnumbered one million to one by those who still believe. They are forced to: Work for, accept and distribute these worthless "dollars" because the "belief of the majority" forces them to. The people must be " united" and act, to bring this hoax to a halt. Otherwise they all "lose," They must see that they have already "lost," they can not get back the billions already expropriated. All they can do is stop throwing more wealth down an already choked rat hole.

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Some of those who are able to see the situation fairly clearly are *reluctant to "think" about the chaos we face when the day of total awakening arrives. They can only hope that the powers in control will have mercy, and stop this before that day arrives.

Although there has never been a precedent for this situation today, we can draw some conclusions from past history and common sense. There could be a gradual swing from currency to barter by the people, gaining momentum as it grew. Authority would legislate against barter, but they also legislated against gambling. It is impossible to predict today what the people will do tomorrow. In an age of space travel and integrated circuitry, it seems impossible for this fraud to continue. More and more people every day are seeing the situation more clearly. At some point in time it is possible for panic to break out. If a panic should occur, who will the people hold responsible? Traditionally it is government that is blamed.

The federal reserve system is the real perpetrator of this thievery. We have been told again and again that the Fed is an arm of the government, and the public believes that! It would be natural for the people to condemn government for a money panic.

In the past, the money panics were engineered to bring on a liquidity crisis. The liquidity crisis was needed to condition people's minds to believe that the gold standard was the cause of the crisis "that there wasn't enough gold to back enough money to conduct business progressively." The "answer" proposed by government then was that we needed a managed currency. A currency that could be expanded and contracted to fit the economic needs of the period. Well they had "their" way and "here" we are!

What will the explanation be this time?

Certainly they cannot say: "The press is broken.

They cannot say: "There isn't enough paper and ink."

How long will the people remain fooled into believing the Japanese are just "too good" in business for us to compete with. How will the government explain the "foreign aid program when the people are aware of "what it was we gave away?" What will they offer now to take the place of a managed currency? Will they say it was the "color" that did it, that awful green?" What we really need are "red ones," and then the system will work efficiently-or will they blame it on the foreigners for not sharing their surpluses with us, and what we really need is tighter controls. The people may be surviving by means of the black market (underground free market) by then, and perhaps be beyond being fooled any longer.

"Price" controls create shortages, and scarce products find their way into the underground free market. With the people already using wealth as a medium of exchange (swaps in the free market), who will honor paper money? How would the government pay welfare if the producers of goods would not accept paper money? How could government pay its bills if the money was refused by merchants, soldiers, sailors, and marines? How could local government pay its policemen and firemen? Would government confiscate all production and issue ration books? If they did that it would expose the totalitarian nature of government and might precipitate a rebellion.

It seems the only course open to government is to return to a 100% redeemable currency via deflation and exchange, but if the people are really aware, by then, they will insist on a return to free gold and free silver, and no "standards." A return to gold and silver coins .999 fine of specified weights, and a completely free market, free enterprise, and free coinage.

How the Fed got the public's gold NNNNNNNNNNNNNNNNNNNNNNNNNNNN159

When only wealth mediums of exchange, and certificates redeemable in wealth were accepted, additional gold claim certificates issued by the banks were redeemed by those same banks for specie so as to not expose the counterfeit nature of the additional gold claims. The fact that any certificate at any time could be tendered to the banks for redemption left the banks with the absolute necessity of keeping their "false gold certificate" creation to within the bounds that would not trigger Gresham's Law.

People's natural desire to save kept about 9/10 ths of the wealth coinage and wealth claim certificates funded in various ways, so that any multiple creation of "false certificates" up to ten times, the actual gold on hand, was not likely to cause a run on the bank. The banks could allow an accumulation of "dollars of record," (represented by their certificates) up to about 90% of the total, any greater than that and the risks were too great. The maximum amount of inflation was never allowed to exceed 900%.

As the natural production of wealth increased the amount of false certificates could also increase in volume but never exceed the 900% of the true wealth available to specie redemption’s. The 900% occasionally would allow some savers to enter the economy with more purchasing power at one time than another and on these occasions there would be an 11 inflationary effect" (a drop in the dollar parity) due to the increase in the "invisible imaginary demand" over the real supply-demand of the natural wealth available. The significant thing was that with a redeemable currency the volume of currency is tied to the amount of natural wealth already produced for which the currency can be redeemed.

The amount of additional expropriation of wealth (through "Interest") that could be perpetrated was limited to a proportional relationship with the increase in natural wealth production. The relationship of the proportion of wealth expropriation being tied to the increase in natural wealth is what kept the "inflationary effect" (falling "dollar parity") in such a gradual drop from 1913 to 1933.

The expropriation of wealth had been continuous and the people's gold had all suffered a title change (through "Interest' collections), it all belonged to the Fed banking system (the false certificate creators) now, and the "inflationary effect" had "raised the price level" of labor to the point where the cost of mining gold was not supported by its officially regulated parity with the "dollar" certificates.

It is said that basically all government rests on the consent of the governed; in reality, government rests on the consent-of the governed only if the governed have "property rights." Government is force, hired by the people to protect them from each other, from outside forces, and even from bad government itself.

James Madison said, "The prime function of government is the protection of the different and unequal faculties of man for acquiring Property."

Abe Lincoln said, "There should be no war upon property or the owners of property. Property is the fruit of labor; property is desirable; is a positive good in the world. That some should be rich shows that others may become rich, and hence, is just encouragement to industry and enterprises."

Jefferson said, a wise and frugal government which shall restrain men from injuring one another, which shall leave them otherwise free to regulate their own pursuits of industry and improvement, and shall not take from the mouth of labor the bread it has earned. This is the sum of good government. . . .

"Money" The Greatest Hoax On EarthNNNNNNNNNNNNNNNNNNNNNNNNNNNN160

Daniel Webster said, "No other rights are safe where property is not safe"!

Merrill Jenkins says, "The right of distribution over one's own wealth (property) is the essence of 'freedom'!

The real facts are that people produce wealth (property) by employing their labor (human exertion) to bring forth the earth's resources as useful products in the market place. Wealth is production produced by human exertion and having exchange value. Government's do not produce wealth and must rely on the people who create wealth, (from resources by labor) to support the operations of government. Government must obtain its wealth from the people before it can distribute that wealth in payment for the services it contracts for.

It is exactly 'how" government acquires the wealth of the people that determines whether or not we have good government. If government is good, responsive to the will of the people, the people pay for the services of government at its cost, and do so willingly and sincerely.

The constitution stipulates that the cost of government is to be paid by the citizens on an equal basis by the numbers, everyone paying his uniform, equal share. If this law were maintained, it could truthfully be said that "government rests on the consent of the governed.

The government of the United States today does not govern with the consent of the governed. Today in the United States the people and their "government" are influenced by an invisible force that "rules" like the "rulers" of old. The exact method by which this is accomplished has already been explained (money-credit-inflation). The conclusions are easy to explain but difficult to understand.

Government cannot "rule" with wealth, because government does not produce wealth. People can "rule" with wealth, because people do produce wealth. But people can only 11 rule" with wealth if "they" retain the ownership and right of distribution of their wealth. If people provide the wealth to government willingly and sincerely, the government is "controlled" by the people, because if government did not follow the will of the people they would withdraw their support. If government is to "rule" the people it must acquire the people's wealth by some other means. If government takes the people's wealth by force it runs the risk of revolt. Government must find some hidden means to acquire the people's wealth without their becoming aware. If government can acquire the wealth of its people by invisible means then it can do as it pleases and the people's willing and sincere support will not be required. This is exactly how we have come to be a nation of citizens ruled by a bureaucratic government, the control of which no longer rests in the hands of the people. We lost control of our government when we lost the right of distribution over our own earned wealth.

John Adams, in a letter to Thomas Jefferson, said, "All the perplexities, confusions and distresses in America arise not from defects in the constitution or confederation, not from want of honor or virtue, as much as from downright ignorance of the nature of coin, credit and circulation"!

The constitution stipulated that Congress could coin "money" and regulate the value thereof; but the common commodity mediums of exchange in use were gold and silver coins (wealth) and they were called "'money." It did not matter that wealth was called

money" because as long as it was "wealth" that was used, the wealth expropriation reaction of using money, was not present.

The fact is the use of "money" in those days meant the use of gold and silver coin, and the constitution stipulation then meant that Congress could coin, gold and silver and regulate the quantity of the precious metal used in. the various coin sizes.

Nowhere in the constitution is permission granted to the Treasury to create paper, currency or Treasury bonds, yet this is the means by which our wealth has been removed from our control without our consent or knowledge. The system is complex, fantastic and unbelievable but it is true. (continue)