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Modern Money Mechanics & other Federal Reserve Publications Explained

 

If I were to loan you $100, my assets would decrease $100. When a bank or other "lending" institution "lends" to you or anyone else, their assets actually increase!

The Federal Reserve Bank of Chicago used to publish Modern Money Mechanics. They stopped largely because of this quote from Page 6, Last Paragraph:

"What they [banks] do when they make loans is to accept promissory notes in exchange for credits to the borrowers' transaction accounts. Loans (assets) and deposits (liabilities) both rise by [the amount of the "loan"]."

Now, when was the last time you lent money to a friend and suddenly found you had more funds?

So the "lending" institutions (including credit card companies) "accept promissory notes in exchange for credits to the borrowers' transaction accounts." What exactly does that mean?

Accepting Your Promissory Note...

Now, when the lending institution "accepts" your promissory note in exchange for credit to your transaction accounts, that means that they add money (they credit money) to your checking account(s), but not the one(s) that you know you have. The funds for the addition to the "secret" account(s) came from depositing your promissory note! (Except the credit card companies actually deposit your application/agreement - and monetize it even if you are not approved! Again, you provide the source of the funds that are deposited into your account.)

How can they do that? Well, they're bankers. Your promissory note is a note.

Look at a dollar bill. It says "Federal Reserve Note" on it, doesn't it? You bet. See, a "note," according to The Dictionary of Banking Terms, 4th Edition, by Thomas P. Fitch, is "legal evidence of a debt or obligation."

That means that a "note" is "owing money." That means that what we call "money" or "cash" today is really owing money.

So since "money" now days means "owing money," and your promissory note is "legal evidence of a debt or obligation," (owing money) that counts as "money" and can be deposited.

Anyway, all they've done is converted your promissory note into "funds" that they then "loan" back to you. And now you have to pay them again, plus interest? Huh? Where in the agreement does it say that you are providing the value (through the promissory note that they received from you) to fund your own loan? Is that a mutual intention? Is that what you agreed to? Is that written in the agreement?

The FRB of Chicago writes in their publication, MODERN MONEY MECHANICS on page 2: "Money is such a routine part of everyday living that its existence and acceptance are ordinarily taken for granted. A user may sense [Think?] that money must come into being either automatically as a result of economic activity or as an outgrowth of some government operation. But just how this happens all too often remains a mystery".

Ah yes, a mystery, but wait, trust me, the Fed (Federal Reserve System and it's member banks in the USA - put in the name of your nation's central bank here) will soon solve the mystery for us!

Again, MODERN MONEY MECHANICS, page 3: " In the United States neither paper currency nor deposits have value as commodities. Intrinsically, a dollar bill is just a piece of paper. Deposits are merely book entries. Coins do have some intrinsic value as metal, but generally far less than their face value. What, then, makes these instruments --checks, paper money, and coins-- acceptable at face value in payment of all debts and other monetary uses?"

HEY, The Fed wants to know - what makes you slaves take 'these instruments' as payment???

Here's the Fed's answer, same publication: "Mainly, it is the confidence people have that they will be able to exchange such money for other financial assets and real goods and services whenever they choose to do so."

A CONFIDENCE GAME! Bookkeeping entries - numbers, valueless paper currency, and copper/nickel slugs (remember - they stole our gold and silver coin!) and we surrender our labor and goods/services for THAT?

It gets better, for again MODERN MONEY MECHANICS, page 3 talking about why the salves take it: "This is partly a matter of law; currency has been designated "legal tender" by the government -- that is, it must be accepted by creditors in payment of money debts, and paper currency is a liability of the government. Transactions deposits are liabilities of the depository institutions which stand ready to convert such deposits into currency or transfer their ownership at the request of the depositors. Confidence in these forms of money also seems to be tied in some way to the fact that the assets exist on the books of the government (or central bank) and the depository institutions equal to the amount of money outstanding, even though most of these assets themselves are no more than pieces of paper...and it is well understood that money is not redeemable in them."

"Money" is anyTHING people accept, but then the mystery...wherein "money" is NO THING such as bookkeeping entries, pictures of dead presidents and copper/nickel slugs operating on us in a huge CONFIDENCE game, with the FORCE of government making us accept them, although the assets are nothing more than paper too!

And exactly who/what is it that creates this No Thing used as money today - internationally?

MODERN MONEY MECHANICS, page 3: "The actual process of money creation takes place in the banks."

I BET YOU THOUGHT,: "Demand deposits are the nation's most common form of money, comprising about seventy percent of all money in circulation. This checkbook money is bookkeeping money created mainly by the nation's commercial banks.".

I BET YOU THOUGHT, "Banks create money by 'monetizing' the private debts of businesses, individuals and governments. That is, they create amounts of money against the value of those IOUs."

Consider too what the FRB of Philadelphia writes in their publication - THE NATIONAL DEBT, page 8: "The Federal Government, with the cooperation of the Federal Reserve, has the inherent power to create money -- almost any amount of it. This power makes technical bankruptcy out of the question."

Do you want to know why they stole our gold and silver coin?

So they could get us to quit using the money we produced and instead get us dependant upon the money they create! "Money" with the force of law; "Money" you only have IF your banker says you do! We don't need a government to tell us to accept silver or gold in coin form...but when it comes to bank confetti???

WHAT ABOUT CREDIT?

"Economics" I define as the dark, dismal science of deception. Anyone who has taken economic courses must surely agree with the "dismal" part wherein you are forced to learn a buggered up language so that you can't understand what has so simply enslaved us all, hence the "deception" wherein not one man in a million can diagnose the problem, for after all, those unaware are unaware they are unaware!

Okay, isn't "CREDIT" what we use when we don't have any money? Isn't it something we apply for and get from say, a bank, when we first prove to the bank we don't need it? You know, you're a little short of cash right now but you'd like to have that new car so you 'buy it on credit', right? WRONG!

FRB of New York's publication KEEPING OUR MONEY HEALTHY, "And you recall, our system works only with credit". Ever learn that in school?

Seeing as how our definitions don't appear to be realistic, let's let the FRB of Chicago define the term "credit" for us in their publication - TWO FACES OF DEBT, page 1: "Debt is credit".

Let's see, if a=b, then b=a, so if "debt is credit", then credit is debt! So page 12 above could read: "And you recall, our system works only with debt."

And don't forget the previous quote referring to 'monetizing' the private debts of businesses, individuals and governments....

Hmmmmm, credit is debt is debt monetized is monetized debt is MONEY?

So, what happened back in 24 JUNE 1968?

CONgress removed the last known THING - silver in coin form, that was used AS the money in the United States and failed to declare any THING to take its place, yet some "thing" had to take its place...and that some "thing" was the NO thing known as credit is debt is monetized debt is MONEY! And not only was the payments mechanism WIPED OUT by that Act of CONgress, but we were placed under the greatest CONfidence game in history, and the misleaders in 1968 knew something had to be done, for if a bad check is an irredeemable check, why isn't irredeemable currency bad currency?

"Currency backing isn't relevant in today's economy. Currency cannot be "redeemed" or exchanged for Treasury gold or any other asset used as backing. The question of just what assets "back" Federal Reserve notes has little but bookkeeping significance." I BET YOU THOUGHT, FRB New York.

Not "relevant"??? Why not? Could it be because you THINK you have money, your banker agrees that you have it, and you THINK you are paid and therefore THINK you are free??? Could it be that simple?

By the way the US Treasury owns no gold and hasn't since August 1975, see the Treasury Bulletin by the same date for verification.

SO WHAT, you say, doesn't this system work?

 

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