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Consumer ''A" buys goods from producer "C" receives goods, gives up token (97 to 99"/o imaginary demand)-result: "A" has used inflation as a medium of exchange.
Producer "C" sells goods to consumer "B" giving up goods and receiving token (97 to 99% imaginary demand)-result: "C'' has extended credit-accepted inflation.
Consumer "C" buys goods from producer "A", receives goods, gives up token (97 to 99% imaginary demand)-result: "C" has used inflation as a medium of exchange.
Tokens spent into circulation take out production, which is replaced by credit money inflation.
The borrower "B" takes full value in production and contributes a token (paper bill or metal disk with a value of less than 3% of goods purchased), (he pledged full value to the banker who gave up nothing.)
Production flows out of the economy as credit- money- inflation flows in: first a trickle, then a flood, as the wealth media in circulation are extracted by the inflation.
To circumvent discovery of the loss, the wealth media are declared unlawful.
The original promise of redemption removed, token production can be speeded up and the expropriation of wealth increased.
The producers of wealth are left with only what they use or consume.
To circumvent awareness, the producers are allowed to create credit- money - inflation also.
Producers are issued credit cards (the new money - inflation) and allowed to borrow into the future.
All title to wealth gravitates to the credit distributors as time passes.
Human desire is not limited, and the use of credit cards cannot be controlled.
All purchases made with credit cards are inflation and the inflation accelerates.
Token and credit distributors can start the system but it can only be stopped for short intervals.
Any prolonged stoppage would reduce the volume of exchanges and trigger deflation.
Token and credit distributors try to control the inflation by manipulation of the tokens (metal disks and paper bills), but the buying impulses of people and their credit creation (via use of credit cards) cannot be controlled.
Unable to be stopped, except for brief intervals, inflation roars onward gathering size and speed like a hurricane.
Inflation does not respect borders, it enters into other nations' economies becoming worldwide in scope.
Inflation from without added to inflation within accelerates the domestic inflation in the nation invaded.
Inflation becomes runaway falling currency parity and feeding on itself, explodes onward.
''Prices are changed so rapidly that people will no longer extend credit or put off purchasing.
Every producer demands goods for goods and we are back to bartering.
Bartering does not involve money -credit -inflation to facilitate exchanges.
Bartering with a common commodity as a wealth medium of exchange can handle any volume.
With money credit inflation not in use, the credit distributors cannot purchase production and they have to work to eat, as natural law dictates, but that thought is revolting to them.
They must prevent people from becoming aware of the true nature of money-credit inflation.
The money creators will declare a deflation and return to promises of redemption in wealth.
All the production that was taken will be paid for by the holders of money, when it is exchanged, at a loss, for the new promises.

"Money" The Greatest Hoax On Earthnnnn102

The definitely imaginary nature of " money" having been established, we can try to understand why the banking elite allows it to continue toward inevitable collapse without making any visible effort to halt it. Perhaps they are not as certain as I that the collapse is inevitable, but if that is so, why has all promise of payment to the bearer on demand been removed from all our paper token currency in circulation?

Possibly, they have accepted the idea that in reality there isn't any natural economic law that can cause the inevitable end to this charade. Perhaps they think it requires only that people believe in their imaginary "money" to make it work forever. Do they think that if the idea 'Its failing never occurs to people that it can go on forever? That may be what the banking elite believe because that is the conclusion one would reach if their actions were carefully observed.

Inflation is the money itself, ever increasing in volume, but they always refer to the inflationary effect" as the "Inflation" and attempt to control the "Inflationary effect. They have a heyday explaining that, "inflation" in foreign lands, is greater than here in the United States when in reality it is not true. Realism abroad, less effort to hide the "inflationary effect," enables the elite here to say "they" have higher inflation.

The "Inflationary effect" is the "price reaction" taking place when greater and greater amounts of "money" as imaginary demand enter the market and bid up the commodity prices." It is this specific reaction of "prices rising" that the elite invariably refer to as the inflation" and make every effort to control. In this area some Influencing is possible. Inflation cannot be controlled because inflation is the "money" (credit) itself, and because it is psychologically created, its creation is sponsored by all make-believers.

When people believe that the economy is thriving, and going to get even better, they increase their activity in the stock market and when Dow Jones rises and stock prices are higher, their loan values are higher and the latent "money volume" is increased thereby with the people who caused it, totally unaware of what they had done.

When "money" is all "make-believe" all - make-believers" make the "dollars" created a matter of record, and until then they are not officially created. It is in this area that the banking elite have made their big effort to control the inflationary effect. All make-believers can create latent money volume, but only the bankers can dispense it and demand its eventual repayment plus interest.

If we liken this vast banking system's ability to make huge volumes of dollars generated in the minds of humans to an atomic pile undergoing a chain reaction with the "dollars" as neutrons, we can see the control method more clearly. The more "dollars" created and released as loans to borrowers, the more "dollars" must be created to facilitate interest: "dollars" generated by "dollars" released (neutrons released by neutrons). It is the same kind of reaction and just as dangerous, if not controlled. In an atomic pile undergoing a chain reaction, the "mass" can become critical if not controlled. The control means in an atomic pile are carbon rods that are advanced into or withdrawn from the active chamber. Introducing the rods into the active chamber has the effect of slowing down the chain reaction, since the rods absorb neutrons as they are released and prevent their hitting other atoms and releasing other neutrons. Withdrawing the rods prevents their absorbing neutrons released and those released and unabsorbed fly into other atoms releasing other neutrons and the chain reaction is allowed to accelerate.

In the banking system the "carbon rods" are the Treasury bonds sold into and repurchased from the banking system by the federal open market committee (F.O.M.C.). Treasury bonds sold to the banking system extract "dollars" from the banking system into the F.M.O.C., an agency of the federal reserve system, thereby deflating the banking system's pool of lendable "dollars." When the Treasury bonds are purchased from the banking system by the F.O.M.C., the dollars from the F.O.M.C. again enter the pool of lendable "dollars" and so it can be seen that the action of the Treasury bonds is exactly the same as the carbon rods in the control of an atomic pile.

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"Dollars" extracted from the banking system by the introduction of Treasury bonds cannot be used in the active market place, and therefore selling bonds to the banking system lowers the amount of "dollars" entering the active market place to raise "prices." When the deflationary effect has done its Job and the situation looks as though it may swing too much and there may be a liquidity problem or crisis, the F.O.M.C. buys bonds from the banking system. The dollars coming in, as the bonds leave, swell the pool of lendable "dollars" and the additional dollars enter the active market place as units of imaginary demand having their effect on the "prices" and employment level.

The "inflationary effect" is evidenced by the rising price level'' (falling dollar parity) of commodities and the relative balance of imaginary demand vs. real supply and demand (wealth) in the market place which is called "Inflation" by the banking elite and has been their main influential effort. At best, their main effort has been a coarse one, and does not constitute fine tuning." The activity in this area is considerably enlightening when the figures associated with these efforts are understood.

In fiscal 1970 when the federal budget went $23.5 billion in the red, the total transactions of the F.O.M.C., selling and repurchasing Treasury bonds from the banking system, amounted to $738 billion and 50% of that was not by written drafts but actually was accomplished by pushing the programming buttons of a computer. The $738 billion figure is three and one half times the total transactions of the New York Stock Exchange for the same fiscal period.

In fiscal 1971 the total transactions were $1100 billion and 60% of that was by computer. In the first six months of 1972 these transactions totaled $968 billion and 76% was handled through computers (at the speed of light). it would be ridiculous to believe that it took $738 billion of Treasury bond sales and repurchases in and out of the banking system to support a $23.5 billion deficit in the federal budget. It must be evident that there is some big reason why all these transactions are necessary. What fantastic situation made it necessary in the year 197 2 for a total transaction of sales and repurchases of Treasury bonds to the banking system to equal over four times the federal budget total deficit of $430 billion.

It is the fact that inflation in the United States is over 20,000% in real terms. If our system was as stated officially and a dollar was redeemable for I / 38th of an ounce of gold, then the "Inflation" in realistic terms would be the volume of dollars of record in relation to the gold available to redeem them and that ratio at present is over 200 to one. In realistic terms there are enough "dollars" of record and "owned" by someone that if all were brought to the active market place as imaginary demand at one time, for illustration purposes say within one twenty-four hour period, then the imbalance of goods available to be purchased (supply-demand wealth) and purchasing power (imaginary demand "dollars") available would be 1: 1666. There are "dollars of record'' over 1666 times the average daily production of goods for exchange.

Keeping 1,665 (1666-1) times the average daily production of goods in imaginary demand from triggering massive "hyper inflationary effect" in the United States is a Herculean feat, comparable to balancing a steel ball on the point of a needle and takes the massive power of being able to shift huge sums of imaginary demand here and there at the speed of light. What are we going to see next-are they going to increase the speed of 100 They may believe that this situation can be extended indefinitely but I cannot.

In the United States where the citizens are compelled to accept legal tender laws, the situation can be extended quite far indeed but the eventual outcome will be a return to redeemable currency either engineered and dictated by government or by the people when natural law dictates. All the attempts by the federal reserve system to hide the terrible monster inflation and never let us show through and cause the inflationary effect have not been greatly effective. The falling dollar parity which is the ''Inflationary effect" has been evident and we are aware of it. All the efforts at hiding the inflation have not even remotely neutralized its potential for destruction.

The fact that the daily production of goods in the U.S. is less than $2.8 billion in dollar value and the fact that the people hold $55 billion in government bonds alone make this quite plain, The vast amount of "dollars of record" belonging to the people and spendable by them is what makes the situation so fantastic. If in one day 5% of the holders of those bonds decided to spend the 5% ($2.75 billion) in addition to their normal purchases, the bidding could double commodity "prices" in that one day (one hundred % inflationary effect in one 24 hour period).

The people have $450 billion in demand deposit accounts in banks, only 6/ 10ths of 1% of that entering the market place as additional purchasing power in one 24 hour period could double commodity "prices" (100% inflationary effect in one 24 hour period). It hasn't been mentioned, but think of the potential of credit cards as imaginary demand in the same way. Some holders of credit cards have the potential purchasing power of several thousand dollars with them and yet could not pay the interest on that sum if they were to use its total potential. To prevent just such an eventuality as described here it will be necessary for fine tuning planners to figure some greater control method over our right to spend our earnings in our own way, either by rationing everything or by forced savings (mandatory payroll "bond" deductions). They must find some way to prevent our being able to bring that vast potential imaginary demand to bear on the active market place if they are to have any further influence in preventing the inflationary effect from becoming more pronounced as time passes. When the inflationary effect gets to the point where the people as a whole can see the price level" inching upward right before their eyes, they will become disenchanted with the purchasing power of the "dollar" and attempt to rid themselves of "dollars" before they sink much lower. When that point comes and the $55 billion in bonds and the $450 billion in banks are brought into play, the game is over-collapse, and the "steel ball" will tumble from the point of the needle.

Citizens of the United States have been exploited for years and have had their wealth expropriated by the "dollar" creators. All this was made possible because the thing people are most familiar with, they know the least about; our medium of exchange, the ''dollar."

America's tremendous progress in the first 200 years was due mainly to the efforts and ambitions of our pioneering forefathers in combination with a monetary system with preeminent integrity. The American dollar was known throughout the world to be as good as gold."

A free enterprise system (less government controls) can only exist with such a "monetary unit." Our economy, burdened with controls, plagued by a falling dollar parity and its detrimental effects, is a direct result of the inflation and loss of redeemability of the ''dollar."

The "dollar" creators were operating in the background during the great beginning of our nation and were able, over a long period of time, to create the conditions which led to the "Pavlovian" type reflex that caused our people to accept a concept of "fractional reserve," to their own disservice.

The "dollar" is the means developed by clever manipulation of our mental ability: the ability to accept and then use information without specific consideration each and every time we reuse that information. Taking a step requires specific motion of fifty-three different muscles. Yet, after learning the movement and committing it to subconscious memory, we do not question those directions again. At first, the "dollar" was a specific, fixed amount of gold. After several "amount" changes, eventually we were conditioned to accept "dollar" as an expression of measure facilitating a cross-reference between the wealth it "used to be" and the make-believe "dollar" it is today.

"Money" The Greatest Hoax On Earthnnnnnnnn106

Make-believe dollars are paper and ink records of numbers preceded by a ($) in bookkeeping entries, accepted by the people as imaginary mediums whose volume increases daily with official and individual conjurings: are seigniorage, credit, inflation, money, and totally intangible. They cannot be sighted, heard, smelled. tasted or touched. They can exist in human thought only. They are shifted about by check and credit cards to "settle by imagination" 95% of all transactions.

Our acceptance of these make-believe "dollars" and their representative metal and paper tokens (coins and bills) in exchange for our wealth, causes a loss in the economic system of this wealth and an accumulation in the system of these imaginary "dollars," whose great volume is hidden from view by their existence as bookkeeping entries in the ledgers of the dollar creating Federal Reserve, fractional reserve bankers, which are not open to the inspection of the public.

Our technology has advanced in the last forty years to enable us to go from street cars and buses to jet planes and space craft, yet the bread we eat that used to cost 5c a loaf when it was made by hand. now costs 40 cents when made with highly sophisticated, automated machinery. The explanation, of course, is the accumulated burglary that has taken almost all the wealth from our economic system, leaving the great mass of imaginary dollar demand in its place, causing the greatest "price level" rise in our history. Even the wealth we think we own has been mortgaged by government, itself a victim of the federal reserve fractional reserve bankers.

As late as August 14, 1971, our Secretary of the Treasury, Mr. John Connally. acknowledged that "We have awakened forces that nobody is at all familiar with.'' Again, on November 17, 1971, he said, "At stake is nothing less than the foundation for the freedom and security of this generation, and those that follow." And again on April 24, 1972, Mr. Connally said, "Nothing less than a transformation of traditional business, labor, government relationships is going to have to happen and unless the United States recoups rapidly the consequences will be inability to meet military and diplomatic obligations abroad and a deteriorating standard of living at home that ultimately could lead to outright revolution in country.

There is significance in what our Secretary of the Treasury was saying. but are we aware of what he is referring to? Do we realize that the tax burden on the average household has almost doubled in the first seven years since the last vestige of the country's wealth was wrested from the people by the Coinage Act of 1965? Without the restraint and disciplinary influence of a silver coinage specie redemption to temper government deficit spending, our federal budget has also nearly doubled in the same period.

Taxes can be reduced by reducing government expenditures, but government expenditures will not be reduced as long as the creation of "dollars" to facilitate deficit spending is undisciplined. These "dollars" to facilitate deficit spending prevent our great country from enjoying the benefits of full employment, full production, and unrestrained private enterprise. What is great for the individual is great for the country. People make the nation. The individual actions of the pioneers built our country to the greatness it attained. Lately the federal government has seen fit to treat us as incompetents and the nation has suffered as a consequence.

Greatness can only return to our country when we, the people, regain our right to direct its future progress. It is absolutely impossible for us to regain control of our destiny unless we return to constitutional government and its directives concerning coinage, taxes, and property rights. Thomas Jefferson, in his first inaugural address, said, "A wise, 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." But Mr. John Connally said, "Nothing less than the transformation of traditional business labor-government relationships is going to have to happen.'' The only real answer which will guarantee us freedom from tyranny, is the God-given right to distribute our own created wealth, free of any controls.

Only by having our God-given right to own and trade in wealth restored, will we have the power to maintain a free market and disallow the use of nonredeemable currency in that market. Inflation will be nonexistent. Business will thrive on free enterprise and create millions of jobs; taxes can be cut; the balance of trade deficit would shrink and the people will be moved into positions of real importance, where they will be creating goods and per forming services which we can all use, Above all, the people will regain control of their government; they will hold the wealth of the nation in their hands. Banks will become depositories of wealth. Our currency will be redeemable in wealth. The future of our people, bankers, farmers, business men, laborers and professional people will be safe and secure. Those who produce the most will live better. Property rights will be restored. The people will be free.

Any new currency should bear inscription specific in terms of what weight and fineness of commodity it is redeemable in, and no longer should we ever employ a monetary terminology. Gold and silver coins were called "dollars" (a monetary terminology). Bearer certificates promising redemption in gold and silver coin were called "dollars." Gold coin has since been outlawed as a medium of exchange, bearer certificates were repudiated. All that was called "dollars" has been removed.

We now have promise-less paper and copper-nickel coins and they are called "dollars." If promise-less paper and copper-nickel coins are now "dollars," what were gold and silver coins? They were wealth and they were something. Promise-less paper is not wealth and it is nothing.

It is written "No one gets something for nothing," but that does not embody all the truth! The federal reserve, fractional reserve bankers create "dollars" out of nothing * "Dollars" expropriate wealth to their creators. The "dollar" creator gets something for nothing! The wealth producers get nothing for something! In circulation, "dollars" are accepted as mediums of exchange! Producers receive "dollars" for their production and give "dollars" for the production of others and cannot perceive the truth. The "dollar" creators do not produce wealth and therefore cannot become victims to their own hoax. The "dollar" creators support the belief that "no one can get something for nothing." But, secretively, exclusively, the "dollar" creators get everything for nothing.

Before 1934 twenty dollars = 1 ounce of gold; after 1934 thirty five dollars = I ounce of gold. "Dollar" was a word to describe a temporarily "fixed" amount of gold. Without a connection to gold, "dollar" hasn't any value except that residual memory in the subconscious mind that keeps it exchanging on pure imagination.

When our currency in circulation was gold and silver coin and bearer certificates redeemable in gold and silver coin, the "demand" of the currency was balanced by the supply" of the wealth the currency represented. The paper represented a commodity and the exchanges of production could in no way generate an imbalance. When supply is purchased with present day imaginary dollars, they do not represent any claim on the issuer's wealth and are imaginary. demand which cannot balance the supply they extract from the economy. The "dollars" themselves are pure inflation. Every one in circulation has exchange value by virtue of pure imagination.

Today the federal reserve, fractional reserve bankers call their created dollars monetary obligations, but that doesn't alter the fact that they must be redeemable or they are nothings.

Without a promise of redemption by the issuer, the dollar is worthless outside the sphere of legal tender jurisdiction. It is trading today only on the memory of its former greatness and on the "confidence" the people have-that redeemability will be restored at some time in the future.

Wealth offered for sale is supply.

Wealth accepted in exchange for it is demand.

Wealth exists as supply and demand simultaneously.

Wealth is supply to the receiver in a transaction, (or a medium of exchange). Wealth is demand to the surrenderer in a transaction.

Wealth exists as supply or demand by use or viewpoint. Wealth is always wealth in either state.

Wealth must exchange for wealth in every transaction, to complete it. Wealth exchanged for "wealth form" desired is barter.

Wealth accepted in lieu of "wealth form" desired is a medium of exchange. Wealth must be surrendered by both parties to prevent fraud and inflation.

Gold is wealth universally recognized for eons of time.

Gold is accepted as a common medium of exchange.

Gold offered for sale is supply.

Gold accepted in exchange is demand.

Gold is either supply or demand by viewpoint. Gold is always wealth in either state.

Certificates redeemable in gold are redeemable in wealth.

Wealth must exchange in every transaction, to complete it.

Wealth must be surrendered by both parties to prevent fraud and inflation. Certificates representing gold are: "Gold by proxy."

Certificates payable to the bearer in wealth represent that wealth in transactions. Certificates redeemable in gold represent that gold in transactions.

Gold "claimable by bearer certificate" offered for sale is "supply."

Gold "claimable by bearer certificate" accepted in exchange is "demand."

Gold "claimable by bearer certificate" exists as "supply" or "demand" by use or viewpoint. Gold "claimable by bearer certificate" is always "wealth" in either state.

Gold "claimable by bearer certificate" exchanged for wealth is neither fraud nor inflation. certificate unredeemable in wealth does not represent wealth in transactions.

• certificate, not payable to the bearer in wealth, does not represent wealth in transactions. An unredeemable certificate cannot represent wealth by proxy.

An unredeemable certificate cannot represent supply or real demand by use or viewpoint. An unredeemable certificate cannot exist in either state except as its own minute self

An unredeemable certificate offered for sale is fraud and inflation.

An unredeemable certificate accepted in exchange is imaginary demand.

An unredeemable certificate exchanged for wealth is fraud and inflation. An unredeemable certificate can exist as supply only in imagination.

An unredeemable certificate can exist as demand only in imagination. People have accepted unredeemable certificates in exchange for steak. People have not as yet accepted unredeemable certificates as the steaks. Wealth must exchange in every transaction, to complete it.

Wealth must be surrendered by both* parties to prevent fraud and Inflation.

Paper currency must be 100% redeemable in wealth to prevent fraud and inflation.

It is the amount of human exertion required to obtain wealth that determines the amount of that Wealth bid in seeking exchange with any other unit of production. When a given unit of production, of one kind, is exchanged for a given unit of any other commodity the exchange establishes a parity between those two kinds of production. From an exchange of one apple for one orange the parities of: one apple equals one orange; or one orange equals one apple are derived.

Why redeemable? nnn109

Each party to an exchange feels he is getting more than he is giving up or there would not have been an exchange, but once the exchange has been completed, the parities the exchanges established are history, that is why, it is recognized that nothing has intrinsic value, it can only have historic value.

In the negotiations to arrive at an exchange the parties go through mental procedures and the wealth being bid by one party against the production being offered by the other party is weighed carefully on the basis of the amount of human exertion required to obtain the wealth desired. Each one is weighing the cost to himself in obtaining "the wealth to be surrendered" against the amount of human exertion that would be required to acquire the wealth desired" in any other way. The bidding stops and the exchange is made when the point is reached where each one feels he is getting more in value than he is giving up and the parity is set.

The market works on the natural law of competitive production parities, arrived at by this simple means of competitive bidding. If a "dollar" is redeemable in a specified amount of a specific commodity, then it requires the same amount of human exertion to obtain that "dollar" as it would to obtain anything with a parity equal to that amount of that commodity, for the dollar was received by its holder by surrendering his production to get it. The "dollar" any holder has is bid, in seeking exchange, at the value of the amount of human exertion he expended to obtain the commodity he surrendered, to get the dollar he holds. If a "dollar" were obtained by its holder in exchange for a service, then that "dollar" will be bid at a value commensurate with the value the holder feels is right for his human exertion expended in obtaining the "dollar." The "dollar," then, is bid at the value of the human exertion that was expended by its holder in obtaining it. As the old saying goes: "Easy come, easy go!"

A redeemable dollar (bearer certificate for a specific amount of a specific commodity) comes into being when wealth is deposited in a bank, and a bearer certificate for it is issued. Wealth had to be obtained by human exertion and deposited for the "dollar" to be obtained and it has value to its holder commensurate with the wealth he surrendered to get it.

A nonredeemable "dollar" comes into "being" as a number written on paper in a ledger. It cost its creator nothing because all the paper, ledgers, ink, and pens are obtained by the creator by using numbers as imaginary demand via "checks" to make the purchases. "Dollars" that are * nonredeemable are obtained by "borrowing" from the source in number" form, or as metal and paper token currency (coins and bills). The creator of "dollars" the "Monetary Authority" does not have to produce wealth, to pledge, or perform a service involving human exertion, beyond the effort required to direct the gliding pen across the surface of the paper, to obtain dollars."

The creator, aware of the true nature of the "dollars" bids them in the market place at the value of the amount of human exertion it required for him to obtain them. The ''dollars" he created are not for spending, they are for lending, but the interest the created ''dollars" "earn" are for spending, and they came mighty easy. When a "dollar" that came that easy is bid it is bid at its value to its holder. When the creator holds "dollars" and is seeking exchange he weighs the bid on the basis of the amount of human exertion required to obtain the wealth desired. He is weighing the cost to himself of obtaining the "dollars" to be surrendered against the amount of human exertion that would be required to acquire the wealth desired in any other way.

Since the "dollars" were obtained by him at extremely minute levels of labor he will bid any number required in competition to obtain the wealth he desires and his bid will exceed the bid of the "non-creator" of "dollars" (the wealth producer). To make certain that this will always be the case, and to further promote the idea that the new "created dollars" are as good as the 100% redeemable kind, he always insists upon and obtains a pledge of wealth from all wealth producers before he will lend them his created "dollars."

"Money" The Greatest Hoax On Earthnnn110

The "dollars" bid by the "creator holder" of "dollars" will exceed the bid of the "borrower holder" because of the relative value each of them individually places on the"dollars" held. Since the "borrower holder" pledged wealth to obtain his ''dollars" he weighs his bid on the basis of the human exertion he expended to obtain the wealth he pledged to obtain the "dollars" to be surrendered to obtain the wealth he is bidding for and his bid would tend to maintain the competitive production parities at a relatively stable level.

The "creator holder" of "dollars" did not have to pledge wealth to obtain his "dollars," he got them easily as "Interest," and he weighs his bid on the basis of the human exertion he expended to obtain the -dollars" to be surrendered to obtain the wealth desired. Since the "dollars" the "creator holder" bids did not require production pledged and were obtained at an extremely slight amount of human exertion they are bid at a greater volume in competitive bidding and their parity in relation to the unit of production bid against, tends to continually fall. The falling dollar parity is referred to as "prices rising," and the observable "rising price level 'as inflation."

If all dollars were 100% redeemable-that is if "dollars" could only be obtained by a deposit of "wealth produced" and were always in the form of bearer certificates then all holders would bid them at relative levels of human exertion expended to get them and all bids would tend to maintain a relatively stable level of competitive production parities, and a falling dollar parity could not be.

The "dollars" created by the "monetary authority" that are nonredeemable accumulate as imaginary demand units constantly increasing in volume and exceeding the units of production, they are used to bid against. As the volume of "dollars" so created constantly accumulating would cause a rapid disclosure of the condition, and the "dollars" parity falling would bid the wealth producers out of competition for their own produced goods in a very short time, it was necessary to devise means for keeping those "dollars" (in the hands of the public) out of active competition as much as possible. The effort is made to have the wealth producers save "dollars" and not wealth!

If the wealth producers can be convinced to exchange their wealth savings into "dollars" and lock the "dollars" away in a drawer it will prevent their use in competitive bidding. By selling "interest" bearing "paper instruments" to the wealth producers, the "dollar" creators can accomplish their purpose of "hiding," to a high degree, the falling dollar parity. The rationale is simple; "wealth doesn't draw interest," it doesn't "work," but "dollars" do, they grow by "virtue" of "interest," and increase the old story (money makes money etc.).

The "dollars" that are kept from the active bidding in the market place are neutralized," but only temporarily, not forever, by this "general funding" means. The "dollars" removed from active bidding by being "savings" can nevertheless at any time be used to bid against production, and since they are nonredeemable and are imaginary demand they are in excess of the production available by their volume, whatever it is, when and if, they are used in competition to bid for production. Their great mass accumulated to date makes it possible for a great mass entry into the market during a panic that could send our economy into chaos over night. Great volumes of "dollars" could be bid against each unit of production by holders lust wanting to get something for them before they become completely worthless.

If all "dollars" were 100% redeemable then the excess of imaginary demand over real demand could not be!

Parity value is determined by the return on labor expended in the production of commodities, and is variable over time, location, and circumstances. The right to distribute one's own wealth as one desires is the backbone of free enterprise. The right of ownership of property is the essence of freedom. The right of competition is the lifeblood of a free market.

Competition: The effort of two or more parties, acting Independently, to secure the custom of a third party by offering most favorable terms.

Where man is free to labor and produce wealth and retain the right of ownership and distribution of that wealth, man is truly free. Where man is free there will always be a natural free market where competition will govern the balancing mechanism and keep all commodities and services at their natural level. Man will always seek to satisfy his desires with the least amount of effort, it is a natural human desire. The natural free market benefits man immeasurably as it provides the ultimate in standard of living progress at the absolute minor increase in effort per unit of advance.

Man is constantly watching his neighbor's efforts, and when one seems to be getting wealthier with what appears to be less effort, he will be imitated. When imitation leads to an abundance of that commodity, it will drop in relative value to other commodities. From the others side, if too many producers stop producing their commodity to produce another which appears to "pay" more, then the commodities they stopped producing are in short supply and their parity will rise in relation to other commodities. The freedom to compete leads to the lowest possible "price" for all commodities; those who can produce them at the most competitive "price" will get the business. The people as a whole get the benefit of a lower "price level" for all commodities.

One man could hardly rule another where all are free to compete. In the absence of unfair competition, one man can hardly rise above another of the same ambition and aptitude. There has never been an equal opportunity law that provides equal opportunity; it cannot be decreed; it must be there naturally. Any control that in any way tries to guarantee a free market is in itself a lie. A free market is free by virtue of the absence of control. The absence of control can only be guaranteed by the retained right of ownership of property freely exercised by all, without exception. Only by interfering with the right to distribute one's own wealth can unfair advantages be perpetrated and one man usurp the right of others.

Any commodity that develops as a medium of "change does so because of its ability to hold a relatively stable parity relationship with all other commodities. It is important to realize that unless it was natural for all things to vary in value over time, location, and circumstance, it would not be necessary for a thing to be relatively stable to be a good medium of exchange.

All things must be free to fluctuate in parity from the time of one exchange to the time of the next exchange. All things should exchange at their truly accepted parity at the time of the transaction and be free to fluctuate while in the possession of any holder.

Competition sets the value of commodities by regulating the parities between commodities. Any attempt to fix a relationship between any one commodity and any other commodity immediately upsets the ability of competition to regulate the value naturally. just as control over the right of distribution of one's wealth reduces the freedom of man directly, so also would control over the right of commodities themselves to respond to the regulation by competition of producers in a naturally free market, end In loss of freedom for man, but the process is devious and difficult to expose.

It is believed that "supply" and "demand" set the "price" for any commodity (specifically its "supply" relative to the "demand" for it). The demand for anything is the accumulated value of the commodities tendered to effect an exchange of them for it. More specifically, then, the demand for a commodity is the relative parity it commands with other commodities. Then it must be seen that any interference with the natural parity established by competition in a free market will have a direct effect on the demand for it.

The word "demand" has been used as an explanation for an excursion of the parity of one commodity in relation to all others at any time. If a commodity rises in parity relationship with all other commodities at any one time, we have said the "demand" for it has increased. If a commodity lowers in parity relationship with all other commodities at any one time, we have said the "demand" for it has decreased. The fact that we called this condition "demand" did not alter the fact that we were actually thinking of, and describing in reality, the amount of any supply tendered for any other supply. We were actually witnessing the relative volume of any one form of supply that would willingly be exchanged for any one other form of supply, the one tendered being the demand and the one desired being supply. For any two commodities exchanged at any time, the one tendered can be considered "demand" and the one sought considered "supply." They are both wealth and only viewpoint can assign the words "supply" or "demand." "Supply" and "demand" do not constitute an equation that sets the relative value of anything. Supply and demand are simply two words to describe wealth by viewpoint, or more specifically, wealth in two different states of being.

Almost all people agree today that water can exist in three different states. We accept water as existing in its fluid state; steam is accepted as water existing in a gaseous state; and, of course, ice is water existing in a solid state. Wealth also can exist in several different states. Resources could be accepted as wealth existing in its "latent" state. Resources could be accepted as wealth in its "supply" state, and wealth in one form being offered in exchange for some other form of wealth as being wealth in its "demand" state.

It is not difficult to see how the errors were able to develop. Without knowledge of the different states of water, one could hardly be convinced that steam was water in a gaseous state. The uneducated would argue "but they do not look alike," comparing the gas to the fluid. But to insist that they do not look alike does not alter the fact that they are the same. None would find it difficult to understand the consternation of the uneducated seeing an iceberg floating in the sea and trying to comprehend that it and the sea are of the same material in two different states.

When we speak of wealth we must realize we are referring to a tangible thing, produced from resources by human exertion, having exchange value. Fish in the ocean are a resource (latent wealth). Caught by the fisherman, they are wealth; brought to market and offered in exchange for gold, they are wealth in the "demand" state. Purchased by someone offering gold in exchange for them, they are wealth in the "supply" state. Gold in the ground is a resource (latent wealth). Mined by the miner, it is wealth; brought to the market and offered in exchange for fish, it is wealth in the "demand" state. Accepted by someone offering fish in exchange for it, It is wealth in the "supply" state.

At no time during the exchanges was the fish not fish or the gold not gold, and yet they were both at one time a resource, at another time, wealth in "demand" state, and at still another time were wealth in the "supply" state; and so it is with all commodities. All the states mentioned so far are states of being; there is yet another state. Fish that were a resource, demand, and then supply, after consumption may become only a memory or be forgotten as fish. The fish was processed by consumption into its basic elements and is recycled by nature, but that is another science.

The part we must analyze and obtain significance from is that while those basic elements existed as fish, as fish they had value. The value of the fish must have changed also during the different states of being fish. As a resource in the ocean fish is literally free for the taking. After expending energy to catch the. fish, the fisherman attaches a value in relation to his energy expended to catch the fish. At the market place the fisherman meets the miner and they compare the relative values each has placed on the produce they have brought to market for exchange.

The fisherman has more fish than he can eat, and so he would like to exchange some fish for gold because gold will not spoil and it can also be used in exchange to acquire other things immediately or in the future.

Exchanges determine parity. nnnn 113

The miner has only gold and gold does not satisfy hunger pangs, but fish will, so the miner considers exchanging some gold for fish. Left alone, they will decide on an exchange parity between their two commodities and it will be more than fair because each one will feel he has the better of the bargain. Each must feel he is receiving more value than he is giving up or an exchange would not take place; that is human nature. During the negotiations, neither commodity had any fixed value in relation to the other; the parity was being determined by negotiation.

The parity arrived at eventually would be dependent upon the use value of the commodity to Its receiver. At the time of the exchange, a man buying the fish for food would pay more than the man buying it for purposes of making glue. This is extremely important to understand, that value changes with time, location, and circumstances, and is determined by the competitive bargaining of producers.

Were there more than one fisherman selling fish and more than one miner selling gold, the exchange parities between fish and gold would be determined by the bidding, each producer trying to get the most in exchange for his labor in production from the other producers. If there was only one fisherman and several miners, fish would rise in parity relationship with gold that day, because there would be more competition between the gold producers to offer more gold than the other miners to obtain the fish. If there was only one miner and several fishermen, gold would rise in parity relationship with fish that day, because there would be more competition between the fishermen to offer more fish than the other fishermen to obtain the gold. Value here was being set by the bidding of the various commodity producers competing with each other to provide their product in exchange for the products of others. It is the relative abundance of one commodity in relation to the relative abundance of others that determines the parity relationships through bidding at any one time. If the producers of the more abundant products see the relative value of their products dropping, they would tend to change their lines of endeavor to provide less of the more abundant product, and more of the less abundant product. The free competition of producers in a naturally free market would cause the producers to adjust automatically to the dictates of the naturally determined commodity parities to obtain for themselves the greatest return for their production.

We must understand, then, that it is not ''supply" and "demand" that get out of adjustment, but the differential in return for labor expended by the producer in producing his product. The parity changes cause the differential in return and regulates the future direction of the effort of the producers.

Nothing, then, ever has value that remains unchanged in relation to all other things. Any commodity can be said to have been worth so much of some other commodity at some past exchange, and that parity may vary very little as time passes unless there is some change in production expense to alter its relative parity. A new discovery of additional resource or a technical breakthrough which allows mechanization could cause a general change in parity level for that commodity in relation to all others, but the specific, actual parity from day to day will still alter due to time, location, and circumstance. Then it must be realized that nothing has a fixed value ever, but it may be said that any commodity has a generally stable historic value, or a general history of having a constantly changing, turbulent parity with other commodities, or that it had a stable value at one time but is constantly fluctuating now. All commodities might differ greatly in their histories of value excursions.

Human nature dictates that man seeks to satisfy his desires with the least amount of effort. Therefore man determines his future line of endeavor by the fruits of his past line of endeavor. A producer is guided in his efforts at future production by the relative proceeds of his last efforts at production.

He will be guided by the historic value of his past production in respect to the historic value of the past production of the other producers.

For anyone in modern enterprise to attempt to apply this reasoning to himself is difficult because all the natural functions of the free market have been hidden from us by a confusion of words and explanations that are untrue. When all mediums of exchange were wealth (gold and silver coins etc.), they were both supply and demand wealth as described, but were not permitted to function naturally and could not, therefore, support the free competition in a free market.

"Money" The Greatest Hoax On Earthnnnnn114

The relative value of the gold and silver was "fixed" by, edict. Instead of allowing gold and silver coins marked clearly with weight and fineness to seek their own adjusted relative parity with all other commodities, which is what would occur in a free market, they were instead endowed with a "face value" in monetary terminology setting forth an imaginary "demand" unit in the economy, which caused "false parities" between commodities.

The two materials gold and silver have always developed naturally into commodities used as mediums of exchange. It is with gold and silver that the basic unnatural behavior patterns resulting from manipulation can best be described. Several thousand years ago a pharaoh of Egypt declared that 2112 ounces of silver equaled I ounce of gold. The silver producer and the gold producer are now unable to bargain and the first time it becomes known to the silver producer that his product is undervalued in the market, and that he is getting less return on his expended effort, he will endeavor to switch into something that 11 pays" more and silver will become in "short supply" and will remain that way until the authority readjusts the "fixed" parity. Should the new "fixed" parity between gold and silver in any way favor the silver producer, then the gold producer would find his return on his expended effort in the production of gold reduced and he would switch from producing gold, and gold would become in "short supply" and remain that way until the authority again reacted.

Attempts at control do not work and cannot work; they can only cause shortages. The natural forces of the market "prevail" but are not permitted to function "automatically" since the "manual override" of "controls" has been instigated.

When a commodity is used as a medium of exchange and is permitted to exchange at its uncontrolled free market value, it doesn't matter what the commodity might be, anything from paper to gold or silver will do. One form of wealth would be better than another only because of size, convenience of divisibility, or resistance to corrosion.

When a token is said to be a "dollar" and to be worth 1/35th of an ounce of gold and is in "fact" only a fraction of an ounce of copper, or a piece of paper, there is a profound effect upon the economy.

The token with a 'face value" identified by authority as being 1/35th of an ounce of gold, is still not gold; in no way could nature be fooled-man may believe, but nature knows the difference-that gold exists in both its "demand" state and its ''supply" state, and that a token cannot. Tokens are accepted through belief in only their "Imaginary demand" capacity. Therefore, one might "purchase" a "steak'' with a token but would never attempt to eat a token as a steak. What happens, then, is that as the tokens accumulate in the economy, the wealth produced is extracted from the economy by the 1. monetary authority" creators of the "imaginary demand'' (dollars), and the "dollar parity" falls. The abundance of tokens cannot cause a lessening of their production by their producer, because their producer does not participate in a free market. The producer of the imaginary demand" gets all the wealth he desires by exchanging, the "Interest" he earns" on lending "dollars" he creates out of nothing, for the wealth of others. The return on his "labor" is infinite as he creates the "Imaginary demand" with absolutely no investment of his own.

The producer of the wealth, however, finds that as the imaginary demand tokens multiply in the economy, it takes more and more of them (dollars) to effect a reasonable return on his efforts to produce wealth. He cannot switch and produce "Imaginary demand" because that right is reserved for the monetary authority"; it is their own private monopoly. In fact, there is a fifteen year penalty for illegal counterfeiting. When authorized "price" controls enter into the economy and the number of ''Imaginary demand" tokens a producer can receive for his product is ''fixed," and the amount of other wealth he can exchange them for is not a sufficient return for his labor, he ceases to make that product and it becomes in short supply.

The producer seeks to switch to the production of goods that return a greater amount of tokens and hence a greater wealth return in exchange for his expended labor. The natural market forces are at work, and to get the proper return for his efforts, he will switch his line of endeavor, and a shortage will result in the goods he formerly produced. He was forced out of production by the authority "fixing" the limits on the return for his labor.

It has never been an equation of "supply" and "demand" that set the "value" of anything. The parity of a commodity is the relative value of one commodity expressed in terms of another commodity, and that is determined by the free competition of the producers of the respective commodities. When that basic freedom is denied, then the forces of natural law become obscure, but continue to function, and the end result is always that controls do not work!

"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." nnnnnnnnJenkins Economic Truth No. 20

An executive order took the gold redemption requirement away from the people and only specie redemption in silver remained; but we had two billion ounces of silver, so it was sufficient for another twenty-odd years. Inflation of the currency would still be perpetrated as long as 900% of the ''specie available" was not violated. The redeemability of the currency was still based on the amount of natural wealth already produced and available for redemption.

In 1965 with the passage of the Coinage Act and the removal of silver from the coinage the ratio of "dollar" volume created and the natural wealth with which to redeem them jumped fantastically from ten percent seigniorage allowable to the Secretary of the Treasury to 971,116 seigniorage. The wealth requirement for specie payment of the currency was reduced from 90% to 3% and the words "will pay to the bearer on demand" were systematically being removed from all our currency.

With all practical redemption requirement removed, it was now possible to inflate without restraint. The significant change, when redemption in specie is denied, is that the currency changes from being redeemable for natural wealth already produced and held in reserve for its redemption to an "imagined claim" on future production. "Imagined" because there no longer is any specific or otherwise promise to pay anyone anything, in fact the paper tokens representing "dollars" bear a legend that they are the legal tender. The belief that they are claims on future production is supported by the fact that the people are told that they are backed by the gross national product (G.N.P.) (future production) and that statement then completes the 180 degree change. The currency was redeemable in wealth already produced and had to be limited in volume of units created to some percentage of that natural wealth. With the currency now "assumed" redeemable in future production, who is to say what the volume or for what period that production will be, and also what should the percentage of inflation be?

It is a fact that, before, if all currency were returned to the issuer for the wealth held in reserve, the people would have wealth and the issuer could burn the returned paper. Now, if all the owners of money were to try to spend it, it would be impossible because the issuer hasn't any wealth in reserve for its redemption and the issuer is not a producer of wealth, so money entering the market to purchase wealth would find tremendous competition and prices" would double and quadruple at a fantastic rate until all the "dollars" created would be unable to buy anything. Without an issuer to redeem ''dollars," all ''dollars" will always have to end up in some "holder's" possession with nothing available to redeem them.

"Dollars" created by the creator and then "disowned" by the creator are destined to die as worthless paper in the possession of the last holder!

When "dollars'' are nonredeemable by the issuer, who is going to redeem them?

An unredeemable "dollar" becomes the final "payment" for whatever wealth is given up to acquire it.

Unless reclaimed by the issuer, "dollars" must always remain "Imaginary demand" in the hands of some holders.

All "dollars" are accepted without recourse on the issuer.

When the "dollar'' finally dies, not one holder will be able to exchange it for something tangible.

Since "imaginary debt dollars" haven't any wealth in reserve for their redemption, the parity range possible between "dollars" and wealth is infinite and could explode in any future interval of weeks-days-or hours.

At any time any number of holders of "dollars" may exchange "dollars" for wealth, but whenever the last transaction has been completed, at whatever parity, there will still be ''holders" for every single "dollar" ever created and on record.

If they cannot be returned to the issuer for destruction after redemption then every single dollar must die in the hands of a wealth expropriation victim as a last holder.

Once "dollars" having no redemption value are accepted, they are accepted at no value at all and any value decreed upon them by the acceptor has to be imagined in the acceptor's mind.

Once this make-believe medium of exchange "money'' is accepted by the wealth producer for his wealth, the creator of the "money" will never offer anything else as payment for wealth received, and since the make-believe dollar creator is aware of its true nature he will never offer anything of value for its return.

Would you leave clothing at a cleaners and accept a blank sheet of paper as a receipt.

Would you leave your watch at the jeweler's and accept a receipt that stated no recourse on the jeweler for any eventuality?

Would you lend a friend your car and accept a receipt that stated the friend was absolutely not responsible in any way for its return?

Would you lend to a friend and then sign his IOU?

This in reality is exactly what we do when we give up our wealth for ''money".

Redeemable currency is as different from nonredeemable "dollars" as:

black is to white up is to down right is to left forward is to backward

front is to rear male is to female night is to day

Redeemable currency is to nonredeemable "dollars'' as:

reality is to fantasy good is to bad highway is swamp life is to death

As of today:

Precious metal coins of marked weight and fineness are wealth in full measure and a final settlement of debt!

In the U.S.:

Gold coins as purchasing media. . (forbidden).

Other precious metal coins are (not available).

Precious metal coin of free market value, less than face value, are tokens representing imaginary monetary units and are partly imaginary demand, inflation, and fraud, (gold and silver debased coinage has been recalled, and is no longer in general use).

Bearer certificates having wealth of stipulated weight and fineness set aside and held in reserve for their redemption were promises of payment, were not inflation or fraud. (promise repudiated by executive order).

Bearer certificates stipulating payment on demand ' in monetary units (dollars) are

imaginary demand, inflation, and fraud (old Fed notes-some still in circulation).

U.S. "notes" are receipts issued by the Treasury acknowledging prepayment of a possible future tax obligation, accepted by the people as mediums of exchange are inflation and fraud (still some in circulation).

Federal reserve "notes"; Paper tokens "representing" imaginary demand "dollars created by the Fed banking system on imaginary debt-accepted by the people as mediums of exchange-are inflation and fraud (represent approximately 5% of all "dollars" used in daily transactions).

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, tasted, or touched; can exist in human thought only (are shifted about by check and credit cards to "settle by imagination" 95% of all transactions).

Today: A U.S. note is supposed to be an IOU from the government to the receiver

promising payment for value received. The promise is worded: The United States of America will pay to the bearer on demand X number dollars. What is a dollar? A dollar is a temporarily fixed amount of gold, so if it is a promise to pay gold why is it not a gold certificate? Government has announced it will not pay gold to anyone for dollars, therefore the only possible use one could make of U.S. notes would be to settle a tax assessment with government or attempt to exchange them with another producer for some of his wealth.

The "note" was passed in exchange to represent the debt of the note-creator to the receiver of the "note" for the wealth given up by the receiver. If the "note" receiver holds the "note" until he can use it to pay taxes, all is well, and the note creator can destroy the note" ("exchanged" for the taxes due), upon its surrender. All is well because the "note" exchanged" represented the wealth that was relinquished by its receiver; the "note" was in reality a "receipt" for payment in advance on a possible future tax obligation.

For the "note" creator to use a created note to obtain the wealth of a producer, the producer has to imagine he will owe wealth to the creator at some future time and be willing to give up that wealth now and accept the "note" as a receipt that may acknowledge the prepayment, at that point in time, in the future, when the possible tax assessment may actually be billed. The "note" is imaginary demand created by the note creator and accepted by the producer as a medium of exchange, and is inflation because as a "note" it can exist only in the demand state, as being comparable to the wealth it is exchanged for. The amount of the "note's" "exchange value" that could exist in the supply state is as a minute amount of paper and ink.

The note has to be pure imaginary demand because it is issued as an exchange medium for the wealth given up by the receiver, it was not issued to represent wealth held in reserve for its redemption. The U.S. "note" is not a gold certificate as its wording would tend to indicate, because dollars are no longer any portion of gold obtainable. Dollars have reference to gold for bookkeeping purposes only. It is not a true note because it was not issued as a promise to reimburse wealth for wealth received, but was issued as a receipt for advanced payment of a contemplated future tax assessment. In accepting a U.S. "note" as a medium of exchange for his wealth, the producer is accepting evidence that he gave up his wealth as an advance "payment" on a "debt, that does not as yet exist.

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The debt may not exist until some future date when the producer may be billed by government for some service he will have received and owe taxes for. The U.S. "note" therefore is based on imaginary debt, debt that does not exist at the time of its issuance but is expected to exist at some point in the future. It is both inflation and fraud since the one accepting it is led, to believe by -its inscription that it will be redeemed for "dollars" when in fact it is only evidence of the fact that he has been relieved of some of his wealth on the pretext that at some time in the future he will owe the issuer of the "note" the wealth he Just gave up. Accepting U.S. notes" in payment for one's wealth relinquished is a useless and worthless exercise in unconscious submission to confiscation.

A U.S. "note" is a "receipt" issued by the Treasury acknowledging prepayment of a possible future tax obligation and accepted by the people as a medium of exchange.

Today: A Federal reserve "note" is supposed to be payment in full for all debts public and private as its wording proclaims: "This note is legal tender for all debts public and private." Any promise to pay the "bearer" anything has to be imagined. It is labeled "one dollar" but officially a dollar is still 1/35th of an ounce of gold, a rather heavy yellow metal which this slip of paper obviously cannot be. The Fed note does not represent gold or claim to be exchangeable for gold, if it were it would be a gold certificate. The Fed note is a token circulated to make people believe that nothing has changed and we still have a reserve of wealth for which our currency is redeemable. There isn't any legend on the Fed note proclaiming redeemability, we just imagine it is there and go on accepting them in exchange for our wealth, totally unconscious of the burglary they commit.

Officially the word dollar means a temporarily fixed amount of gold, but that has been changed as of August 15, 1971, by executive proclamation and the dollar is now only a monetary unit terminology for bookkeeping purposes. Today a dollar is as imaginary as the promise that formerly was printed across the bottom of our currency: "The United States of America will pay to the bearer on demand one dollar." The promise is gone now and so the connection between the word "dollar" and any substance.

Dollars exist only for bookkeeping purposes and only as in bookkeeping entries. Dollars come into being" as a number written on the books of the federal reserve banking system and are used to purchase Treasury bonds and as the "stock in trade." The Treasury has the bonds printed at the Bureau of Printing and Engraving on its orders. The Treasury doesn't give up anything to get the bonds and the Fed doesn't give up anything to get the numbers they write in their books, it A comes out of thin air. The whole thing is covered by double entry bookkeeping. The bonds go to the credit side of the ledger to balance the dollar entry on the debit side of the Treasury's checking account and the books are in balance.

The Fed's dollars are based on, imaginary debt because no one gave up anything. The bonds are created on an "imaginary right" to do so by the Treasury because no act of Congress gives the Treasury the right to create bonds.

Dollars created by writing the numbers in a book are used by the Treasury to write its checks (Written orders transferring number balances) for services received. About ninety-five percent of all people receiving checks, deposit them in their accounts and write checks themselves to transfer number balances (dollars) in "settlements by imagination." There are people who will insist that there be a physical thing that they can see, hear by rustling, smell, taste, and touch to use for cash purchases. It is an old habit and hard to discourage, so for that purpose there has to be some tangible thing around to represent these imaginary dollars, and that is the reason for Fed notes and copper-nickel coinage.

The Treasury, aware of this, has Fed notes printed at the Bureau of Printing and Engraving just as it had the bonds printed. These notes are turned over to the Fed for distribution in quantities commensurate with the value of the bonds held by the Fed. Copper-nickel coinage is produced at the mint by order of the Treasury and turned over to the Fed for distribution in whatever quantities they require at no cost to the Fed.

There are no costs to bear by the Treasury or the Fed, since all charges would be paid by check anyway in imaginary dollars. The tokens in circulation, both paper and metal, make it possible to fool the people into accepting imaginary dollars.

Today: Every dollar created is created by the banking system out of nothing and is loaned into circulation at interest. When the bank lends -its dollars, it demands that each and every one be returned in time plus interest. Since the monetary authority is the only source of dollars and they demand their return, where is the interest to come from? There isn't any way that you can return more to an only source than you borrow from it, it is Impossible; therefore the expansion of the system is assured. As people borrow more with which to pay Interest, it becomes. new principal and they are more deeply indebted. The bill cannot ever be paid.

As the banker lends he acquires custody of the title to wealth. If the banker forecloses he acquires the title to wealth. As individual loans generate interest earnings, these earnings allow the bankers to acquire the title to wealth directly by purchase. As the system progresses it expands and the exchanging of imaginary dollars for wealth continues unceasingly, passing over increasing title to wealth into the hands of the creators of dollars. The ultimate end comes when the net return to the producers of wealth is not sufficient to keep them "trying" any longer and their faith and belief in the "dollar" falls, then the real tragedy begins.

Fed notes are tokens representing imaginary dollars created on the books of the Fed bankers based on imaginary debt and accepted by the people as a medium of exchange.

When the dollars were redeemable, the amount on the books could not stray too far above the amount of specie on hand to redeem them or the risk of a collapse was too great. Specie demand, although only 5 to 10 percent, guaranteed that inflation of the currency could not be allowed to go above 900% inflation or the natural function of Gresham's Law would cause runs on banks. Now that all dollars are unredeemable, there hasn't been any restraint and the currency of the United States, the imaginary dollar, is inflated upward of 20,000 percent (volume of created dollars in relation to gold to back them). There isn't any power on earth that could stop collapse of the present monetary system once that collapse has been triggered by the dollar becoming suspect in the minds of the general public. All the machinery of the Fed is working at full capacity now, trying to stall a collapse and the job is becoming much more difficult as time passes and the condition worsens.

For example: If a time frame of crisis of just 24 hours were considered, The G.N.P. of $1,000.000,000,000.00 (one trillion) divided by 365 = $2.8 billion of wealth becomes available for purchase daily. There are $55 billion worth of bonds owned by the people. If Just 5% of those bond holders were to decide that tomorrow they would not wait any longer to buy that new car etc., etc., that purchasing power of $2.75 billion added to the normal, average daily $2.8 billion of purchases would bid up the "price level" to double in that 24 hours. If 5% of bond holders sounds unlikely, let us consider the $450 billion in demand deposits in banks. If 6/10ths of 1% of the demand deposits were withdrawn and added to the daily demand for goods, the "price level" would double.

It is the actual volume of imaginary demand loose in the market place seeking wealth that causes the "price level" to rise as that volume of imaginary demand must fit into the volume of wealth available for purchase to arrive at a "level of prices." If the volume of imaginary demand dollars were only 1000 times the volume of goods produced within our example time frame of crisis, and all of it were brought to bear on the goods produced in a day, the "price level" could rise to 1000 times its level. A loaf of bread could go from 40 Cents to $400.00, If the volume of dollars was 5000 times the volume of goods bread could go to $2,000.00 a loaf if all things went up in balance with each other, but in the advancing

stages of the crisis the main thing desired by everyone would be food, and all imaginary demand plus real demand (wealth) would be seeking food. To speculate on the cost of food in dollars at that time, if it were available, is beyond reason. A good example can be found in studying the monetary collapse in Germany in 1923.(continue)

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