Thursday, August 27, 2009

the world as we know it

the monetary system works like this, you have the goods and services that make up the economy, then you have the money used for trading. if there is 100 dollars being circulated among the entire economy of the people who use it, then 1 dollar is worth 1/100 of the entire economy. if your entire economy is worth a car, a horse, and a truck, then your 1 dollar is worth 1/100 of a car, a horse, and a truck. if your economy is worth oil businesses, computer manufacturing businesses, and diamonds, then your 1 dollar is worth 1/100 of oil businesses, computer manufacturing businesses, and diamonds. you just take the entire part of the economy that operates under the dollar, and divide it by the total amount of dollars to get the value of each dollar. now, when this happens, the dollar getting spread among the economy, the dollar gains value, in turn, buying power. now when the first money was printed in the united states, the money would keep its value, and the government would print more money as the economy grew, and the economy was able to grow without any setbacks, because the dollar would continually gain value as the economy grew, and the government would only print enough money to substantiate the economy, never printing more money than the economy asked for, so the dollar would be relatively stable. then the government got retarded and forgot that they could print money themselves, or the dollar got so weak that they had to borrow a different currency, whatever the case, they allowed a private central bank to be created, to "borrow" money. now what they really do is use fractional reserve banking, the banking practice in which the banks can loan out 10 times more money than they have, in reserves, its literally fraud. the first national bank was created with the united states putting in 20% of the first reserves, and then the other member banks from england, who were supposed to do the same, used their ability to loan out those reserves, seeing as they were "member banks", to loan out that money to eachother, in turn, fraudulently creating 100% of the required reserves out of only 20% of the required reserve in actual money, put in by the united states. lets say the reserve requirement was $1000. well the united states put in $200, then, a "member bank" would use that $200 as their reserves and then could create another $1800 to loan out, but at this point, the only way to create money was to print it. no problem for the central bank, that is what they do. nowadays, this money can be created by simply typing numbers into a computer. sounds crazy huh? any banks can do this all day to create money, and these banks did that. then that first bank was abolished, then a second one came around, and it got abolished. then, with these banks being called the 1st and 2nd banks of the united states, people were catching on to the scam. then from 1833 all the way through the civil war up until 1913, no new central bank was created. then when ww1 came around, our idiot of a president, woodrow wilson, signed a new central banking act, called the "federal reserve act", which has nothing to do with federal, and whose reserves are unknown because of the total independence and secrecy that it has from the government. this is the current system that we operate on today. now, what they do is, like every other central bank, is "loan" money out to our country, on an interest plan. and one way to prove that they are using the same fractional reserve banking technique, is the fact that they are printing the money. if they were letting us borrow money, they would have just let us borrow the currency that they already had reserves in.

so when they let us "borrow" the money, the money increases in value as it circulates, then when its circulated and is then worth oil companies, computer manufacturing companies, and diamonds, we then pay back the money just to pay back the interest on the money, through the income tax system, which is not federal. and when we pay that back, we are left with just crippled oil companies, and computer manufacturing companies, and no diamonds. we literally create profit just to pay them back, and they leave us just enough to survive and do it again. the income tax is not real, it is not federal, it was never ratified by the states, it is literally optional, you can go into court and beat any irs case by asking "where is the law that says i have to pay this?", and they will tell you it doesnt exist, or they will mention the 16th amendment, which was never ratified. by raising interest rates they cause the money supply to contract, by making it more expensive to take out loans, and naturally, people will pay back previous loans, so the interest doesnt pile up. and because people are afraid of the irs taking their shit every year, they pay the income tax. then when the money supply contracts, they lower the interest rates, and by that time, people are so desperate for money, after wages were cut because of the lack of spending of everyone, that they take out unreasonable loans and try to start up businesses and buy things on credit that they think they could pay back later, and once thats going good for a little while and businesses and economy has grown some, they raise the interest rates again, decreasing spending. but instead of just taking back the money which is now worth something so they can buy something with it, and contracting the money supply, encouraging people to spend less, they can now take businesses that thought they would be able to pay back the loans that they took out, but cant because they didnt make the profit they expected to thanks to the contracted money supply and people spending less, and they can now take peoples property. but instead of appraising the property by the money supply before it was contracted, they appraise it by the new contracted money supplies value. and due to the decreased number of dollars circulating over relatively the same or even more capital, those loans would now be worth more than they were before. lets say you took out a $100,000 dollar loan to buy a house, that $100,000 dollar loan could buy 2 houses. the effects are much more subtle than that, the difference is only usually felt when comparing right before the money supply starts to contract, to when the irs tries to take your property. that is why its said that inflation, the opposite of this, benefits the debtors, and punishes savers, because of the decrease inthe value of the dollar due to the increased number of dollars circulating over relatively the same amount of capital. and all of this is all done through banks, that the federal reserve loans money to, which are the same "member banks" in the federal reserve, but no one would ever know thanks to the secrecy of the federal reserve. these banks are the big banks like chase and bank of america, who end up buying out little banks when this happens. these are the same banks that obamas $700,000,000,000 bailout gave billions of dollars to to "encourage spending" so these banks can just accelerate this cycle under the cost of our government, which will have to be payed back by us, also the same banks that the federal reserve and obama kept trying to make seem important by saying were "too big to fail". and while all of the chaos left by the $700,000,000,000 bailout was being sorted out, it made all of the other multi-billion dollar legislation that the democratic controlled house is spending on, seem relatively dwarfed, while passing economic timebombs like cap and trade, and trying to pass healthcare reform. and while all of this was going on, the cycle continuing and continuing, they allowed themselves to landslide the effect of this cycle while letting it escape the notice of the typical american consumer. like i said, you take the total part of the economy that uses the dollar and divide it by the total number of dollars to get the value of the dollar.

back in the mid 1900s, sometime after the great depression, during world war II, a currency exchange agreement was made between countries, in which the us dollar would be the reserve currency for all of these countries. the purpose of a reserve currency is to fluctuate trade between countries, and if these countries already had us dollars, they could just exchange with those. now what this allowed these countries to do, like any country who wanted to increase their exports and build their economy, is to devalue their currency against the us dollar. what this does is, lets say one dollar could buy a piece of chicken in us, and one yen could buy one piece of chicken in japan. what the japanese would do is make their yen worth less, lets say 3 yen equals 1 dollar. now that one dollar can buy 3 pieces of chicken from japan and only 1 piece of chicken from us. what does this do? it makes countries go to that country to buy stuff. lets say one brittish pound equals one us dollar, and lets say the brittish pound could buy 2 pieces of chicken in great brittian, well it could still only buy 1 in us and 3 in japan. great brittain would still go to japan to buy chicken if it was cheaper to ship, and we would prefer either one because our chicken cost at least 2 times more. and then there were the countries with fixed exchange rates, if they wanted more exports they would just decrease their money supply. lets say the swiss franc has a fixed exchange rate of 1 to 1, if switzerland wanted more exports, they could just make their franc worth 3 pieces of chicken, and great brittain would come to buy chicken. but japans pissed because switzerland is taking all of their business, so they devalue their currency even more. so, while all of this was going on we were sitting around while all of our businesses were going overseas, but weed never notice, because as our businesses shrunk, the overseas value of our dollar went up so we would never know the difference, until all of our businesses were gone and we were a consumer only, service only nation. did you ever wonder why you always see shoes and things made in china and taiwan, and foreign cars driving all over our streets? did you ever wonder why these other countries started to become the frontrunners in technology, and manufacturing? because we were punch drunk with an unrealistically valued dollar that could buy things all over the world. and the only way to battle this unrealistic buying power and unrealistically high prices, is inflation, which as you know means higher prices here at home, and at the same time, higher prices overseas. or wait. there is one solution to all of this, which is the easiest solution of them all. get rid of the federal reserve, print our own money, the united states of america money, allow the federal reserve note to still circulate, and when the new bill comes out, allow people to exchange their federal reserve notes for the new us dollar at a fixed exchange rate, and as those federal reserve notes come back in, we can pay back our imaginary debt, just like they printed imaginary money out of their printing press, and along with it will go the imaginary tax called the income tax. and with the current rate of inflation of the federal reserve note, countries holding it will naturally get rid of it because its loss of value, and as those countires get rid of it, the buying power of our dollar will shrink, and when the federal reserve note collapses, the same people who own the federal reserve will try to instill a new currency, a more widespread currency that they can control in the same way, something like the amero, or even try to extend the euro to us, but when that time comes and the federal reserve note fails, that is the time for us as an american people to take back our lives, its time for us to take back the power to print our own currency, and to take back the right for our us economy to grow. its time for us to once again, make this, the land of the free.