Why the central banks should be destroyed (how the worlds largest con trick works) - part 1.
If the American people ever allow private banks to control the issue of their currency, first by inflation and then by deflation, the banks and corporations that will grow up around them will deprive the people of all their property until their children will wake up homeless on the continent their fathers conquered.President Thomas Jefferson
I have been researching banking in general over the last few years and come to the conclusion that all central banks should be destroyed. These are a couple of the best videos I have seen that explain the reasons why in detail:
The Money Masters (part 1)
The Money Masters (part 2)
The Creature from Jeckyll Island (twelve parts that are each about 10 minutes long).
If you look into the above links then you will have a good 10 hours of watching so make yourself comfortable first. They are however, in my opinion, absolutely first rate and will blow your socks off if you do not know where currency comes from or how worthless it really is. It is nothing but a con trick devised to separate the poor from the little money they have.
First we need to know what money is
The first question to ask is what is currency, it is a £5 note, a £10 note or a £50 note, but why do we assign it value? Look at them for what they are, a piece of paper with some ink on it. In fact they are all the same size so why is one more valuable than the next? If you notice I said what is currency and not what is money. That is because they are really two separate concepts. Modern currency is not backed by anything (since the link to gold was removed in 1931 after an amendment was made to the Gold Standards Act of 1925), it is literally just a piece of paper with some ink on it that represents the promise of someone to give you items of the same value as that piece of paper represents. In fact technically, it is called a promissory note. It only works because everyone keeps that promise. What if someone broke their promise and refused to give you its value, do you not just have a piece of paper that has no value? Even more alarming is what if someone prints many millions more of those notes? It doesn't take them any effort to do it you know, they just turn on a printing press and voilà, a whole new batch of £50 notes with which they can buy things!
Hrmm, well if that is currency what is money? Well, money can be anything you want it to be as long as it has real value. In fact that £50 note we were just talking about has value, it does not have a value of £50 but maybe 0.1 pence. Money is anything that has taken effort to generate. You must be productive to generate money. If you produce something of value, be it a work of art, a vaccine for the common cold or clean drinking water then it represents labour. Money is simply a representation of labour that goes into producing something.
The monetary value of an item is directly proportional to the amount of labour that has gone into that items production. It it took 10 people, 10 years to work out how to produce a vaccine for the common cold then it would have a value of 100 man years. If it then took 1 man, 1 year to produce a work of art then it would have a value of 1 man year.
So what happens if the men that produced the vaccine want the work of art but the man that produced the work of art does not want the vaccine? Well, they need a representation of their labour that is not the same as the item they produced. Throughout history man has settled on precious metals as a means of representing that wealth, mainly gold but also silver and copper among others. There are specific reasons why precious metals were chosen for this task:
- It takes work to find gold. It must be searched for, dug up and then refined - it can not be created on a printing press;
- It is the densest metal on earth next to the man made metal Titanium which is a very recent discovery and also very hard to machine tool. This high density of gold means that it cannot be faked. If a weight of gold has it weight and dimensions measured and they conform to the expectations of gold, then that item is gold. You cannot take lead, coat it in gold and still pass the weight and dimensions test;
- It is divisible. Lets assume you have a cow and you wanted to buy a new set of clothes. The tailor wants half or your cow so you cut the cow in half and give him half. The dead cow no longer produces milk and so it no longer has the same value as before it was divided in two. If you cut your gold bar in half, each half has exactly half the value of the original bar;
- It is very dense as already mentioned. This means it is easy to hold in a small space. If you used silver, which is not as dense and wanted to buy something big then you would need to carry 1 or 2 tonnes of silver to pay for it. Unless your name is Hercules, that is going to be a little tricky. In fact you should need to carry 15 times more silver than gold as there is 15 times more silver on earth than there is gold. I say should as the ratio is currently about 60:1 due to fluctuations in the relative price of silver and gold. I think this this makes silver bullion a good buy right now and I have invested quite heavily in it in order to protect myself from the terrible ecomonic climate we are currently experiencing (I also think gold is good right now but that is for other reasons);
- It is non perishable and so retains it's value over time. If we go back to our cow and decided to keep it for 50 years we would simply end up with a pile of bones. Bones do not have much value, gold however would still hold the same value 50 years from now.
There are several other reasons as well but you can look those up yourself if you are really interested.
So, lets go back to our vaccine producers and our artist and see how they trade. The men who made the vaccine find someone who wants it, they then sell the vaccine to that man who gives them a quantity of gold. The vaccine producers then go to the artist and give him a portion of the gold (1/100th in our example as the vaccine took 100 times more manpower to produce) and take the work of art to hang on their walls. Great, so we have worked out a means of exchange.
28.03.2009 10:37 - Posted by doahh - Comments: 0 - Economics & politics
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