Reply to post: The Mission of Banks is to Cause Debt!

The Mission of Banks is to Cause Debt!

Banks create debt at the jump because the currency we used is based on debt. Today, it is created by someone at a bank sitting down at his computer and typing in a number so that your account is full of non-money. It is just bookkeeping, nothing more.

Everyone who does anything at all for a living should have a sign posted on his wall that reads: "Its the currency, Stupid!" There is a difference between currency and money. Money serves three functions: it is a store of value; it is a medium of exchange; it is an unit of account. Currencies only serve as mediums of exchange and as units of account.

All currencies have value by fiat. In other words, anything chosen as a medium of exchange is, by one process or the other, agreed upon insofar as a medium of exchange and as a unit of account. It is the store of value function that presents us with a problem. A currency lacking the ability to serve as a store of value always, by one means or another, ends up being based on less than nothing--in other words--debt.

Were a government to print or coin every last unit of currency required by its economy and no more, that currency would serve as a store of value. Notice that it does not matter what the currency is made from. It could be anything. It could be printed on paper, coined in any metal, just so long as there is a fixed quantity of it. A currency will serve as a store of value provided that there is a fixed and finite quantity of it. So long as there is a fixed quantity of a currency, it is real money, no matter how common the material it is made from.

Can bankers and governments be trusted with such an important task? Not according to history. Even gold or any other metal will not ensure that you have a currency that is real money. Ensuring that your currency is real money and remains so, requires YOUR vigiliance. Not just your vigilance, but your children's vigilance, and their children's vigilance, and the vigialnce of the generation after that, and the next generation must be just as vigilant as you were, and so on ad infinitum. Real money is the same as the price of freedom. It demands the eternal vigilance of the peoples enjoying its use, or it vanishes.

Any currency that is printed on demand or worse, borrowed on demand, is not money. It is naught but debt. That is what is at the root of our fiscal problems now. Our currencies are produced out of thin air as debt owed to the national banks. Said national banks appear to be in private hands--insofar as I have been able to determine. The Federal Reserve Bank of the United States is actually a private concern. It is a goverment sponsored concern, but beyond its creation, it has nothing to do with the United States Government. I suspect the same is true of all central banks. They all issue currencies that stand for the debts owed to them, rather than real money.

Herein lies the answer and the very heart of our current woes. Governments are allowed to control their own currencies. Very few politicians understand how money works; why money exists or how its value should be controlled. Invariably the polticians have handed the thorny problem of currency management to the people they believed to be the most competent to control currency--bankers.

As one banker infamously said, "Permit me to issue and control the money of a nation, and I care not who makes its laws!" We handed our freedom over to guess who, the bankers. It is not their fault, it is ours. Our lack of understanding is what has caused this situation. Karl Marx lies at the bottom of most the current confusion, but the number of people who have ever actually understood the nature of money and trade has always been small. Broadening that understanding is the first step back to healthy economies and true freedom.