Sign In Sign-Up

Welcome!

Close

Would you like to make this site your homepage? It's fast and easy...

Yes, Please make this my home page!

No Thanks

  Don't show this to me again.

Close

we give up wealth we get dollars, but dollars are not redeemable in wealth from the issuer, then we Must realize the issuer is absorbing our wealth and giving us debt in return. The facts are there and some day the awareness will be there and we will feel very foolish.

A great amount of the dollars spent by the government are borrowed from the people The people lend dollars to their government by buying' bonds and Treasury bills, etc. The dollars are debt records already, and the government uses them to make new purchases (perhaps in some cases wealth from the same people who bought the bonds). It gives these dollars in payment but the dollars are records of debt. Whose debt? The people's debt! Over and over again they are recycled the people give up wealth to accept them as a claim against themselves for the wealth they just gave up, and keep coming back for more of the same. The wealth is replaced with paper (bonds, Treasury bills, etc.) and marks in a book, all drawing interest and all totally unredeemable in wealth except from the people themselves.

The people owe themselves now for all the wealth they ever produced that was in excess of their own consumption and the creators of the dollars have taken title to it all and will not return one ounce of it for all the paper and ink dollars on record. All dollars spent by the creators of dollars are all debt to the people with no recourse on the dollar creators.

Tremendous "Dollar" creation exists in the United States, but only "dollars" bid against production in exchanges cause Falling "dollar" Parity (higher prices). Dollars already created as bookkeeping entries far exceed the United States productive capacity to absorb their "imaginary demand" within the time frame of a crisis.

"Dollars" can be created "in the billions" with the stroke of a pen; but "Production" requires Capital, Labor, and Time!

Production is either real demand or real supply by position in exchange; neither real supply or real demand can exceed itself.

If "dollars" were 100% redeemable in a commodity then dollars in or out of active exchanges could not in any way, of themselves, cause increased bidding, they would represent wealth and be real demand by proxy.

"Price" change of Gold: No currency exchange

Change date minus 1 day: John has 40 Fed notes and decides to hold.

Walter spends 40 Fed notes buys I ounce gold.

Change date arrives: Gold officially "priced" at $160 per oz.

Change date plus 1 day: John buys 1 oz. gold for 160 Fed notes.

Walter keeps his 1 oz. gold bought for 40 Fed notes.

Gold did not rise in "use value": it was the currency unit which suffered a lowering in purchasing power.

Currency exchange: No change in the "price" of gold:

Assume an exchange of currency from green to red at an exchange rate of 10 for 1 that is ten green ones turned in to receive I red.

Change date minus 1 day: John has 40 green notes and holds them.

Walter spends 40 green notes for I oz. of gold.

Change date: John gives up 40 green for 4 red notes.

Walter does nothing and keeps his I oz. gold.

Change date plus I day: John has only 4 red notes.

Walter sells his I oz. of gold for 40 red notes.

John's original 40 green notes suffered a 90% loss.

Walter's go1d was not deflated.

John had 40 green notes-now has 4 red notes.

Walter had 40 green notes-now has 40 red notes.

The realization that all the imaginary dollars on the books were suddenly worth only 1/10th of their former valuation in relation to gold, and "that" only if- the government paid them off with its gold, the government would have to, because with the imaginary dollars not being honored by the public, and the tremendous task of trying to explain to the public why the imaginary dollars are not good, government would have to invent some story, as well as take some action. The government would have to restore the people's faith, so new bearer certificates would be issued and honored with redemption in specie. Government would again have to get its wealth from the people directly by taxation in order to be able to make disbursements.

The situation is so fantastic and unbelievable that it is impossible to deduce what they will say. The perpetration of the fraud itself was stranger than fiction to begin with. What will they conjure up next?

Banking would have some adjustments to make, there could not be a return to the old method of mixing records of receipts of gold, silver and imaginary dollars as just marks in a book preceded by a "dollar" sign. With bearer certificates marked for the number of ounces and the fineness of precious metal, they represent, they could not be recorded as dollars. In fact the "prices" of goods would eventually change and be marked with a gold and silver parity acceptable to the merchant for their purchase. Gold and silver coinage of known weight and fineness, and bearer certificates made out to represent these coins in like wordage "This certificate certifies that there is on deposit at the First State Bank of Missouri, one ounce of gold .999 fine payable to the bearer on demand," would be the mediums of exchange, and the "prices" of goods would reflect the changes in parity that might develop between the common commodities used as purchasing mediums, and all other commodities as industrial. progress, or resource changes, affected a change in their parity relationships. This would not cause any problems at all since gold and silver coinage for thousands of years have always remained relatively stable in relation to other commodities, except where they were artificially regulated by totalitarianism bent governments.

With the use of common wealth commodities gold and silver as the mediums of exchange, and "prices" on goods indicated directly in their terms, any need for a word "dollar" would have disappeared. Bank records would record the amounts of gold or silver deposited as simply gold or silver received, and the amount. Checks could be written, transferring gold or silver coin balances affected by economic transactions, exactly as before, with no chance of conspirators being able to create wealth expropriating imaginary dollar debt mediums of exchange out of nothing. There would never be any assigned fixed parity between gold and silver they would always have their true market established parity, checked daily by free people in a free market.

All those people who had put their faith in the false medium, will have lost everything and have to start over. If they are able bodied. For all the people on pensions who had worked years contributing "dollars" to their pension funds, there isn't any solution, except perhaps the loyal Congress might honestly indict the conspirators, confiscate the wealth they had accumulated and distribute it to the "dollar" victims still living, and declare all recorded imaginary dollar debt abolished, along with the Federal Reserve Act. This is the best we can hope for an orderly transition back to the "free coinage" system with as little hurt as possible for the people of the United States. With wealth mediums in use and everyone having to labor to earn a living and the people only paying government for government services performed (income tax having been abolished along with the Federal Reserve Act, there could not be any "foreign aid" foolishness or great society wars on poverty. People who did not or could not work would have to depend on the many charity organizations that would have new life in themselves, since people are free of income tax would be freely willing again to support the charities as they did in the days before income tax and money.

Speculation on deflation NN123

Of course, the people who do have the power to call a halt to the present conditions and bring about the transition speculated upon above, might choose not to do so. All indication to date are that they will just let it come to a head and let nature take its course, or keep on trying any number of variations of schemes to try to continue this fraud. The big drive they are making is to try to continue the imaginary dollar debt creation without the accompanying natural law detrimental effects, but it cannot go on much longer. There is a growing movement across the land of people wanting legislation through Congress to return the people's God-given right to trade in gold. The forces opposing that legislation are great, and from the above we know why. The great imaginary dollar creators having an unlimited supply of "money" have power to elect and persuade most of our elected officials. Who can deny it takes money to become elected, and who has the most of it? The legislators will be influenced greatly by the "people" who got them elected not the "people" who did the voting. Again, though, the people are hearing the word across the land, and although the overwhelming majority do not understand why we are forbidden to have gold, they could just start wanting it because government cannot give a logical reason why they are denied it. If enough people want it, and the legislators get the word, they will bend toward the will of an aroused people.

Once the right to trade in gold is restored, the demand for it matched against the scant supply should send its "price" through the roof. Again, it is important to note that given the right to trade in gold is a step in the right direction, but it is not the same as making the existing imaginary dollars of debt an automatic demand for specie payment at the bank, which is what the great majority of the population would no doubt immediately assume.

Imagine, if you will, the shock, surprise, and consternation of the people to find out that they may now own and trade in gold, but that their life savings of imaginary dollars aren't redeemable for any gold. If they want gold for their imaginary dollars they will get very little, as described above. The sudden realization that they have literally been robbed of their life savings could cause widespread rebellion against the government, looting, burning, and general all-out insurrection, or anything in between; we may examine history for guidance in our conjecture.

No matter how the end to this folly comes, it will come. It will break as the "John Law" and "Teapot Dome" scandals did, only this promises to be at least one hundred times worse. Everyone will be affected, none will escape entirely, but the ones who had some knowledge and did some planning for it will certainly fare better than those who did not. Those who had put their faith in savings certificates, bonds, and all types of fixed interest instruments, will in all probability be the hardest hit, the stock market next hardest hit, then real estate. The ones who will suffer the least are those who put their faith in silver and gold coin held outside the banking system.

Savings certificates and bonds are all denominated in imaginary dollar debt balances, and it is the imaginary dollar collapsing that will leave them worthless! The stock market will suffer collapse, because without a medium it cannot function, and without functioning it cannot pay dividends, and without a dividend return on investment, everyone wants out, all sellers, no buyers. For those who can hold on and survive the depression "interval" the loss will not- as great as with U.S. and municipal bonds. Real estate will suffer a big drop in value because it has risen in value over the years, due to inflation. When the big deflation hits, the real estate will drop in value to where it normally should be. For those with silver and gold coin to trade there will be excellent bargains in all types of real estate, art works, stocks, etc.

"Money" The Greatest Hoax On Earth N124

In fact, when the big deflation comes there may be a windfall of opportunity for people with large mortgages. If Congress should declare the big deflation and direct that recorded debt be reduced simultaneously, anyone with say a 40 thousand imaginary dollar-debt balance which had been "reduced" to 4 thousand (assuming a I new for 10 old deflationary exchange), could clear his mortgage with a handful of real wealth. Unfortunately, those with large mortgages under the same conditions, but who do not have the handful of real wealth will probably suffer foreclosure. During the 1930-1935 depression many people with only one payment remaining on autos and appliances, lost them because they could not come up with that final payment.

Those people who had put their faith in silver and gold coin and had held it as a hedge, will be in the best position of all. They alone will have the liquidity that is the lifeblood of our economy. The silver coin will come out as a means of conducting economic transactions. Scrap gold around the house from old jewelry, lockets, chains, -old rings, all will. become the media desired by all. During the 1930-1935 depression, "buyers" with little black bags, like doctors use, came around the streets of the city ringing doorbells of houses and apartments asking to buy old gold. Unlike the people of rural areas, who can live off the land, and feel that gold hasn't any value because you cannot eat it, the city dwellers had to have the gold to get the ''money'' to buy the food the farmer brought to the city. You cannot eat the "money" or the gold but you do not eat without it, if you are not a farmer. When millions of people are out of work, they will endeavor to sell their possessions in order to eat. With everyone who is unemployed selling to get the media with which to obtain the food, it will be a "buyer's" market, and those with a little wealth will be able to buy all those things they ever wanted at very low "prices."

Those unemployed and without wealth set aside for this depression will be looking for employment. The competition for any job opening will be so great that anyone with the capital to start a business will have the choice of qualification he desires as labor, and at a fair wage his business can support. Labor unions, as we know them now, will not exist.. Without the imaginary dollar available in quantity from the government to continue failing businesses, all businesses will have to operate at a profit or fail. To make a profit and be progressively successful in business, the employer must pay the employee (labor) its full share of the profit from production, no less, and no more. In a free market and competition it will be so! For those who will argue that it was the fact that it was not so that gave birth to the labor unions, as we know them now, it will have to be pointed out that we have not had a free market in almost a century. Manipulation of the market by the imaginary dollar forces purposely created conditions that led to the false rivalry between management and labor, when labor and management should have been joined and fighting their common enemy, the inflation creating federal reserve banks. Anyone with common sense could have seen that businesses saddled with the necessity of paying $1.25 for labor to produce a product that could not be sold for over $1.00 could only end up going out of business.

It was the constantly increasing volume of money that was causing its becoming less and less able to purchase the quantity it previously had. Labor needed more money to meet the "higher costs" of living, and management needed more production per unit of labor cost to maintain its profit in the face of "higher and higher costs" of raw material. Inflation was robbing them both and neither labor nor management was aware of the truth. The government line, -handed out through the newspapers, radio, and television, completely brainwashed management into believing that lessening profit was due to increased union labor demands, which raised the "prices" of his "purchased parts." Labor was led to accept the story that it was management exploiting labor into greater production to offset the "higher costs'' of "purchased parts," keeping management's profits constant while labor bore the entire burden of inflation. The public was told that it was their desire for more luxury goods that raised "prices," and it was labor's Inability to increase man-hour production that was not keeping "prices" stable.

There is always a plausible explanation, but it will not always stand up under investigation. If suddenly or even over a period every worker did, in fact, lower his output of production per man-hour, the labor portion of cost to his employer would go up. It is very understandable to see the employer raise his "prices" accordingly. In reality, "government'' is saying that it is the lessening of the amount of goods available for purchase in relation to the amount of money volume that causes "prices to rise" and "inflation." This explanation is logical if we assume a constant money volume, but it seems we are also told that the federal reserve controls the money volume to keep it in balance with the supply of goods available for purchase. The truth, then, if we are to believe both stories is that the production of goods varies from time to time as does the money volume. It would mean that the federal reserve is not adequately anticipating the amount of goods available in order to keep the money volume in balance. That is understandable, because who could anticipate the whim of the labor force as to when it will lower its man-hour production, go on strike, or vacation, or when an employer will work to increase inventory or temporarily layoff to decrease inventory? It doesn't take a genius to see that this explanation, presented to the public by government economists, would seem a logical explanation of why we are having a rising price level --logical, yes, but the truth, no!

If it were the truth, then there is a simple solution used by engineers in industry for decades; it is called "control"-we would simply install an "interlock," by allowing no 11 money" at all. By using only bearer certificates, every piece of paper used as a medium of exchange would be redeem * able in a commodity-that way no paper bills could exist in excess of commodities available to redeem them, result; inflation impossible!

For example:

Every producer of a commodity would bring his goods to a warehouse and receive warehouse certificates, one certificate for each unit quantity of his commodity. For wheat, say one certificate for each bushel, the certificate bearing a legend which read: Payable to the bearer on demand, one bushel of wheat at Wheatley's Warehouse. The zinc smelter could take his zinc ingots to Zinky's Warehouse and get a certificate for each ingot, or ten ingots, or whatever denominations desired. Each producer could put his goods in a warehouse and receive a certificate, or he could store them himself and issue bearer certificates good for each unit of his production. To cover perishable goods, the bearer certificates could have expiration dates. There would be places where producers could go to exchange certificates; areas centrally located and probably called "commodity exchange markets." Paper certificates could be exchanged for whatever was desired in exchange for their production, exchanging paper certificates in the market where practically every producible item would be available.

A producer could bring what he produced to the warehouse, pick up the bearer certificates, go to the commodity exchange market, exchange his paper for the bearer certificates of the commodities he desired, take those to the warehouse indicated, get the goods and drive home.

For those who just wanted to sell their goods and not purchase anything at that time, they could do as described above, or take the goods themselves directly to market and exchange their production for bearer certificates of nonperishables bearer certificates for gold, silver, platinum, copper, zinc or any certificates that did not have expiration dates. In that way they could leave the nonperishable metal on deposit in its special warehouse, probably called a bank, and use the certificates at any time in the future. If they left the goods at the warehouse, there would have to be a storage charge but it would not be much, or they could take the actual metal home with them. The bearer certificates for nonperishable goods could be used to make purchases at any warehouse (stores), and as a general currency in any market place. The bearer certificates, bearing no expiration date, could and would be an excellent medium of exchange. The fact that it could not exist unless some production, somewhere, was held in reserve for its redemption, would make it impossible for the goods available to get out of balance with the medium of exchange available for the purchase of those goods.

If labor slowed its production there would automatically be less medium of exchange in exact proportion to the lessened production. Since the bearer certificates could not be issued unless there was a product for them to represent, they would remain forever interlocked with the supply of goods, and the result would be "inflation Impossible."

The logical conclusions drawn so far have been limited to the considerations of the real world as it should be, with free enterprise and free market conditions described as they should be, and how they have been literally wrecked by the imaginary demand dollars that have been accepted by the people.

Under the conditions of the world described so far, the world we live in is a very difficult world to understand. The real issues have been submerged in a great morass of brainwashing propaganda, and the false issues brought to such a degree of awareness, that to try to find the area of demarcation is almost impossible.

It has been said before, and will be repeated now, "there isn't any precedent in history for the condition of the world today." Finding a solution to our difficulties involves more hope than certainty. Our closest reference is the situation back in 1934. The currency of the United States was dollars, and dollars recorded as numerals preceded by a sign ($) were unidentified as to form. The dollar officially was 25.8 grains .900 fine gold, and all the paper in circulation was at that time redeemable for gold or silver coin. When gold coin was called in, there was a reasonably logical explanation accepted by the public. Each citizen who turned in his gold was given a receipt issued by the federal reserve. The idea was accepted by the people that they could get their gold back at a later date by turning in their receipts. History tells us 'it didn't work out that way-we were only allowed to have coins in our possession as coin collectors, and the "value" of gold was RAISED to $35.00 an ounce from $20.67 an ounce for gold bullion, and we were forbidden to own any by executive order. Where $1.00 before bought 25.8 grains .900 fine gold, $1.00 now bought only 15.238 grains gold, but we could not get it from the Treasury or the Fed-we would have to buy it from the "nonpatriotic" holdouts among us who had not turned theirs in. This is being brought out here now to help us see the difference between conditions then and conditions now. At that time, just before the devaluation of the dollar, all of the currency was redeemable for gold. The reasonably logical explanation of government's need to collect the gold was accepted by the people, and most "dutifully" turned theirs in.

At this time we are using totally fiat dollars with absolutely no pretense of promise of redemption for anything held in reserve. Dollars today are totally dependent on only the people's individual exchanges of wealth for them to give them any exchange value at all. The government has been making statements for a long time denouncing gold backing and insisting that gold will be demonetized. Without again going into why gold or any other wealth for, that matter can never be demonetized, instead let us sit on the elusive line of demarcation between the real world and the unreal world and speculatively consider only the effect this government documented view on gold might have on the eventual deflation that must follow inflation out of control.

In 1934 we had a devaluation of the dollar," that is the gold "dollar," the metal one to 15.238 grains .900 fine gold from 25.8 grains .900 fine gold. The reference to gold was necessary to continue the belief in the minds of the people that "dollars" only partially represented by paper tokens were of some value. At this time all pretense of reference to gold has actually been denounced, so how could a devaluation take place? The change we have to go through now cannot be a devaluation-it will no doubt be a deflationary exchange. The physical tokens representing dollars will be called in and exchanged for a lesser amount of new gold-backed bearer certificates and simultaneously a comparable reduction of recorded debt will take place on all ledgers of account. Now to do that the people. Would have to have the right to own, trade, and hold gold returned to them. The most significant point here is that before the government would "want" to have a deflation, they would want to have in their possession as much gold as they could get, to be the backing for the new bearer certificates to be issued. This is a difficult situation to describe. The government has been denouncing gold as backing for dollars, now they need the gold. They dare not tell the people they want it to back new bearer certificates, that would tip off the coming deflation.

They dare not take it by force because it would be very disconcerting, for a U. S. citizen, to have his gold confiscated today and tomorrow see an executive order rescinded so that he may freely own and hold it. Somehow they must get the gold from the people before they call the deflation, and it must be given up by the people, not taken by force.

Perhaps they could plunge us Into a third world war and declare gold a strategic material-that might do it. It is the way the ancient Romans did it. The Romans made war on their neighbors so they could, upon conquering them, make them give up their wealth for Rome's credit. Perhaps the government of the U. S. could get the gold from the people by making them believe in their minds that gold could be demonetized and only be worth the dollars government was willing to give them for it. That is a tall order, but it does seem to be what they are trying to do. The situation is extremely thought provoking. The people who do own gold are the people who are somewhat aware of the real world, or they would not be holders of gold. They will not be so easily fooled. The great mass of American people living totally in the unreal world will be easily fooled by the "demonetization" of gold" hoax, but they do not own much gold. The great mass of people in the European economic community (300 million) are far more aware of the real world, than the American people it will be difficult to fool them. The latest information on the state of their currencies is that they are still not totally fiat, and they have far less to lose going back to gold integrity than we have. Somehow it just would not seem probable to have history record that the unreal world of total fiat conquered over the real world for any great length of time. Deflation will come, and all things that have transpired before it will have an effect upon how and under what particular circumstances it will be accomplished. The outcome should be a return in the direction of a real world, and the perpetrators of the great hoax that gave us the unreal world should have suffered some setback in their plans for a one-world serfdom.

The ways in which "deflation without chaos" may be attempted are manifold; one way that may be the easiest would be to let the imaginary dollar-debt die naturally by reintroducing the wealth media. It is almost impossible to put the situation into words.

If the decision were made to stop this nonsense and go back to wealth mediums of exchange, the transition from make-believe to reality would not be easy. It would be necessary to rescind the executive order forbidding the people's use of gold as a medium of exchange and a settlement of contracts. A return to the "free coinage" system that existed before the silver and gold standards would have to be effected. The mint would have to accept the people's own gold and silver and mint It into coins directly at full value, with the weight and fineness stamped on the coin.

The introduction of wealth media into the economy at a time that the economy is flooded with imaginary dollar-debt balances would have a decided effect. With the prices of all goods marked in "dollars," the gold and silver coins introduced would have to have temporary dollar relationships as well as actual parities between them. The "dollar" relationships would be at much greater amounts than ever before, because gold and silver as wealth media freely exchanged. would soon acquire their natural parities with other commodities. As before, gold and silver coins would probably be stored by their owners in banks, and bearer certificates issued as currency. The redemption quality of bearer certificates would be preferred by the public over the imaginary dollars that do not promise any redemption at all. This preference would eventually cause the most profound consternation in all of history.

It would have to become evident to the general public after a time that their own bearer certificates were worth much more to each other, than the imaginary dollar debt balances owed to the federal reserve, that they had been using as a medium of exchange. Bearer certificates would be claims on gold and silver which remained relatively constant, but the imaginary dollars would not, because of their true nature they are debt, gold and silver coins are wealth. There could only be death in store for the trillions of imaginary dollar-debt balances created on the books of the Fed, for which there isn't any gold in storage to redeem them. Who would sell goods for a piece of paper promising nothing when they could receive a piece of paper directly exchangeable for gold coins?

"Money" The Greatest Hoax On Earthnnnnn128

The corner banker can accept a note from any individual and create a "demand deposit" (dollars) for the individual's checking account. The monetary units (dollars) thus created are recorded on books of account called ledgers. For every debit there must be a credit and this bookkeeping system is called double entry." The individual's note is a debit entry in the bank's account and the dollars out are a credit entry to "cash." The banker does not have to have the "tokens" (bills and coins) on hand to satisfy this "created demand deposit" (dollars credit added in the individual's checking account balance). A banker is required to have only a fraction of the "demand" created on hand in "tokens" that is why the system is named "the fractional reserve system of banking,"

When the individual "spends" the dollars by writing a check for a purchase, it is in the belief that it is a fair deal. In fact, the transaction concluded with the "passing" of the check is the first in a "long line" of "wealth expropriations" by "fraudulent means." The person accepting the "check" receives a promise of payment for wealth surrender, and is extending "credit" into the future. When the receiver of the check deposits it in his checking account, the deposit credit will be transferred from the "check writer's" account (at his bank) to the "check receiver's" account (at his bank). The original deposit credit is transferred from bank to bank as checks are written, passed, and deposited.

So the "credit" extended each time by a "check receiver" is credit extended to the banking system; the expropriation of wealth is being perpetrated with the credit created by the banks. The check writer gets the wealth directly when the check is passed, but the banker gets it when the check writer pays off the original note. Expropriation takes place when money credit inflation is "first" put into circulation.

Inflation credit money is always "there" as long as the monetary unit (dollar) record is kept; it can persistently and repeatedly be responsible for the "inflationary effect" (falling dollar parity) when it is, "returned" to the "active" trading center, and bid against production for exchange. The bank that created the original deposit credit to the individual note writer was only required to keep a fraction of the amount "on hand" in "tokens" that represent "dollars."

What if the imaginary "demand" at his bank from all sources is greater than the volume of tokens on hand at any time. The banker is always aware of the level of imaginary demand. He is required to satisfy, and can when need be, discount the "individual's note" at the Fed for the necessary dollar tokens at 5%. Then it is the Fed that is really the end source of credit. They and only they (commercial member banks) create credit out of nothing, they can take the "note" and issue the deposit credit, "tokens" (bill and coin) to the borrower. It is the Fed system, then, to whom "check receivers" extend their credit when they surrender wealth the Fed system is the receiver of the title to all the wealth purchased with the credit they create.

Regardless of "who" you owe "dollars" to "directly," the Fed system had to "create" them, or they would not be on "record." But the "tokens" (bills and coins) are printed and minted on orders from the Treasury (government). The dollar "bills" are paper tokens printed at the Bureau of Printing and Engraving and turned over by the Treasury to the Fed for issuance. The Treasury bonds "owned" by the Fed are the "backing" for the metal and paper tokens circulated. The Fed "bought" the bonds with their created deposit credits, which are not "backed" by anything; they are just numbers. When the Fed bought the bonds, the Treasury deposited the Fed's check in its account at its commercial bank. The Treasury writes checks against "that credit" and the banks "cash" the Treasury's checks with their federal reserve notes (the bills furnished by the Treasury in the first place). The Fed "Insists" that the "government" gets the benefit of all credit money inflation created. The fact is, It is the other way around; the ' creator of the monetary unit credit gets the benefit, not the fabricators of the tokens!

The bill is a "token'' to represent a "dollar." A dollar is a monetary term to describe an amount of an imaginary monetary unit accepted by the people as an exchange medium for their wealth.

"Accepted'' by the people because government has made the "dollar" a legal tender in the. settlement of debt, and outlawed the people's own choice of "gold'' (wealth) as a settlement of debt.

If government (Treasury) issued the "dollar" directly into circulation they would benefit directly and exclusively.

But government (Treasury) turns them over to the Fed for issuance.

For government (Treasury) to spend the bills it prints, it has to first create and sell an interest bearing" bond to the Fed for a checking account deposit credit.

The Federal Reserve Banking System is on top!

Imaginary dollar balances created by the federal reserve on their books are imaginary debts owed to them by whoever they lend these imaginary dollars to. The imaginary dollars are used throughout the United States, and in other countries as a monetary unit, in lieu of wealth in almost all economic transactions. The imaginary dollars exist in ledgers at all banks and are distributed and monitored by the entire banking system. The credibility of imaginary dollars existence is supported by a small percentage of paper and metal tokens that are distributed to the public for that purpose. Over ninety-five percent of all economic transactions, in the U. S., are handled by checks and drafts which are simply written instructions ordering the transfer of these imaginary dollar debt balances from the account of one entity, in a bank, to the account of another entity at another bank. The small percentage of economic transactions handled by the physical representations of imaginary dollars, the tokens, are just for the benefit of keeping the fraud alive.

The actual tokens may leave the banking system and reenter at any time at any point without affecting the record of imaginary debt owed to the federal reserve banking system by the public. The tokens dispensed by the banks to the public, leave behind a record on the banks' books that they only borrowed those tokens from the federal reserve, they were only loaned out by the federal reserve as physical evidence of the existence of imaginary dollars of imaginary debt to the federal reserve. While the public holds tokens, the banks' records show the individual borrowers who owe the imaginary dollars they represent to the federal reserve.

The fact that the federal reserve is in full control of the Treasury of the United States is evidenced by the fact that the Treasury has the paper bill tokens printed at the Bureau of Printing and Engraving and furnishes them to the federal reserve. The Treasury has the mint fabricate the copper-nickel coinage and turns it over to the federal reserve for issuance. The paper bill tokens themselves were physical evidence of the collusion. The bills are headed "federal reserve note" but are endorsed by the officials of the Treasury in an attempt to induce belief that the federal reserve is a government agency. The federal reserve is a system of private chartered corporations, chartered by Congress, owned and operated by their stockholders 'The United States government does not own any shares of stock in the federal reserve system. The federal reserve controls its own board of governors, appointed by the presidents, but they direct on advice and counsel from the federal open market committee, and the federal advisory council, both of which are of the system, for the system, by the system. The federal reserve system is operated for a profit, not a percentage of profit, for a total profit, it is all profit. They create the imaginary dollar balances on their books and distribute them as loans thoughout the banking system and they are used as the monetary unit upon which our entire economy is built.

The transition from the use of wealth mediums of exchange to the present system, described above, could not have happened by chance, it required conspiracy. Until 1933 the people conducted all economic transactions by the use of gold and silver coin, which was wealth very nearly the worth of -its monetary denomination. All the paper bill tokens in circulation were redeemable at the bank for the gold and silver coinage, which indoctrinated the minds of the public with the idea, that as long as paper was redeemable in gold, it was as good as gold. It took cunning and planning to gradually outlaw the use of gold coin in the settlement of contracts, and allow the paper bills to become the media replacement for the preeminent wealth commodity. The paper bills were still redeemable in silver coin, and that helped. In 1965 the Coinage Act replaced the silver coins with copper-nickel "slugs" which left the public with redeemability in wealth only to the extent of the fabrication costs of the "slug''. For all practical purposes nothing but the worth of the tokens themselves, and, behold, they stood by themselves! For the first time in American history, the people have absolutely no control over the wealth of their nation. When all economic transactions were handled daily with gold and silver coin and all paper tokens were redeemable in wealth, the people of this great nation held the wealth of their nation in their hands, and directed the policies of their government.

Today, with a so called "Irredeemable currency," which is in reality not only, not a claim on wealth, but a token representing imaginary debt, the people of the United States have absolutely no control over the remaining wealth of their nation, and literally no directive or controlling power over their government. The entire nation, dependent on the continued flow of imaginary dollars of imaginary debt with which to operate its economy, Is totally within the control of the creators of those imaginary dollars of imaginary debt. To say this all came about by honest mistakes of inept officials is the height of wishful thinking. It was designed, engineered. and perpetrated with the skill of the owners of the stock of the federal reserve system, the Invisible Government.

Using wealth as a medium of exchange for all economic transactions, the public is able to exchange all surplus production, produced by the division of labor, amongst themselves, and still retain the entire supply of the medium of exchange. When anything, in lieu of wealth is used, the result is inflation. But wealth can only be created by the use of capital and labor, since wealth is production itself, it cannot in any way become out of balance with itself. According to Webster, inflation is money in excess of goods available for purchase; in reality, inflation is money is credit.

When someone gives up wealth and receives "money,'' he has been robbed, or he has willingly extended credit. When bearer certificates were used, they promised redemption in wealth already produced and held in storage for the redemption of the paper. Bearer certificates representing goods already produced, and exchangeable for those goods are not inflationary, hence not money, and in the true sense not credit. A person giving up wealth for a bearer certificate is receiving wealth by proxy in return. Anything received in exchange for wealth that is not wealth, or directly redeemable In wealth already produced and held in reserve for its redemption, is inflation is money is credit itself. The token should not be mistaken for the "money" itself, the token is "real," it is of paper or metal. and it exists, but the ''money" it represents is imaginary debt.

If one received an IOU for his wealth he would be extending credit, and the IOU would be "money" and "Inflation" because of it. The IOU is a written promise, but not a bearer certificate if it were a bearer certificate, it would not be an IOU An IOU is a promise to pay, an evidence of debt, and is usually signed by the one receiving the goods, and given to the supplier of those goods, as evidence of good intention to pay eventually. The tokens we are using do not promise to pay anyone anything. The legend reads: ''This note is legal tender for all debts public and private," the object is to have one assume the note itself is the final payment and settlement for debt.

Anyone accepting such a note has neither promise nor wealth, and must pass it on to another who will accept it, in order to get anything of wealth for It. In accepting it you become the victim of the robbery by fraud, and when you pass it on, you are compensated, and the next holder becomes the victim. As long as these tokens circulate, representing imaginary dollar debts, they are expropriating wealth from the receivers to the last holder. The original robbery took place when the federal reserve first transferred its imaginary dollars of imaginary debt from its account books to the account books of another. To get the use of imaginary dollars the receiver must acknowledge an obligation, to repay them, plus an additional amount of them, as a charge, for the use of the ones borrowed. The imaginary dollars have only one source, the federal reserve; they are always loaned into circulation when a pledge to repay them is executed. At this point, some imaginary dollars have been borrowed and the receiver has promised to return them, plus interest. No wealth has actually changed hands as yet, but the mechanism has been set in motion. The imaginary dollar debt balances may be used to purchase goods and services in the market place with a check, which transfers a portion of an imaginary dollar balance from the account of the purchaser to the account of the merchant. At this point, robbery has certainly taken place; the purchaser received wealth, the merchant received a portion of a record of debt, owed to the federal reserve as payment for the goods he gave up. At this point the merchant is the victim, (he gave up wealth and only has a promise of payment) the purchaser is a dupe in the fraud originated by the federal reserve.. The purchaser used the imaginary debt, owed to the Fed, as a medium of exchange to receive wealth fraudulently. The purchaser may be ignorant of the fraud he committed, because he pledged title to his wealth to borrow the imaginary dollar debt balance he transferred to the merchants account by check; the transfer of imaginary debt was not -a comparable value for the goods he purchased.

When the merchant buys stock from his supplier and pays with a check, the merchant imaginary dollar debt balance is transferred to the account of the supplier. At this point, the merchant is no longer the victim, because he has now received the comparable value of the goods he gave up to the purchaser. The supplier now becomes the victim, and the merchant joins the ranks of the duped co-conspirators of the fraud (the federal reserve and the purchaser). This goes on and on with each successive holder of the imaginary dollar debt balance being a victim and becoming a duped co-conspirator as he passes it on to the next victim. Each one in turn never even suspects that there is anything wrong in all of this. Each one in turn gave up wealth to get the imaginary dollar debt balance, and therefore does not feel any reluctance to accept the wealth of another for it. The fact that a medium of ex change should be a store of value, a commonly accepted commodity of relatively stable parity, with other commodities, has been forgotten or ignored, or these imaginary dollar debt balances are accepted in the economy as being just as good. The belief may be that they are just mediums of exchange and as long as they are accepted, and believed In, that is all that is required. Some people are very firmly convinced that anything can serve as a medium of exchange with no adverse effect on the economy. Any is correct but "money" is not a thing, it is only a psychological entity.

To further confuse, and add credibility to the unbelievable fraud being perpetrated, the Treasury provides tokens to be distributed by the federal reserve through the banking system to the public. These tokens (paper bills and metal disks), which are in reality only physical evidences of the recorded imaginary dollar debt balances, serve the purpose of fooling the public into assuming that imaginary dollar debt balances are redeemable for wealth.

The public may be fooled and the public may believe that the imaginary dollar debt balances they pass around are only a medium of exchange and do not have to be a store of value; but there are natural laws that cannot be violated.

The imaginary dollar debt balances created by the federal reserve which are distributed by the banking system and are always "covered" by the borrower's pledge to repay the amount borrowed and an additional amount as a charge for their use are the key.

The additional charge for their use is called interest. The federal reserve is the only source of these imaginary dollar debt units, and although one might return all that has been borrowed, where would one get the interest. At first thought: from the great pool of those imaginary dollar balances in the accounts of others. The reality is that whoever has an imaginary dollar-debt balance is also paying 'interest. All the debt balances are generating interest all the time, everyone is required to pay interest, directly or indirectly, to continue their use of the imaginary dollar-debts to keep the economy going. Again to clarify, all borrowers pay interest directly, all holders, although they do not pay interest directly on the tokens they are holding-or on the debt balances transferred to them by the borrowers, are paying it in the form of increased "prices" the borrowers apply to their goods to cover the costs of borrowing the imaginary dollar-debt balances.

Where do the imaginary dollars come from that are being used to pay the interest, since the economy is still going? The dollars" to pay the interest are coming from the only source, the federal reserve creates them and they are loaned to the public as before, and passed from account to account, as before, and many of the borrowers go deeper and deeper in debt as they accumulate greater and still greater amounts of the imaginary dollar-debt balances. Part of the great, hoax is that interest also is imaginary; in reality it cannot exist. Interest is an imaginary dollar charge for the use of imaginary dollars, and the instant the public tries to obtain it from the banking system it becomes new additional debt, demanding to be repaid with interest-therefore interest is impossible to pay. Again you cannot get it from a fellow borrower because he too must pay interest, he cannot get his, from you because you must also pay interest. Interest cannot be obtained unless it is borrowed from the banking system and borrowed, what would be interest immediately becomes additional debt instead. Interest only exists as a figment of the imagination given credibility by mass common acceptance through unawareness.

In order for an economy to continue on a system using imaginary dollar-debt balances as its only medium of exchange, the volume of that imaginary dollar-debt must be constantly expanding. The imaginary dollar-debt balance volume on the books, must be increasing constantly at an ever increasing pace, and since it is requiring victims to give up their wealth to acquire the dollar-debt balances, the expropriation of wealth is also accelerating. We must observe that when a purchaser buys goods from a merchant, and pays with a transfer of imaginary dollar-debt balances, the merchant is a victim of robbery by fraud, until be can use the debt balance to purchase supplies, or goods from another, then the merchant is compensated, and the supplier, or the other person is victim.

Every imaginary dollar of debt balance recorded indicates an imaginary dollar portion of the public's production extracted from the public by the creator of the imaginary dollar-debt balance, the Fed. At the present time in the United States, the federal government debt to the federal reserve commands interest returns of $20 billion annually. The total national imaginary dollar debt balances recorded exceed $2,000 billion on the books of accounts, and extract from the total yearly production of the United States some $120 billion annually in interest alone. These figures are practically impossible for the public to comprehend, but they are rising and it must be seen, as has been the case for centuries, that when the interest charges amount to more than is produced, that barrier cannot be penetrated.

The fact that the federal reserve is the only source of imaginary dollars, that they (the "dollars") keep our economy expanding, must be understood; if they stopped creating "dollars" at any time, the "new" borrowing required to pay interest would be impossible to obtain, and a liquidity crisis would be the immediate result. The Fed could stop creating "dollars," but if they did it would bring our economy crashing down. All the imaginary dollar-debt balances accumulated on the ledgers throughout the years would be owed to the federal reserve (the creator) through the entire banking system by all the borrowers. The title to every single thing they, the borrowers, had worked for all their lives would be vested in the federal reserve or owed to it for interest due!

The pitifully small amount of circulating paper bills and metal disks ("dollar" tokens) would be used by some very lucky ones to settle their debt to the banking system, but it would be less than five percent of the daily turnover. All the titles to wealth the borrowers had pledged to the banking system to facilitate borrowing the imaginary dollar-debt balances would be foreclosed to settle the loan and interest. All the efforts of a lifetime would be lost by millions of the population. What about the government bonds people "bought" with their "savings"? The government "spent" the proceeds from its bond sales, the government has been operating on these imaginary dollars also, and the government also could not settle its debt and would be foreclosed.

The government owes the federal reserve $430 billion and is presently going in the red some $25 billion a year. The bonds may be a claim against the government for dollars, and the official dollar may still be on the books at 15 5 / 21ths grains .900 fine gold, but by now everyone knows the Treasury's total gold holdings are less than $ 10 billion, and the public holds $50 billion in bonds. If the United States ever wanted to voluntarily return to bearer certificates, honor dollar claims on gold, as well as redeem their bonds for gold, how would they handle the imaginary dollars of imaginary debt we have been using? How would they make restitution for the following gold requirements?

$450 billion to the Fed for bonds 12,857,042,600 oz. gold

50 billion to the public for bonds 1,428,571,400 oz. gold

450 billion demand & savings of people 12,857,042,600 oz. gold

100 billion "Eurasian" dollars 2,857,142,800 oz. gold

$1,050 billion 29,999,799,400 oz. gold.

- 10 billion -----gold on hand in Treasury- 285,714,280 oz. gold

$1,040 billion - - - - - - - - - short -- - - - - - - ----------------------------- 29,714,085,120 oz. gold

We are 924,211 metric tons of gold short!

Only 75,537 metric tons of gold have been mined historically.

We are only short 12.2 times all that has ever been mined.

Perhaps by revaluing those dollars in terms of gold, the government could make it stretch. Let's see:

$1,050,000,000,000.00 divided by 285,714,280 ounces = $3,670.00 an ounce, that would allow them to settle up the imaginary dollar claims into gold directly. This means a devaluation of the official dollar from 15 5/21ths grain .900 fine gold (15.238) to .14507-grains .900 fine old or a settlement of $0.009523 (less than 1c) on the dollar. This is approximately the present debt level of the United States we would have to pay, if we accept as the debt level what we have been "told" it is. The best estimate that can be arrived at with information from all sources, places the real debt of the entire United States at near $5 trillion (5,000,000,000,000-00) or approximately 5 times the figures used above ($1.05 trillion).

This is why no effort has been made by the government to get off the insane kick we are on, and go back to bearer certificates and honest currency integrity, The situation as presented here is utterly fantastic, yet it is true. How is it able to continue, why hasn't it collapsed already? Those few people who may really understand the situation and are in a position to change it, will not dare to. They would throw the entire nation into the biggest depression and chaos since the dawn of time.

The international monetary fund, with a current membership of 116 nations, has its principal office in Washington, D.C.

It is funded with "quotas" from its member nations. The quotas vary with the economic scale of the country. Each nation must furnish part of its quota in gold, and the remainder in its own currency.

At its discretion, the fund may accept other non-interest bearing obligations. Each nation is committed to protect the I.M.F. from any loss in terms of gold. Each member must keep 25%, of its quota on deposit with the I.M.F. in metallic gold.

The fund is controlled by a board of governors, executive directors, and a managing director. Each nation member has an appointee on the all-powerful board. The voting power of each governor is 250 votes plus one additional vote for each $100.000.00 of his nation's quota.

The Bretton Woods agreement included provision for each member to supply an exchange rate for his currency in relation to the U.S. dollar. The dollar itself would be the only currency directly proportionate to gold at $35.00 = I ounce of gold .999 fine.

The stated purpose for the creation of the fund was to prevent economic chaos in the foreign exchange market when W.W. 11 ended. (More details on machinations as we progress).

Actually, it was a unique effort to create a world central bank, by allowing the secret expropriation of wealth from the world population successful in the U.S.A. The dollar was set as the common unit in which using a system that proved so fabulously the common unit in which all currencies would be calculated. No attempt at statistical accuracy will be made here, I believe that constant concentration on statistics prevents or makes difficult a deep understanding of this subject.

For examples and step-by-step examination of the foreign exchange bank and how it works, we will use the following:

Dollar =$1.00 = 1/35th of an ounce of gold. = 0.02857 oz.

Pound =$2.50 = 0.02857 X 2.5 = 0.07142 oz.

D. Mark = $0.25 = 0.02857 X 0.25 = 0.00714 oz.

Fr.Franc. = $0.20 = 0.02857 X 0.20 = 0.00571 oz.

The actual figures are quite similar to these, but vary, and daily rates are in the Wall Street journal. One important rule to remember is that each member nation agreed to maintain its currency . s rate related to the dollar within one percent up or down.

If you are wondering how the fixed rate gets altered, it is because no matter how they scheme to prevent it, the natural law of competitive bidding manages to make itself obeyed.

When a man in America buys an item from Germany, he knows the "price'' of the item in D. Marks. Since he wants the best deal he can make, he will seek to obtain the D. Marks for the least amount of "dollars." Depending upon the quantity, he has several choices: The foreign exchange market as such is intangible. The center for foreign exchange in the U.S. is in New York City, and it just doesn't have rules or regulations as does the stock market or commodity market. There are over two dozen domestic banks that have accounts with deposits in commercial banks throughout the world. These scattered deposits facilitate their transactions in foreign exchange.

Also in New York are some thirty to fifty representatives of foreign banks as well as an equal number of agencies and branches.

The foreign exchange market in New York has three distinct levels upon which it operates.

First: The transactions between the banks establish a relative, current rate of exchange between currencies, a fluctuating, daily rate of exchange that develops naturally by the laws of competitive bidding, not by any plan. In the parlance of the stock market they in effect " make the market": transactions in this interbank market are managed through foreign exchange brokers, and Intervention by the federal reserve bank is not uncommon. The first level works with domestic banks and their deposits abroad.

Second level: Dealings are made between domestic banks and foreign banks, where the federal reserve bank, for reasons of its own, may step in to control settlements and direct that they be finalized in currencies instead of gold

Third level: Service is extended to the public, for the most part commercial business dealings, when the bank arranges exchanges for the "consumer" of their product. For the whole system to work, the banks in the U.S. keep accounts abroad with convenient amounts of foreign currency deposits. These deposits may consist of any tangible or intangible paper claims on foreign currency, which the U.S. branch or representatives can purchase from the foreign public or arrange in dealings with the local banks abroad; or by buying excess foreign currency in the U.S. and transferring it abroad.

In "buying" these foreign currency claims they are furnishing dollars to the "seller" who needs them for a customer who needs dollars for the purchase of American goods.

Each bank has a crew of clerks (traders) who handle the actual buying and selling of the respective currencies or paper, and the details of each exchange are entered in the accounts by a crew of bookkeepers who record every transaction. The bank may buy from one customer and sell to another in the same day. If buying and selling are "even" after a day of trading, the bank has functioned exactly as a clearing house. Coming out even isn't very likely, so for the most part the banks will balance their holdings by interbank dealings in the market for the currency they need.

The New York interbank foreign currency market dealings are transacted by less than a dozen foreign exchange brokers. These brokers work by telephone, usually with direct lines, to keep them in instant contact with the trading rooms and the clerks of commercial banks. The brokers handle all leading currencies, although some specialization is practiced by a few. Their job is to coordinate the activity of prospective buyers and sellers among the banks. Through the efforts of the brokers, the banks' exchanges are managed easily and effortlessly, and they don't know with whom they are dealing until the exchange is finalized. The broker receives his income by charging a commission to the selling bank. The coordination of bids and offers in the foreign exchange market doesn't result in any direct influence on the relative parities of the various currencies.

The entire foreign exchange market will, however, react to any trend that develops. It is understandable that as each day passes, the constant flow of exchanges creates conditions, whereby for any given period the market as a whole would be a net seller or net purchaser of a particular currency. If the market becomes aware of a trend developing (one currency's parity changing in relation to the others), the brokers and bank clerks agree to adjust the relative values used in their "auction- haggling," and these daily rate changes appear in the daily list of exchange rates. Very slight changes in these rates have a very decisive effect on the shifting of liquid funds of large corporations and speculators. These rate changes are directly connected to the relative parities, and the relative parities are directly connected to the net imports or exports of all commodities and "money." The New York banks dealing directly with foreign banks effect this. Foreign banks actively dealing in their own currency exchanges also influence the relative stability of the parities.

"Money" The Greatest Hoax On Earth".............136

Let us take just two currencies and use their names to make another point clear. It is imperative that this be understood, for it is the basis for understanding this whole system. Let us use the New York foreign exchange interbank market dealing in D. Marks and dollars and the German interbank exchange market dealing in D. Marks and dollars. The German banks can influence the rate of their currency (the D. Mark) in their own market; they are constantly dealing in dollars and D. Marks. By bidding low for dollars and creating an inventory

of D. Marks they can cause the D. Mark rate to rise (to $0.26 from $0.25). (Actually, the rate changes are in 3-4 decimal place figures, but it will be easier to understand if we stay with clearly seen differences.) Then, of course, by offering D. Marks low (bidding dollars high) they can cause the D. Mark rate to fall (to $0.24 from $0.25). Remember, they could drive the D_ Mark down to $0.01 if they wanted to give them away.

This method of affecting the rate of their currency Is extremely important, -they cannot "lift'' or "drop" the exchange rate of their currency directly, they can only make moves that will indirectly affect the relative parity so, as to indirectly affect the exchange rate. Activity of this sort, which happens often, is frequently the decisive factor in the foreign exchange market. Now, why do they do this? After all, if the German bank needs dollars to satisfy its customers, and if D. Marks are traded normally at New York, why not offer their D. Marks to a New York bank, and perhaps gain a slight advantage in rate variation. Well, this is the way it is done. A foreign bank will buy surplus dollars from, its customers, and offer them in New York to buy D. Marks. New York, having bought D. Marks from its customers, may offer them through one of its branches in Berlin for dollars; its a two way street. There is a seemingly endless flow of messages, by all means of communication, steadily flying back and forth between the financial centers of the world.

The only reason the central bank (like our Fed here) would step in and start directing certain negotiations, is to affect the exchange rate. Their agreement with the I.M.F. calls for them to maintain their currency within certain narrow limits of the set exchange rate expressed in dollars. The U.S. agreed to maintain the dollar at an equally narrow rate in relation to gold.

There you have it. We keep the dollar within its range in relation to gold, and all the other nations keep their currencies within their respective range with the dollar. Talk about putting all your eggs in one basket, this is it. The dollar comes between member nations' currency and gold. You have to know their dollar exchange rate to calculate their respective value in gold. In fact, all the other member's currencies I parities to each other must be found by first obtaining their individual parities to the dollar and then computing.

We spoke of trends developing that affect rate changes, and how the central bank steps in to regulate negotiations and affect the relative parity directly so as to indirectly regulate the exchange rate and keep it within its narrow allowable range.

Let us explore just such a trend-its cause and effect.

Let us assume an "inflationary effect" in the United States, "prices'' are generally higher here than abroad and we will trace their effect on the foreign exchange market and the international monetary fund. With "prices" higher in the U.S., Americans will begin to buy foreign goods more frequently; imports will increase over exports. Foreigners will buy less goods here and more at home, so our exports will decrease. Our banks will be buying marks for their customers, for the customers' dollars; U.S. citizens' are giving dollar's to get D. Marks with which to pay for goods imported from Germany, Our banks get D. Marks from other customers, a branch of their banks abroad, or from a foreign bank with a branch or representative here, just to mention a few ways of obtaining them.

If imports and exports were fairly well balanced, there would probably be enough D. Marks around. Obviously with exports down and imports up, there is a higher parity for D. Marks than for dollars; so the rate on D. Marks rises. With the D. Mark parity rising, eventually the D. Mark rate hits its ceiling (the top limit of its range). The' German central bank steps in and offers D. Marks on the market at the "fixed" rate.

At this point we must see this system clearly there is a high parity for D. Marks-there is a low parity for dollars.

D. Mark rate is at ceiling in relation to the dollar.

The U.S. takes the position the dollar is "stable." After all, we say the dollar must only maintain its "relationship to gold." You must "adjust" your D. Mark's relationship to the dollar, so, if in your country the parity for dollars is not high enough then you step in, and buy, buy, buy, dollars until the inflation of D. Marks lowers their parity enough to bring them down to within the fixed ''range" for D. Marks, and the D. Mark can again be exchanged for dollars.

I. M. F. NNN137

The only way that the German central bank can buy dollars is with D. Marks, other foreign currencies, or gold. There are only three ways it can get currencies. One is to borrow them from the I.M.F. against its quota, buy them with gold or "create" D. Marks. Creating D. Marks (inflation) is the fastest way to lower their parity.

If the German central bank borrows D. Marks from the I.M.F., buys dollars and gets over this minor crisis, perhaps eventually the situation will reverse and the German central bank will be able to pay the I.M.F. back. Meanwhile, what does the German central bank do with this excess of dollars that no one wants? They are what is known as Euro dollars and they represent a claim on the U.S. gold as a "balance of payments deficit" due her for an excess of exports over imports to the United States.

They resulted from the German Nation having less "Inflation" and represent a "deficit in the balance of payments" (unpaid bill) for the United States.

Borrowing currencies from the I.M.F. to support the U.S. balance of payments deficit (unpaid bills) prolonged for any length of time would deplete Germany's borrowing power from the I.M.F. and she would have to "create" D. Marks to offer on the market; but creating them means inflation. Inflation would cause her ''prices" to rise and she would lose her export advantage, with less exports, more unemployment, and the whole nasty mess that started the U.S. down the ladder towards depression would begin to happen to her.

So Germany would use some of her dollars to buy the currency of other nations, currency she needs to pay debts in those countries. The dollars could serve this purpose as well as the D. Marks. Germany would use the dollars wherever she could, the result being that the dollars representing our inflation are spread all over.

The dollars still remaining would continue to seek return to the U.S. central bank from the German central bank in exchange for gold; gold is the final settlement. We accept money (paper tokens), knowing it to be only a means of getting what we want later for what we are giving up now, a means to an end. Money is only an imagined promise gold is a store of historic wealth; it can be used anywhere at anytime, even by a country at war to buy bullets from its enemy. So gold is the final settlement.

The shipment of gold from the U.S. and the return of our dollars demonstrates Gresham's Law we shipped them bad currency (dollars) to pay for our imports, now their return makes us relinquish wealth to pay off our obligation. Now for a deeper understanding of "bad money drives out gold." Think if we had not used bankers' money in the first place we would not have had "inflation" to drive "prices" higher or an excess of imports to give us a "balance of payments deficit": (unpaid bills). We would be getting their gold instead of giving them ours.

The U.S. kept this "inflation" and the "balance of payments" (unpaid bills) have kept increasing until today we have dollars accumulated in foreign central banks equal to over 110 billion dollars and we do not have even 1/10^th of the gold it would take to bring those dollars home. German alone has more dollars than we have gold to repatriate them. As of May 4, 1971, she cut her mark loose from I.M.F. rules and caused it to float, Well, let's really pinpoint what "to let it float" means with a dollar glut all over the world. Do dollars have a very low parity (low "price) "on the floor"? NO! The I.M.F. rules state; the dollar is tied to gold directly it didn't move' What happened was all the other currencies became "worth more." That is the system they agreed upon. Those bad Germans and the other "bad guys" let their currencies get too valuable so now here we are again, there is a low "parity" for dollars-them is a high parity for D. Marks. D. Mark is at the ceiling in relation to the dollar-U.S. says dollar is still worth I / 35th of an ounce of gold, (even though they will not give up the gold to I get the dollars back). U.S. maintains it is doing its part and Germany should do her part. Germany agreed to keep the D. Mark rate in dollars within 1% of its fixed parity, it is up to her to keep its parity from rising.

To comply, Germany must buy-buy-buy dollars again. She has more billions of dollars than we have gold to take them back. Germany knows we are bankrupt, all Europe knows we are bankrupt. To demand gold for their dollars would force our bankruptcy, and all their losses would have to go on the books! But if we stopped inflating and started deflating (the only cure for our illness), they could again use those dollars to buy goods instead of demanding gold as our "prices" came down within competitive range again.

Well, that is what we have been promising them all this time: we would put our economy in order, but we haven't done it! The U.S. says: "stick to your bargain, and if you can't keep your currency from becoming worth more, then REVALUE, and all will be well."

Germany and others say: "you cannot redeem your dollars for the gold you promised. DEVALUE the dollar: until you do, we will stop supporting it."

So Germany and others let their currencies FLOAT!

The moment Germany allowed the D. Mark to float, it went above its ceiling (instead of getting 4 marks for a dollar, tourists were getting only 3-5) On all foreign exchange markets the D. Mark rose in value.

So in actuality the D. Mark is in fact worth more than it was before in relation to the dollar. Why, then, does the German central bank refuse to revalue it and make the United States happy?

In actuality, the dollar is lower in value than it was in relation to the D. Mark. Why, then, does the U.S. refuse to devalue the dollar?

Why is floating the D. Mark and letting it become worth more in actuality any different from revaluation?

To comprehend the whole picture, we have to see what affects the various actions would have on the currencies involved:

German revaluation. Vs Dollar devaluation (raising the dollar "price" of gold).

Floating: Unilateral violation of the I.M.F. rules.

IT IS ALL CONCERNED WITH GOLD-GOLD IS THE KEY TO IT ALL

That is why we have been brain-twisted to think it means nothing.

Gold is not a "barbaric metal" it is a commodity first, last and always. Gold has historic wealth value far back in history-it is accepted all over the world as a measure of wealth. For this reason dollars were measured in gold "content" instead of inches. yards, ohms or fathoms. The I.M.F. rules agreement was 35 dollars = I ounce of gold .999- fine.

I dollar = I/ 35th oz gold or 0.0286 oz. = 4 D. Marks

4 D. Marks = 0.0286 oz. divided by 4 = 0.00715 oz. = I D. Mark

Under I.M.F. rules 1 D. Mark tied to the dollar = 0.00715 oz. gold.

For this exercise we will state that at this level or rate Germany has enough gold to back up all her currency outstanding at 0.00715 oz. per D. Mark 100016 she has no inflation-she has $10 billion in gold (286,000,000 ounces', and has 40 billion D. Marks outstanding.

Now let's assume a revaluation of the D. Mark, under I.M.F. rules to 3 D. Marks = I dollar:

3 D. Marks 1 dollar = $1.00 div. by 3 = $0.33 = I D. Mark

1 dollar = 0.0286 oz. gold div. by 3 = 0.009533 oz. gold = I D. Mark Each D. Mark in circulation now requires 0.009533 oz. gold ''backing.''

But Germany still has the same amount of gold (286,000,000 oz.). 286,000,000 oz. div. by .009533 oz. = 30,000,000,000 D. Marks could be in circulation 100% backed by gold. But Germany has 40 billion in circulation and now can only cover 30 billion with gold.

Suddenly by revaluing the D. Mark, Germany finds herself 25% inflated.

At the new rate 3 D. Marks I dollar she needs 0.009533 oz. gold/D. Mark

At the old rate 4 D. Marks I dollar she needed 0.00715 oz. gold/D. Mark

By revaluing the D. Mark she has debasement of: 0.002383 oz. gold/D. Mark.

I.M.F. ......139

That Is why Germany is refusing to revalue.

Now let's took at why the United States refuses to raise the "price" of gold (devalue the dollar) .

Let's assume the U.S. agrees to a new rate of 40 dollars equals one ounce of gold under

I.M.F. rules.

1 dollar = I/ 40th ounce gold or 0.025 oz. gold = 4 D. Marks

4 D. Marks I/ 40th ounce gold or 0.025 oz. gold.

I D. Mark 0.025 div. by 4 = 0.00625 oz. gold.

Germany still has the same amount of gold, (286,000,000 oz.) 286,000,000 oz.

0.00625 = DM 45,760,000,000 she has gold cover for, she has outstanding 40,000,000,000

She could now issue 5,760,000,000 additional with full 100% gold backing-a nice surplus of government funds.

At the old rate $35 1 oz. gold I D. M. needed 0.00715 oz. gold DM

At the new rate $40 1 oz. gold I D. M. needs 0.00625 oz. gold DM

Dollar "price" of gold raised Germany's surplus 0.00090 oz. gold DM

If the United States raised the "price' of gold Germany gets a big lift in her economic well being. That is why the United States refuses to raise the "price" of gold (devalue the dollar), raising the dollar "price" of gold is the only way the dollar can be devalued.

Due to the peculiarities of the I.M.F. agreements, if an individual member devalues-it effects only that member's currency, in its relation to gold. If the United States devalues the dollar It directly effects every other member's currency in their respective relationships to gold.

When Germany floated the D. Mark she was ignoring the I.M.F. rules, refusing to support the dollar, and in fact freezing the gold values of her D. Mark at its value at that time. (0.00715 oz. gold).

With the German D. Mark floating. at a gold value of 0.00715 oz. gold and the free market price of gold goes up in relation to dollars then the real value of the D. Mark begins to expose the unrealistic currency parity it has with the dollar.

. If the gold "price" went to 40 dollars per ounce on the free market then:

$35 = I oz. gold or $1.00 = 0.0286 oz. 0.00715 $0.25 = I D. M.

$40 = I oz. gold or $1.00 = 0.025 oz. 0.00715 $0.286 = I D. M.

If it goes to $70.00. per ounce:

$70 = I oz. gold or $1.00 = 0.01428 oz. + 0.00715 $0.50 1 D. M.

If it goes to $140.00 per ounce:

$140 = I oz. gold or $1.00 = 0.00714 oz.'-' 0.00715 $1.00 1 D. M.

So if the D. Mark was kept floating and the price of gold on the free market went to S 140.00 an ounce Germany's D. Mark would be equal to the dollar in "gold backing" and cause tremendous pressure on the unrealistic "currency parity" they try to maintain between the dollar and the D. Mark.

Now it Is clear why the D. Mark was floated. Until something is done by the U.S. toward deflation or devaluation it is the best way for Germany to protect her economy.

None of this in any way can eliminate the truth, which is that we used "dollars" we knew we didn't have the gold to back up; to purchase wealth all over the world, and now we cannot pay the bill. Remember the "dollars" we used were only promises; we haven't settled the debt until the holders of those Eurodollars can exchange them for the United States gold stock, or we have a deflation and they are repudiated. If we raise the "price" of Fold, we openly admit we embezzled the wealth of the world's peoples with our imaginary demand. In truth we are bankrupt, broke, and cannot meet our liabilities. We cannot begin the cure until we admit we are sick, and begin to deflate.

  Paper gold and new higher interest notes are just promises on different forms, we took their wealth, we must give them wealth in return, it is the only honest thing to do. We must face up to facts. We are not the richest nation in the world. We cannot borrow ourselves out of debt. We are fooling ourselves, but we are not fooling the rest of the world. The whole I.M.F. was just another experiment in the attempt to set up an international central bank, and it. failed.

When we had individual banks, private banks, state banks etc. all diversified, and they practiced fractional reserve (issuing more claims on gold than there is gold on hand) Gresham's Law exposed them. To reduce it down so we can see it clearly, they were exposed when their product was used outside their sphere of influence. Turn it around and say: a fractional reserve system rests unexposed within its sphere of Influence.

The I.M.F. was an extension of the sphere of influence. It is a fractional reserve system (25% gold deposit for all quotas). When Canada, Germany and others floated their currencies (continue)