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Thursday 9 December 2010

Money

This is how I understand the situation we are now in...... and just so you know, I'm probably completely wrong.

A long time ago, you would have been paid for your labour in either gold or silver coin.

As populations grew, coins became impractical.  They were then replaced by bills of exchange that represented, and were redeemable against a fixed amount of gold or silver.  You would be paid for your labour in notes, and could then swap these at the central bank for the actual gold.  For safety you could store your gold in a bank, but they would charge you a small storage fee.

Unfortunately most western countries were made bankrupt many years ago, and all the collateral (including you) were seized by the creditors (the banks).  You became the property of the banks.  All the worlds central banks are private corporations.

Look at the £20 note - "For the Governor and COMPANY of the Bank of England".

Because all the land, gold and silver had been seized (leaving only your labour as the sole source of collateral) , the central banks produced FIAT currency.  This was a means to engage in commerce whilst in bankruptcy.  However, you were not told this.  you were told it was just like money.  Fiat currency can be created out of thin air.  If the central bank produces £1000, and releases this into the population, how then can a bank land you that £1000 and charge you £10 interest.  Where did that £10 come from?  That's right, the ether.  This means the debts can never be repaid, and countries must wait 70 years (based on Roman canon law) until their bankruptcy expires.  Unfortunately this bankruptcy lark works very well for governments, so they invariably go back into bankruptcy due to some "event", allowing the perpetuation of the FIAT system.

Look at the symbol for the British Pound - £.  It used to have two strikes going horizontally across it, now it only has one.  The same with the US dollar - $.  That used to have two vertical strikes, now it has only one.  So?  What about it?  This means your currency is a phantom, a fiction, meaning that the currency no longer has substance.

The pound in its physical note form is an IOU.  The central bank gives this to you to purchase things with.  Unfortunately you don't own it, it remains the property of the central bank.  So let's give an example.  You "buy" a car.  You hand over 10,000 IOU's and the dealer gives you the car, which you then register with the government (who acts as agent for the central bank).  You are allowed to keep possession of the car, so long as you follow the rules of your registration.  As soon as you break the rules (for example by not paying your road tax) the car is seized, because it never was yours.  It belongs to the central bank.  It would only become yours if you returned the IOU's to the Central bank.  As I understand this, the only way to do this is to put your thumbprint on each and every bill, record the serial numbers and present this list to the central bank.  The car dealership then presents your thumb printed IOU's to the central bank, discharging your debt, and allowing the central bank to issue new IOU's to the dealer.

Your debt is clear, and the dealer still has his 10,000 IOU's.  This is why it says on the Bank of England note "I promise to pay the bearer on demand the sum of......"

Of course try and buy a car with £20 and see what happens.  Ok, I'll buy it with gold I hear you say........ ok, but how did you buy that gold?  With British pounds?  Anything you buy with IOU's becomes the property of the central bank until you return those IOU's, or pay them off with assets that were not purchased with FIAT currency.

Interesting what you uncover isn't it.

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