Money: What is It?

Of all the incredible stupidities in the world — of which many have been revealed to me since the LORD graciously appeared to me 10 years ago (which thing He did for His own good reasons, and certainly not because of any particular merit on my part) — of all these stupidities, few can compare to that of man putting his trust in “money”. Why, most people don’t even know what “money” is!

I swear by the Father who said “you can’t serve God and Mammon” that if you really knew what money was, you’d want no part of it.

I want no part of it.

The “smart Alec” at this point will surely be saying “Fine! If you don’t want your money, please, give it to me!” Ha ha, that’s very funny, and very clever. But “Alec” doesn’t know what he’s talking about.

What is money? The simplest answer is: “an illusion“.

When you’ve finished this document, you’ll realize that:

  • Money, at least in its current form, has no value.
  • Our current “financial system” is a carbon-copy of previous financial systems which are proven failures. These systems generate large amounts of “money” for the short-run, but in the long-run the nation is ruined.

So where are we? In the United States, in the late 20th century, we are in the final phase of the “long-run”, i.e., we are essentially “ruined”. But the politicians won’t stop until the ruin is total. Unless, that is, you stop them.

Three types of money

It is generally considered, by writers on the subject, that there are three basic types of money in the world:

  1. Real wealth, usually measured in gold and silver.
  2. Pieces of paper which claim to represent real wealth (i.e., bullion-backed paper money such as gold & silver certificates, etc.).
  3. Pieces of paper which represent nothing at all, but which an oppressive government will force you to accept as “money” (called “fiat” money).

As a general rule, type 1 economies are healthy and prosperous. I didn’t say “trouble-free”! No system of any sort in this world is “trouble-free”.

As a general rule, type 2 economies are associated with fraud, since the obvious first purpose of pretending that pieces of paper are “money” is to have the possibility of creating the illusion that there’s more “money” than there really is.

Type 3 economies are associated with theft, because the disappearance of all the bullion invariably means that it’s been stolen or misappropriated.


Legal tender type 1 … Gold and Silver Coins
The United States Constitution demands (to this day) that the only “legal tender” in this country be gold and silver coin (look up: Article I, Section 10, Clause 1).

Few Americans are aware of this fact. To most, the thought of a currency consisting of only coins seems like a very strange idea, or perhaps a joke. But it’s no joke. The Founding Fathers put this into the Constitution for a very good reason, which we shall examine shortly.

What is “legal tender”? This means the form of money which you are entitled to demand, under the law, as payment of debts. Thus, gold coins are legal tender–if you can find any!

But things like television sets, automobile tires and chickens, are not. If someone wants to pay you in chickens, and you agree, then all’s well. But you can’t be forced to accept chickens as payment of a debt. You can be forced to accept gold coins. If you can find any!

Bankers hate gold and silver coins, except the ones in their pockets. Why? Because gold and silver coins give you value, and they want all the value for themselves. Please, don’t hate bankers! Deep down inside, we’re just like them! Only they’re better at it than we are.


Legal tender type 2 … Paper Gold and Silver “Certificates”

What about systems employing “type 2” money, i.e., pieces of paper which claim to represent gold and silver? How do they work?

In a “type 2” system, some or all of the gold and silver is removed from circulation, and left in “reserve” in a safe location. In its place, paper appears.

Thus, if the United States has $1 trillion in gold and silver in Fort Knox (which it doesn’t, believe it or not), then the government can leave all the gold and silver in the Fort, and issue instead $1 trillion in “gold certificates” and “silver certificates”: pieces of paper (i.e., “legal tender” or “money”) which represent–or claim to represent–the real gold and silver locked up in the Fort.

Those of you who are old enough to remember the Great Depression will, without a doubt, remember the gold certificates which the government forced you to accept in exchange for your real gold. In earlier times, those certificates (which have long since been removed from circulation) could be brought to the bank any time, and gold coins received in exchange for them.

Those of you who were of mature age in the 1970’s will undoubtedly remember that back then, a dollar bill was called a “silver certificate”. You could bring it to the bank and exchange it for silver coins, any time. Now both the silver certificates and the silver coins are gone. (What happened to all that gold and silver? Click here to find out what the response was, when this question was asked in Federal Court.)

The trouble with systems employing type 2 “money” is that people are greedy. Without exception, every nation which has used type 2 money has printed more paper bills than there were gold and silver coins behind them. Thus, if Fort Knox had $1 trillion in gold (which, again, it doesn’t!), the government would sooner or later succumb to the temptation to print $2 trillion, or $3 trillion, or even more, in paper.

Everything’s fine, as long as everyone doesn’t run to the bank simultaneously for “their gold”. But sooner or later, something will scare people, and they will indeed “run on the bank”. Then the system collapses, because there’s simply not enough gold and silver to pay on all those certificates.

That’s exactly what happened in 1933. In the midst of the Great Depression, there was a nationwide “run on the bank”. Why? Because there was a rumor abroad that all the gold was going to “disappear”, which, in fact, is exactly what happened. Franklin D. Roosevelt, a loyal bank servant, dutifully removed all the gold from circulation at that point. (This was the culmination of a plan which was many, many years in the making; it didn’t just “happen”).

In that year, 1933, all citizens of the United States were ordered — under threat of severe fine and imprisonment — to hand in their gold, in exchange for a piece of paper called a “gold certificate”. It looked just like a dollar bill looks today, except it said “Gold Certificate” at the top, and it said “IN GOLD COIN PAYABLE TO THE BEARER ON DEMAND” at the bottom.

What?? What sort of nonsense is this? I just told you people were ordered, at pain of $10,000 fine (a king’s ransom during the Depression) and 10 years in prison, to hand over their gold! So what does it mean to tell the same people who had just been fleeced, that any old day of the week they could stroll over to the bank with their paper “money” and get their gold back? If a bank teller had accidentally given you gold, and you got caught on the way out the door, you and the teller would go straight to jail!

This was neither the beginning of fraud, nor the beginning of treason in our banking system, but it was the most overt, unabashed example of it in our history up to that time.

Later on, all the gold coins, and the gold “certificates”, were replaced by other pieces of paper called “silver certificates”. What a joke! If there wasn’t enough gold to back the currency, how in the world could there have been enough silver? We were simply moving along the pathway of out-and-out fraud, and we have only gotten worse as time has passed.


Legal tender type 3… Fiat Paper “Money”

What about “type 3” money, where the government declares that “money” is pieces of paper which have no value whatsoever? That, my friends, is where you are right now. Your money is intrinsically worthless.

In the early 1970’s, the last scrap of silver was removed from the lawful treasuries of the United States, into the vaults of private bankers. Our “silver certificates” were replaced by “Federal Reserve Notes”, which cannot be redeemed at all. They’re nothing but plain paper, and there’s nothing behind them.

If you’re searching for a reason why you’re getting poorer and poorer, and why your dollars buy less and less, look no farther. You’ve just read the reason.

As long as people trust in these Federal Reserve Notes, they will have “purchasing power”. The minute people lose confidence in them, however, they become transformed back into plain paper, with no “purchasing power” at all; worthy of nothing but the trash can. Not a good situation! If you are wise, you will get on the “Ark of Salvation”, because that is really your only hope.

“People think that the basis of money is gold. They are wrong. The basis of money is debt”

It is the core reality of the current world banking system, and it invariably leads to pure fraud. If you learn nothing else about money, learn the meaning of the above quote! The following example will illustrate the concept.

Imagine, if you will, that you borrow $1000 from a friend. You agree to pay him back after exactly one year, and you agree further to pay him 10% interest. So he gives you $1000 now, and a year later you pay him back $1,100. Simple enough?

Now, he’ll undoubtedly ask you to sign for the loan. The piece of paper you sign is called a promissory note. It is your promise to pay back the loan, plus the interest.

Now think about this: that promissory note has value. Do you doubt it? If your friend comes upon hard times, he can sell that note, can he not? Sure he can! As long as you are “good for the money”, that note is worth its “face value” of $1000, plus the $100 additional you agreed to pay as interest. So it’s potentially worth $1,100.

Whoever holds that note is in a position to collect that $1,100! It most assuredly has value.

Your friend would have a hard time selling it for the full $1,100, but if he plays his cards right, he can probably get more than $1000, because it’s worth more than $1000. Suppose, for example, a buyer pays $1,050 for the note. At the end of the year, God willing, he’ll collect the full $1,100. That’s $50 more than he paid for it. So, without doing any work, he makes a fast $50. What’s wrong with that?!

The only risk is that you might fail to pay back the loan. So, in any sale of a promissory note, there’s risk. The better you are as a credit risk, however, the more your promissory note will be worth.

In case you’re not aware of it, know that the world is full of promissory notes, and that most of them do, in fact, get sold. Loan agreements are promissory notes, mortgage agreements are promissory notes, and even charge card slips are promissory notes. It is said, by those who pay attention to such things, that if you pay off a home mortgage, and demand to have your promissory note returned to you, the bank will do so. What you will see is that it is literally covered with endorsement stamps, each one attesting to the fact that it was bought and sold, repeatedly throughout its “life”.

Speculators from many nations participate in this process. These promissory notes are most assuredly considered highly desirable, and by the time they are paid off in full, they have traveled literally “around the world”!

So I hope you can see that a promissory note has value. But is it “money”?


Who’s in charge here?

“Sovereign” means “King”. Up until the Julliard vs. Greenman case, the Supreme Court openly declared that in the United States, “the people” are collectively “sovereign”. We have no King!

Don’t forget that the single, all-encompassing philosophical basis of the American Revolution was the REJECTION of the belief that men had to live under a “King”. Was it not?

Isn’t that what you were taught in school? Isn’t that what they still teach in school?

Well, guess what: that’s not true anymore, and it hasn’t been true since 1884, the year the Supreme Court ever-so-quietly announced that the federal government is your “sovereign”. That means, in effect, your “King”. So in the “land of the free, home of the brave”, a King was made in 1884. You didn’t know that, did you?

America gets a new “King”

Here’s how they did it. In the first place, they (i.e., the Supreme Court panel of judges which presided over the Julliard vs. Greenman case) noted that even though the Constitution forbids any form of “money” other than gold and silver coins in the various states, it did not forbid other forms of money in federal transactions.

And that’s true: the federal government indeed has the right to pay anyone in any way it pleases, as long as the transaction is legal, and as long as the other party agrees. But it has to be voluntary!

 This means, for example, that if America buys something from France, the deal can be paid for with any piece of paper, or any other commodity which France is willing to accept. The federal government does not have to limit itself to gold and silver in its own transactions.

However, the court admitted that this does not entitle the government to force you to accept their notes. You are an American, supposedly with full constitutional rights. In your case, acceptance of the government’s notes is supposed to be voluntary. Those notes are not “legal tender” in this country!

Next, the court noted that the Constitution (in Article I, section 8, clauses 1 & 2) gave the Congress the power to ‘lay and collect taxes to pay the debts of the United States’, and to ‘borrow money on the credit of the United States’. Remember what we said above about “promissory notes”? Please keep that in mind as you read.

The Supreme Court noted the following:

[The power to] borrow money on the credit of the United States … includes the power to issue, in return for the money borrowed, the obligations [i.e., promissory notes] of the United States in any appropriate form, of stock, bonds, bills or notes…Congress has authority to issue these obligations in a form adapted to circulation from hand to hand in the ordinary transactions of commerce and business” [110 U.S. 421 at 444-5].

The Federal Reserve Bank 

Like the Bank of England before it, the Federal Reserve Bank is a “central bank”, which means a private, for-profit institution which prints “money”. It also controls the interest rate. These two powers, namely the power to control the size of the money supply (by “printing” or “not printing”), and the power to control the interest rate, make them the undisputed masters of America. And I didn’t say “undisputed masters of American finance”, I said “of America“, period.

Another Rothschild quote: “Give me control of the currency of a nation, and I care not who makes its laws”. Do you really think you live in “the land of the free, the home of the brave”? Read on.

Critics of the Bank point out that it is “not federal” (the going joke is “the Federal Reserve Bank is no more ‘federal’ than Federal Express”), and that “it has no reserves”! (Remember that our gold and silver reserves are totally unaccounted for). It is, on the other hand, completely amoral and completely unconstitutional–regardless of what any lying politician says to the contrary. The claimed “justification” for its creation was, initially, the “need” to finance America’s imperial expansion (as the Bank of England had done for that nation), and later, the “need” to finance America’s flirtation with Communism and Socialism (in the form of Social Security and numerous other failed unconstitutional programs).

Where do we stand today?

Everyone who has studied the Fed has come to the same conclusion about how it operates, and what it has done to America. The “system” it encompasses has two components:

    1. A “bank of issue” which prints un-backed money from plain paper, and loans it to the nation at interest, and
    2. An “income tax” to pay the interest on the loan. The principal, or so-called “National Debt”, is never paid back (but remains hanging over our heads, like a sword ). The interest, however, must be paid. You must pay it.

The only “source” of money in this thinly-veiled British-style bank scam is the promise of the American people to pay. In other words, when Congress votes a budget, it generates, in effect, a national “promissory note”. Since a promissory note has “value”, the Federal Reserve Bank can print (or, to get technical, order the printing of) new money — from plain paper! When the Fed “loans” America money, they do no work. But when America gets the “bill” — in the form of a painful income tax assessment — then we all have to go to work, and suffer pain to “make money” to pay back the “loan” — a “loan” which was never made, having been nothing but plain paper from a printing press.

The worst part of the system is that the interest on the “National Debt” is paid directly into the pockets of the Federal Reserve Bankers, who were already, before the system even began, the wealthiest families on earth!

What actually happens when money is “created”?

Here’s how the system works. Every year, Congress votes a budget. It makes no difference what it is, because there is no money to pay for any part of it.

Read this again if you didn’t get it the first time: THERE IS NO MONEY TO PAY FOR ANY PART OF IT!

Any politician who tells you he’s going to “balance the budget” is either an out-and-out liar, or a very ignorant person. In a country with no money at all, the budget is not getting balanced. Ever!

So where does our money come from? We print it! Only “the government” has the “authority” to print money, but in reality only the Fed has the power to order the printing. Anyone who challenges this power should expect to find himself in very, very serious trouble. The last President who stood up to them was John Kennedy.

So, every year, the Fed, in effect, “orders” money to be printed, or created electronically. Once created, the Fed becomes the owner — by purchasing it. But they don’t pay for the face value of the money; they only pay for the production costs! Thus, if the U.S. government printing office prints a $1 bill, the Fed “buys” it for about two cents. These two pennies cover the cost of the paper and ink used to print the bill.

For a $100 bill, the cost is the same: two cents! It makes no difference what the denomination of the bill is; the Fed only pays for the cost of printing it. Then it’s theirs. All theirs.

Next, the Fed sends the money “back to America”, but only in the form of a “loan”. Nothing is given away! One way the money is, in effect, “loaned” to America is through the purchase, by the Fed, of U.S. Treasury notes, which we, the people, must pay back with interest.

When you borrow money, you are borrowing nothing!

If none of what you’ve read so far has upset you, then I’ll try one last time to wake you up.

Did you know that in America of the late 20th century, when you borrow money, nobody gives you anything?

Let me repeat this, in case it went by you. When you borrow money, nobody gives you anything.

You go down to your local bank, you apply for a loan, your application is accepted, you sign a promissory note, they give you a check. Didn’t they just give you “their” money?

No, it wasn’t “their” money.

Well, then, wasn’t it depositor’s money?

 No, it wasn’t depositor’s money.

Well, then whose money was it?

The incredible answer is: “Nobody’s!”.

In America today, when you apply for any sort of credit, your promissory note is deposited as if it was money, and a check is written against it. If you did what the money-lenders do, you would be arrested with blinding speed, and put into jail for “counterfeiting”.

So what gives a banker, or a mortgage provider, the “right” to create money and lend it to you? The only real answer is “might”, as in “right makes might”. Another answer is the Devil’s “Golden Rule”, namely “He who has the gold, makes the rules!.

Read the entire article here.

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