Uofmoney - financial-musical-chairs

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'Fiancial Mu$ical Chair$

FINANCIAL MU$ICAL CHAIR$ - The BANKERS pays the PIPER

Lets presuppose that I am a bank in a brand new country and the whole population in the country is 1001 people including me.

1000 people come to me to borrow $1,000 to get started in this new economy. I agree to lend them the money based on them putting up $1000 orth of collateral and if they give me a note promising to pay me back the $1,000 in a a year's time plus a mere 10% interest. Sound fair enough?

So I go to my colour lazer printer and print off the $1000.000 bank notes which I sign and give to each of them. Since I am percieved to be the 'Rich Banker" the entrepreneurs accept my notes for value and use them as a means of goods and services among them.

In total, I give $1000.000 to 100 entrepreneurs that is $100,000.00.

At the end of the first fiscal year, as the bank I call in all my loans plus 10% or 110,000.00 dollars.

Note what happens. Since the supply of money is limited as there is only $100,000.00 in circulation, that extra $10,000 has to come from somewhere.

This means that with money moving around among them during the course of a year some entrepreneurs will have more than $1100 and some less than $1100 at the end of the year. Those that come up short legally forfeit the assets that they put up as collateral for the loan.

And since all money printed that is used in the local economy is borrowed money we start again for the second year.

So lets assume the same amount of money is outstanding. $100,000 is lent out to the local economy and $110,000 must be returned.

Again not all people who have money can come up with the 10% interest required and my bank seizes more assets and so on and on it goes untill eventually no one is still solvent and the transfer of all wealth to the bank has been complete. This the concept of 'Financial Musical Chairs". Inevitablely everybody loses all to the bank because - its built into the gaming of the system right from the get go. [In the ancient past we had the concept of jubilee to conteract this inevitability where all debts were forgiven every 7 years. For countries this period was 70 years if I am correct in my assertion.]

WHAT DID WE LEARN HERE? COVERING THE INTEREST

The point is people were short was not because they were bad entrepreneurs but simply because the odds or circumstance were not on their side. Most importantly this happened because the extra cash to cover the interest simply did not exist in the system right from the beginning. To make up that shortfall the value the interest represents had to come in the form of hard assets. In this system the weakness members in our society are literally wiped out. The problem is systemic and is designed to rape a country of its resources.

In this hypothetical example you can see

1) that the amount of money in circulation has a direct impact on its value and it is important for your own protection that the value of money be maintained in the hands of a trusted authority.

Who ever is charge of the money in circulation has a direct control over its value. Yes or Yes?

2) that if interest is charged on borrowed money that mechanism in itself sets up a musical chair debt scenario - someone is always caught short. This guarantees in the end a one way transfer of wealth to whoever controls the printing of the money if the interest on the money is paid to a third party.

In the real world, if a country cannot pay back its debt then the interest is simply added to the amount borrowed for the next year and with time eventually all countries will go broke as the debt is accumulative.

WHO PRINTS MONEY IN CANADA

Do you want to know who is printing the money for Canada?

Well lets look at what the Fathers of Confederation wrote in 1867?

BNA Act 1967 section 91 clause 14 & 15:

They wrote "that the Legislative Authority of Parliament shall have the power to issue currency, coinage and paper money and regulate the value thereof"

Whew! Aren't you glad we got that one covered? We through our representatives have direct control of our money supply and the value thereof. Right?

But wait a second, why is it that Canadians are paying billions and billions of dollars each year to foreign and domestic banks when we can print all the money we need at cost, which is 2.8 cents per note, without interest?

OOPS! ONE LITTLE DETAIL:

Oh - I forgot to tell you:

On June 6, 1913 the government gave the right to create Canada's money supply to a private group called the Canadian Banking Association. This paralleled what happened in the United States when the power to create money was handed to a private corporation called the Federal Reserve Board which is neither Federal or a Reserve. You all heard of Allen GreenSpan in the United States.

The way it works simply put is like this.

KATRINA

Lets say because of Katrina disaster the government needs a billion dollars which it does not have. They write a note or a bond to the Federal Reserve which is really nothing more than a promise to pay back at a set rate of interest as determined by the federal reserve board.

That's how we are continually are brought into debt. But not only that - those Katrina donations are all coming from borrowed money - the interest on it is sucking money out the hands of the very people that are least likely to get it and that extra interest has to come from somewhere. The financial musical chair mechanism makes no exceptions. Someone has to come up short - some country, some company, some family has to go down, somewhere, that's the real irony of famine relief efforts charities and the like.

You didn't think it was that serious did you? Our system of money is based on a negative currency otherwise known as a monetary system.

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