Fake Money

Reach in your pocket and take out that large axial rotation of bills. Depending on how many of them you have got you experience pretty good. BUT did you cognize they are not deserving the paper they are printed on? Huh? Let me explain.

Yes, those measures are legal legal tender because those cats in American Capital passed a law stating they must be accepted for payment. They are Federal Soldier Modesty Notes and it says right on the bill, “This is legal legal tender for all debts, public and private”. That is OK, but if you travel to the U.S. Mint will they deliver it in gold or silver? Old Age ago they did, but not since 1971.

Almost everyone have bought stock in a company. The company issues shares and each share stands for a part of the ownership in that company. It is against the best interests of the stockholders to publish further shares unless something of equal value is added. Why? Let’s maintain it very simple. Suppose the company is deserving $100,000 and it have issued 100,000 shares of stock. The stock have a book value of $1.00 per share. If the officers of the company make up one's mind to publish another 100,000 shares to engage security guards (like soldiers), rental (not buy) an airplane, addition the accounting staff (these folks make not increase production) and pay the executive directors more (who will bring forth the same amount as they are now) you will detect that all these disbursals make not add to the company’s profits. The value of all shares is now 50 cents per share because the value of the company have remained the same. $100,000 divided by 200,000 shares is 50 cents per share.

What have all that to make with your money? You have got seen in the paper that the Federal Soldier Soldier Modesty Bank (it is neither Federal nor keeps a reserve) have had an auction bridge for Treasury Bills. Sir Alan Greenspan have authorized the printing of those T-Bills. With just paper and ink he have created millions of dollars of debt for the government. And who is the government? YOU. Each clip the Federal turns on the printing fourth estates to sell authorities chemical bonds it effectively dilutes the value of the money you have. That is called inflation. Unless the productiveness rate of the country additions by a similar amount it devalues your currency.

Should you care? What it amounts to is everything will cost more than because your money stands for less. This is pecuniary rising prices and have nil to make with the supply of goods. Yet some twenty-four hours (who cognizes when) those chemical bonds will have got to be redeemed. The thought of the cardinal authorities is to maintain lacrimation down the money so they can pay off the debt with cheaper and cheaper dollars. This is a method of creating money instead of raising taxes yet you are paying for it.

Throughout history there have got got got got been scores of private and authorities banks that have issued fake (fiat) money and in every lawsuit they have failed and the holders of the fake money have lost. Volition that go on this time? I would not wager against it.