CHAPTER 8
Fiat Money
In this chapter, the book focus on fiat and fractional money. American Heritage Dictionary defines fiat money as ” paper money decreed legal tender, not backed by gold or silver.” The two characteristics of fiat money are, it does not represent anything of intrinsic value, and it is decreed legal tender. Legal tender means there is a MAN MADE LAWS requiring everyone to accept the currency in commerce. The money we have is worthless and will soon be rejected by the public as we see with the rise of the BRICS nations. When governments issue fiat money, they always declare it to be legal tender under the pain of fine or imprisonment. The only way government can exchange it’s worthless paper for tangible good and service is to give its citizens no choice, they use fear as the weapon of choice.
The first known use of paper money was recorded by Marco Polo during his travels to China in the thirteenth century. Marco Polo states: ” They take a certain fine white bast or skin which lies between the wood of the tree and thick outer bark, and this they make into something resembling sheets of paper, but black. When these sheets have been prepared they are cut up into pieces of different sizes. The smallest of these sizes is worth a half of tornesel, there is also a kind worth one Bezant of gold, and others of three Bezants, and so up to ten.
All of these pieces of paper are issued with as much solemnity and authority as if they were of pure gold or silver; and on every piece, a variety of officials, whose duty it is, have to write their names and to put their seals. And when all is prepared duly, the chief officer and impresses it on paper, so that the form of the Seal remains stamped upon it red, the money is then authentic. Any one forging it would be punished with death. And the Kaan causes every year to be made such a vast quantity of his money, which cost him nothing, that it must equal in amount of all the treasures of the world.
With these pieces of paper, made as I have described, he causes all payments on his own account to be made, and he makes them to pass current universally over all his Kingdoms, and nobody, however important he may think himself, dares to refuse them on pain of death. And indeed everybody takes them readily.” And as you see this is almost the exact system the Federal Reserve Cartel uses.
A Classic Pattern
This pattern of fiat money was repeated in America, specifically the Massachusetts Bay Colony. This event has been known as the origin of paper money in America, the British Empire and almost the whole Christian World. In 1690, Massachusetts did a military raid against the French Colony Quebec. This was done before and each time they brought enough plunder to more than pay for the raid. But, this time the soldiers came back empty-handed and Massachusetts had to still pay their solders because one thing you don’t want is disgruntled soldiers on your hands. So Massachusetts had to come up with a plan to pay the soldiers without additional taxes, so they decided to print paper money. In order for the soldiers and citizens to accept this scam the government made two promises that they would break like always. The first promise was that they would redeem the paper for gold or silver coins just as soon as there was sufficient tax revenue to do so, and that no more paper notes would ever be issued. Both of these promises was broken almost right away, …… but there is no way government would lie to the people……right?
After Massachusetts, other colonies were quick to learn the scam of printing money out of thin air through the printing press. The cause and effect of this was governments artificially expanded the money supply through what is called fiat money, which was followed by man made legal tender laws to force its acceptance of this new fake money. But yes people WE THE PEOPLE do have a choice, we can refuse to comply with this scam and get back to lawful money which is gold and silver! Next after this came the disappearance of gold and silver coins which went into private hoards and foreign traders who insisted on getting paid for their merchandise in REAL MONEY, which is gold and silver. Many colonies refused to honor the previous money after a while and starting offering new bills in the old fiat place to keep this crazy cycle going. What followed was political discontent and civil unrest. And at the end of each cycle there high inflation and economics chaos. With the United States trillions of dollars in imaginary debt, this scenario is bound to happen again possibly bring digital money on the scene. Maybe this is why cryptocurrency is being push on the people.
Don’t get me wrong I have some cryptocurrency, but I don’t like it. But, I see it is here and people like it and the world might be just be dumb enough to fall for this scam, then they will be able to control everything we buy and sell. We can’t be this stupid to think the governments or the Banking Cartel didn’t come up with Bitcoin. No one has come forward yet to claim this invention of digital money, but we do have a name. Satoshi Nakamoto supposed to have disappeared around 2010 to never to heard from again which sounds like a bunch of cow dung. But anyway, if you put it on the news enough people will start to believe anything. If Bitcoin supposed to be decentralized then how was Canada able to freeze donations which included Bitcoin for the truckers during the protest back in 2022? How were the feds able to seize $3.36 billion in crypto in a dark web fraud case from James Zhong in 2022? But if the people are willing to comply with digital money, it’s good to be ahead of the game just in case.
This chapter also talks of a time when, nail, lumber, rice and whiskey filled the monetary void during times when the fiat money went to zero. But tobacco was the common item of trade, that’s right tobacco! This commodity was in great demand both within the colonies and over sea commerce. Tobacco had intrinsic value, it could not be counterfeited, it could be divided into almost any quantity, and could not be increased except though labor. Tobacco at the time was regulated by what we call the Law of supply and demand. It was adopted by Virginia in 1642, and a few years later by Maryland. It was in all the other colonies as well, it just wasn’t official. Tobacco was used as a secondary medium of exchange in America almost two hundred years until the Constitution declared money was the sole privilege and power of the federal government. This just show you money can be anything people consider valuable. Maybe weed ( marijuana ) would be a great substitute for money one day, or is it just wishful thinking. But anyway the primary currency was still gold and silver coins. And the results was rapid recovery from economic stagnation with the return of sound money. Trade and production rose dramatically and in turn gold and silver coins from around the world came in filling the void of years of worthless paper money. This was a prime example of economic systems in distress can recover rapidly if government stay out the way during the healing process.
War Brings A Return Of Fiat Money
And when things was starting to look better war happens. The War for Independence ironically, brought all of this to a sudden halt. War are never funded out of existing treasury, nor from increased taxes either. If government were to actually to the burden of war on the people straight out without all the game’s government play, even the most die hard patriots would demand other alternatives than war. By printing money out of thin air the real cost is hidden from the people, but paid for through inflation which very few people understand. If the people truly understood this process there would be a revolution overnight! since this has not happened yet, WE THE PEOPLE are still clueless on how we keep getting played. It’s not like it’s taught in public school, maybe it’s for a reason. To keep us in the dark and enslaved to the system. And as you will see, the Banking cartel always fund both sides of the war. They can care less who wins because they already won when they started the war!
The American Revolution war was no different. Both the Confederation and the individual states went crazy with printing money out of thin air. At the beginning of the war in 1775, the total money supply stood a t $12 million. In June of that year, the Continental Congress issued another $2 million. Before the notes was even put into circulation another cool $1 million was authorized. By the end of the year another $3 million. In 1776, another $19 million, $13 million in 1777, $64 million in 1778, and a $125 million in 1779. From 1775 to 1779, the total money supply increased 5000% .
What followed was massive inflation. In 1775, paper Continentals were traded for one dollar in gold, in 1777, they were exchanged for 25 cents, and by 1779 they were worth less than a penny. When money is fiat, as the colonists discovered, every government building, public work, and war among other things is paid out of current labor and current wealth. It is true that interest payments fall partly to future generations, but the initial cost is paid by those in the present. It is paid by the money losing its value and loss of purchasing power for one’s work.
Inflation Is A Hidden Tax
Fiat money is the way governments can get instant purchasing power without taxation. Where do the purchasing power come from? Since Fiat money has no real value to offset it, governments purchasing power can only come be subtracted it from somewhere else. Where do they subtract it from? From Us!! That’s right the house never lose, they just pass it the uneducated public, by us working harder and getting less for our money and labor. We can always count on good ol government the screw the working class. It’s the American way because WE THE PEOPLE keep complying. Very few Americans understand how this works, but it is simply. The more money that is printed up the less valuable it becomes. At the time of is blog, this government has printed $7 trillion in 30 months and $32 trillion in debt.
Fractional Money
What is fractional money? This practice started in Europe with the goldsmiths who stored precious metal coins of their customers for a fee. In addition to goldsmiths, they had what was known as scriveners who loan coins. The goldsmiths thought it was a good idea to act like scriveners and loan out coins, but it was one problem, it wasn’t their money to loan out to begin with! And to the goldsmiths, it seemed perfectly to lend up to 85% for the people stockpile that was not theirs to begin with. And that my friends is how banking today as we know it came about. Fractional money lead to fractional reserve banking. Do you feel played yet?
Chapter 7 A Crash Course on Money
Chapter 9 The Secret Science