Each citizen who held his savings in gold and silver coin held his wealth personally. Since his labor-wages were sufficient to pay for his upkeep with a little more for additional savings, his wealth gradually grew.

As people turned their savings into wealth- for-trading purposes (precious metal coins), the supply of wealth-trading media grew. The free market by its own natural regulation saw to it that the demand for additional wealth -purchasing media was always met.

Over the years, the bankers had introduced bank notes (bearer certificates), with sad results, because whenever they inflated them, Gresham's law would upset the system and the banks would fail.

The bankers then Influenced Congress to pass laws creating the Federal Reserve System. The Fed is a system of private corporations, a private central bank system made to look like and confuse people into believing it is an arm of the government. The Fed has the exclusive right to create "dollars," and issue "Federal Reserve Notes" which, by law, are to be accepted in payment for all debts, public and private.

A "U.O.Me." from a system of private corporations is signed by "our" Treasurer and Secretary of the Treasury so that the created "dollars" of a privately owned central bank appear to be backed by the wealth of the people.

The Treasury at the same time still issued U.S. Notes (I.O.U's of the treasury) which were allowed by the Congress, and also issued silver and gold certificates. With the introduction of "Federal Reserve Notes,'' we now had quite a mess of different mediums of exchange in circulation-all very, very confusing.

Confusion is a mild word. When we talk about "money."' everyone from the age when he receives his first nickel thinks he knows what "money" is, and yet on the front page of the Wall Street journal for September 24, 1971, it was reported; "A pre I.M.F. Seminar of eminent economists could not agree on what "money" is or how, banks create it."

People produce goods and services, and the excess of production being, exchangeable goods with use value, becomes savings wealth.

Gold and silver coins are wealth in the most convenient form for exchanging.

Gold and silver coins are mediums of exchange for goods and services.

Gold and silver coins are wealth-not promissory notes.

Gold and silver coins are freely exchangeable anywhere, anytime.

Gold and silver coins are wealth storing "purchasing power".

Gold and silver coins are wealth assets with historic worth.

Gold and silver coins earned as wages are wealth, not debt.

Gold and silver coins accumulated, is wealth accumulated.

When we "sell" our goods and services to someone for gold and silver coins, we have traded to mutual advantage, and received wealth in return, not debt.

If we used gold and silver coin, and paper certificates redeemable in fixed weight and fineness of gold and silver coin as mediums of exchange; there would be no need for "dollars"!

Bankers would have to produce goods or render service to be able to trade in the market place, he could no longer create "dollars" to expropriate wealth.

"Dollars" are loaned into circulation by bankers who create them at no cost to themselves.

"Dollars" are accepted as mediums of exchange for goods and services.

"Dollars" are thought to be obligations of the United States Government.

"Dollars" are thought to be obligations of the people of the U. S.

"Dollars" are imaginary demand for goods and services.

"Dollars" are imaginary demand for "our" goods and services.

"Dollars" are imaginary demand for the wealth "we" produced.

"Dollars" are imaginary demand for which we think we owe wealth.

''Dollars" are thought to be records of our debt.

"Dollars'' are thought to be promises of wealth owed to token holders.

"Dollars" held by us we think are claims we owe ourselves for our own production.

"Dollars" we hold we think are claims against ourselves.

"Dollars" we hold are thought to be debts we owe ourselves. "Dollars" earned personally as wages are thought to increase our own personal debt. ''Dollars'' accumulated are thought to be debt accumulated.

When we "sell" our goods and services to someone, they give us "dollars" and we think we owe ourselves for the goods or services we just sold.

When we "buy" someone's goods and services we give them "dollars" and they think they owe themselves for the goods and services they just sold us.

It is a game we have been playing because we did not know any better.

With the citizen's right to own gold removed, plenty of silver on hand, 2,000,000,000 ounces, all kinds of programs could be tried to expropriate the wealth of the people. But government "is" the people. For government to spend, someone must receive-who? Big business. Who owns big business? Why would government want to make big business rich and powerful?

When congress chartered the Federal Reserve System, the very people who helped to put it over did not know what they were really doing. Once a government gives the power to issue money to any organization, that organization then influences the government, and will manipulate government to suit itself.

As long as "money" is accepted by the people in exchange for their goods and services, the creators of the "money" will regulate the people's lives and destiny. With the power to create and issue the only "legal tender," they can corrupt and influence the passage of any law "money can buy." With the power to create and issue all the legal tender they desire, they can purchase every important means of production and regulate the economy of a nation; but only so long as they can keep the people ignorant of the fact that "money" is a psychological medium of exchange and not wealth!

Wealth is the real power. Wealth is produced by labor, labor is provided by the people. When people control the wealth they produce themselves, they control the government of their nation. They are the government in any free society. The right of citizens to own and control the property they earn in honest labor is the very essence of freedom. Taxes such as income tax," "social security," "unemployment insurance" and all other taxes of this nature, if allowed at all by the people, should provide for the individual's ownership and control of the funds, when the purpose of the taxes is exercised. These taxes now take our earnings and vest in government the right of distribution, which is in violation of the constitution.

The prime function of government should be the protection of citizens from each other, and all other forces foreign and domestic, including government itself. The exclusion of government from its prime function since the addition of the sixteenth amendment to the constitution has resulted in almost complete loss of individual rights and freedoms.

Taxes should be applied equally to all citizens for government expenditures incurred in the performance of its prime function only.

When the people exercise the power of their wealth, and control their government by refusing to accept anything except the silver and gold coin they pay in taxes as payment for goods and services they furnish government, the government will respond to the will of the people.

When people, through ignorance, accept a psychologically created medium of exchange in full payment for the wealth they produce, they give up the control of their government, and invite total exploitation by the creators of the "money."

The writers of the constitution knew exactly what they were doing when they wrote in Article I section 10 paragraph I "No state shall .... make anything but gold and silver coin a tender in payment of debts."

Gold and silver are acquired by labor and have the unique quality of being able to store" value with a stability and preservation greater than any other commodity. The accumulation of wealth in the form of gold and silver has determined the outcome of conflicts throughout history-it is said "one can buy bullets from one's enemy with gold"! To give up gold for a piece of paper representing a quantity of psychologically created medium of exchange called "dollars" is unbelievable!

People able to barter with gold and silver coin, control government and are free. Loss of the right to trade in gold and silver coin enslaves people to the money creators.

There is only one earth, its resources, and man himself to be considered in the science of economics. Natural law says that if man does not himself produce those things necessary to sustain his life then he must produce those things that he can exchange for the things he needs. Human exertion producing products from the earth's natural resources is the only natural source of wealth in the world. Anything produced by human exertion having ex. change value is wealth. Human exertion not directed at producing a product is performing a service.

Wealth may be exchanged for services performed at an exchange parity agreed upon between the parties involved. The parity between labor (human exertion) and wealth (products) will always depend on the mutual agreement of the exchanging parties in a naturally free market. The natural law that will govern this parity is the willingness of the wealth producer to surrender his wealth for the services of labor at a rate he considers it worth. All products produced by human exertion having exchange value are wealth, and as such are supply. All services are potential until performed and when exchanged for other services or wealth are a completed exchange'

Products are referred to as goods, and in the past supply has been referred to as all goods and services available for exchange. That error will not be repeated here, services are potential, products are existing, tangible things.

Demand has been referred to as all human desire for goods and services. A human could sit at home and desire, but until he takes some of his produce or labor to the market place and offers it in exchange for the things he desires, he has not in any way affected the level of demand. Products (wealth) offered for the exchange In the market place are demand. Services (labor) offered in the market place for exchange are potential demand, when accepted, performed, and settled by an exchange of other services or wealth, it is a completed exchange.

Products (wealth) are tangible and are either supply or demand by use or viewpoint. The importance of this can never be overemphasized. Supply and demand are identical, there isn't any difference. Wealth is either supply or demand by viewpoint. There can never be an imbalance between supply and demand because supply and demand are the same thing. When services are exchanged for wealth the reduction in the amount of supply represented is exactly that amount of demand, and the balance is undisturbed. If services are exchanged for services the balance of supply and demand is not affected.

Since all products are the result of human exertion on the resources of the earth, each human in possession of his wealth is aware of the amount of labor it took to acquire his product. The parity between products agreed upon between parties to an exchange is a complex conscious or subconscious weighing-in-the- mind of the relative labor one is willing to surrender for the wealth one desires. In such -an exchange it is natural for each party to feel that he is getting something he values greater than that which he is giving up or he would not make the exchange. In a natural free market there can never be an imbalance in supply and demand because they are both wealth, and wealth is supply or demand by viewpoint.

Any commodity whatsoever is either supply or demand at the same instant in time. Wealth has many forms -perishable foods, clothing, shelter, useful tools, precious metals, etc. Wealth produced in excess of wealth consumed during the wealth production is wealth available for exchange (inventory).

Wealth surrendered for wealth desired (for use or consumption directly in the form received) is called barter. Wealth produced in excess of wealth consumed and exchanged in any given period is savings, but savings in the form of perishable food would spoil in time and lose exchange value. Those forms of wealth that are particularly impervious to time and corrosion and are readily divisible without loss of exchange value are excellent forms of wealth to be held as savings.

Savings in these wealth forms also make preeminent mediums of exchange for use in the market place. The fact that these wealth mediums of exchange that developed naturally in a free market system were called "'money'' did not matter, since until recent times all that was called "money" was in reality wealth. With only wealth as a medium of exchange in the market place there could never be an imbalance of supply and demand or any unnatural market phenomenon called "Inflation."

With only wealth in medium of exchange form in use, the exchanging of one's goods for gold coin (which was not wanted for direct use or consumption) which could be used later -for acquiring the wealth desired in exchange was in effect a. kind of barter by proxy. Although a medium of exchange was used, the parties both received final settlement in wealth in each transaction. In no way was the supply and demand identity challenged. Wealth was exchanged throughout, and wealth is always either supply or demand by viewpoint.

The point of identity is extremely important because it was through the perversion of wealth identity that "money" credit and inflation were born. The birth of "money" credit and inflation initiated the first imbalance between wealth (supply or demand) and imaginary demand.

Money" was born because before this time "money" had always meant wealth, but through the change that was brought about "money" became a psychological entity only and has connection to wealth only in the human mind. When tokens are used in place of wealth itself in transactions and the wealth the tokens represent is actually on deposit in reserve for their redemption then the token in circulation is a promise of final payment for wealth surrendered. The wealth the token represents is the wealth being exchanged in the market and is the supply-demand medium that keeps the economy balanced. Let any token enter the market place that promises the final redemption in wealth, but for which there isn't any wealth on deposit for redemption and the token is false demand, that on its "face" would not expose its secret. It would pass without detection and the false demand it really is, even though not perceived by the humans exchanging it, would nevertheless cause an Imbalance in the supply demand equal to the difference between its true worth (the token Itself) and the worth of the wealth it was supposedly representing. The imbalance would manifest itself eventually as the inflationary effect (falling dollar parity).

When any wealth produce is represented by a token it must be realized that the token is not the wealth itself. A token represents what it is not! When the token is given a separate identity like "dollar" and connected to wealth by political edict, great injustice can be perpetrated. When wealth itself was exchanged and it exchanged at its truly mutually agreed upon value it was supply or demand at exactly the same time. By using tokens bearing "dollar" terminology and connected to wealth only by loose promises, "demand'' is able to be created without being supply as well.

Wealth is supply-demand (Inseparable), "dollars" are tokens allowing false demand to be present which allows an imbalance to exist which Is false demand vs. supply demand (wealth).

To recognize that in 1792 nineteen and 75 /100ths "dollars" equaled one ounce of gold. That in 1834 twenty and 67 / 100ths "dollars" equaled one ounce of gold and that in 1934 thirty five ''dollars" equaled one ounce of gold compels one to observe On error, that "dollar" is a word to describe a temporarily fixed amount of gold!

Without a connection to gold, "dollar" hasn't any value except that residual memory the mind that keeps it exchanging on pure imagination. When our currency in circulation was gold and silver coin and bearer certificates were redeemable in gold and silver coin. the demand of the currency was balanced by the supply of the metal the currency tokens represented. The paper represented a commodity and the exchanges of production could in no way generate the inflationary effect.

When supply is purchased with present-day "dollars," the dollars in use in no way represent any wealth from the issuer and are therefore imaginary demand which in no way balances the supply they extract from the economy. The dollars are total inflation in themselves-, every one in circulation represents pure 100% inflation.

On August 15, 197 1, President Richard M. Nixon of the United States of America (a republic) declared the "dollar" completely nonredeemable in gold by the issuer (silver redemption repudiated in 1965). That declaration instantly rocketed all ''dollars" on record everywhere into instant 100% inflation-they were now totally irredeemable by the issuer, meaning that every bit of demand they formerly represented was stripped from them. Anyone accepting a "dollar" token anywhere was accepting imaginary demand. The significance of this one statement has not as yet been realized by the world as a whole. The issuer of our "dollars" is not a wealth producer, and has renounced all responsibility for their redemption -there is now not the slightest connection between ''dollars" and wealth except that residual memory in the human mind. We (the public) are left to honor them amongst ourselves in a fabulously gigantic game of "musical chairs.'' The situation will finally be recognized and everyone will attempt to get rid of all the ''dollars'' they have claim on. As the smoke clears, the "dollars" will all still be there belonging to someone who cannot get anything for them and the issuer will not redeem them. To those who managed to divest themselves of all their "dollars" for wealth, "dollars" will truly have been only a "medium of exchange." For all those stuck with them and holding the ''bag," the dollars will represent all their wealth expropriated by the issuer and lost forever, and the old belief that you cannot get something for nothing will be exploded by the realization that the "money" issuer got everything that his "money" could buy for nothing.

Gold and silver coins were called "money."

Bearer Certificates promising redemption in gold and silver coin were called ''money.

Gold coin as outlawed as a medium of exchange.

Silver coin was removed as a medium of exchange.

Bearer certificate promises were repudiated!

All that was called "money" has been removed!

We now have promise-less paper and it is called "money"!

If promise-less paper is now "money," then what was gold and silver coin" it was wealth and it was 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 bankers create "money" out of thin air. (imagination)

''Money" expropriates wealth to its creator.

The "money creator gets something for nothing.

The wealth producer gets nothing for something.

In circulation "money" is a medium of exchange.

Producers receive "money" for their production and give production for "money and can not perceive the truth

The "money" creators do not produce wealth and cannot be victim to the hoax. The "money" creators support the belief that "no one gets something for nothing." But secretively, exclusively the "money" creators, get everything for nothing.

Token currency Legal tender "form" media by political edict. For direct cash ex.

changes; only has fractional reserve.

Checks Secondary "form" media - For direct exchanges; requires 100%

reserve.

Credit Deferred "form" media - Requires 100% reserve from all except

'bankers'' (monetary authorities and commercial banks).

Credit is still media, and is exchangeable for any other form of secondary or direct cash exchange media. Therefore it is impossible to regard credit as anything other than part of the money volume.

Credit can be utilized to make direct purchases.

Purchases made with credit cards are considered cash sales.

The entire range is therefore all "money" per se - regardless of form.

When illiquidity is a problem, it is not limited to any particular form.

Illiquidity means "lack of purchasing media" in any form.

The treasury through the mint creates tokens at 97% seigniorage . . . . . . . . . = 97% inflation.

The Treasury through the Bureau of Printing

and Engraving creates paper currency at

99.41%, seigniorage . . . . . . . . . . . . . . . . . . 99.4% Inflation.

Banks (monetary authorities and commercial

banks) create credit at 100% seigniorage . . . . . . . . . 100% inflation.

Transfer of "existing" credit from any individual to any other individual is not able to cause the inflationary effect. Inflation only can cause the inflationary effect and inflation is only possible where credit can be created on a fractional reserve basis.

In fact 100% reserve would be 0% inflation.

Only banks can create "demand deposits," which is a term used to hide the fact that money is being created. Demand deposits are credit - credit is money - money is inflation, all of it created just serves to swell the total already conjured.

Corporations issue common stock (shares of ownership) to raise money for operation and expansion. Common stock represents ownership of corporation assets. People buy common stock, giving the corporation liquidity for use in the market place.

At this point the corporation can spend the money but the stock-holders cannot; they are holding the stock certificates.

Banks create "demand deposits" with common stock as collateral and this credit (money) inflates the existing volume.

Now the corporation and the stockholders can all spend the money represented by the common stock assets.

The corporation issued common stock and sold it to the people for their credit already existing, which did not add to the volume of credit already created. Banks creating deposit credits," on that common stock collateral does add to the volume of credit already existing.

"Money" The Greatest Hoax On Earth ................48

People, corporations, etc., can only exchange the credit they control; that which already exists. All checks (instruments of instruction to transfer deposit credits) must have 100% reserve, or penalties are provoked.

A bank can create a "deposit credit" on a fractional reserve basis of as little as 596, A Fed member bank can create a "deposit credit" on a fractional reserve basis of as little as .7596 (3/4 of 1%). For a $75.00 a year "Fed Discount Fee," a member bank can borrow the S 1,500.00 it is required to have on hand in reserve to back up a $ 10,000.00 deposit credit creation.

The banks are the only source of credit - they create it and they charge interest on their creation.

Borrowers must pay back the principal plus interest.

Borrowers can only exchange the total borrowed.

To obtain the additional required to pay interest, they must borrow again at the source.

The new borrowing, borrowed at interest - to pay interest, is new principal and it also commands interest, which perpetuates the acceleration of inflation feeding on itself. As long as the bank is willing to extend additional credit to the borrowers, the game can continue. But should the bank at any time decide to stop creating "demand deposits," the borrowers must default, and the bank forecloses.

The only source of information on the total credit volume to date is the Fed.

The Fed has never been audited, and any total figure can only be guesstimation.

Loan obligation figures from polling borrowers indicates total credit volume in excess of $2,000 billion.

It matters not what this one commodity is. It matters only that it is a commodity, a substance, something that can be measured as to volume, density, weight, etc.

Paper may be used as a medium of exchange only if it is a bearer certificate stating the quantity and fineness of the commodity it represents, and who is committed to Its delivery upon request.

If anything but a commodity or a direct claim on a commodity is used as a medium of exchange, it is inflation and causes an inflationary effect on the economy, changing the actual parity ("price") agreed upon to effect the exchange.

When wealth is exchange for wealth, the exchange is of mutual benefit. If the exchange were exactly equal, it would not have materialized. Only when the parties to an exchange are both convinced they are to receive more than they give up are they freely willing to make the exchange. An exchange should be final when the wealth exchanges hands. Anything that may occur to the wealth exchanged once it has been accepted by its new owner should be the responsibility of the new owner. Most honorable exchanges are completed with a handshake. Only when fraud is involved is there any occasion for recourse on the other party to an exchange.

When an exchange is made that involves anything that is not wealth itself or a direct claim on wealth, fraud is involved, and though it is hidden and unrecognized, it Is embezzlement and cheats the receiver out of part of his due payment.

When wealth itself or a direct claim on a set quantity of commodity is received, the reserve commodity already exists. When "money" or any paper token that is not a direct claim on existing wealth is received, then the token is an imagined claim on wealth to be produced sometime in the future.

It is extremely important that this point be fully understood. When a paper token received is a claim on the production of some producer in the future, the instrument is a promise of payment; it is not the payment itself.

The significant thing to consider is the "time delay" involved. At the time of receipt, the paper token which may have been "dollars," and because the stated parity of one dollar equals .0286 ounce gold .999 fine, ' the goods exchanged for "dollars" were really exchanged in the belief that the dollars were in fact the equivalent of the gold they represented, and that eventually payment would be received in something equal to that given up, or at least something whose parity to gold would remain stable. The dollars received were related to gold, and through that relationship to all other commodities. The gold in this case is the common commodity, and the dollars are the representation of that commodity by government edict only.

Dollars are inflation and as such their parity relationship although supposed to be fixed is instead (in reality) constantly in a state of change, in relation to all other commodities, ''failing dollar parity" ("rising prices"). Therefore, by the time the dollars are used to complete the transaction that was in progress when they were received, the parity between the actual amount of gold they represent and the commodity you wish to receive in exchange for them will have changed. Farmers who take their crop to market at one time and receive money in exchange and must make it cover their expenses throughout a long period until the next crop, are particularly hit by the inflationary effect during the time interval.

"Money has circulation but does not circulate through its "point of entry" into circulation.

Money creation is "not" representative of a debt owed by the creator to the final holder. Our since repudiated "silver certificates" were not "money." The certificate had wording stating that it was worth a "dollar" quantity of silver held at the Treasury of the United States.

"Falling dollar parity'' is a nonentity, it cannot be seen. It is not composed of matter, it is not a substance. It cannot be measured except by relation to its consequences. Money is imaginary demand perpetrating mass expropriation of wealth from the producers collectively to the persons indirectly manipulating the governing body of the public with conjured dollars.

Falling dollar parity cannot be detected in its initial stages by the uninformed. It is hidden from the great multitude of people by the very fact that they do not know, and they do not know that they do not know.

The natural laws of our universe are inviolable; even though the people cannot see or witness the actual first act of inflating, natural law takes over to force the consequences upon us.

In a pure barter system, total production would be the maximum that could be offered in the market place (100%). At any point In time, commodities are on hand with their respective producers as inventory, unsold. Exchanges of wealth production for wealth production, adjusts the production rates of the various commodities for variations in the forces on parities of time, location, and circumstances. Other commodities may be out of stock temporarily during these natural adjustment reactions of a free market; but THERE COULD NOT EVER HA VE BEEN any falling dollar parity because all the goods offered for exchanges were wealth, and no "dollars" were involved.

All of the exchanges that had been made would have given us the parity for many, many commodities in relation to many, many other commodities. The mutually acceptable exchange rate of any commodity to any other commodity is the parity (''price").

The need, of course, is for some common commodity that is safe against the rigors of time and corrosion to be accepted as a medium of exchange, so that all commodities could be related to this "one" to facilitate the computation of parity ("price") of any commodity to any other commodity, at any time by their respective relationships to this one common commodity, as a standard.

United States for its redemption, payable to the bearer on demand.

The silver certificate was not "money." It was a claim on a "quantity" of a commodity, even though the "dollar's" worth of silver was a "non-specific" specification on the paper token. The certificate did not specify what "kind" of "dollar" it represented. The ''trade dollar" coin weighed 420.0 grains of silver .900 fine, the silver dollar coin weighed 412.5 grains silver .900 fine. The value of the "paper dollar" was not stated. Anyone using a ''dollar" paper token as purchasing media had to figure its value by mentally picturing I/ 35th ounce gold .999 fine as the mutually acceptable worth in common commodity terms it was supposed to represent. A few years ago that same dollar represented I / 20th ounce gold 999 fine.

Without a specific quantity and fineness of commodity stated on the paper token, the paper token is only a claim on a "dollar's" worth, and that "quantity" could be altered by political expediency at any time between acquisition and passing it on to another holder during an exchange. The dollar silver certificate, exchanged for a "value" relative to the receiver's faith" in the stability of its creator, was tempered with a confidence that it would retain its recent historic exchange value, The dollar silver certificate had its "exchange value" based on the individual confidence of the individual receiver at the time of exchange or one of the following:

Comparable worth - $.006 (cost to produce a paper token). Declared exchange value by edict 0/ 35th ounce gold). Commodity claim of 412.5 grains silver (since repudiated). Whatever he thought it would bring in a later exchange.

Placing a "face valuation" on a paper token far in excess of the worth of the token itself is creating money! When any legal tender is issued and endowed by authoritarian edict with a "valuation" in excess of its redemption value, the differential is money (imaginary demand) and causes an "Imbalance" of imaginary demand vs. real demand (wealth).

This imaginary demand "which cannot be real demand" is "inflation."

The opposite of inflation is deflation.

Money creation, then, is a practice only possible with the permission of authority, or by authority Itself.

The creator can only create the imaginary dollars. Authority ''only" can force the acceptance of dollar tokens as legal tender.

Once created and the profit taken and used by the "dollar" creator, the mass of money" circulates from person to person and will remain in existence until redeemed or repudiate . The creator creates it and takes title to it; he made it, he owns it, and so he treats it as though it were wealth." After all, that is "the image" he wants to create for his creation. The "money" once created must be circulated by its creator, so the profit from it, creation may be "realized" and compounded.

The creator's "dollars" are loaned to borrowers at interest. The money creator is the only source of "money." He only can create it, and he charges interest when he loans it.

How can the collective borrowers pay back to the only source more than the source created? It is impossible, and so total repayment is impossible, The system once engaged in is self-perpetuating. The only course the collective borrowers can take is to borrow more and more to pay the "Interest," and let the unpaid principal expand as the new borrowings accumulate!

The formula then is:

Circulation + "circulation" + accretion - redemption or pay-off = accumulation. Issuance + circular possession + additions - redemption or pay-off glut. Inflation creation + accrual + expansion' - redemption or pay'-off hyperinflation.

"Circulation:" The number issued (created) (dollars recorded on books of account).

Circulation vs. "Circulation" ......51

Circulation: The act of passing from person to person - in continued circular possession, the accrued quantity active in exchanges. (Tokens and/or records of debt dollars.)

Accretion: Increase by external addition, newly created media being added; monetary expansion.

Accumulation: The cumulative mass of conjured media; the amount conjured and becoming larger by successive conjuring. (Tokens and records of debt dollars.)

Redemption: Actual settlement, in wealth, at full "face valuation," from creator to last holder of token, or "mark in a book" record of "dollar" possession.

Since the money creator will not redeem his creations by putting the full quantity of wealth in circulation, and dissolve his created money (deflate), and since the collective borrowers can never return-more than they received from the only source, then the day must eventually arrive when the accumulation of principal remaining will require an interest payment greater than the gross national product.

Anyone we stop to chat with today will admit that as far as his knowledge goes, a great many of our citizens are over their heads in debt. It is common knowledge that losing a few hours' overtime or a day's work for some people is almost a financial disaster. Being overextended today is the rule rather than the exception.

credit cards are used extensively, and there is talk and experimentation with a moneys, credit card system for all transactions. This will be extremely interesting to observe, for it is fact that all credit cards when used create money volume. A check is a written order to a bank transferring a record of debt already existing (deposit credit) from one account to another in payment for some goods or services; but a bank credit card is a token representing a prearranged agreement for the bank to create dollars of imaginary debt in the card holder's account, if and when the card's option is exercised, combined with an order to transfer that record of imaginary debt to the seller's account in his bank after the sale is recorded.

To look at the all the debt rung up on the registers of the bankers, we should realize something quite significant. We all owe the bankers for all the goods we purchased; we are all in debt to the banker; we are extremely overextended in debt to the banker. How come? He didn't produce that refrigerator you bought last month. He didn't manufacture that new car you bought last year, and he didn't build that boat you take to the lake each summer. In fact, the banker doesn't manufacture anything; he just creates imaginary purchasing power. You and I and the rest of the public are the manufacturers and producers, and if we exchanged our products directly with each other, we could have all these things, and not be in debt to the banker.

The banker tells us "buy now - pay later," and have the good life now. The banker doesn't tell you about the MONKEY on your back if you do that. The drug addicts can be cured if they desire cure, but the debt addict is hooked forever.. We buy something today, using the banker's money, and promise to pay in a year by the time-payment plan. The banker O.K.’s the contract. And for creating the money, the banker charges a fee-interest. He created the money you need for the good life now, and you promise to pay him back the money you borrow plus some extra money as interest. The bankers have pulled a "fast one" on the public. They have taken advantage of the public's ignorance concerning money. They do not tell the public that the interest is something that cannot be paid. Bankers are the only source of dollars, and they will only lend them at interest, and all the borrowers cannot pay them back more than they obtained from them.

They cannot be paid back in gold coin; that has been forbidden; you cannot pay them back in silver coin, that has been melted. You can only pay them back with legal tender. We have legal tender law; but legal tender is the tokens that represent their created dollars and draw more interest besides, only five percent of all the money used in the country every day exists as currency. paper and metal tokens. All the rest is bankers' numbers in a book, created dollars. and if they don't create it, we can't get it' If we got our interest from some other borrower where would he get his!

The real case is not apparent until you assume for moment that you yourself are representative of all the debtors - all the borrowers as an entity. You borrow from the only creator a portion of his creation, and must pay back more than you received of his exclusive creation. It is impossible to do, so the interest accumulation of all the loans keeps accumulating, and compounding. We as 'individuals are able to pay off loans and make new ones because there are so many of us that not all people are attempting to pay off all loans at the same time. This is why we are completely unaware of this great mass of debt hovering over us until it begins to crumble our economy.

The ever accumulating interest becomes principal in itself, and grows and grows. Once created the dollars draw interest year after year of use. The bankers don't have to do a thing. The dollar mass, once created, becomes a debt burden on the people that extracts Luje.1ZLbu e every year inexorably. We cannot eliminate it. The banker created it and in so doing, he took title, and subtly he exchanged his title to it for our production of goods and services. He has all the wealth now, and we have all the paper, and debt created.

The great mass of money is the banker's slave working year after year with unsurpassed efficiency to force tribute from our government ($20 Billion in 1970) and our public ($ 100 Billion in 1970). Think of all the wealth the people could accumulate each year if the people and the government weren't feeding the bankers $120 billion of wealth a year extracted from us as tribute to a non-producer. When the banks take $120 billion of production out of the market each year without putting anything back in - but more Imaginary demand (''Money"). Is it any wonder money "exchange value" sinks and the value of goods appears to rise in relation to it.

This is the monkey on your back you accept and that cannot be removed, If the banker only loaned out depositor's savings in wealth form, and while it was on loan the depositor could not use it, there would not be any monkey. The keynote here is that the depositors' savings is wealth on deposit = supply already produced and not needed by the producer, Savings must be some commodity that can be used as well as exchanged, and is therefore wealth (supply or demand) at the same time. The monkey on our back is created money (credit) -created credit is created money.

The banker creates the money (dollars) - credit. He owns the wealth of the nation, and we who produced the wealth owe him!

Albert Einstein gave us the theory of relativity.

The Fed gave us the modern "dollar" - (imaginary demand).

The central bankers, two hundred years ago Introduced "money slavery.

With a little common sense we can perhaps begin to understand how the bankers could make us their slaves without our ever realizing it. The magician has always been a trickster he used up to date methods and materials to confound the less informed. The more advanced his knowledge the higher degree of intellect he could confound. With our modern methods of communication and distribution of knowledge, finding an adult in a modern city that did not know how a magician sawed a woman in half, would be difficult.

Anatomy of a failing "dollar parity" ........53

It is a tribute to the cleverness of the originator of the "money slavery conspiracy" that his brainchild has enjoyed such longevity. How to unceasingly rob the population, of a great nation, without their knowledge and using their lack of knowledge as your only means. Locked within the method is the means by which-should the victims ever discover the robbery-they will never discover the means. Locked within the method is the means by which-if the victims are told they are being robbed, they will not believe it.

Longevity does not justify existence-but modern man's opposition to acceptance of the fact of the conspiracy-is manifest in the fact that 999,999 victims out of a million will deny he has been victimized, even when confronted with the evidence.

Only I human in a million can understand the mechanism of the conspiracy and only when it is understood can it be accepted. To expose the heart of the conspiracy and see it flexing we will have to use a very specialized tool. We shall use the theory of relativity, a somewhat simpler aspect of it to help us. To use the tool we must first learn how it functions.

An individual at the rail of a ship, looking down at the waterline, sees what appears to be the water rushing by. This condition can be accepted as fact and no further thought on the matter considered. A thousand individuals may come to the same conclusion with the same observation. One individual may come along, make the observation and then wonder if the ship is moving through the water or is the water rushing past the ship. The sound of engines running or smoke pouring from the stack would be powerful influences to support a conclusion that the ship was moving through the water.

The lack of engine noise or smoke from the stack, coupled with indications of an extremely strong headwind might lead one to a conclusion that the ship was still and the water being wind whipped by. To determine accurately the actual condition, the relative position of the ship to some fixed monument must be observed. If the ship is found to be fixed, in relation to the fixed object, we can be sure that it is the water that is moving. If the ship is found to be changing its relative position to the fixed object, it is the ship that is moving. Without a fixed monument nearby with which to make visual observation, we would have to wait for nightfall and check with the stars or using radio, check successive radio-fix positions to determine ship motion. It surely should be evident by now that all is not always as It seems to be on casual observation. Relativity must be taken into account if accuracy of specification is desired.

An aircraft can be of many types, and they are said to be able to fly by a combination of wings, air and speed. It requires forward speed through air to obtain necessary lift. Aircraft of the older slower design were able to take off and land at speeds below 50 M.P.H. and have been observed landing backwards on windy days. An airplane landing at 40 M.P.H. in a 50 M.P.H. wind is going forwards in relation to the air and backwards in relation to fixed objects on the ground.

Shown a glass containing half its capacity, one individual will observe: "it is half full."

Another individual will observe: ';it is half empty.'' For "half full" to be correct filling would have had to have been interrupted at mid-point. For "half-empty" to be correct draining would have had to have been interrupted at mid-point. If the conditioning operation had not been observed the only realistic description that could be applied is to say: "the glass contains half its capacity."

And so it is with the "dollar."

To define the dollar we must find a description that will describe it and that description or definition must fit it accurately and nothing else. In 1794, a silver coin, weight and fineness Specified, was first minted and called a "dollar." In 1837, the weight fixed at 4 12.5 grains .900 fine silver was called a "dollar." Until the year 1885, a silver coin 420.0grains .900 fine silver was called a "trade dollar." From 1849 1890, a gold coin 25.8 grains .900 fine gold was called a dollar." Then of course, there was the piece of paper called a "dollar." By now, we can see defining a "dollar" is not going to be an easy task.

It would seem that a "dollar" with some sort of unit of measure with all the stability of a thin cloud.

Why would anyone allow the use of the word "dollar" to be applied to so many different Items?

When we say a "bushel" of wheat it refers to a certain volume.

When we say a "bushel" of anything it refers to the same volume.

When we say a "yard" of cloth it refers to a linear length.

When we say a "yard" of anything it refers to a linear length.

When we say a "cup" of "Milk" we are specifying a material and a volume, it does not require a special name - when we say a cubic yard of cement we are specifying a material and a volume, it does not require a special name. In the system of weights and measures it is necessary to have a reference standard that will not vary with time.

In this system some specified levels of amounts are given names that help to facilitate easy description of quantity. There are three systems in use, Apothecaries Weight (drugs. etc.), Avoirdupois Weight (ordinary commodities) and Troy Weight (precious metals, jewels, etc.), but great care is taken to show a common unit to all three (the grain). If you have a common unit why not use it? Why do they use three systems?

An ounce troy is always 480 grains a unit of measure. When we specify a silver coin .900 fine 412.5 grains that is a specific material of a specific fineness, and specific weight if it is given a specific name, for whatever reason, that name then should always mean that all of the specific fineness and that specific weight, and so it does-it was called specific matter a Silver Dollar.

The one with 420.0 grain -900 fine silver was called a Trade dollar.

The one with 25.8 grains .900 fine gold was called a Gold dollar. The real truth of the matter is that the gold and silver coins that developed naturally out of free markets of free societies all over the world centuries ago never needed names.

The names for the monetary units were used for only one purpose so that debasement could be accomplished as a secret method of taxing the public with excessive taxation without their knowledge. just attaching a name to a unit of the "monetary metal" would allow those in control of government unlimited freedom to rob the people and no one in public would really understand what was happening.

Gold and silver coins became the accepted mediums of exchange because of their durability, divisibility (they could be minted in any size) or even broken into sections (two bits-four bits, etc.), and easily carried about because of their ability to store value in small volume.

Because economies, using wealth medium of exchange systems, of coins of precious metals were sturdy stable economies, "price levels" remained level (the coins maintained relatively stable parities in relation to all other commodities).

In countries with precious metal mediums of exchange all Government income was derived from taxation of the public. Government could not spend what it did not have. If the government raised taxes excessively the people would revolt. Forced visible confiscation of the public's wealth also seemed to annoy the people and make them unruly. So the rulers passed legal tender laws-henceforth the King would cause a coin to be struck in his likeness and it would contain a certain weight and fineness of a precious metal and be called a ''dingblatt" after good King Dingblatt himself. It would be accepted by everyone in the kingdom as legal tender and be legal settlement for all debts public and private.

Great: One dingblatt was worth 20 loaves of bread, etc.

Whenever Good King Dingblatt decided the treasury needed more wealth he would lower the fineness or the weight of the precious metal in the dingblatt. Water the wine so to speak. Since legal tender law always referred to the medium of exchange unit as a dingblatt-the newer one which had less precious metal in it, was always the one the people used in their trading-the older ones-which had the greater content of precious metal were held back and used last or kept as savings if possible. The process is known as Gresham's Law (bad coins drive out good coins).

It is necessary to be very careful at this point to catch the full significance of what was taking place. The original quantities of gold and silver content of the coins had become accepted in the market place as having certain related values (parity) to other commodities. It would have caused chaos every time the coin was debased to reevaluate all the commodities into their new relationships to the coins.

As long as the coin was a ''dingblatt" an "official dingblatt"-and the ''price'' in the window was marked in "dingblatts" the people were bound by law to use them as dingblatts. but down in their hearts they knew the old dingblatt was really worth more so they would use those last.

In the United States for years the people have accepted readily the explanation for seigniorage and the fact that one ounce of silver was coined into $1.29 in coins when twice as much silver bullion could be bought with that coin.

Seigniorage: Something claimed or taken by virtue of sovereign prerogative. Specifically the difference between the exchange value of a coin and the cost of the bullion and the minting.

In 1965 the seigniorage profit on the half dollar jumped from 43% to well over 320%,, and on the quarters and dimes 800%. The government spent between 2 & 3C to produce a quarter (cupronickel) 4 quarters for less than 12 cents and you gave 100 cents worth of labor for that ''dollar." By 197 1, the half dollar Joined the quarters and the dimes and all were pulling in over 800% profit as fast as the cupro-nickel coins could be produced. The profit from this source alone should have helped to wipe out a big portion of the federal debt.

The proof that Gresham's Law is valid is evident with the clout of a pile driver, in the United States today there are very few old silver coins in the cash registers from Maine to California. At a time when our president was telling us that the silver coins and the new cupro-nickel ones would function side by side for years-there were secret machines running at the federal reserve banks sorting the silver coins from the cupro-nickel at a rate of 2,000 a minute.

The United States silver coins were melted and the silver bullion sold on the market to drive down the "price" of silver on the free market. We were left with the tokens.

Before all the "name calling" started we were conducting our trading with gold and silver coins of nearly comparable worth, as commodities themselves, to the value of the goods and services for which we traded them.

Now we are conducting our trading with tokens of practically no wealth value at all and our former trading wealth has been taken by sovereign prerogative. So the magicians have performed-we had the wealth they got the wealth-and we didn't see, feel, or smell a thing. The coins are easy to understand and so we can accept the fact that we have been severely taken. But when we progress to paper tokens it involves the same entrenched skullduggery, but is extremely more subtle.

Many books have been written telling of the goldsmiths and how they issued more certificates -payable to the bearer on demand in gold" then were covered by the precious metal coins on deposit.

Gresham's law eventually would point the finger at this cheater and he was punished. The private banking conspiracy, through government, took the golden opportunity to convince the people that private bankers could not be trusted, but politicians can. They would have Congress charter a central bank and appoint a board of governors and the public's troubles would be over. But that was the United States in 1913, the real conspiracy to defraud the people of the world began with the name calling a few centuries back.

It doesn't matter if we ever find out who started it, what matters is to understand how and why The people own their wealth and it is in tangible form, nice shiny gold and silver coin. How do the plotters get it from the people and not let them find out they took it. Well, first they convince the public that gold and silver coins are heavy to carry about carrying them about causes wear and tear; they could be robbed- Put the gold in our vaults they say and we will issue a certificate for the deposit in bearer form, and that certificate can be traded in the market place just as if it were the wealth it represents. A media form had been reinvented "paper tokens" Kubla Khan had them first).

From gold and silver coins we progressed to debased, coins (metal tokens) now we had reinvented an acceptable form of paper tokens, to represent ''dollars.'' These certificates were legend "payable to the bearer on demand X no. ''dollars" in gold coin" along with official endorsements. These certificates were accepted readily because they were much easier to handle and since they were redeemable in specified amounts of specified commodity of specified purity they, were claims on wealth. They were not wealth but they were claims on wealth, and they were treated equally in the market place as wealth by proxy.

Here again is great significance, wealth and claim checks on wealth coexisting together and with the same facility in the market place. Two mediums of exchange being accepted as equals yet with a difference v great that it would allow our conspirators to eventually control the world in a bloodless take-over. They would simply buy the world on the open market from the people with an imaginary medium of exchange.

We must understand why wealth is not money and money is not wealth. Money is always imaginary and represented by tokens of minute wealth value in themselves enjoying the position of media with as, exchange value many times that, because of the public's faith in their elected officials, or because they are forced to accept it in lieu of wealth by legal tender laws.

Gold and silver coins minted by the government with the weight and fineness of the precious metal stamped directly upon them are wealth per se. It takes labor to extricate and process one ton of gold bearing ore to end up with a drop of gold no bigger than a small pea. In relation to the labor required to produce a pound of butter or a dozen eggs, gold production labor requirement is very much higher for any given volume.

It is this human consideration that goes on subconsciously, that tells us what ''price" is right for a commodity we aft considering purchasing. We think to ourselves how much of my labor to produce what I produce and bring to the market-does it take to effect an exchange. Is the use value of what I am considering buying equal or greater than the usevalue of what I must give up.

This process goes on, whether we believe it or not, it goes on and we don't give it any more conscious thought than we do to walk; but we are weighing our labor in production against the labor in production of the other item. When we do agree on an exchange it is because each of the parties values what he is getting more than that which he is surrendering. We may not have recognized this before but it is what finally decides us to complete the exchange. When we exchange wealth. which is produced, existing tangible goods or services, we intend in one way or another to use that goods or enjoy that service. If it is food we need we can use the wealth coinage to buy food. If it is furniture we need we can use the wealth coinage to buy furniture. If it is services we need we ca - n use the wealth coinage to pay the workmen. If it is savings we need we can keep them for future use-we are holding them in, our possession and they are wealth in medium of exchange form. Our labor is stored up in them and we have them to bring forth at any time and use them in exchange for products of the labor of others.

If in our transaction we accepted a paper certificate that says it can be redeemed in gold or silver coin at some location and in a future time. We are accepting a promise, not wealth; we are accepting a token. Now if with the token we immediately purchase food-O.K. If with the token we immediately purchase furniture-O.K. If with the token we immediately contract and pay for services-O.K. If it was savings we needed and we 9 store the money for future use-we are holding a promise in our possession a piece of paper whose only value is our confidence that it will still be useable at a later date. Our real wealth is elsewhere and we hold the token as a claim that may or may not be honored at the time we demand redemption.

Anatomy of a failing "dollar parity" ........................57

Here again great care must be exercised to understand the significance. Gold and silver

coin can be counterfeited but only at great expense which leaves the counterfeiter with a

very small margin of profit. Using gold to counterfeit a gold coin would be futile. To use

any other metal would be too easily detectable. Certificates made of paper can be exactly duplicated at very little expense and so the margin of profit is tremendous. This is the game plan the goldsmiths used on us. But the goldsmiths were amateurs, compared to the modern bankers, and the governments they control.

Counterfeit certificates cannot be told apart except by experts and when Gresham's Law finally exposes them it is always at great expense to the people who were holding the uncollectable ones. The great majority of the people, never having been stung, have been readily accepting these paper tokens as mediums of exchange, ignorant of their tremendous latent powers of confiscation of wealth and are still doing it. The conspirators-bankers-bankers' governments were proud of their brainchild it was working, paper was exchanging side by side with wealth in the market place. But there were still a few errors in their plan. First of all, all the certificates were bearer certificates and if the people redeemed them the gold and silver coins left the banking system. The bearer certificates still acknowledged the people as the owners of the wealth. This was very bad for their game plan. Secondly it was this ability of the people to redeem their own wealth at their own discretion, that occasionally caused runs on their banks, that were direct results of the action of Gresham's Law.

With the success they had experienced so far, these two imperfections were not about to stop them. The general public was easier to fool than they had thought.

Gresham's Law was their big problem.

We have already understood how it worked with coins, now let us examine how it worked with certificates (tokens) also. Let us examine a case where there were separate individual banks in many large cities. Each of these banks were operating on a fractional reserve basis, that is, they had more certificates out than they had gold coins in their vaults. As long as the residents of the community who were the bank's depositors, remained to do their trading in the area all was well. Since all the depositors were trading their certificates locally, it is only rarely that someone moved away and made a call at the bank to pick up his gold and take it with him. just as one depositor moved away others newly arrived came in to deposit their gold. So the local independent bank never saw a call for more than a very small percent of the wealth he held in his vault, the depositors left it there in "safety" and used their "claims on it" to trade with.

As the bankers play the ''federal reserve game" (fractional reserve) the increased no. of certificates bidding against the regular production of goods and services causes the inflationary effect. (failing "dollar parity"). If a town nearby has less inflationary effect (the "prices" are generally lower there) our depositors will journey over there to do some shopping, eventually buying more there than at home. Since sometimes people from the other town come to our bank's district to do shopping, the banks from the two nearby towns and the people will accept each other's certificates. At the end of a fiscal period the two banks will clear their respective holdings of each other's certificates and determine the net surplus and deficit of certificate holdings of each bank. The bank with the net surplus will require that the bank with the net deficit, send the gold for the certificates it held and in effect settle the claims on its gold deposits. Where Gresham's Law came in is that the bank with the greatest certificate expansion causes its district to have the highest "prices" and so it will always end up with the net deficit in the "balance of payments." Each fiscal period it will have to ship gold to get its certificate claims back from the bank in the other town. If it had ten times as many certificates issued in relation to its gold on deposit, it is easy to see that Just one or two fiscal periods of running a deficit in the balance" of payments and it would run out of gold coins with which to make redemptions. Result: Exposure, bank run, bank failure

"Money" The Greatest Hoax On Earth ..............58

This is what our economic conspirators had to eliminate and eliminate they did. They gave us the fairy tale about monetary reform and the federal reserve system (a hoax that took thirty years of preparation to put over a story in itself), as a result we accepted monetary enslavement. Our conspirators gave us the chance and we voted them into power by believing and having faith in our elected officials, we allowed the Federal Reserve Act to be sneaked through Congress on December 23, 1913, and the private banking corporations that make up the federal reserve system to be chartered by Congress, (not by the states).

Henceforth only the Fed, a created "monetary authority" can create and issue the monetary obligation unit of the United States, the "dollar." We have one banking system, twelve districts with a present day total of around six thousand banks, a central bank in reality. "It" the central bank would issue the certificates redeemable in gold and silver coin and since this central bank system would be governed by a panel of mostly government appointed directors every thing would be fine "from now on."

By making it sound like "we" were really doing something right for a change, they managed to get the exact conditions necessary for bleeding the public dry of wealth, and replacing it with paper tokens.

We were believing we were receiving one thing and actually we were getting another. It is human nature to want to believe; the more outrageous an untruth, the more believable it sounds-the public wants to believe, Well with a central bank and all certificates now looking alike there was a change so dramatic, so outstanding that nobody paid any attention to it. All the wealth was now in the safekeeping of the banking system, when a deposit was made, an entry was made, and the entry was written as so many "dollars" now here is the tricky part, you turned in gold coins weight and fineness of content attested to by the mint that coined them; you received a credit entry of "dollars" on the basis that so many dollars equaled so much gold. Here is the big lie, the "dollar" units of credit were being accepted by you as being worth the gold you were depositing as good as the gold as being the gold itself, you were creating in your own mind a belief that "dollars" had the same use value as the gold you deposited.

Would you let your dentist cap a tooth with paper?

Would you give your bride a paper wedding band?

Would you give your mother a paper locket and chain?

The paper currency that you had credit for would have use value only so long as everyone believed at some later date you could exchange it for a commodity with the same use value as the gold you gave up for it. The only value of paper currency is its confidence value-your confidence that it will be accepted later by someone in the market place. Your gold coins were wealth itself and when traded in the market the transaction was completed. The paper token is accepted as a medium of exchange, used in lieu of wealth, and depending on confidence for eventual redemption or exchange.

At the time the Fed came into existence it was established by the banking system government that $20-67 was worth one ounce of gold 999 fine, or as they liked to have it accepted that one ounce of gold was worth $20.67. Not to let the significance of the statements escape us let us examine them closely.

One ounce of gold .999 fine has use value equal to other commodities on the market that take approximately the same labor expenditure. The $20.67 in currency being paper and coin were created for very little labor expenditure. So by accepting this lie or in effect ignoring the difference in relative cost to produce two different mediums of exchange, we were accepting the difference as seigniorage the same as we did with the coins. So, anytime the bankers' government would decide that they would like a change in their rate of confiscation of wealth, they had but to change the equation.

This is what President Roosevelt did in 1933. Dates and times are not important here what is important is what was done, and how it affected the wealth producer. First an order was given-all citizens turn in your gold to the Treasury for fed notes. All patriotic citizens obeyed and received their federal reserve notes inscribed: ................"Redeemable In gold on demand at the United States Treasury or in gold or lawful money at any federal reserve bank."

The next big blow that came was an executive order written saying citizens of the United States could not redeem the gold they had so dutifully surrendered in a time of declared national emergency. New federal reserve notes were inscribed:

This note is legal tender for all debts public and private, and is redeemable in lawful money at the United States Treasury, or at any federal reserve bank.

Then they changed the equation!

One ounce of gold was worth $35.00.

Well, it was your wealth, you had it! They took it! and good business it was for them-they made $14.33 on every ounce you turned in! Or did we lose $14-33 on every ounce?

If we turn that new "price" of gold around and study it we will see something significant $35.00 = 1 ounce of gold, before it was $20.67 = 1 ounce of gold, it would seem that gold went up in "price" and that is exactly what we were told it did. But is that true. It depends on what we consider as the measure of value. We originally allowed this ominous thing to get started by letting the bankers government brain-twist us into thinking a -dollar- token of paper was as good as gold. Well lets get back on the track.

Gold is wealth; it takes labor to extract it from the land so lets put in the way it should be:

I ounce of gold = $20.67 or $1.00 = 0.0483 ounces of gold.

I ounce of gold = $35.00 or $1.00 = 0.0285 ounces of gold.

Either way we see that it now takes more dollars therefore they must be worth less. The dollar had gone down in its parity relationship to gold. The "price" of dollars in terms of gold had fallen. The dollar had been devalued! This was a clear cut result of currency manipulation. If a commodity changes relative value in the market place, the cause can always be traced.

Many things can affect the cost in labor of producing a product but its use value affects its exchange value also. If a new large deposit of rich ore were found the parity of gold could go down in relation to all other commodities; its "price" in terms of those commodities would have fallen.

All the various fluctuations of commodity parities can be traced to the returns on labor, effecting the competitive bidding that sets those parities. Left alone, without government interference and without monetary expansion "price levels" will stay level, that is, relatively level for long periods. The reason the dollar went down in exchange value was because the fed was doing exactly what the old goldsmiths used to do, create imaginary claims on wealth.

Now that the central bank controlled all the gold-when there wasn't enough to equal the expanded volume of tokens (fed notes) created, they simply change the rates. (devalue). If expansion of the federal reserve created dollars resulted in more dollars per ounce of gold, then it holds that it would take more dollars now per unit of any other commodity as well.

This and this alone is the only cause of a "falling dollar parity" (the inflationary effect).

Wage rate increases etc. are often the result of inflation but never its cause- (inflation is money "dollars") a cause not an effect.

Let us explore the generation of a failing dollar parity using another approach. The gross national product is the total of all goods and services produced, whatever the period, it cannot exceed 100%. Let us use the 100% and assume a government tax rate of 25%. When the government takes its 25% of our production we are left with 75%. The government with its 25 %, and we with our 75% can descend on the market, make our purchases, and all is well, we have a balanced economy.

Suppose the government decides to wage war-war is always expensive.

ment tried to run the war without a large increase in taxes it could not do it. If the government tried to raise the taxes to the level that, pay as you go, would require, the people would rebel. So government chooses to use Inflation as a means to finance war. Government needing 50% of the gross national product takes 25% in taxes and another 25% in monetized debt." The government with its 50% and we with our 75% descend on the market, bid against each other our 125% of money volume trying to seek exchanges with 100% of gross national product. The result is always a trend towards "higher prices" (falling "dollar parity"). As "prices" go higher and higher (in reality money becoming worth less and less in exchange value) workers need more money to buy the same things, ask for higher wages. As the employer has to pay higher wages he has to charge more for h I s product to maintain his income after expenses, and this adds to the situation; and because it is so easy to say that it is wage increases and "price" increases that are the cause of inflation" (failing "dollar parity"), the people are so easy to fool, the government will perpetuate the lie until the people demand wage and "price" controls.

To keep the "rising price level" (filling "dollar parity") from increasing too rapidly the

government will instigate a bond drive. If the government can get enough of the people to

buy bonds and treat them as wealth and put them in safety deposit boxes, they will have

effectively reduced the amount of "dollars" the public enters the market place with. As they expand the money volume, by monetizing debt, they endeavor to reduce our "spendable money volume," so as to keep the "dollar's" parity as nearly stable in relation to units of produced goods, as possible. Every conceivable idea is tried to regulate what we spend to keep it from competing with what government wants to spend.

As government takes more and more of the production in war goods it follows that less and less "consumer goods" will be produced, and this is an understandable thing, because after all you cannot have guns and better both, so consumer goods production falls below prewar quantities.

It is imperative that we fully understand that inflation is only one thing, Money, not the miss-use of money, the money itself. If only wealth in most convenient, medium of exchange, form (coins of precious metal etc.) were used a falling "medium of exchange parity" would be impossible because they themselves are produced goods (wealth) and if only wealth is exchanged for wealth, that is, products for products, then natural free market forces regulate competitive bidding to keep production parities stable and civilization progresses causing a higher standard of living, due to technological advancements. (mass production techniques and the division of labor).

Many different things have been used in history as mediums of exchange, all of them have been referred to, in all our texts as "money" yet for some unexplained reason some, "monies" failed to remain stable and others exist today as stable as ever. To explain the -unexplainable- we have to first define what "money" is and then see if perhaps all of the so called "money" was not really "wealth."

Money: Psychologically created entity (credit) (inflation) or (imaginary demand media) by use.

Wealth: Any material thing produced by human exertion having exchange value. (supply) (demand).

When we realize that corn, wheat, tobacco, and countless other things were called "money" when in reality they were wealth, (corn = tangible, takes labor to produce, has exchange value. wheat = tangible, takes labor to produce, has exchange value, tobacco = tangible, takes labor to produce, has exchange value.) we can begin to understand why some of these things were only retired when something infinitely better came along, corn and wheat could spoil, tobacco could dry out etc. Gold and silver coin evolved as the best mediums of exchange.

Cowrie shells were tried as "money" but when they were found in quantities like pebbles on a beach they failed. The natives of Easter Island traveled miles across water to quarry (continue)