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Article by Truth-in-Money

Did you know that as the money supply rises, the level of money per capita simultaneously lessens? Just how can that be one might say? That’s a contradiction in itself. Actually if you think about it it’s not. It is just a paradox which will be the main focus of this story. Remember, if private banks didn’t have the power to make money and chosen representatives did, we would not be going through these kinds of terrible conditions in the economy at the present time.First off let’s start setting up this example. First off, you should know that in an honest monetary system the total amount of money in the system will rise simultaneously with Gross Domestic Product as well as human population expansion. If the money supply is expanded at a rate faster than GDP, we have excess capital inside the economy and then the market naturally reacts by raising costs on all goods and services! Any time Gross Domestic Product grows at a rate greater than the money supply, there becomes a shortage of brand new money and society experiences deflation. Once again, just to help keep everything simple, lets suppose that for our example we’ve got 5 individuals in our little marketplace. There is .00 in the money supply right now, is loan money, which means 90% of the entire money supply with regard to this example is debt money. In reality the actual number is around 95%, however this is only a simple example. In addition to this, there is also in outstanding debt, meaning that the in the economy plus the total interest is going to equal for this example.So, let’s take a second to check out all the problems we have up to now. Bear in mind, this is only the setup of this illustration, an actual presentation on how it operates has not been shown yet. We now know that in order for society to function the money supply needs to increase at a rate proportional to Gross Domestic Product. Yet, there’s already a problem in our example. is loan money, which means that as individuals pay off the loan, the capital is getting destroyed! Just like capital can be made out of air, so can it be destroyed. Exactly what does this imply? To ensure that the economy to function, additional debt has to be created to keep at par with GDP!Problem number two, there is in the money supply overall for the example, however is going to be required to repay. This means that in the event that everyone in our example were to pay off their debt it would not even be probable. This produces a couple of problems. First, we now need an exponentionally growing injection of loans into the marketplace. Second, it’s a logical proven fact that a certain number of people in this kind of money system aren’t going to pay off their bills, resulting in foreclosures, poverty, and overall despair.Now to the working example. Let’s say for instance one business owner of the 5 individuals in this example decides to take out a .00 loan. He spends the money into the economy to help improve the business. After a few months he eventually ends up making .50. The business man owes the bank the .00 that he received plus interest, let’s say 25%. Therefore, this individual owes the bank a total of .25 and he pockets .25 as profit. Because this is the most important part of this report, listen up. What took place is the bank got .25 in interest, however the lender never created this interest. The financial institution only creates the principal or capital section of the loan, and not the interest! This is why our society has an ever increasing absence in the complete amount of capital individuals may compete for in the money supply!So now let’s look at this even more. We started out with .00 in our marketplace, and in complete outstanding credit debt. As soon as .00 loan had been approved we had within the money supply, and .25 in outstanding debt. Let’s suppose no other people repaid any of their debt other than the business man, we now possess .25 within our money supply ( plus the .25 the business man made), in outstanding credit debt, and the lender now has .25. Observe how the banks profit has not been incorporated as part of the money supply. This is because nearly all of their earnings will not be made intended for individuals to compete for. Instead, the majority of this $ .25 earnings is going to be redistributed in the form of a loan, therefore compounding the problem. Remember, financial institutions only create the principal, not the interest. The $ .25 profit the bank reloans is in fact debt money being recycled with more interest.So, how can this particular part of the banking system be fixed? It’s easier said than done. Essentially, the president has to nationalize or take over the Fed / central banking system. By doing this, the money supply and the money creation process will be back in elected officials possession, rather than sadistic bankers. At that point, the treasury and not the Fed can create it’s very own money rather than taking out loans with interest from the Fed. All of the interest collected is now able to be distributed or invested back into the marketplace, keeping the money supply at par with total economic growth. Better yet, the government can decide to make all loans available at no interest! Better yet, the government can decide to inject money into the marketplace in the form of grant money versus loans, allowing the money to circulate permanently! The possibilities are endless if you have a honest monetary system!If you feel this particular factor of the money system is messed up just hold on a sec., this really is just the beginning! In order for the dollar to survive, other petro producing nations around the world have to sell their oil in dollars, otherwise the worth of our dollar collapses! Our monetary system is dependent on something referred to as the petro dollar recycling system. On top of that, as stated above, our money system isn’t within the control of the countrys elected representatives. This means private bankers have stolen the right to create money at a rate not proportional with economic growth and con the whole market. This is called fractional reserve banking, and our own founding fathers refered to it as counterfeiting! For complete facts on legalized counterfeiting and the petro-dollar recycling system you need to visit our webpage here: http://www.deathtocounterfeit.com

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