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Fiat money is money that is intrinsically useless; is used only as a medium of exchange.

How did this thing with paper money all start?
Where and when did banks come into the picture?


Those are two questions not many people ask themselves, but should. The history
of paper money is pretty interesting, and in a perspective it is easy to see who
gains from the money system and who doesn't. Already before I start explaining
the phenomenon of money I can reveal, as you already may have suspected, that
the gainer is not you!

Money is an illusion; and even more so in the electronic age. The fact
is that you work your whole life for money that doesn't actually exist. But
as long as the illusion is still put there, the system works. The problem is
that people like you and I are working hard, often for low pay, while the only
ones that benefit are the bankers.

So how does it work? Well, if you have $1,000, you can go ahead and lend it to
someone. If a bank has $1,000, it can lend up to ten times that amount and
charge interest on it. This means there is only $1,000 in actual, physical
money, but somehow, like magic the bank is now owed over $10,000. Where did the
rest of the money come from? From an illusion that the bank created. The $9,000
plus are not covered by anything; this money doesn't exist, and never did. So if
all people and businesses in the country would take out all their money from
their banks at the same time, the banks would not only end up with a zero
balance, but in huge negative. They would go bankrupt in a second, because the
real money in the banks is just a fraction of what the bank has in circulation,
by charging interest on money that is non-existent.



When a person or a Company borrows money from a bank, the bank does not print
new notes, or mint new coins. The clerk just types figures into a computer
screen and the loan is set up! From that very moment, you are legally bound to
repay back the bank what never existed initially. The lie is that the figures on
the computer screen represent the value of gold and/or silver. If this is true,
does the bank have a big stock of gold and silver somewhere that covers all the
money they are lending to people? The answer is no! The paper money and the
computer digits are just an illusion created by the Bankers to create money out
of nothing, which makes their own wealth grow exponentially, and help them gain
control over people and society, as the bankers are also borrowing money to the
government and charging interest, which puts the government in debt. The
extension of this is that the bankers actually control the state as long as they
can keep the government in debt. Theoretically, they can tell the government to
pay them back in a specific amount of time, and if the government can't do that
(because they don't have the money to pay off the interest) the banks can give
them an ultimatum that suits their purpose. Therefore, the REAL power is with
the International Bankers. It is the illusion of money that rules the world.



What happens when you can't pay back the amount of money that does not exist and
never existed? Well, the bank can take legal actions and come and take your
belongings until you have paid back the amount you owed (and yet never owed),
including interest that was never backed up by anything real.



If a criminal falsifies bank notes and spreads them around, it is a crime, and
if he is caught he will go to jail. On the other hand, this is what the banks
are doing on a daily basis; in huge quantities. The criminal is creating money
out of nothing and he is penalized; the bankers are creating money out of
nothing and they call it banking.



On a bank note it states "I promise to pay the bearer on demand the sum
of......". What that means is, the bank has pledged to the holder of that note,
that on demand, they will give to the holder, the value stated on the note in
gold or coinage. A bank note is merely an IOU.



Therefore you are perfectly entitled by law, to ask for your bank account's
total value to be paid to you in gold or coinage â?" it states it on all bank
notes and is authorized by the Chief Cashier of each bank. So, that means that
everyone is entitled to have their money given to them by their bank, in gold or
coinage. The only problem is, there is nowhere near enough gold or coinage in
circulation to honor these pledges, which means in effect, the paper money is
worthless.



If you want some entertainment, I suggest you ask your local bank for a $10 to
be paid to you in Gold. The look on the young clerk's face will be all the
entertainment you should have for one day.....





"I promise to pay the bearer on demand the sum of......"





Here's what the Bank of England states....



Legal Tender and the Promise to Pay Legal Tender



The concept of legal tender is often misunderstood. Contrary to popular opinion,
legal tender is not a means of payment that must be accepted by the parties to a
transaction, but rather a legally defined means of payment that should not be
refused by a creditor in satisfaction of a debt.



The current series of Bank of England notes are legal tender in England and
Wales, although not in Scotland or Northern Ireland, where the only currency
carrying legal tender status for unlimited amounts is the one pound and two
pound coins.





Promise to pay



The "...Promise to pay the bearer the sum of ..." on Bank of England notes has
nothing to do with legal tender status. The promise to pay stands good for all
time and means that the Bank will pay out the face value of any genuine Bank of
England note no matter how old.



The promise to pay also holds good for damaged notes, as long as enough of the
note survives to prove that it was genuine and no previous claim for it has been
received. The Bank's mutilated notes department receives some 25,000 claims a
year for anything from fire or water damage to notes eaten by all manner of
household pets.





A Brief History of Banknotes



The first recorded use of paper money was in the 7th century in China. However,
the practice did not become widespread in Europe for nearly a thousand years.




In 1694 the Bank of England was established and almost immediately started to
issue notes in return for deposits. The crucial feature that made Bank of
England notes a means of exchange was the promise to pay the bearer the sum of
the note on demand. This meant that the note could be redeemed at the Bank for
gold or coinage by anyone presenting it for payment.



These notes were handwritten on Bank paper and signed by one of the Bank's
cashiers. They were made out for the precise sum deposited in pounds, shillings
and pence.



During the 18th century there was a gradual move toward fixed denomination notes
which by 1745 were being part printed in denominations ranging from £20 to
£1,000. In the latter half of the century gold shortages caused by war and
revolution led to the production of £10, £5, £2 and £1 notes.



The first fully printed notes appeared in 1855 relieving the cashiers of the
task of filling in the name of the payee and signing each note individually. The
phrasing "I promise to pay the bearer on demand the sum of ..." was introduced
at this time and remains to this day.



In 1833 the Bank's notes were made legal tender for all sums above £5 in England
and Wales.

How a federal reserve note enters the money system

Federal Reserve Notes are printed by the Bureau
of Engraving and Printing (BEP), a bureau of the Department of the Treasury. The
Federal Reserve Banks pay the BEP only the cost of printing the notes (about 4¢
a note), but to circulate the note as new currency rather than merely replacing
worn notes, they must pledge collateral for the face value, primarily in Federal
securities. In contrast, the Fed pays the United States Mint â?" another Treasury
bureau â?" face value for coins, as coins are direct obligations of the Treasury.

A commercial bank that maintains a reserve
account with the Federal Reserve can obtain notes from the Federal Reserve Bank
in its district whenever it wishes. The bank must pay for the notes in full,
dollar for dollar, by debiting (drawing down) its reserve account. Smaller banks
without a reserve account at the Federal Reserve can maintain their reserve
accounts at larger "correspondent banks" which themselves maintain reserve
accounts with the Federal Reserve.

Time for Thought



Wake up to the illusion. And that's all it is. This money scam has been in
operation since ancient times. Just be aware of what is happening around you.
Take an interest in what 'governments' and 'politicians' are up to. Don't kill
yourself for digits on a computer screen.