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As long as the "dollars" (precious metal coins) were the original full weight and fineness of the precious metal, all seemed in order. When the bullion content is 100% supply and 100% demand, it is 100% wealth. When the bullion content of a dollar coinage is reduced, a very significant thing happens, and invisible forces of money (credit and inflation) are born.

A coin of 100% wealth stands ready at anytime to be melted down for jewelry, dentistry, electrical duty, etc., because it is 100% real demand and supply at the same time, whether used as a medium of exchange or for use or consumption. A 90% fineness coin is 90% supply per se and 100% demand (face value), the 1096 imaginary demand it represents over the 90% supply it is, is "money" (credit and inflation). Anyone accepting the coin at its "face" value is being 10% robbed, without recourse on the creator of the coin. The only recourse the new hold of the coin has, is to pass it on to someone else, in a later exchange, and in so doing the robbery is repeated, and perpetuated.

In creating coins of lower bullion value than face value (seigniorage: Webster: A prerogative of government) and lending them into circulation, the creator is perpetrating the expropriation of wealth. The difference, called "seigniorage'' by Webster, and called money (credit and inflation) here, leads to the understanding that: "The main economic function of money is the expropriation of wealth."

A wealth medium of exchange disciplines the market and prevents inflation. Anything used as a medium of exchange in the market place in lieu of wealth is inflation, and perpetuates the expropriation of wealth. Since the main economic function of money is the expropriation of wealth, the more money created, the greater the theft. The creators of the nonwealth mediums of exchange are acquiring the ownership of the world. At the present time the creators are creating mediums of exchange of paper and of imagination (credit marks in a book"), and in such tremendous quantities the producers of the wealth to be stolen cannot keep pace, and runaway failing dollar parity in inevitable.

When only wealth media are used, 100% of production can exchange with 100% of media, or conversely, 100% of supply can exchange with 100% of real demand; when media are created out of nothing, an imbalance at first is unnoticeable because the volume of production absorbs the media that are imaginary demand, not real demand, and after a considerable time lag, it causes a general falling dollar parity. The falling dollar parity is the result of existence of nonwealth media, but is wrongly supposed by Webster, Friedman et al., to be caused by an excess of media over supply. Since wealth itself is ' simultaneously supply and demand, it is imperative. that we see it is the "existence" of nonwealth media that is inflation itself, a very, very significant and important distinction.

The imbalance, so easily absorbed in the beginning, continues to grow and grows at an extremely greater rate of acceleration than the normal growth of the gross national product. As time passes, the relentless creation of nonwealth media catches up with the G.N.P. and passes it by in respective dollar volume. At this time the best evaluation of the volume of created media (both tokens) and marks in a book (credit) in relation to annually produced goods is five to one.

Wealth media generated originally from the excess of production over consumption of the producers, and were generally maintained in the form of gold and silver coin. After serving as media of exchange many times over, they were still present and available to continue in that capacity, or at any time to be supply for consumption if the need arose.

With the creation of nonwealth media from nothing the wealth media gradually rose in value and were withdrawn from use as media of exchange, until now all we have are nonwealth media. With wealth media, only-the excess of production over consumption could remain as a medium of exchange and accumulate.

With nonwealth media, created out ofnothing and represented by tokens and written records, the volume is unlimited by any laws of man. The volume of medium of exchange in existence is now many, many times the volume of production available for purchase, which leads to accumulations of dollars which cannot be turned Into wealth by their holders. The issuing creator has caused such inflation" in the country (dollar glut) that the "prices" of goods are extremely prohibitive, and dollars, held by foreigners, cannot be readily repatriated, and no one else wants them for the same reason. The only end result is an eventual repudiation of the created nonwealth media, and a partial pay off in new wealth media or a wealth-backed token currency, a process known as deflation. Any attempt to create new nonwealth media to replace the discredited nonwealth media being phased out, is doomed to failure. The only way a deflation could be avoided, would be if the holders of the nonwealth media could turn it in to the creator for full value of the wealth it originally expropriated, and it has already been established here that the volume is too great for that.

Deflation is the only inevitable result of this condition. Attempts in the past have been made by others to go through a deflation, replacing the deflated currency with a new currency, denominated in wealth terms (precious metal parities) but not redeemable in precious metal. This robs the holders of the money (nonwealth media), and leaves them with only a fraction of the purchasing power they had, but in new "stronger" nonwealth media due to the lowered volume of imbalance between the production of supply and the reduced amount of the new media. Eventually the same imbalance builds with the issuance of more new media and eventually the whole cycle repeat . The only way inflation can be avoided (it can never be controlled) is to have only precious metal coins, or equivalent wealth as the basis of the medium of exchange.

The only justification for the existence of any medium of exchange, wealth or non. wealth, is to facilitate the exchange of wealth. It has been shown that wealth mediums function as standards of parity and do facilitate the exchanges. It has been shown that the use of nonwealth mediums expropriate wealth to the "central bank creator"! Without eventual return of the created nonwealth medium of exchange to the creator, the holder of same stands robbed. Without eventual payment in wealth to the holders of "surplus balance of payment," (unredeemable dollars held by foreigners) they stand robbed. When the central banks of the world have finished robbing their respective citizens, they will begin on each other, and the cooperative conspiracy will die, due to the thieves falling-out.

Such is the natural law of human behavior.

The sixteenth amendment to the constitution is definitely in violation of Article I section 2 paragraph 3, section 8 paragraph 1, and section 9 paragraph 4, all of which stipulate the "cost" of federal government should fall as a tax "uniform" throughout the United States, determined by the numbers of persons; whereas the sixteenth amendment places a tax based on "Individual income" not "cost of government."

The Federal Reserve Act (so called monetary reform) now permitted a group of privately owned banks under Congressional corporate charter to issue and regulate the supply of money in the United States.

The federal government could create bonds at will (unconstitutionally), sell them to the Fed for demand deposits and then "itself' issue checks drawn on its account at the commercial bank. When the government's checks arrive at the bank ' for "cashing," they are redeemed with federal notes, printed at the Bureau of Printing and Engraving, and for "Issuance," by the Treasury, on the justification that the government bonds" the Fed holds are the wealth "backing" the Fed notes issued.

The "money" (dollars) then are created psychologically by the Fed when they ''pay" the Treasury for a "bond" with a "demand deposit" which they create ''out of nothing." The "demand deposit" is a "credit" in the government's checking account at the commercial bank, transferred from the Fed who uses the "bond" it "bought" as the collateral for the monetary unit "dollars" credit created.

This paper backed by paper which will be used in the market place to purchase the goods and services of the citizens is ''sanctioned 'creator' expropriation of wealth," because the -bond" "backing" the "dollar bill" is an obligation of the citizens *themselves to redeem the "dollar bill" from any "holder" with its wealth; therefore at the exact instant" that any U.S. citizens give up wealth to accept "dollars" they are acknowledging that they "owe" themselves for the "debt" the "dollars" represent (the wealth they just gave up").

Dollars" which are psychologically created mediums of exchange, that are in no way representative of wealth in reserve, cause an imbalance of "imaginary demand" vs. supply. They are total "Inflation" which leads to higher "prices" (failing dollar parity), because the increased imaginary demand causes increased competitive bidding which causes the parity of the dollar to fall in relation to commodities.

Since the "dollars" created were not "backed" by wealth but could not be told apart from gold or silver coin "dollars" when recorded in ledgers at the banks, it was Imperative that something had to be done to prevent the percentage of dollar redemption in silver and gold coin from exceeding the usually "coverable" amount.

The sixteenth amendment "income tax" was the temporary answer. The government could tax the citizens income directly and, by manipulation ' regulate to some extent the amount of money" the people brought to the market place. With this one "tool" the imaginary demand" (money) could be kept from too radically imbalancing "Supply" (goods) and making "Inflation" too noticeable by "prices' rising too rapidly (dollar parity falling); also by taking "dollars" from citizens in "Income tax" it was removing dollars from being claims on gold and silver coin by redemption at the bank.

The absolute real "object" was to get the "dollars" out of competitive bidding before the public discovered the volume of imaginary units .. mixed in" that were not backed by wealth and were causing the dollar's parity to fall. By keeping the redemptions in gold and silver coin down to the usual approximate 10%, Gresham's law would not cause bank failures. By keeping the redemptions to below the 10% by "Income tax." government could "spend" many times over what it collected in taxes; it only had to tax the people "enough" to effect regulation.

The system, though, could not regulate the natural laws of economics; "dollars" created on books of account at any bank are "Inflation" and can cause the inflationary effect. Credit is money is inflation. At one time wealth was the purchasing medium, then .. money" and now today who can deny the "credit cards" are called the "new" money? By the late twenties the situation was so out-of-hand the market collapsed. and the depression was on.

Roosevelt was voted into the presidency, and his first big task was to get the system back in operation. Well, if the demand for redemption in gold coin was more than could be controlled eliminate the demand altogether. That is what he did by executive order. No citizen can demand gold for dollars, no citizen can use gold as a payment of contract, etc.. We had enough silver, but just in case that might get out-of-hand, let's have a new tax which will increase control. Social security taxes were the temporary answer. Another increasable, direct tax on the citizens' income.

The evolution of a free market, free enterprise system operating with only wealth media, which is the excess of production over consumption converted to the most convenient form as a medium of exchange gives us proof of how perfectly this economy governs itself. In a free market as population increases, it tends to increase the need for purchasing media. This increased need, due to a natural cause, would create a parity change between most commodities, and the precious metal commodity being used as a standard. This increase in value would lead to a natural increase in its production, which would in part provide some jobs for the increased population.

The market always adjusts itself, and does it naturally, yielding to natural laws. The increase in the population due to its needs for the production of others provides it with the opportunity to produce its share of the production to be traded. The need of the new population is for all types of consumer goods. The need itself creates the opportunity for people to produce the goods necessary to exchange with their fellow producer consumers. The population increase comes first, then develops into a larger work force, which in turn produces the goods to supply that work force.

The rate of unemployment under free market conditions is extremely low. The connection between the volume of purchasing media and the level of unemployment is quite clear, although it is significant that the increase in employment must come first to produce the production, form which the excess of production over consumption will generate into new additional wealth media. It is evident that an increase in population will naturally be followed eventually by an increase in the volume of purchasing media.

The attempts of the authorities to provide us with nonwealth media, and a full employment budget based on the contention that by controlling the money supply they can control the level of employment, have induced us to accept a false premise, because the element of belief is based on the fact that the unemployment level and the volume of media are connected in a naturalfree market.

In the "controlled" economy an attempt is made to control the volume of nonwealth media and keep it in balance with the gross national product, and the authorities expect the unemployment to fall into line. It doesn't work and they make statements like: "The laws of economics are not working as they used to." The economic laws are working, they just do not understand them.

When the medium is wealth it is limited in volume to the accumulated excess of production over consumption down through the years and is all "supply" in itself. When the medium is nonwealth its volume accumulates, but it created an imbalance, because it Is imaginary demand without being supply. It accumulates in response to another set of laws that are influenced by man, not in the act of producing wealth, but in trying to circumvent natural economic law; but natural economic law cannot be circumvented any more than man can circumvent the law of gravity. In the free market economy, wealth is both supply and demand, in the controlled market economy, wealth is "supply," and "money" (nonwealth) is imaginary demand. In the free market economy if people put a large quantity of the wealth media in a vault, sock, or wall, or anywhere else, and take it out of circulation it does not affect the market balance per se, its effect isn't any different than if It had been production consumed. Savings brought out again at any time do not affect the market balance per se, because the savings (wealth media) stand ready to be the "supply" for their own "demand," and its effect isn't any different than if it were new wealth production. In the controlled economy, if people put a large block of nonwealth media (money) in storage it has a significant effect in the market place. -Money in circulation in relation to produced goods available for purchase makes an unnatural equation of imaginary demand vs. supply, and man's law dictates that price is right when supply and demand are in balance; or when supply and demand are in balance the price is right. The result we have is that the parity between produced goods and money is constantly changing. The higher the volume of money in relation to goods available the higher the price; the lower the volume of money in relation to goods the lower the price.

The economist's law of "supply and demand' is only possible. with "Imaginary demand".)

The degree of inflation. then, is not directly effective on ''price level" but rather the amount of inflation (money media) in circulation competing in the market place for the purchase of goods. The money volume (total inflation plus all potential credit) does not directly affect the "price level", Money must be in active pursuit of production to affect the price level." When "money" In active pursuit of production is removed from circulation and stored, the amount of production remains, and the resulting imbalance change affects the parities between commodities and the money units volume in circulation. and "prices'' go down. (Lower volume, lower bids). In a controlled economy, when money from storage is suddenly bid in the market, the volume of monetary units is increased in relation to the goods on sale, and "prices" rise. (Greater volume, higher bids).

It is the rise in "prices" itself that has the direct effect on the employment level. With higher "prices" the economy is "stimulated higher prices" (failing dollar parity) means the commodities are worth more in relation to the purchasing media and therefore production will be increased as a result; and the employment level goes up. It is extremely important that we understand this reaction. It is not inflation itself that raises "prices," it is the amount of the inflation that finds itself in competition in the market place for the purchase of goods that affects the "level of prices." It is the supply vs. imaginary demand ratio that by competitive bidding affects the level of employment, and it is the supply imaginary demand ratio which by competitive bidding affects the ''commodity" parities with "money" which is what we call "prices."

Government deficit spending, in order to affect the level of employment, must then affect the "level of prices" you cannot have one without the other. For deficit spending to affect "prices," the money coming into the market place from government must be increasing the total volume of money seeking goods; if it doesn't, then there is no effect, in the beginning when government first started to inflate the economy for war, it sold the citizens war bonds. The idea of selling war bonds to the citizens is to reduce the amount of money coming from the people into" the market, at the time the government is increasing the amount of money going into the market place to chase goods. The effect is to keep a "balance" and not affect the level of "prices" which would "give away" the fact of inflation being present. If the total volume does not reflect the increase coming from government because there is a compensating "outflow" from the people into war bonds, ''prices'' will remain relatively stable.

When the government wishes to "prime the pump" and stimulate the economy, and chooses to do it by deficit spending, it has to make certain the total volume of money chasing goods, on the market, goes up. The government stresses that people should have faith and spend, spend, spend. It tells business to invest capital in more production equipment, etc. When the President and his advisors are successful with their rhetoric and the people do go out to spend then indeed does employment rise, when, however, the rhetoric does not work, and the people start to save at record levels, then no amount of government deficit spending will raise the employment level.

The people with their great numbers and large volume of money are able to affect the volume of money in the market place, with much greater influence than the deficit spending of government. The people take money out of circulation faster than government can push it in.

The great volume of money, then, although representing great inflation (imaginary demand which is not supply), does not directly affect the rate of unemployment as generally supposed. The belief of the people in the soundness of the economy is the greater controlling factor, and that is why it is always stressed by authority that if the people would only "believe" the economy is going to improve, It will. But If the people do believe and do spend, then the results are "higher prices," lower profits and a stronger Influence on the people to disbelieve. This tug of war constantly going on is the fundamental basis for all boom and busts. it is the manifestation of the conflict being waged between man in his efforts to control the economy and the natural laws that really control it.

In a free market economy the population comes first, and the increased volume of purchasing media follows. In a controlled economy the "controllers' ' arbitrarily increase the money volume to try to match, by guesswork, what it should be for the production volume. It is backwards for one thing, and it also has extra variables. Where natural law takes all contingencies into consideration, and reacts with superhuman skill and natural guidance, the human effort to control the economy tries to create conditions to favor its own desires.

Only the people working can create wealth and if the people retain the excess of production over consumption in the form of wealth media, then they hold the wealth of the nation in their own hands. Any government that must operate strictly on the wealth of the people, taken in taxes, will govern itself according to the will of the people. Since wealth media were outlawed in the United States by an executive order in 1934, the coinage act of 1965, and the people were forced to use fiat, the people no longer own the wealth of the nation. When the government through the creation of bonds can independently finance itself, it no longer reacts to the will of the people. Whosoever creates the money and forces the people to use it, by legal tender laws, now controls the people and their government almost completely. But the natural laws of economics take effect and their inevitable collapse is preordained. The government can only control the people if the people use the fiat currency; but fiat currency expropriates wealth. Only the people working create wealth, and natural law dictates. When all that people produce is taken from them, they cease to produce beyond the needs of bare subsistence. At the present time the best estimate indicates the central banks of the world hold title to the greatest portion of all wealth existing.

Once embarked upon, a system of attempted control of an economy by means of inflation has only one ultimate end: collapse of that economy and subsequent deflation. Even if the humans at the helm were expert enough to take every contingency into consideration and react with superhuman skill, the basic problem would still be with them their created money is not wealth. No matter how strongly they impress the world by denominating it in terms of wealth, the existence of any nonwealth media creates the equation of wealth vs. nonwealth or imaginary demand vs. supply (where in a free economy demand is real and is supply per se).

This equation existing of imaginary demand vs. supply then dictates that the economy must constantly expand. It must constantly expand because population normally expands, and to keep that expanding population employed the prices must be continually rising, and to keep the prices rising there must be an ever increasing volume of money in the market place. The greater the expansion of the money volume-the less and less confidence people have in it. If they slow down the inflating, unemployment goes up, and people get more worried. The more worried people become, the more they save. The more they save, the more their savings compensate governments inflating, furthering unemployment. There is only one hope left for the humans at the helm. They must stop the increase in population.

If they could slow the increase in Population, they could correspondingly slow inflation. After all, it is the expanding population that demands the economy keep expanding.

Now we understand the emphasis on birth control and "no win " and why we are told that we are procreating ourselves out of even enough food. Here again, though the procreation of the human is in the control of the people, it could be pointed out that gambling has never really been completely controlled. Population increases are natural, and the natural laws govern best. The outcome of trying to circumvent natural law is failure, and failure will bring a great deal of misery for the people, as it has every time currency debasement was tried in the past.

Inflationary effect: Created "dollars" (imaginary demand) causing an equation of: imaginary demand vs. real demand, causing a falling dollar parity, because the imaginary demand can exceed the real demand of supply itself. The increased total demand (97% or more, "imaginary" today) "seeking exchanges," through increased competitive bidding causes increased need, for increased production which increases the number of people employed.

The seigniorage itself, that portion of a token's "face value" that is not, and cannot ever be production guarantees that the parity of the dollar (imaginary wealth) must be lower than actual wealth by its own "nature of being only imagination" therefore the excess of the "imaginary demand" created over the real demand produced makes it imperative that more "dollars" must be bid for each unit of production if and when the dollars are bid against the production for exchange.

The dollars created are the inflation and were they to remain as numbers in a book, or on a bond, tucked away in a drawer they would not of themselves as imaginary demand cause the inflationary effect. Only if and when they are actively bid against production while seeking exchange are they instrumental in exposing the falling "dollar" parity and causing the number of people employed to increase.

"During the inflationary effect as the dollar parity falls the number of people employed rises! "

"Where created "dollars" exchange for production, cost rises as employment rises."

The people have been led to believe, by economists that the falling "dollar parity" is a "rise in prices," and the falling "dollar parity" exposing a "rise In prices" leads the economists to say that it is the increased "demand" for production that has caused the "rising prices," a fallacy that sounds good but that allows the added misconception that anything that increases cost, such as wage increases is a cause of the inflationary effect, again a fallacy (if imaginary demand "dollars" were not created no one could "bid" them).

Deflationary effect: Because of "rising prices" (lowering "dollar parity") economic advisors to government influence government to increase "down payments" required on time contracts, and similar "moves" to curb spending, in order to lower the "demand" they say is the cause of the "rising prices." Actually their measures cause the people to withdraw their "dollars" from active competition in bidding for exchanges with production. As the "dollars" are removed from active competition in bidding, their lowered number bid against each unit of production if and when the "dollars" are not bid against the production for exchange lowers the amount of imaginary demand exceeding the real demand, and lowers the total "demand" seeking exchanges through decreased competitive bidding causing a decreased need for production which decreases the number of people employed.

The "dollars" created are inflation and when they remain as numbers in a book, or as numbers on bonds tucked away in a drawer they cannot of themselves as imaginary demand cause the inflationary effect or the deflationary effect. Only if and when the "dollars" are removed from actively bidding against production, and are not seeking exchange for production, does their decreasing number become instrumental in exposing an increase in "dollar" parity through decreased competitive bidding cause the decreased need for production which decreases the number of people employed.

"During the deflationary effect as the "dollar" parity rises, the number of people employed falls!

Where created "dollars" exchange for production, costs fall as employment falls."

In a natural free market in the absence of created ''dollars" all production is wealth, and all wealth is either supply or demand by viewpoint. All production seeking exchange is real supply or real demand and neither one can exceed Itself, therefore the competitive production parities remain relatively stable over long periods of time, and are only effected by the natural forces of time, location and circumstance.

Employment increases with the increase in population, and the need to supply, that increased bidding, for increased production. The normal advancement of civI1122-tion, and its industrial progress constantly lowering the cost of production through technological advancements raises the standard of living. As the standard of living rises, because the cost of production is failing the people find that the capitalistic system of free enterprise, combined with the never ceasing desires of man to acquire wealth, guarantees no able bodied man will be unemployed; this is the increased return on labor giving us a rising standard of living and increased employment at the same time we have a rising labor (human exertion) parity in relation to production.

"During the free market competitive production parity conditions, production cannot exceed itself, and the population increasing causes production increases, and the number of people employed rises!"

"Where wealth backed currency exchanges for production, costs fall as employment rises.

Should civilization regress and the population decrease it would require less production and consequently less employment, and with lessened need for production the technological advancements would be impractical, and their advantage lost. There would be higher cost of production with a lowered number of people employed. The normal advancement of civilization, literally in reverse, with an associated loss of technological advancement would result in higher cost at the same time we have lowered employment.

"During the free market competitive production parity conditions, production cannot exceed itself, and the population decreasing causes production decreases, and the number of people employed falls!"

"Where wealth backed currency exchanges for production, costs rise as employment falls!

With imaginary ''dollars" -cost rises as employment rises.

With imaginary "dollars" -cost falls as employment falls.

With wealth as currency cost rises as employment falls.

With wealth as currency cost falls as employment rises.

Price: The human effort required obtaining the wealth to be surrendered to obtain the wealth desired.

Parity: The value of one commodity expressed in terms of another.

Price fluctuation is a natural consequence of a change in the competitive bidding, producer competition, return on labor, variations in time, location or circumstances.

It holds, then, that when the maximum parity for any given commodity is reached, in competitive bidding the price must be right. A thing is worth what someone will exchange for it.

At an auction, an item is sold when the highest price bid for the item is reached. The process to find the correct price is simple. An opening bid is established and at that opening bid there are many that will pay that price. With many willing to buy at the opening bid, it is obvious the price is too low and therefore "not right." The auctioneer continues raising the price as he continues to observe the number of bidders for the item at the various price levels. When the auctioneer reaches the price where only one bidder is left 'willing to pay that price, the sale is made. The sale was made when the maximum parity was reached for which there was a bidder.

The price was reached because the auctioneer was free to accept or reject a bid the bidders were free to accept or reject the price.

Whenever a given commodity becomes in short supply, it is because its price is not correct, (excluding acts of nature).

Whenever a given commodity becomes in surplus supply, it is because its price is not correct, (excluding acts of nature).

For a commodity to maintain a fairly stable price, it price must be determined in a free market by the competitive bidding of consumers.

For any given agency to try to control the price of anything, that agency must have control over both the supply being offered and the consumers bidding which then would not be free or competitive.

The "demand" for any commodity is determined by the commodity parity it has, as a result of the competitive bidding for it.

The supply of any commodity is generated by the commodity parity it has, as a result of the competitive bidding for it.

An agency can be set up to fix prices-and even try to regulate supply, but unless it can regulate consumer bidding, the entire effort will always end in the development of surpluses or shortages.

Without exception, every attempt ever made by any government agency to control prices and supply has always ended when government ran out of storage space for surpluses or the people became impatient with an administration because of shortages.

Government tries to control the price of commodities by moderating consumer bidding with its purchases of the surplus. With a large surplus of commodities on hand, government manipulates the regulations and produces shortages, so the warehoused goods can be released as additional supply. It is a theory repeatedly explained as being workable, but somehow has never proved practicable.

In a free market "demand" is always "real demand" (wealth) and "supply" is always "real" supply (wealth), and competitive bidding keeps the parities of commodities in fairly stable relationships. In a free market where only commodities (wealth) are used as units of exchange media, there can never be inflation. A commodity used as a unit of exchange is unique in that it is supply and demand at the same time:

Two things exchange--

One is supply to the "receiver" and demand from the "surrenderer".

The other item is supply to the "receiver" and demand from the "surrenderer."

Both items are "supply" and "demand" simultaneously!

If all commodities are either supply or demand per se at the same time, where is the "balance" that sets the "price"? If all commodities are supply and demand per se. There cannot be an imbalance. What, then, are prices?

Price must be found in the relative use values (worth) of commodities and services surrendered to obtain the commodities or services desired.

"Demand" is anything produced by human exertion having exchange value (wealth).

Man seeks to satisfy his desires with the least amount of effort.

If a fisherman brings an 8 hour catch to market and finds that its relative worth is equal to A 4 hour production of bakery bread, he might decide to give up fishing and become a baker. If several fishermen got the same idea, the price of fish would rise In relation to bread and every other commodity on the market; the price of bread would fall in relation to fish and other commodities. With more bread and less fish being produced, bread goes down and fish goes up in "price." If too many fishermen had the same idea, bread prices would fall so low and fish prices rise so high that 8 hours of bread production would exchange for a four hour catch of fish. At this point some bakers might decide to become fishermen. A free market regulates itself according to natural law.

Because of the thousands of lines of endeavor and the thousands of commodities produced and services offered in the market place, no man-made law or practice has been successful in doing what a free market does for itself without supervision.

Wages are labor's share of the increase in wealth (profit) from successful efforts of capital and labor (human exertion).

Labor's wages are the relative use value (worth) of commodities or services received in exchange for its production, less the rent of capital.

In a free market, labor's wages are expressed in terms of weights and commodities (wealth media). In a free market, based on the use of commodities as units of exchange, price levels" remain generally level and tend to fall gradually with time and the continuing introduction of industrial mechanization.

Prices are directly related to the relative use-value (worth) of commodities in relation to each other (parities), determined by the competitive bidding of producers (consumers) offering their production in exchange for the production of other producers (consumers).

In a free market, commodities are used as a unit of exchange (wealth media). One or more common commodities become reference standards readily accepted by everyone as being relatively stable in value relationship with all other commodities. A standard unit of exchange commodity will always develop naturally. It will always be one that resists deterioration, corrosion, and time, and can store a large amount of exchange value in a small, convenient transportable form. This commodity with its own use value, readily exchangeable for goods and services at any time, is usually small bits of precious metal in coin form-wealth in its most convenient form for use in the market place as a unit of exchange (wealth media).

These precious metal coins are supply or demand by use, since they can be melted down and used for their own use-value or they can be saved as units of exchange for future purchases. They are also subject to price fluctuations in relation to all other commodities.

If a gold miner found that 8 hours' work in the mine brought him wages equal to that of a fisherman's 4 hour catch of fish, he might decide to quit mining and become a fisherman. If several miners got the same idea, the "price" of gold would rise in relation to fish and all other commodities, and the "price" of fish would fall in relation to gold and all other commodities. It is this natural law of free market exchanges that makes it imperative that all units of exchange be specifically stamped with the weight and fineness of the commodity, so they can be freely exchanged at their competitively determined parity.

It is impossible to decree a fixed value relationship between two or more commodities without simultaneously interfering with the natural self-regulation of a free market.

All commodities, including ones used as common units of exchange, must be free to fluctuate pricewise in order to maintain relatively stable parities.

It is possible to use warehouse certificates of deposit as an additional facility for exchanges in the market place. Such certificates must contain the weight and fineness of the commodity they represent and must be payable to the bearer on demand. Certificates representing quantities of any commodity would trade in the market subject to acceptance by the traders as "proxy" for the wealth itself, subject to the same changes in relative worth to other commodities as would be the actual commodities per se that the certificates represent.

A producer bringing his goods to market is always a capitalist. He brings the commodities to market and "sells" them for a quantity of the common unit of exchange (wealth media). He can then "purchase" with some of his common unit of exchange the necessary products and services of others for which he has immediate need. The remainder of the common unit of exchange can then be warehoused for future use in exchange. This overage is his savings; and added to the profits from past exchanges, it represents his wealth of purchasing power accumulated, and his potential for an increased standard of living.

People providing labor as employees of the varied productive groups endeavoring, through the cooperative use of labor and capital, to create wealth are not -capitalists. The employer is the one who must take the output of the farm or factory to the market, and sell his goods. With the proceeds he pays his employees labor "wages" which represent labor's share of the profit from a successful effort of his capital and their labor to produce wealth.

It is imperative that the "employer" be free to decide whatever portion of the profits (wages) he can offer to pay for the labor he employs.

It is imperative that the "employer" be free to "accept" or "reject" employment for the wages offered.

Labor is a service, and as such an economic "value" and exchange of labor for commodities must be freely agreed upon by the parties to the transaction or the market is not free.

The parity of an -individual's exertion in the process of producing a product is the wages" offered in exchange for it.

The "price" of labor is wages.

The "supply" value of labor is determined by the value of the wealth offered in exchange for it when the wealth offered is comparable to the individual's "wealth production potential" using his own capital.

The "demand" value of labor is determined by the value of the wealth offered in exchange for it when the wealth offered is comparable to the individual's "wealth production potential" using his own capital.

Employers without labor cannot produce.

Without production there isn't any profit.

Employers will employ labor as long as it is profitable to do so.

Labor without capital can only perform service in employment,

Without employment there aren't any wages.

Labor will work for wages as long as the "rent of capital" remains acceptable.

The level of wages is set by the mutually acceptable "rent of capital."

It is impossible to set a fixed value relationship between labor and any other service or commodity without simultaneously interfering with the natural self-regulation" of the free market.

All services and commodities, including the one used as a common unit of exchange, must be free to fluctuate "price-wise" in order to maintain the relatively stable parities of all service and commodities in relation to all other services and commodities.

It is not possible for an employer to hire all labor on a "piece work" basis (as only he can use), so he risks his capital in employing labor on a "time" basis. If his management is good and labor is cooperative, production will be successful, and when the "goods" are ''sold" there will be enough common unit of exchange commodity to pay all wage contracts plus a profit for the employer.

If through any agency, governmental, union, or otherwise, a ''level of wages" is established through. Coercion upon the employer that is unrealistic, the consequences appear immediately; the market is no longer free.

Profit must go down to maintain the "level of prices" or prices must go up to maintain the level of profit or unemployment must go up to maintain the level of prices and profit, or productivity must go up to maintain the "level of prices," profit and employment.

If government passes a minimum wage law, the immediate result is elimination from the army of the employed all those with a productive capacity less than profitable in a free market.

Price-parity ……91

The free market operates on natural laws, and always reacts to regulate Itself; therefore, if the employer had been keeping some low productive labor at a wage he could afford to pay, and a minimum wage enacted is higher than that, he must discharge two at a lower scale, and hire one at a higher scale having the productive capacity of the two that were let go.

The net result, then, is that with. a higher minimum wage: Less employees-same total production-same total wages-same profit, so the very law designed and enacted to help the lower wage earner puts him directly out of work.

The only way that true parity can be found between any service or commodity and any other service or commodity is by free choice.

The free market is a very powerful entity in delicate balance. It regulates itself with out outside influence, and will not tolerate interference. The integrity of its unit of exchange must be preeminent, Any interference in the free market will (in time) bring about powerful reactions.

At any one point in time at any one market place the relative value of any one commodity can be expressed in terms of another.

I lb. sugar = 1/4 lb. coffee or 112 lb. fish = 3 eggs, etc.

Infinite variations would occur at different markets in different locations.

Wealth is possible for the facilitation of rapid exchanges (circulation) in the market place.

Any number of precious metal commodities able to be divided into very small units would be excellent as mediums of exchange.

They could be fabricated by the government for exchange at exact bullion content to Its citizens (fabrication costs paid for out of taxes as government duty to protect people) and stamped with certified weight and fineness of the commodity.

Any commodity will vary in related value to other commodities; even location is part of its economic value; therefore no medium of exchange shall be anything that is not the thing itself per se (wealth).

Coins with the actual content of the weight and fineness of the commodity stamped on them are wealth, not money.

These coins could be encapsulated in thin, tough, transparent plastic sheaths bonded to the metal itself; this coating to stand any wear, and also add size and body to very small units of the precious metal.

The form could be a cloth woven of precious metal thread, coated with a plastic, printed with the certified weight and fineness of the recoverable content of commodity. In this way we could have sheets of wealth, in various denominations of wealth content, for media.

A sheet size standard of say 2.5 inches by 6.0 inches with weights of say 0.01, 0.02, 0.04, 0.08, 0.10, 0.20, 0.40, 0.80, 1.00 ounce gold.

This currency system would work exactly as the money system we have now, except that there would be no name involved, no dollar sign ($) as such, or any reference to anything except its actuality G-0.01 (1/100 ounce gold), G-0. 10 (1/10 ounce gold), or G-0-80 (8/ 10 ounce gold).

Ounces would be used for large items, and for grocery and other small items the specification might be in grains of gold. (480 grains ounce). All merchandise would be marked with its "price":

One can of canned soup marked 3.3 GG (3-3 grains of gold.)

Ground beef marked 15.0 GG/lb. (15.0 grains gold per pound).

For a chest of drawers G-3.0 (3-0 ounces of gold) etc., etc. The designated letter for gold before the figure meaning ounces and the designated letter -G- for gold preceded by a designated letter -G- for grains following the figure meaning grains.

The thing to realize is that this has many advantages over our present system.

In our present system we are paid for our labor in dollars, we have to go through thought processes in our minds every time we make a purchase. We weigh the relationship between the price of the item against the amount of exertion that price represents in our labor. It would not be any different if we were paid in ounces of gold currency and coin and did all our exchanging with the same units.

The difference would be in our protection. With a currency that was wealth itself. Counterfeiting would be to no advantage. Worn or torn currency would be taken out of circulation by the banks and returned to government for replacement, (the metal recovered and new plastic bonded to it).

Any torn bill with a portion missing would be considered in exchange by the government only to the extent of the content of the portion turned in. In circulation, a torn currency unit could exchange at a discount or be refused.

Since we are being very realistic, let's carry this a bit further. Silver and gold can be fashioned in exactly the same manner, and also platinum currency for big business purchases.

Gold currency or coin, silver currency or coin, and platinum currency or coin could all coexist and be used in markets all over the world. Currencies and coin of gold, silver, and platinum would vary in relation to all commodities and each other. No commodity produced by man stays constant in all markets at all times, nor can any currency unit.

Goods for sale anywhere in the world could be simply marked:

P-0.001

G-0.010

S-0.100

The variations between "relative current values'' (parities) of platinum, gold and silver acceptable to the seller incorporated in the price marking. The buyer could exercise his own relative values and decide to purchase with whatever commodity he chose. This certainly would afford both parties to any exchange the ultimate in free choice.

The seller at any time prior to sale may alter the pricing to reflect any change in his evaluation of the relative value between the commodities and respective weights he will accept. This is what he does now. He may limit the commodities he will accept to only one or two if he wishes; they are his to dispose of at his discretion in a free market, free of legal tender laws.

Anywhere in the world, a tourist could exchange his currency for any other, and provided standard initial and weight units were used, make purchases knowing exactly what everything was at a glance. It should not be hard to arrange to us P = Platinum, G= Gold, and S = Silver with ounces or grains as the units.

There would be no need for complicated foreign exchange markets. Currency could be exchanged for a small service fee at any commercial bank in any city in the world. The I.M.F. would be unnecessary, and all balance of payments would be settled in the commodity arranged at the time the deal was made.

Banking would be concerned with being a storehouse for wealth, and with arranging loans of the depositor's wealth for rent, which is shared with the depositor, for giving up the use of his wealth while the borrower had it. All loans would be secured by notes which would be signed by the borrower, cite the terms of repayment, and the commodities that would be acceptable in repayment. These notes, being direct obligations and representing already existing wealth, could be traded by mutual consent since they are in no way inflationary. Checks and checking services to facilitate ease of debt payment could only be drawn on specific commodities actually on deposit in drawer's account. Balance of payments between banks would have to be made in the actual currency or coin of commodities mutually agreed upon by the banks involved.

Government could collect taxes, and operate on the actual tax collections, clearing checks from citizens in the normal way through its checking account at its bank or banks. Any borrowing by government would have to be on authority of congress, and the loans made 'in the same way as for individual citizens or large corporations, through the banks, and the signing of notes as previously described.

This system is the way nature devised it, any other way will always end in failure and misery. Human labor produces wealth. Production in excess of consumption becomes savings. Savings in a durable, divisible, transportable form become an excellent medium of exchange. Individuals with excess savings may lend their wealth to others as capital to expand the economy.

Production in excess of consumption becomes inventory until exchanged for a savings commodity.

Consumer goods and services exchanged in the market place are consumed, and are gone, or are "used" and remain in existence as "potential reserve media."

The medium of exchange commodity, in the most convenient medium of exchange form is seldom consumed but is used over and over again as media. Continued overproduction of durable, divisible, easily transportable commodities becomes an increased medium of exchange volume. Producers of goods who did not follow the competitive bidding parities closely would find their inventory increasing and their medium of exchange supply dwindling. In the absence of government subsidies those producers would change their line of endeavor.

All producers (consumers) would own their own medium of exchange and it would be wealth.

The wealth of the nation would be owned and controlled by the people.

There could never be inflation because all purchasing media itself would be production (wealth). With a wealth commodity as a medium of exchange, "prices" would remain fairly stable, with a gradual tendency to lower as division of labor perfected itself. Division of labor constantly improving the means of production becomes evident in a slow continuous lowering of the "price level." Continued reinvestment of savings capital in increased production becomes evident in a constantly rising standard of living.

In a free market in a free society, stability would be maintained by the natural laws of competitive production parities arrived at by competitive bidding which led to the exchanges that established the parities. With this system the people control the wealth produced, and thereby control the government.

This is the only way individual rights and freedom can be maintained.

"Retaining the God-given right to distribute one's own wealth is the only guarantee of freedom from tyranny."
Jenkins economic truth no 1.
"Money accepted as a medium of exchange controls people and government."
Jenkins economic truth no 2.

There have been many changes in our mediums of exchange in the last century. The days of "free coinage" have long disappeared. The transition from "wealth mediums" and "free coinage"' has been so gradual that the devastating effects it caused have not been attributed -to it- by the vast majority affected by it. The apparent fantastic success of the new "monetary system" has almost everyone believing that it can go on forever.

"Money" The Greatest Hoax On Earth …..94

When someone does come along and says that it must end soon, it cannot go on, it must collapse, etc., they are told that there aren't any economic laws that say it cannot go on forever. The great belief is that if all people had confidence, then that is all that is required.

There is widespread belief that a total fiat system can function if it is universally adopted. The fact is ignored that people must work to produce goods, that before "division of labor" there wasn't any need for a common commodity as a medium of exchange. When an exchange was mutually desired it was accomplished by "bartering," goods exchanged for goods (wealth for wealth). When division of labor increased the volume of exchanges, the old -bartering" became cumbersome and too slow. A new vitality was introduced into the system of exchanges when it was discovered that a common commodity (a thing produced, which maintained its relative value to all other things produced better than any other) would serve as an "intermediate possession" between the time one disposed of his product to one person and was able to acquire the product desired from another. The widespread mutual acceptability of this common commodity throughout all lands made it the preeminent means of high velocity exchanges.

High velocity exchanges with wealth (gold and silver coins are wealth). There wasn't any money (credit) (inflation) in the system. Anyone who wished to increase the liquidity of the economy could fashion his own gold or silver possessions into the commonly accepted form for use in the market place. Wealth always exchanged for wealth, the difference between production and personal consumption by the producers, was the gross national product, and it equaled the total supply of "mediums" of "exchange" (wealth). No one could exchange more than he had-to be without goods to offer was to be without purchasing power. It was necessary to perform labor to acquire goods, in order to trade with another producer, and when a trade was made using the common commodity as a purchasing medium, the transaction was complete wealth for wealth.

With the introduction of coin debasement, money (credit) (inflation) was born. Money exists in the mind of man. True, if he accepted a debased coin he was giving up wealth his wealth for a coin which was not fully 10096 equal to the value he was attributing to that coin in his "mind," when he was deciding to accept it in exchange for his wealth. The difference between the value he was "attributing" to the coin (face value or non debased value) and the actual wealth content it had, is money (credit) (inflation), With a debased coin in possession, a person has imaginary demand that is not "supply'' equal to the difference between its "real" worth and its face value. What must be realized is that a person accepting a token worth less than the wealth that is being surrendered is convinced mentally that someone else will surrender the same value for it later on. This belief is the "confidence" that makes the fraud seem reasonable. The only time tokens will be accepted is when the receiver is convinced mentally that they have a value in relation to the value surrendered. Without an imaginary parity connection to some commodity the token is unacceptable. Media debasement always starts with a minor amount and increases through time. It is this subtle slow transition that makes the fraud acceptable. People are unaware of the invisible attack on the natural laws of economics.

To believe that any group of people, any nation, could ever get all its producers to agree to let any individual have the privilege of being able to take any or all of their production at any time without any compensation is ridiculous. Aware of those conditions, no one outside a mental institution would permit it; therefore one must be subjected to mental conditioning in order for it to "work" at all. By allowing redemption of fiat for real wealth in the beginning (paper bills were redeemed at the banks for gold and silver coins for years), the fraud is concealed and the "confidence" in the fiat is cultivated and brought to a fantastically high, exploitable degree. By the slow systematic increase in debasement, the removal of gold coins, then silver coins, the people do not realize that the banks will no longer redeem the fiat for any wealth at all. The people themselves are the only ones "attributing" any value to fiat. They go on exchanging their goods and services for fiat amongst themselves, supporting their "confidence" with "confidence." So it appears to the great perpetrators that the fiat could stand on its own as long as the "confidence" is maintained, but they are guilty of ignoring the natural laws of economics.

Imaginary demand cannot be controlled ……95

When debased coinage enters circulation, it expropriates wealth to its creator, and no amount of passing it amongst the people will replace that wealth removed from the economy. The expropriator would have to redeem the coins and replace the w h. The accumulation of fiat is proportional to the amount of wealth removed and no longer available to its producers, stolen from them without their becoming aware of the fact. This lack of awareness has allowed the condition to progress to the degree that it has. If the people really knew what has caused the destruction of our economy they would react, but instead they have been effectively duped into accepting a mental medium as a "thing" equal to their original wealth, and since its representative tokens can be exchanged for gold it is considered by the people, in their ignorance, as being just as good as gold.

Where once people had the wealth they produced as the capital goods with which to extend their industrialization, and could convert wealth into capital directly, they now are forced by their lack of knowledge to accept a ghostly non-material manifestation, issued by the owners of the "credit machine" who can control the machine but not Its output.

Present-day production is not conducted with the wealth of the people as the capital used. The people are no longer paid their earnings in wealth; therefore they do not have wealth to use as capital directly. When people are forced to use money, they relinquish the reins of business to the creators of money. When money must be used to purchase the capital used in business, the means of expanding the industrial progress of the nation rest in the money creator's whim as to whether the credit machine is "on" or "off" and available to the people. When it is "on," its output cannot be controlled and it will be used to Inflate; when it is "off," inflation is curtailed and the already inflated economy suffers an illiquidity crisis, which will lead eventually to deflation.

The entire means of production are then at the mercy of the money creators, who by natural law can only turn it "on" or "off' but cannot control its output. A free market controls itself; any attempt to control a free market by an alien "money" (the imaginary media) immediately germinates the seed of eventual downfall, manifesting itself in wage controls, price controls, rationing, and then collapse.

The "credit machine" in the "on ' " position allows almost anyone to instigate the creation of purchasing power by putting up collateral for a note loan or by simply using a credit card. There isn't any difference between the inflation resulting from the creation of credit by a bank or the creation of credit by the use of a credit card. The bank's credit creation can be influenced by the various directive manipulations of the Fed.

Bankers' credit creations are subject to reserve requirements, bank liquidity levels, and various other "on" and "off' regulations that can be imposed by the Fed at their discretion. The public, however, can decide for themselves when they wish to purchase, and when they do not. In efforts to control people's buying impulses, government has seen fit to try various directives, such as changing "down payment" requirements. The down payment requirement regulation was an attempt to limit credit extension, by business lending directly to its customer, by carrying its "own book." If customers had to have down payments, then obviously their buying volume would be reduced. It is easy to see that the raising and lowering of down payment requirements would have an effect on the buying volume and, of course, the credit creation to facilitate those purchases; but the effect is by no stretch of the imagination, "control." Controlling credit creation would mean the ability to limit it to a given 'amount' at a given 'time' to accomplish a given "result." This degree of control over credit creation never was and never can be, accomplished by any means invented to date.

By passing the "truth in lending law," it was possible in most cases to take credit creation away from the local businesses extending credit to their customers directly, and move it into the banking system through the use of credit cards. Credit cards, however, are either valid or invalid, and even though the amount of credit may be limited on the individual card, there are still the people to consider. The credit card may be used or not used according to the people's whim, so although the card may be recalled by the bank or its limit raised or lowered by the issuing bank, they still cannot control the exact extent or timing of its use. Millions of credit cards already issued and in the hands of the people are a tremendous potential purchasing power always at the "ready"! Credit control laws are a fake. Creation devices can be turned "off" or "on" but as long as it takes people to use them the output cannot be controlled. The output is credit, credit is money, money is inflation and therefore inflation cannot be controlled. Once a credit device is installed and turned "on" there will be uncontrolled inflation.

"Money" The Greatest Hoax On Earth …..96

All output of the credit machine bears interest, and interest can only be paid if the machine stays "on"; turning "off" the machine will make interest payment impossible and create a liquidity crisis. The lowered liquidity will "throw" the imbalance of money (imaginary demand) vs. goods (supply) available over to a "condition" where the parity of money in relation to goods will rise, which will cause lower "prices" and lower employment. Owners of the credit machines reap the profits, all credit expropriates wealth from the people. The people (victims of the expropriation), although they are never quite aware of the "direct thievery" the "credit" is guilty of, do become aware of the inflation itself when it causes the "price" of all commodities to rise. The owners of the credit machines would like nothing better than to be able to perpetrate the expropriation of wealth, and " control" inflation, the result would be the best of all worlds for them. Natural law, however, will not allow it, when inflation (money) is used to purchase food, for instance, the food is consumed and the credit (inflation) remains to accumulate.

The result of "inflation" is eventual hyper-currency debasement," controls, shortages, and rationing which lead to the eventual collapse of the people's belief in the credit machine's output, collapse of the economy, and deflation. People purge themselves of the credit machine's creation (dollars), and turn to bartering" to subsist, earning what they can, where they can, and making direct exchanges in a self-erected free market which does not use the credit machine's created dollars.

Credit machine owners cannot expropriate wealth if the machines lay idle. The owners cause laws to be passed, labeling the people's self-erected free market a ''black market" and imposing penalties on anyone operating in the "underground" free market in "violation" of their "uncontrolling" regulations.

The cycle is always the same, once inflation is commenced, it will increase in proportion to the degree of the expropriation desired by the credit creators, and confer upon them the control" of the means of production and the people. Once turned "on" the process can only be turned "off" for brief intervals, and the cycle will have a life span influenced by the relative dwell times of the "on'' and "off" periods. The entire process is self-terminating by nature and cannot be perpetuated. The inflation, once begun, cannot be stopped until it runs its course, it can only be affected briefly during its life span, but it can never be controlled!

The area of operation of the inflation process does not alter its self-terminating nature. Basically, effects of inflation are the same, although there are effects of its application, internationally, that are somewhat complicated, and perhaps to most observers a bit confusing. just as the people here will only accept the created money as long as they believe they will be able to pass it along later and get comparable wealth for it, so it is with people all over the world-they are no different.

The nations of the world have been inflated just as we have. The German people have been robbed by the German central bank and the Italian people by their central bank, etc.

The degree of inflation varies to some extent in different nations, but the delusion of the people to is exactly the same. The people do not see the true nature of the robbery taking place, that they are being robbed by the very creation of money. The higher "prices" resulting in the lowering of the purchasing power of that money is an effect of "natural law" trying to alert the people and motivate them into taking corrective measures. The central bankers who are the owners of the credit do know the difference.

Imaginary demand cannot be controlled ……..97

Central bankers have been content to extract the wealth of their individual nation's citizens with the art of delusion, perfected over many years of practice. The whole international system is about to collapse because they have become so skilled in the United States that the Fed has used the scheme on citizens of other countries to such a degree that their individual systems have now been placed in jeopardy.

In their collective efforts to make their respectively created currencies stand firm, without direct value in terms of the common commodity "gold," they agreed upon a "reserve currency scheme.'' This scheme, born at Bretton Woods in 1944, was to make the delusion complete and include the entire population of 120 nations of the world, and to make the awareness of the primary thievery still one more step away from any possible exposure to their victims. The system involved making the United States monetary unit (the "dollar") the reserve currency. The "dollar" alone would be the only currency linked to "gold" directly in a fixed amount (35 dollars equals one ounce of gold). To find the gold 11 value" of a German D-mark or an Italian "lira," one must use its dollar parity and compute. The currency parities agreed upon at Bretton Woods were to be maintained by the various member nations' central banks by "controlling" their inflation so as to keep the multitude of currencies parities in relation to the dollar within one percent up or down.

It was shown earlier that controlling inflation is impossible, it can be turned "on" or "off" at will, but once "on" it can only be turned "off" for brief intervals during its life span, but it can never be controlled. The same natural law that makes it impossible to control inflation within the sphere of influence of one central bank, also has the same power when it is attempted on a world-wide scale. The "prices" rising due to the lowered purchasing power of the currency units created, which is the inflationary effect of natural law violation, made the normally exportable goods of the United States too high in "price" to be competitive in the world markets.

The result of having goods that are not competitive is a "balance of trade deficit" (an unpaid account) they won't take our goods and we will not pay them in gold!

We purchase the goods of other nations and offer "dollars" in payment for the imports. The dollars go out to pay for imports, but are not returned in payment for our exports, because the dollar's parity in relation to our goods has fallen too low. Dollars building up in the central banks of the world are claims on United States Gold, and to prevent excursions of greater inflation the central banks must try to send them back to the United States to be redeemed for gold. Meanwhile, to fulfill their obligations which were mutually agreed upon at Bretton Woods, central banks of other nations must exchange the dollars held by their citizens for the currency of their own nation, when they are tendered for exchange on that level of the foreign exchange bank. To exchange dollars for D-marks, as an example, the German central bank may have to step in with newly created D-marks to purchase dollars because the parity of dollars is lower in relation to the parity of D-marks "available for exchange." The international inflationary effect, brought about by natural law, is this building up of the unreal parity of the country's currency against the volume of another country's currency, in the foreign exchange market, as a direct result of the refusal to pay for imports with gold. The non-redemption of dollars then affects their respective parity with the other nation's currency and exchanges are not possible because the parity of their currency has risen above its allowable limit in parity relationship to the dollar (it had hit its ceiling or penetrated it).

When a nation's currency has risen above the allowable one percent parity range, the Bretton Woods agreement called for that nation's central bank to "support" the dollar, because they "let" their currency rise too high in "value" in relation to the dollar.

This bit of absolute nonsense still stands as the most incredible part of the international delusion.

To lower its currency's value in relation to the dollar, a central bank must enter the foreign exchange market and purchase dollars at the official parity with newly created units of their currency until its parity in relation to their goods has fallen to where the parity of the dollar and their currency's parity are within the allowable range (one percent up or down), and let the normal exchanges resume. The build-up of dollars then forces other central banks to increase the creation of their currency to make these dollar purchases, and their inflation is increased.

"Money" The Greatest Hoax On Earth ……98

In order to maintain the "gold backing" for their currency in the same relationship indicated by their currency's parity to the dollar, the central banks have to -send the dollars here to be redeemed for gold, and the gold received will then "back" the new units of their currency created.

All those dollars coming back to be redeemed for gold are a drain on our gold supplies, and the Fed knows that gold is wealth-their wealth. They stole it from the people who produced it, (they purchased it with "dollars" they created at no cost to them) and they want to keep it. It is more than that; it is the people who are deluded, not the Fed or the other central banks. The issue becomes one of survival. If we ship the gold they will have a lesser imbalance between the volume of their currency created and the wealth behind it, or less inflation. If we keep the gold we will have less relative inflation and theirs will be greater. It is clear that the higher rate of inflation, the closer a country comes to the end of the cycle. When President Nixon closed the "gold window" he was telling the world, "If one of us must collapse first, let it be one of you."

Closing the gold window and removing the last vestige of make-believe redeemability also ended the dollar's long use as worldwide "reserve currency." The Bretton Woods agreement and the international monetary fund were dead. Without a tie to the common commodity gold or to any common wealth commodity, it is impossible to arrive at currency parities. There is talk of using S.D.R.s, but S.D.R.s are also just paper and ink recorded figments of the deluded people's imagination, and only get their respective "valuation" by a tie to gold (central banks can buy S.D.R. bookkeeping credits with gold, but gold cannot be bought with S.D.R.s). So we must acknowledge that any currency to have even an imagined value" must be referred to in terms of wealth.

Rulers cannot rule with wealth unless they get it from wealth producers (people). To get it from the people without resistance they must serve the people. To rule the people and not serve them they must have their created currency accepted. To have it accepted, it must be tied in some way to the wealth that the people produce and exchange. Wealth is produced by labor: when the people labor they create wealth, they create more than they consume, and when they exchange wealth they never lose it-it is constantly replaced by their continued labor. Wealth can and will work for the wealth producer, but it cannot and will not work for the non-working "ruler." Any attempt to rule with accumulated wealth, to control people and support them on welfare will dissipate that wealth, and it will not be replaced because governments do not produce wealth.

When the final collapse of the created currency comes, with it will come the realization of the credit machine owners that their machines' output must be accepted or they cannot control the people. This realization is the force which finally brings about the eventual deflation and the following depression period until the people can be deluded into accepting the new currency as being as good as gold.

The United States citizens have not had the experience of going through these cycles, but the Europeans have, and for generations the memories have managed to survive. The people of Europe know and fear the awesome power of a currency collapse, and their respective central banks will make every effort to keep the delusion going, but it s impossible to keep it going. Dollars are flooding Europe and Asia, and all attempts at supporting the dollar are failing.

The Smithsonian agreements that the dollar was "supposedly" devalued was another incredible piece of sheer nonsense. On August 15, 197 1, President Nixon declared the dollar in any amount not good for gold, in redemption, then months later in December came the decision to devalue the dollar. It was at zero value then, and they were going to devalue. They all Agreed the dollar that couldn't buy gold at $35.00 an ounce would now not be able to buy it at $38.00 an ounce. How can 38 dollars be worth an ounce of gold if no one in the world will give an ounce of gold for 38 dollars?

Imaginary demand cannot be controlled ……99

An attempt was being made by our central bank to delude the other central banks into having the baseless faith our citizens have in the make-believe value" of the "dollar." If, magically, a way were found to give the "dollar" the value of gold without its in any way being redeemable in gold from its creator, then we surely would have advanced to preeminent heights undreamed of by the alchemists of old who only wanted to change lead into gold. If we could only make "them" believe it does not have to be redeemed with its creator's wealth, that it is still good and if they will only believe it and give their gold for it, it will be as good as gold again, all over the world.

The foreign central banks agreed to support the dollar again at the "new" rate and newly adjusted parities, but we had to promise to make an effort to control our inflation. Inflation cannot be controlled and our dollar are flooding Europe and Asia, and causing greater inflation throughout the area by the increased creation of other currencies needed by them to support the dollar. By April 1972, dollar flooding had caused so much havoc; the other central banks had a meeting at Luxembourg and decided to try to establish discipline. The expropriation of foreign wealth was progressing at fantastic rates, and the Imaginary, ghostly, nonmaterial link to gold was not "holding-after all, if you never have to make good on your IOUs why not give them all they will take, and take from them all they will give up? The Luxembourg accord in April was an attempt to put discipline into the system; they agreed to narrower allowable excursions of parity for their own currencies in relation to each other, through their respective relationship to the dollar.

They mutually agreed upon a provision that any country whose currency had to be supported by another would have to reimburse that other country for the support out of its own reserves. The reserves were to be paid in relationship as to how the supported currency's country held its assets. If the supported currency's country held 33% dollars, 33% gold bullion and 34% S.D.R.s, then its reimbursement had to be in proportion.

It is plain to see what was happening without the discipline of gold redemption requirements, each country could inflate its currency and buy its neighbor's goods, and they knew it! To try to stop such stealing from each other they were attempting to control the inflation that was now international in scope. They were attempting to circumvent natural law, and at the same time reacting to it. They were attempting to get the discipline of gold without using gold, yet the only thing the central banks would readily accept from each other was the gold and gold claims from their respective assets. They were attempting to demand that any of them that inflated to the degree that their currency needed support by another should make it good to the other in gold or other assets. It is proof positive that they were at the moment of truth, realizing that it was just as impossible to control this international inflation, as it was to control domestic inflation, with everyone holding credit cards.

The international monetary fund was an attempt to create a single credit machine, and have it create the reserve currency. All currencies would have parities in relation to the reserve currency and the reserve currency would be increased and decreased as required to facilitate nations settling their balance of trade deficits.

The fallacy is that with only the creators of wealth (people) redeeming all these created monetary units, and all countries using their own private credit cards (their own power to create their own currency), and each one contesting with the other to get all they can before anyone else beats them to it, the world would be in "parity chaos" in no time at all. With all the credit machines existing, and as many "button pushers" turning them "on" and off haphazardly, it should be perfectly obvious that the end will come fast.

It would appear that some of the European central banks have had their monetary vision of this tremendous potential for worldwide monetary collapse, and a resulting worldwide depression, and are advocating a rapid return to some form of gold redeemability and discipline. Should the people ever be exposed to the full score of this induced delusion of monetary unit creation, by just such a collapse, it might be generations before the world population could again be brought to the brink of total one-world control and exploitation. A world wide, large-scale deflation and a return to redeemability are the only ways 'in which the credit machine owners can salvage some degree of control. They will have to let the wealth producers retain a little of what they produce, for the natural law indicates that when you take all that a worker earns he stops working, and without workers to produce, there cannot be any wealth to steal.

Before we arrive at that point in time, the credit machine owners and distributors of the created "dollars" will declare a deflationary exchange of currency, reverting to redeemability. It will happen as a united move all nations simultaneously. The nations cannot individually return to redeemability without complete loss of all international exchange or making only exchanges of production (bartering).

It would be disastrous for any nation to have a redeemable currency and try to make exchanges with inflated nations with nonredeemable currency. The nonredeemable currency would seek out redeemable currency anywhere in the world, and expropriate the wealth of that nation.

All nations wishing to conduct international exchange will have to return to currency redeemability or bartering-there is no alternative!

To return to redeemable currency there will have to be a large-scale deflation and all the

production stolen over many years will be paid for by the holders of dollars and dollar instruments, all over the world, taking the loss when those dollars are turned in for the new redeemable currency.

Only people's labor produces wealth.

The division of labor makes exchanges imperative.

People produce more than they consume.

The excess of production over consumption is savings.

Savings in the form of precious metal coins are excellent media.

Precious metal coins are production in wealth media form.

Production in wealth media form is potential demand (wealth).

Production in wealth media form is potential supply (wealth).

Law: Supply and "demand" cannot be unbalanced where wealth is the only media.

The people are producers and consumers. Since the excess of production over consumption is the production converted to wealth media, when all exchanges have been completed and all consumer goods consumed, the media remain.

Consumer "A" buys goods from producer -13--receives goods, giving up wealth media. Result: "A" still has same total wealth.

Producer "A" sells goods to consumer "B", receiving wealth media and giving up goods. Result: "A" still has same total wealth.

Producer "B'' sells goods to consumer "A," receiving wealth media and giving up goods. Result: "B" still has same total wealth.

Consumer "B" buys goods from producer "A," receiving goods and giving up wealth media. Result: "B" still has same total worth.

Proof: Goods are exchanged and used or consumed without any loss of wealth media.

MONEY IS CREDIT IS INFLATION

Imaginary media (money-credit- inflation) represented by tokens (metal disks at 97% seigniorage) and paper and ink bills (tokens) at 99.4% promise.

The United States Treasury gives the metal and paper tokens to the federal reserve for issuance.

Producer "A" sells goods to consumer "B" who borrowed "dollars" from a Fed banker, giving up goods and receiving tokens (97 to 99% imaginary promise of future exchange value).

Result: "A" has extended credit-accepted created Inflation.(continue)