Posts Tagged ‘fiat money’

This video is by Greg Mannarino. His blog is here. I think this guy is right on the money. Check out his videos, his blog, and also his book – The Politics of Money.


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The Worship of Mammon

The Worship of Mammon

A Brief History of Mammon

The earliest forms of money were materials that had these essential qualities: intrinsic value, easily transportable (small and discrete), not easily counterfeited, and non-perishable. One such example of this would be the wampum of the Native Americans.

wampum_largeWampum were small beads made of shell (whelk, quahog, or clam), then strung or woven into fabric and worn. They could be carried easily this way, and were easy to protect if they were always worn upon the body. This aspect of adornment is what gave them their intrinsic value – they were considered beautiful and beautifying, and required specialized skills to manufacture, so they had value in and of themselves. It’s interesting to note that in India, women still carry most of their household wealth upon their bodies in the form of ornate gold jewelry.

This type of currency – the kind with intrinsic value – is referred to as commodity money, and has many advantages over barter, which preceded it’s creation. A commodity money like shell beads has a consistency to it that makes it convenient to use as a medium of exchange. Consistent in size, color, quality, etc., something less present in bartering materials, which are always changing from transaction to transaction.

In cultures of any era that lack money, barter and some system of in-kind “credit” or “gift exchange” would be the only ways to exchange goods. Bartering has several problems on small transactions, most notably timing constraints. If you wish to trade fruit for wheat, you can only do this when the fruit and wheat are both available at the same time and place. That may be a very brief time, or it may be never. With an intermediate commodity (whether it be shells, rum, gold, etc.) you can sell your fruit when it is ripe and take the intermediate commodity. You can then use the intermediate commodity to buy wheat when the wheat harvest comes in. Thus the use of money makes all commodities become more liquid. – Alexander James

With barter, someone might not want what you have to give in exchange, or they might not have need of it right then, but will later, but the good is perishable and won’t last until they need it. That’s when an accepted medium of exchange – or “intermediate commodity” – really comes in handy. That medium will preserve the same value as what would have been in that bartered good, but do so indefinitely. That means it can be a storehouse of wealth, creating a means of saving value over time. Commodity money makes healthy commerce possible and is a benefit to everyone in the community.

But there is an invention by the Sons of Cain that is NOT of benefit to everyone, only to themselves. It is an invention so vile, so corrupt, that only the most perverted and bent minds could have spawned it. What I’m referring to here is fiat money.

Perfecting Thievery

It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning. – Henry Ford

greedy fat manFiat money is money that has value only by “fiat”, or official decree. It’s simply a king saying “I decree that this paper money printed with ink has the value that is printed upon it!” Ludicrous, right? Well, that’s the modern form of money used in every country of the world today. This is money that has NO intrinsic value, whatsoever. It’s worthless without the decree, or rather, without people choosing to believe in or obey that decree.

Can you imagine the audacity of this? People accepting any money that is not itself a commodity with intrinsic value, or which can be redeemed for such, is totally beyond the pale. To elucidate: compare receiving your wages in commodity money to receiving your wages in fiat currency.

To keep it simple, let’s say you earn $1 an hour (there was a time when that was a good wage, which is another aspect of fiat currency we will get to soon enough). At the end of the day, you go to collect your “heap big wampum,” or your commodity money. Be that in shell, silver or gold coin, whatever it might be, at the end of the day you hold in your hand $8 of something that is actually worth $8 in and of itself. You’re holding value.

Now imagine that when you go to collect your wage you are given 4 pieces of paper – a 5 spot and 3 ones – which is truly worth only the paper and ink value the money is printed on, but is said to be worth $8 because the king or central bank says so. What you in fact are holding is a declaration of value, or rather, a wisp of smoke. Does that make you a fool if you accept that money in return for your labor? If it does, then we’re all fools, because that’s what we all accept in payment for our time and effort, our blood, sweat and tears.

Of course the lame excuse for this type of money is convenience, and, to a degree, there is some truth to that. Paper money evolved right along with early banks, and at first blush, it seems a natural progression. But we’ll see how the proto-bankers soon realized the gold mine they were sitting on, and apparently not being restrained by any moral chains whatsoever, exploited that opportunity to its despicable fullness.


Ironically, the creation of paper money was due to the very limitations of it’s preferable alternative – commodity money. Silver and gold are somewhat heavy, cumbersome to carry around, and risky to store in larger quantities in one’s own household. This problem led to the rise of a new kind of business: gold storage vaults. And the ones who offered this service were the ones who had a lot of gold to store themselves – the goldsmiths.

The goldsmiths were an occupation that often evolved into bankers. Other merchants needed places to temporarily store large amounts of gold, and they chose to store them with the goldsmiths because the goldsmiths had the best security systems of the day. When merchants stored gold, the goldsmith would give them a statement indicating how much gold the merchant had deposited.

Once merchants began to store gold, paper money developed rapidly. When a merchant wanted to buy something, he could return to the goldsmith and reclaim his gold, or he could sign over the statement he had from the goldsmith to someone else and let that person collect the gold. Because the second option was popular, the goldsmiths innovated and issued statements made out not to a specific person, but to the bearer–whoever presented the statement to the goldsmith could collect the gold. At this point the statement issued by the goldsmith was money because it was something with which people bought things. The invention of paper money was successful because for some purposes it had more desirable qualities as a money than gold or silver had. – Robert Schenk

In short, paper money originated at these goldsmith vaults as paper notes – IOUs essentially – redeemable in gold upon demand by any holder of said note, which means the note itself could be used as money and transferred to another as payment for goods and services.

That’s all fine and good as it is. But shortly after is where greed came in, and the trouble started.

The Curse of Fractional Reserve Banking



As time went by, the goldsmith’s-turned-bankers realized something astonishing and potentially quite lucrative. They noticed that on any given day, only a fraction of outstanding notes were returned to be redeemed in gold. A small fraction. That got them thinking…

What if they issued notes beyond the amount they could redeem in full if the impossible happened: every single note-holder showed up on the same day and demanded their gold? They made their money by charging fees to those storing their gold in the goldsmith’s vaults, but if they used the gold of others and lent it out in paper notes as interest bearing loans, they could expand their income exponentially, without adding a dime of their own money to do it. Their only risk would be the so-called “run on the bank,” when everyone shows up together to demand gold that is not even existent in the vault.

That is what fractional-reserve means. Calculations are done between days of highest redemption demands and lowest, then a safe zone is decided upon, and that zone is usually 10 percent. That means that these goldsmiths decided that they only needed to hold in reserve 10 percent the amount of gold they would issue loans for, meaning that they were issuing 90 percent of their loans upon nothing at all but air. And let’s not forget they were using other people’s gold to do it.

axThis was the start of the richest occupation the world has ever known, and it’s where the Sons of Cain acquired their wealth to rule the world in the modern day. In primeval days they were giants, and all they needed in order to rule was their great strength and maybe a tree trunk club or battle axe to back up their claims to power. In modern times they use money, and their means to acquire that money is through fractional-reserve banking and the printing of fiat currency.

Every fiat currency ever known in the world has gone through a life cycle of increasing devaluation before hyper-inflating out into a total bust and collapse in value. This crime has cost humanity, the Sons of Adam, all the fruits of their labors since it’s inception. This crime is upon their heads and will not be forgotten by God come Judgement Day.


Printing Press Magic – Money Out of Thin Air

The reason for this death-cycle of fiat currency is because new monies are created at will, with no gold-standard to restrain them, and as more money is released into circulation, there is ever more money chasing fewer goods, therefore the value of each unit of currency will inevitably depreciate. That’s the reason for inflation.

Inflation itself is a destabilizing influence on people’s lives, and I personally think that this is absolutely intended by the Cainite banker scum. Think of it: is it useful to have prices constantly in flux, so that no one ever really knows what the fair value of something should be? Is it useful that a grandfather cannot be able to teach his grandson what a fair price is for any given thing? Inflation makes such a thing impossible, because what something cost in his generation is a far cry from what it costs today. See the chart below for a breakdown on the true extent of how inflation has corroded the buying power of the US dollar over time.

money value chart

It can only go to zero – and from the looks of it, it’s getting darn close to that right now. At that point the currency has hyper-inflated out into nothing, and collapse is complete. There’s no reviving a collapsed currency – it can only be replaced, and values reset. That usually means the total destruction of the middle and lower classes, and includes a massive transfer of wealth from those classes to the very top of the pecking order. That’s out and out theft, I don’t care how you choose to parse it. It is the perfection of thievery because of it’s efficiency, and also because they’ve been able to veil their technique behind technical jargon to the point that most people will never be able to untangle the truth of it. And it’s still not enough for them – they want it all, total, absolute control over your very being itself. And that is not too distant at this point. It’s really only one more economic collapse away.

Lends at interest, and takes profit; shall he then live? He shall not live. He has done all these abominations; he shall surely die; his blood shall be upon himself. Ezekiel 18:13

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