How Did The Banking System Become So Evil?

[Mrs. Sharon B. Hodge]

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Gold vs Debt - The Death of Paper Money
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by Douglas V Gnazzo, Honey Money Report
Sept 17, 2008

http://www. financialsense. com/fsu/editorials/gnazzo/2008/0917. html

Today we are witnessing why in paper fiat-land debt is a four letter word; and a nasty one at that. The only thing the Federal Reserve has accomplished since its creation in 1913 is the loss of 95% of the dollar’s purchasing power; and they are hard at work destroying what little is left.
Incompetence does not even begin to describe their actions

This means that you and I – all of us, except the elite few – are becoming poorer by the day. Our standard of living is decreasing – not increasing.
We owe more than we own: a prescription for debt-servitude – not the accumulation of wealth

The Fed was supposedly created to prevent bank runs and financial disasters commonly known as depressions. Yet within 20 short years of its creation the greatest depression ever to visit our shores occurred – The Great Depression of the 1930’s.
It seems today they are trying for a new record

Another reason the Fed was created was to supply an elastic money supply – one that could easily be expanded whenever the powers that be, in their all-knowing wisdom, determined more money was needed.
There are a few points here that miss the mark

First, it is impossible for a few individuals to know what is best for the market. The market is much wiser and all-knowing than any group of bankers, as the market’s recent actions clearly show.
Such delusional thinking is pure elitism

Second, when money ceases to be gold and silver coin – hard money, and becomes paper money, i.e.
Federal Reserve Notes, the supply of money can expand, as the elite wanted, on a whim; however – there is a price to pay

Funny money is a funny thing, the more you expand the supply of it – the more its purchasing power lessens: it is known as the debasement of the currency – it loses value.
Suddenly it takes more units (quantity) of money to buy the same amount of goods

Money is no longer the means to pay off debt, paper money is debt. The United States has gone from being the world’s largest creditor nation to the largest debtor nation in the world.
Weekly we are witnessing the unwinding of the paper fiat money system, as it reverberates around the world

Banks our going under, financial institutions are falling; hedge funds are collapsing, bail outs are needed on a regular basis.
Who pays for all this mismanagement? We do – you and me

The government gets money in one of two ways: they tax the people or they issue (sell) debt (T-bonds). Federal Reserve Notes are the currency of the realm. United State’s T-bonds “secure” FRN’s. T-bonds are paid for with FRN’s. Do you see the conflict of interest here – the moral hazard? Debt is being used to secure debt. Credit is used to create more money and more debt: promises back promises.
It is a mug’s game

This is why the Constitution states that gold and silver coin is money – not paper money. Nowhere in the Constitution does it allow for paper money to circulate as the currency.
As a matter of fact, the Constitution has an express disability prohibiting bills of credit (paper money) from being used as legal tender between the states

Section 10.
No state shall enter into any treaty, alliance, or confederation; grant letters of marque and reprisal; coin money; emit bills of credit; make anything but gold and silver coin a tender in payment of debts; pass any bill of attainder, ex post facto law, or law impairing the obligation of contracts, or grant any title of nobility

When you look around and see all the financial problems occurring daily, it is ultimately caused by the fact that our money is paper fiat debt-money, when it should be gold and silver coin, as the above quote from the Constitution expresses

A paper fiat monetary system can only do what we are witnessing – self-destruct, as the more of it that is issued – the more it loses purchasing power. It is like a cancer that eats its host from within.
What is occurring is the systemic destruction of money, of the “system” – of paper fiat debt-money

No bail out or lending facility, no white knight or band aid is going to save paper money, its fate was sealed the day it was created; it is simply playing out the hand that was dealt

The only answer for our economy and way of life is a new system – the system the Constitution mandates: gold and silver coin: honest weights and measures; and no bills of credit.
The book Honest Money explains all this in detail

Come visit our website: Honest Money Gold & Silver Report

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