The funny thing is what most people don't
realize that it not government nor banks that create money. Let me illustrate this to
you.
You work for the money don't you? Well
whenever a body in motion moves any distance that creates work or energy [m x d = W to
use a simple physics formula]. That energy is represented by the numbers on the check
that is paid to you by your employer. When this check is deposited in the bank, it
through a process governed by banking legislation is converted to
money.
Subsequently you now can use that money to buy goods and
services. So far this is not rocket science since everyone knows this, but the point is
that:
Banks primarily provide a community service by
being the mechanism that governs the means of exchange of our energy for goods and
services.
Money is not created by Banks nor
Government
What I am suggesting to you is that people not banks are the
source of 'all capital' or currency. In its most basic essence money represents our
energy and ingenuity that we expend when creating work. This value is represented by
what is repositioned into our personal bank accounts which in
turn is depositioned by currency. This is the very currency that
all banks and all corporations depend upon for their corporate life
flow.
So in one way of thinking since we are the originator of all
funds, we are the original creditor who has not been paid back by what has
been deposited. In otherwords as the original creator of all value put into the banks
we can not ever be debtors to banks or governments when we are in fact creditors and therefore
do not owe any institution anything. Whoaa ... "How can this be?" you
ask?
Before I go
further let me clarify since thre is a very critical fact operating here. Since the notes we
call currency are not created by government but rather are created by a third party government
must pay that third party back the principle plus interest. Government notes are in effect
IOU's to its third party creditor.
Therefore the
notes created by your reposit [repositioning of the value you create into the bank representing
positive energy] are deposited [depositioned or replaced] through banking legislation wih
legal government notes. These notes represent IOU's or negative energy to a third party
creditor. In this way a positive is legally changed or replaced by a negative [Bait and
Switch].
Currently the
cost of every dollar so created in Canada according to its own literature is -$1.08. Ironically
if Canada printed her own money without using a third party all citizens would own nothing
to that third party since all currency printed would simply represent the
value for exchange created by its
citizens.
Another way of
putting this is to say that banks are solely here to serve us and facilitate the exchange of
our goods and services. So when we look at bailing out of the banks because of their bad
investments - because they are too big to fail and therefore we need them - fundamentally
the reasoning is flawed.
We don't need
the banks as much as the banks need us. The primary of purpose of government should be on
preserving the health and vitality of the goose that lays the golden eggs as we are the ones
that gives value to society not the banks. Governments sense of priorities to put it mildly
appears to be skewed.
In this sense since we create all value it is
us who has the value in our ability to create it. It is not the currency nor the
institutions that handle the currency which represents that value, that have value - that
value rests in us.
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