by James Jaeger

Down through history, money always starts out as a commodity in a barter economy. Usually one or two commodities are preferred and the community eventually designates them as "money." Those commodities designated money usually end up being gold and silver because they're durable, malleable, scarce, aesthetic and you can NOT print them up out of thin air -- like paper, "bills of credit" or Federal Reserve Notes.

Eventually, certain WEIGHTS of gold and silver are equilibrated with the various products, services and other commodities in the economy. As and when this happens, a VALUE for an ounce of gold and an ounce of silver is established. At this moment that gold and silver metal become "money." Note the VALUE of this money has nothing to do with what the money is NAMED or interest rates. It's only about weight. This is why a "dollar" is a unit of WEIGHT in terms of pure silver.

So money is the weight of some commodity that people collectively and VOLUNTARILY agree to use as a medium of exchange, a store of value and to tally up the production of their society.(1) Again note, government decree -- government fiat -- has nothing to do with it. When a government forces people to use such and such "money" for "all debts public and private," that "money" is not real money, but the impingement and enforcement of the state on the free market. This is the state's first act of regulation and since money is one half of every non-barter transaction, this act of regulation accounts for ON HALF OF THE ENTIRE ECONOMY.


But here's the most fascinating, yet unappreciated fact about money:

Once established in an economy ANY amount of money will suffice. In other words, a central authority -- such as the state or a banking cartel -- does NOT have to keep increasing the supply of money in order to "stabilize the economy," "stabilize prices" or prices" or "make sure there is enough money in a growing economy." Inflating the money supply as justified by regulating the economy is how the criminal element always gets its foot in the door. Usually, this element partners with the government and the major banks to get control of the People's money. Usually such starts out by claiming a need to "mint" the money to make sure it's of "honest weight and measure." Minting money by the state is totally unnecessary as it can be done just as accurately by any number of competing private mints.

Money belongs to WE THE PEOPLE. Money NEVER belongs to any government or banking cartel, such as the Federal Reserve System. Money is a reflection of the collective EFFORT of the people, what WE THE PEOPLE have produced. The state produces nothing. The banks simply want to position themselves as middle men. Both are parasites. Banks and governments are parasites on the productivity of the citizenry. This is something you will never hear in a presidential debate or the mainstream media, because the entire corrupt, mercenary system they have devised depends on keeping you ignorant of these realities.

Once ANY quantity of money (whether gold, silver or sea shells) has established itself in circulation in an economy, the purchasing power of that money will naturally INCREASE as the number of products of that society INCREASE through production. This is a function of more products chasing less money. As the purchasing power of the money increases, it takes less and less money to "oil the gears of commerce." Such a society chases the PRODUCT rather than the DOLLAR and in doing so, abundance of PRODUCT is created rather than abundance of MONEY.

We now live in a world where we are FLOODED with paper "money." So immense is this flood, it's measured in TRILLIONS of "dollars." This is sad and ironic, for these paper tokens called "dollars" are the farthest thing possible from real dollars. The proof? Trillions of dollars of paper MONEY are all over the world yet billions of people do not have PRODUCTS, only scarcity, recession and poverty.

So when emphasis is placed on MONEY rather than PRODUCTION, lower quantity, quality and viability of PRODUCTS result.

When emphasis is placed on PRODUCTION rather than MONEY, higher quantity, quality and viability of PRODUCTS result.

When emphasis is placed on DEBT rather than PRODUCTION or SAVING MONEY, no quantity of quality or viable PRODUCTS result, and such a society soon becomes poor and dependent on the state and its master, the major banks.

Fiat currency, debt, bit coin-type schemes, fractional reserve and the endless electronic manipulation of paper "money" through such things as derivatives show how vacant, ignorant and greedy the current civilization has become. This civilization is thus doomed to implosion.

After it implodes, it will start over exactly as described at the top of this article. Go read the article again from the top, so you can become more familiar with what you will be doing in the near future.(2)

(1) See WHAT IS FIAT MONEY at http://www.jaegerresearchinstitute.org/articles/fiat_money.htm

(2) See CITIZEN CURRENCY at http://www.jaegerresearchinstitute.org/articles/system.htm and ANOTHER NEW THEORY OF MONEY -- What Money Should Be Called Upon to Do at http://www.jaegerresearchinstitute.org/articles/another.htm

17 October 2012

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