How Money Works (The Money Scam)
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by Wes Penre, December 11, 2004 -
How
did this thing with paper money all start? Where and when did banks come into
the picture?
Those are two questions
not many people ask themselves, but should. The history of paper money is pretty
interesting, and in a perspective it is easy to see who gains from the money
system and who doesn’t. Already before I start explaining the phenomenon of
money I can reveal, as you already may have suspected, that the gainer is not
you!
Money is an illusion; and
even more so in the electronic age. The fact is that you work your whole life
for money that doesn’t actually exist. But as long as the illusion is still put
there, the system works. The problem is that people like you and I are working
hard, often for low pay, while the only ones that benefit are the bankers.
So how does it work? Well,
if you have $1,000, you can go ahead and lend it to someone. If a bank has
$1,000, it can lend up to ten times that amount and charge interest on it. This
means there is only $1,000 in actual, physical money, but somehow, like magic
the bank is now owed over $10,000. Where did the rest of the money come from?
From an illusion that the bank created. The $9,000 plus are not covered by
anything; this money doesn’t exist, and never did. So if all people and
businesses in the country would take out all their money from their banks at the
same time, the banks would not only end up with a zero balance, but in huge
negative. They would go bankrupt in a second, because the real money in
the banks is just a fraction of what the bank has in circulation, by charging
interest on money that is non-existent.
When a person or a Company
borrows money from a bank, the bank does not print new notes, or mint new coins.
The clerk just types figures into a computer screen and the loan is set up! From
that very moment, you are legally bound to repay back the bank what never
existed initially. The lie is that the figures on the computer screen represent
the value of gold and/or silver. If this is true, does the bank have a big stock
of gold and silver somewhere that covers all the money they are lending to
people? The answer is no! The paper money and the computer digits are just an
illusion created by the Bankers to create money out of nothing, which makes
their own wealth grow exponentially, and help them gain control over people and
society, as the bankers are also borrowing money to the government and charging
interest, which puts the government in debt. The extension of this is that the
bankers actually control the state as long as they can keep the government in
debt. Theoretically, they can tell the government to pay them back in a specific
amount of time, and if the government can’t do that (because they don’t have the
money to pay off the interest) the banks can give them an ultimatum that suits
their purpose. Therefore, the REAL power is with the International Bankers. It
is the illusion of money that rules the world.
What happens when you
can’t pay back the amount of money that does not exist and never existed? Well,
the bank can take legal actions and come and take your belongings until you have
paid back the amount you owed (and yet never owed), including interest that was
never backed up by anything real.
If a criminal falsifies
bank notes and spreads them around, it is a crime, and if he is caught he will
go to jail. On the other hand, this is what the banks are doing on a daily
basis; in huge quantities. The criminal is creating money out of nothing and he
is penalized; the bankers are creating money out of nothing and they call it
banking.
The following I found on
livingstonemusic.net, and I found it pretty well put:
On a bank note it states “I
promise to pay the bearer on demand the sum of......”. What that means is,
the bank has pledged to the holder of that note, that on demand, they will give
to the holder, the value stated on the note in gold or coinage. A bank note is
merely an IOU.
Therefore you are perfectly entitled by law, to ask for your bank account’s
total value to be paid to you in gold or coinage – it states it on all bank
notes and is authorized by the Chief Cashier of each bank. So, that means that
everyone is entitled to have their money given to them by their bank, in gold or
coinage. The only problem is, there is nowhere near enough gold or coinage in
circulation to honor these pledges, which means in effect, the paper money is
worthless.
If you want some entertainment, I suggest you ask your local bank for a £10 to
be paid to you in Gold. The look on the young clerk’s face will be all the
entertainment you should have for one day.....
“I promise to pay the
bearer on demand the sum of......”
Here’s what the
Bank of England states....
Legal Tender and the
Promise to Pay Legal Tender
The concept of legal
tender is often misunderstood. Contrary to popular opinion, legal tender is not
a means of payment that must be accepted by the parties to a transaction, but
rather a legally defined means of payment that should not be refused by a
creditor in satisfaction of a debt.
The current series of Bank
of England notes are legal tender in England and Wales, although not in Scotland
or Northern Ireland, where the only currency carrying legal tender status for
unlimited amounts is the one pound and two pound coins.
Promise to pay
The “...Promise to pay the
bearer the sum of ...” on Bank of England notes has nothing to do with legal
tender status. The promise to pay stands good for all time and means that the
Bank will pay out the face value of any genuine Bank of England note no matter
how old.
The promise to pay also
holds good for damaged notes, as long as enough of the note survives to prove
that it was genuine and no previous claim for it has been received. The Bank’s
mutilated notes department receives some 25,000 claims a year for anything from
fire or water damage to notes eaten by all manner of household pets.
A Brief History of Banknotes
The first recorded use of
paper money was in the 7th century in China. However, the practice
did not become widespread in Europe for nearly a thousand years.
In 1694 the Bank of
England was established and almost immediately started to issue notes in return
for deposits. The crucial feature that made Bank of England notes a means of
exchange was the promise to pay the bearer the sum of the note on demand. This
meant that the note could be redeemed at the Bank for gold or coinage by anyone
presenting it for payment.
These notes were
handwritten on Bank paper and signed by one of the Bank’s cashiers. They were
made out for the precise sum deposited in pounds, shillings and pence.
During the 18th
century there was a gradual move toward fixed denomination notes which by 1745
were being part printed in denominations ranging from £20 to £1,000. In the
latter half of the century gold shortages caused by war and revolution led to
the production of £10, £5, £2 and £1 notes.
The first fully printed
notes appeared in 1855 relieving the cashiers of the task of filling in the name
of the payee and signing each note individually. The phrasing “I promise to pay
the bearer on demand the sum of ...” was introduced at this time and remains to
this day.
In 1833 the Bank’s notes
were made legal tender for all sums above £5 in England and Wales.
Time for thought
Wake up to the illusion.
And that’s all it is. This money scam has been in operation since ancient times.
Just be aware of what is happening around you. Take an interest in what
‘governments’ and ‘politicians’ are up to. Don’t kill yourself for digits on a
computer screen.
Disclaimer
Last Updated:
Saturday, May 14, 2005 04:28:22 AM
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