What is Money?
What is money? Really. It’s a token, receipt or an electronic note we get or give for some thing or some doing. It’s a convenient marker to interchange value.
Oh, and it’s also the most powerful WMD ever been used against us, for centuries.
A small group knows lots about money but they don’t want us to know what it is or how to use it to prosper because they are the ones who have been using it against us.
Maybe it has crossed your mind that something is wrong with money; that it’s not working right; that maybe the whole monetary system is broken; that “economics” is just being used to justify money failures; that maybe banks get richer because we get poorer. Mostly we ignore it because it’s there. Hmm?
Before I knew money, I was so naive that I believed that “fractional reserves” was the money in bank vaults to cover day to day withdrawals, but there was a big backup somewhere else. Such confidence in the banker.
I “Knew” This
I “knew” money because I had used it. But I didn’t know how it works, how it should, or how to fix it if it’s broken. I didn’t know money, neither did anyone else.
But I did know that we, us, the U.S. was getting poorer. We had more money, but it looked to me that the more we made the less we had. But the big international banks kept on making more and bigger buildings. They had to know something we didn’t. So I found out what it was and why they don’t fix it. When I did I also found out how it works and how to fix it. They don’t fix it because they are the ones using it against us. Money has been the biggest fraud, the biggest source of illicit gains, power and prestige known to man. And, even most of those who work in banks don’t know it.
Those who emit and control money have counterfeited not only money, but also power and prestige. They have faked world values to their purpose — to manipulate and blame businessmen, unions, employees, incompetence, laziness and a whole host of other people and things that have nothing to do with why poverty and ignorance has increased world wide.
Their smokescreen was to blame the producer to hide that they caused the disappearance of the prosperity that producers created with their own effort. They INVENTED the “inviolable economic laws” and “business cycle” to milk us dry.
In this page I want to remove all doubt about what is money. In Secrets we walk the path with the first banker to see how he created money. Step by step we will see how he became the first international private central banker.
Out of Thin Air
One of the first things I learned was that money lent by international bankers was not backed up. “Fractional reserves” let banks create money out of thin air. And, by law, since it was not backed up by values, it was, for all legal purposes, never there. They can remove the air whenever they whim, and leave a community, a district, a nation, or many nations in poverty. I didn’t know that they were able to transfer real wealth that productive people made with their own effort, struggle and time, to their hands, without effort and in no time.
They can make money appear and disappear. Their magical incantations are — “lower fractional reserves” to make it appear, and “raise fractional reserves” to make it disappear. The trick was that this particular abracadabra had to be said by the central bank that controls all the other banks. So the central bank can make prosperity disappear with a three word interbank memo: “Raise fraction 5%.” That’s even easier than abracadabra. With that incantation they could move mountains of values from those who created them to their own parasitic hands.
I “knew” that bankers make money with loans. Of course, they charged interest. Wrong again. They create money out of thin air with your loan — the money does not exist until you make the loan. Until I learned that, I had no idea of their power. I had heard that the majority of central banks like the Bank of England and the Federal Reserve were somehow related to private corporations, but I couldn’t quite believe that they were privately owned by international plutocrats. And I couldn’t believe that so few people controlled so many GOVERNMENTS.
To them, our efforts are no more than seeds they plant, water, fertilize and harvest.
Here you won’t find all the history, political intrigues, conspiracies, secret organizations or assassinations that surround the black magic of money. This isn’t a history book. It’s a workbook with the tools, structures and plan to dig as deep as you like without getting lost in the cave. But, it won’t free you of the responsibility of thinking for yourself. To remove your doubts, you should dig and decide how deep is enough to say “I know.”.
The Monetary System Is Broken
If it ain’t broke, don’t fix it. But if some bad people broke it, some good people can fix it. Our world needs more values and less debt, more right and less wrong, more truth and less lies. Our mistake is that we didn’t prove that people with power, prestige and money deserved it, WE BELIEVED IT. We based our belief on a fallacy — argumentum ad verecundiam — we believed “experts” instead of trusting only what we could prove.
Ever wonder why we are asked to prove physical reality but trust social “experts”? Yeah, why we have to prove math, physics, chemistry and other real science, but trust money (economists), religion (preachers), and society (politicians). I got to learn that “trust me” is a big red light that says “the con is on.” I have to run to prove it for myself. And, yep, “social science” — economics, sociology, psychology — is a con game of global proportions.
They want us to “trust them.” If we “don’t get it” they want us to give them “the benefit of the doubt.” Why? ’cause doubt only benefits the parasite and they have been making us doubt for centuries. They taught us to accept and obey all things social spoken by “authority” instead of PROVING IT FOR OURSELVES, so we don’t have to believe, or doubt.
Stop that. Stop being all of that. Start thinking for yourself. Prove it.
II. More Secrets From a Banker
Air in the Vault
Real Values, and the Opposite — Money
Once upon a time, there was a town with folk that had more gold than they used. It was pretty much like every other little town, not everyone was rich, not everyone was honest. The ones that were rich hid it or buried it but could never keep it safe. The sheriff was no protection. Some even thought he was the main crook. They wanted security, and they wanted their gold to grow.
In this town there was an intelligent, observant, capable, and honorable man who had lots of prestige and a very large vault, strong and well protected. He didn’t have as much gold as the others, but he was not poor. Gold owners came to the vault owner and asked him to guard their gold.
The gold owners said “We have gold, you have a vault. We want our gold to grow, not shrink. So instead of just storing our gold, you can lend it out, at interest to trustworthy people who are willing to back up their loans with security worth more than the gold you lend. You charge 10%, you pay us 5%, you get 5% we get 5%. We’ve got a lot of gold you can lend, so both risk very little to earn very much.”
For the vault owner, very, very much. More than 10 times as much as they even imagined. But I’m getting ahead of myself.
The vault owner thought it over: “OK, to get a loan they’ll need references and property. I’ll get a lien on their land, house or other property. I’ll give the depositors and the debtors receipts in whatever denominations they want so that they can get as much or as little of their gold as they want whenever they want. If they welch, I’ll attach.” He agreed. The gold owners brought 1,000,000 oz. At 10%, if he lends it all, the vault owner gets 50,000 and the owners of the gold get 50,000. Simple, straightforward business. He banked gold. He was the first banker.
At least that’s how it started.
More Loans, More Ideas
The more he lent, the more he got in interest and more he attached with liens on land, houses, livestock, articles of value. Those who borrowed needed to buy seed, livestock, construction, machinery and a whole host of other things.
They seemed happy to hock their whole lives of effort, time and resources just to have what they needed to produce now. “What a strange affliction,” thought the vault owner, “they are so obsessed with work and productivity that they risk everything just to continue doing it.”
For the banker it was a card game. They could win, if wind, weather, family and friends helped them, but if they didn’t pay their loan, the law was on his side, not the debtor. He could take away everything they hocked. They risked much more than the banker.
They Didn’t Want Gold
Neither borrowers or depositors wanted all their gold. All they wanted was what they needed to trade. Carrying gold was heavy and risky. Paper receipts were more convenient.
The banker obliged. He gave them the full face value of the gold they borrowed in receipts for grams, ounces and pounds. Once in a while they took out 5 or 6 ounces, but they left the rest in the vault. They had so much CONFIDENCE in those receipts. After all the richest people in the town had faith in the banker, why shouldn’t they?
“It’s a rhetorical question.” “It’s obvious.” No. It is not. Not only that, to say “they should” is a HUGE mistake that trades real values for the thin air of other’s power and prestige. And, unless we know how money works, it is not obvious, either. We must be able to answer the question: Why not have faith in the money of a private banker?
OTHERS Returned the Receipts
The banker gave the receipts to one person, but ANOTHER claimed the gold. He discovered that in most cases they were exchanging receipts among themselves and never received gold. But, although some receipts came back so worn, damaged and dogeared that they were hard to recognize, he immediately recognized one thing — they weren’t gold. They were convenient, light and easy to carry. Some of them were even pretty. But they weren’t gold. They were paper receipts which he made and signed.
They didn’t need gold. They needed to exchange values. Receipts came in denominations that let them exchange their largest or smallest values, and they were light and easy to carry or hide. Receipts were convenient.
They believed they could change the receipts for gold whenever they wanted because they believed in the banker. So the gold in his vault never went down more than 10%. Receipts became the medium of exchange — he invented money!
III. Even More Secrets From a Banker
Money “Magic”, the Air in the Vault
“Why not give out more receipts than I have gold?” he thought. “Who’s to know?” They like my receipts more than gold, I get a little more interest, and as long as everybody can change it for gold whenever they want, who am I hurting?”
At the time, not even he realized the world wide “hurting” caused by that idea.
Little by little his greed grew and in no time he was lending out 10 times as much, giving out 10 times as many receipts, and getting 10 times as many mortgages and 10 times as much interest as he had gold.
And the townspeople didn’t complain. They had 10 times as much prosperity as they could have with only gold as money, ’cause gold is scarce.
He could count, and so can you. If the gold never went down more than 10%, he could divide 100% by 10% and get 1000% or 10 times the amount of receipts (He is emitting 10 times the money than he had backing in gold.) Since the gold never went down more than 10% he still had enough gold to cover everyone who came in for it and avoid getting caught.
Where’s My Gold?
He had to make sure of the 10%, because if that fraction was wrong, and just a few more people came in to ask for their gold than he had, he would be in deep shit. I mean deep, like in the room in hell where people were up to their neck in it eating coffee and donuts before the devil said “Coffee break is over, everybody sit down.”
All it would take is just a few people to ask “Where’s my gold?” before the whole community would be at his door with hot tar, loose feathers and an 8 foot rail. They didn’t know they didn’t need the gold. That’s why, even with insurance and all the other “safeguards”, the thing bankers fear most is a “run on the bank.” So, he had to make sure that his “reserve” was based on the right fraction. The original gold, his “monetary base” became his “fractional reserve” from which he created money backed by the air in his vault.
I’m using 10% because it is easier to calculate, but it could have 8%, 12%, even more or even less. Calculating how much he could lend and still have 10% in the vault was easy. All he had to do was look at the total (100%) of the gold that he was given to store and lend (his monetary base), and divide that by the fraction in his fractional reserve, which, to make it easy, is 10%.
Don’t freak. It’s just a little and all the math you need to know to learn how the banker created riches and power. It’s just a little, but learn it well. If you need to be sure, take out your calculator. It’s ok, nobody’s watching.
First, 10% of 100 is 10, right. On the calculator, put in 100 then times .1 (10%) = 10, right? Got it? OK.
Second, 100 divided by 10% = 1000, right. On the calculator, put in 100 then / .1 (10%) = 1000, right? Got it?
OK, maybe not. We use it daily but hardly ever explain it. The idea of a reciprocal is to go in the other direction. The reciprocal of forward is back. The reciprocal of multiply is divide. Today I have 100. That’s half of what I had yesterday. How much did I have yesterday? 200, right? So, going forward I multiplied by 1/2. Going back I divide by 1/2.
Let’s work it out. Today I have 100. That’s 1/2 what I had yesterday or 50%. So, 100, what I have today is yesterday times 1/2 which gives me 100, but 100 divided by .5 is the 200 I had yesterday.
So with bigger numbers, if today I had 1/10 of what I had yesterday, then yesterday I had 10/1 times what I have today. So, if 100 is 1/10 of what I had yesterday, then yesterday I had the reciprocal — 10/1 of what I have today.
So, if I’m “going forward” and trying to get 10% of what I have, I MULTIPLY by 10% or .1 or 1/10, but if I’m “going backwards” to find out what I had originally I DIVIDE by 10% or .1 or 1/10. (Or I multiply by the reciprocal of 1/10, which is 10/1.)
So getting back to where we started, 100 divided by 10% = 1000, right. On the calculator, put in 100 then / .1 (10%) = 1000, right? Got it? OK, I really hope so. It’s important that you understand it, very well. It’s the only math the banker needed and used to gain all his wealth and power.
In Interest Alone
So, even if the maximum, 10%, of the gold was withdrawn, he would have it. “Hmm”, he hummed. “If I lend 10 times the value of the gold they gave me to lend, and I pay them 5% as agreed on their gold, I would get 5% from the gold they deposited and 9 times 10%, or 90% on the money I created.
So I’d get 95% as much as all the gold they had accumulated all their life in interest alone in just one year. And all the loans I make are backed up by mortgages on 100% of the value as if I had the whole 10,000,000 in gold. Sweet.”
So, the banker thought “If they give me 1,000,000 of gold to lend, and I pay them 5%, they get 50,000 (On the calculator 1,000,000 x .05 (5%) = 50,000). Now if I get the difference between 5 and 10% on the gold they gave me, it would be 1,000,000 x .10 – 1,000,000 x .05 = 50,000.
So, I earn 50,000, right.
No, wrong. 50,000 is what I get for my monetary base — their deposits. But I lend out 10 times as much, so I get 50,000 for my original and 900,000 for the money I created from thin air. I get 950,000 a year.”
Yup. There’s the secret of the fractional reserve. The monetary base is 1,000,000 then you divide that by the fraction in the fractional reserve which is 10% or .1 and you get 10,000,000 that you lend out like if it’s real gold. You get interest on it like if it’s real gold and you get more than 10,000,000 in real value from liens on houses and land, just like if it’s real gold.
But it isn’t.
It’s air, backed up by a whim and a prayer. The whim is to get something for nothing and the prayer is that nobody finds out his secret. He created 9,000,000 out of thin air from the “magic” of lending 10 times the gold that he had and giving 10 times the receipts for that gold.
He created 9,000,000 with the words “fractional reserve” and “monetary base”. And those two concepts let him turn 1,000,000 into 10,000,000 in mortgages and 900,000 + 50,000 = 950,000 per year in interest. And all of this was backed up by our confidence in him. In other words, backed up by the thin air in his vault.
They’ll Kill Me
The banker thought “Not bad for renting a vault, is it? How thrifty! How intelligent! But if they really find out how I did it, they’ll kill me.
I don’t have to worry about the honest ones. They aren’t very bright. The brighter ones are greedy, but they’re pikers. I’ll be able to buy them with a little money and power. If they push me to the wall, I’ll tell them that I’m giving out a little more receipts than I have in gold, so I’ll ‘cut them in’ by doubling their interest rate. (That makes them partners in crime, implicates them and they won’t rat me out.)
That’ll bring even more people to let me lend their unused gold. But I’ll do whatever I have to to keep them from knowing that I’m actually lending out 10 times their deposits, or they’ll hang me for sure. But I have the money to buy whatever I need to convince them, newspapers, books, gossip, whatever. ”
This “secret” gives me incredible riches, and with those riches I can buy the tools to manipulate the minds to keep my secret. But, I have to be clever, I have to guard the secret in the open, in the light of day, with words, backed up by money to appeal to the greed of those who would rat me out. When I tell the truth, nobody should believe me, but when I lie, everybody should. And, if the snoops get too close, I’ll tell my laundry clients that my problem is their problem, and they will make my problem go away.”
Keeping the Secret
It was easier than he thought. The fraud was soooo big that they couldn’t get their heads around it. He paid a little more interest and as he suspected, nobody asked questions. “Sure, there’s something fishy,” thought the gold owner “but I’m getting my cut, so live and let live, give a little, take a little.” Obviously the banker knew how to corrupt the ethics and morals with money. And, he observed, the corrupt were a whole lot less greedy or imaginative than he was.
So everybody heard, but nobody believed that fraction of his “fractional reserve” was how much money was backed up, nor that his “monetary base” was how much gold he really had. Nobody believed that 90% of his money was backed up by thin air. And, by dividing his “monetary base” by the fraction of his fractional reserve, and then subtracting the money created from the original gold backing, he could calculate exactly how much money he created out of thin air.
Of course, the words had to “grow and improve” until they became a “field of study” we call “economics”. And that “field” was filled with so much math (and bullshit) that not even economists could tell what they were doing when they increased or decreased the fractional reserves.
Even Adam Smith of the Wealth of Nations, Ludwig Von Mises of the Austrian School of Economics and Ayn Rand of Atlas Shrugged and Objectivism bought into the bankers bullshit. They even claimed that the only sound money was gold.
Yes, bullshit. Of course it’s bullshit, nobody eats, drinks or houses in gold. Eats, drinks, houses are values, and it’s money that buys them, not gold. The total quantity of gold is so small, the total quantity is so hard to increase, that international price is very easy to manipulate and control, if you have enough gold and bullshit. They have more than enough of both — gold and bullshit.
There is ideology here. The producer’s ideology is capitalism. They risk to produce in the hope of gain. It depends on them believing in themselves, in other words, their ego, and the ego of others to compete, win, lose and protect what they have.
This is a different ideology. The banker’s ideology is socialism. It depends on the avarice of some to covet and steal what others have and to do it without effort, without competition, and without risk. If they try to welch on their deal or not hand over their titles, they can use legal or illegal force to get what they want.
IV: The “Economic Cycle” Banker’s Secret
Inventing the Business Cycle
The banker had no problems. Far from it. His bank prospered and grew quickly because everyone wanted to gain more money on their unused gold and he gave more interest than anybody else. From their limited perspective, they earned plenty.
Their Limited Perspective
The banker received gold. But now he paid 10% interest. Lenders who were used to getting 5% thought that 10% was a great deal. They were getting double what they were used to getting. And, he was lending at only 10%, unbelievable. Yeah, right. He was paying 10% on a thousand but getting 10% on ten thousand. He was paying 100 but getting 1,000.
So, from their limited perspective, gold owners were making a bundle, (100). But from the banker’s perspective it was a pittance. He was getting a fortune (1000 – 100 = 900). It was made from thin air and the gold wasn’t even his. (OK, eventually it was. After a while he had so much gold he didn’t need depositors to start his own bank.) So, yeah, he had to pay the “exorbitant” 100 or 10% interest, but of the 1000 he got in interest, he still had 900 left over for himself.
The Monetary Accordion
As the banker’s confidence grew, he started to play. The instrument he played was the “monetary accordion”. When he expanded it the money supply filled up with air and prosperity bloomed, when he squeezed, he took the air out, shrunk the money supply, and terrible, fascinating things — train wreck things — happened.
So, here we are again hearing the banker think to himself: “If my monetary base is 1,000,000, and 10% is my fractional reserve, I divide 1,000,000 by 10% giving me 10,000,000. That means I can lend 10,000,000 if my fraction in my ‘fractional reserve’ is 10%. But, if I raise the fraction to 20% then I can only multiply by 5 because 1,000,000/.2 = 5,000,000. OK. But I’ve seen what happens if I make the money supply shrink.”
“People stop buying and get unemployed. Aha, but that benefits me too, because I have the mortgages. If they’re unemployed and can’t pay they’ll turn over their deeds, titles and all the other liens and I’ll get more than 5,000,000 worth of real values from the time, effort, and energy that they used to create real values from money I created out of thin air. And, to make sure that happens quickly, I can double the interest rate I charge and still have the same interest income coming in to me. So, I get 5,000,000 worth of values out of the 1,000,000 of other peoples gold.”
When he reduced the reserve, when he made the fraction smaller, when he took in more mortgages, when he stretched out his hands to give more loans, he filled the accordion with more air, and created more money. When he created more money, he lent more to industry, businesses, individuals. They prospered.
But, when he squeezed, he made the fraction bigger by making the air smaller. When there was less air in the money there was less money. He stopped lending and called in loans, demanded payment in full, right away, then industry stopped buying raw materials and dumped their inventory for less than cost so that they could make the loan payment. They were caught in an “economic depression” that was his word cover, his smoke screen, for squeezing the air out of the money accordion. (They squeeze the air out in the financial and commodities markets by raising the maintenance margin. In all banks throughout the world by increasing the “capitalization requirement.” In any bank by raising the “reserve rate.” For any business/industry by creating a credit crunch. Same concept, different words.)
The Thrill of Victory, the Agony of Defeat
The banker knew that when there was more money, there was more work, more construction, more prosperity. He could make that happen by lowering the fraction in the fractional reserve so he could lend more money backed by air.
And, he also knew that if he raised the fraction in the fractional reserve and stopped lending, called in the loans, raised the interest rates and asked everybody to pay, then businesses stopped buying, laid off workers and dumped inventory to make the loan payments.
He also observed that they weren’t suspicious of him. Their past success made them think that they wrote their own destiny they were the masters their own fate and the rulers of their world. Had they not been swindled so badly, that could have been true.
But, because they credited themselves for their success, they also blamed themselves for their failure. Ahh, the thrill of victory, the agony of defeat. Who could convince their ego that they were not in control of their success or their failure? It’s the money, stupid.
When they couldn’t pay, the debtors presented their deed for property, house, factory, business, or whatever he had mortgaged and humbly asked the banker to forgive them for letting HIM down and to please take their property and not take legal action against them because they forfeited on their obligation.
They were so sorry that they couldn’t pay the loan, that they asked for the bankers forgiveness. Think of the irony, the sadness. But, before the emotion carries you away, think of the fraud and swindle perpetrated by the “monetary base” and “fractional reserve.” By moving from sad to mad, the next step is “I’m mad as hell and I’m not going to take it any more.” That’s the spirit!
The Banker saw Power
Let me assure you that the banker saw neither irony or sadness. HE SAW POWER. Not only could he cause misery to many whenever he wanted, but they humbly and guiltily presented their deeds so that the banker would “do them the favor” of accepting more than 100% of real value for something the banker had risked less than 10%.
“Laughing all the way to the bank?” Hell, he just sat there. It is HIS bank.
It is because the debtors attributed being forthright and honest — to giving value for value — with everyone with whom they dealt. They couldn’t imagine that the “honorable” banker whom they had “known” all their life CAUSED the money shortage, and resulting loan defaults with malice not only aforethought, but carefully planned for maximum damage.
Someone who knows that you have to water the plants, feed the animals, DO THE RIGHT THING in order to survive just will not believe that someone is prospering by doing the unethical, immoral, dishonest thing. It goes against everything good they believed. It goes against their ego, and producers are so generous that they project their ego on those they deal with. They refused to believe that the banker caused it BECAUSE he wanted to steal their property. They refused to believe that the banker raised the fractional reserve to squeeze every possible cent out of the producer. His whim, his greed, was the only cause of the money shortage. Stick that in your econ Ph.D. and smoke it.
It Was Never There
The money shortage occurred because the gold to back up the money was never there, he created money from his “fractional reserve”. Once the banker discovered this power, he found new and inventive ways of using it whenever he wanted more riches. He could stop lending, increase interests, steal deeds, or do a very large number of things to increase his riches. And when he wanted to convert those riches to money, he would just reduce the reserves, make money easy to get, and start the whole prosperity cycle again, so he could cash in his deeds the next go around.
So, to make sure we understand the effect of raising and lowering fractional reserves, as usual we start with 1,000,000 in gold. If I lower the fraction of the fractional reserve to 10% I can “generously” and fraudulently lend the community 10,000,000 in money which is 90% backed by air. These loans let industry make more, businesses sell more, and there is more employment all around. Oh, and another thing, there are fewer thieves, because with the people more protected and stronger, it is easier and less risky to work than to steal.
And again going into the bankers thoughts “This is good for everybody, even me, for a while, but if I don’t stop prosperity before they pay off their mortgages and liens I won’t be able to foreclose.”
OK, I’ll just stop lending, start collecting the loans and raise the reserve to 20% instead of 10%. And, just to make sure I don’t lose any interest income, Ill charge 10% instead of 5%. By raising the rates, more people will have to turn in more property more quickly and pay off their loans more quickly. I get to keep the same income I had at 10% because I doubled the interest rate charged so I’ll get to the 20% reserve rate more quickly.
That way I can start a whole new crop of suckers to make my wealth grow. Less money = less prosperity for them and more property deeds for me. But I have to make sure that nobody believes I’m the cause because I shrunk the money supply. I have to have a justification that puts the blame on them.”
“Inviolable Economic Laws”
He remembered how the debtors reacted when he took their deed. The last part of the secret began to form: To hide his deeds in the open, he caused guilt by attacking the debtors ego. He made the debtor feel like a criminal by making an example of “the deadbeat,” taking legal action to show all debtors that law favors the lender and never the debtor.
Hell, it became so common to blame ego for everything people started to say that all the bad in the world was caused by “egotistical bastards.” But it was only the “egotistical bastards” who were helping others prosper, one by one, while the parasitic “altruists” were skimming the top from programs for “social reform”.
The producer’s ideology is capitalism, whether he knows it or not. He bases his actions and his life on reason and contract. He does the right thing because nature requires it. It is not opinion, it is physics. Understanding physical reality is what causes buildings to stand, plants to grow and machines to function. When we know we should do the right thing, the ego sets truth as a goal. But in that nobility is the weakness of the ego. If he does the right thing and it turns out wrong, the ego blames the producer first.
That is the parasites open window of opportunity. When the debtor accepts the guilt, the banker can say: “Economic laws are inviolable. It’s your fault we have no money. You industrialists have gotten greedy. You employees have become wasteful and slothful. You farmers have become lazy and inefficient. All of this has caused misery and poverty.” And everybody believed this lie. The cause was lack of the mechanism for interchanging values — money — and the banker was the only one in control of how much and how little.
His ego makes him believe that he is in control because he is doing the right things. So, his first reaction is doubt: “Maybe he’s right, maybe I could have done better, but I don’t see how.” His doubt soon turns to questioning himself and finding thousands of ways he could have done better. Then he blames himself for not only for having done less than he could but for not thinking about it sooner. The only thing he refuses to consider is that he is not in control.
The best ally of the banker was to weaken producers’ and debtors’ ego with doubt and guilt. He blamed them for not having money when he was the one that took it away by raising the reserve, calling in the loans and raising the interest rates.
The gold was never there. What he removed was air from his monetary accordion and they all danced to the tune he played. Lower reserve, more loans, more prosperity. Raise reserves, less loans, more scarcity, more poverty (and he gets more deeds to real wealth that people created with blood, sweat and tears).
Inviolable economic laws — Bah! Humbug! The banker shrunk the money supply. That’s the long and short of the whole business cycle that he designed, created and controlled. Stick that in your “I can manage” MBA and smoke it. It ain’t in your “highly leveraged” control.
Written by Herman Gazort for iPatriot ~ December 2nd through the 4th, 2016.
~ Herman Gazort ~
What I write stands — must stand — on it’s own. Do not fall into the fallacy of argumentum ad verecundiam — “believing in” power, prestige, and money — “credentials.” To truly believe what you see and hear, think, verify and prove it, for yourself, by yourself.
Kettle Moraine, Ltd.
P.O. Box 579
Litchfield Park, AZ 85340
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