How Hitler Defied The Bankers

Hjalmar Schacht,… temporarily head of the German central bank, summed it up thus: An American banker had commented, “Dr. Schacht, you should come to America. We’ve lots of money and that’s real banking.” Schacht replied, “You should come to Berlin. We don’t have money. That’s real banking.” (https://nationalvanguard.org/2015/08/how-hitler-defied-the-bankers/)

via How Hitler Defied The Bankers

Comment by tonytran2015:

Fiat money is just “Coupons for paying taxes and receive goverment’s goods and service”.([1]. Your fiat money (Part 2), https://survivaltricks.wordpress.com/2017/01/12/your-fiat-money-part-2/, [2]. https://survivaltricks.wordpress.com/2019/05/29/fiat-money-is-just-institutionalized-scams-part-2-reinterpreting-official-narratives/).

Fiat Money is just institutionalized scams, Part 2: Reinterpreting official narratives.

Fiat Money is just institutionalized scams, Part 2: Reinterpreting official narratives.

by tonytran2015 (Melbourne, Australia).

Click here for a full, up to date ORIGINAL ARTICLE and to help fighting the stealing of readers’ traffic.

(Blog No.20x).

#fiat money, #free health care, #money for everyone, #quantitative easing, #monetary tightening,

Fiat money is just “Coupons for paying taxes and receive goverment’s goods and service”.

1. Fiat money of any nation is just only its coupons:

Former USSR, Eastern European Communist Countries were with a system of fiat money not unlike current USA is. Everyone has his coupons but goverment stores may not be able to supply the needed goods.

With enough reckless printing, “easy to print coupons” may become not appreciated by its citizens and that is when we say hyper-inflation occurs to that fiat money.

There is NO MAGIC in wealth creation with printing fiat money.

2. Printing more coupons as an election promise:

Gullible voters still believe that government has the Wealth Creation MAGIC and can distribute that wealth using its printed coupons.

Logics and the inevitable wake up from the cruel policies in former communist states have shown that no such magic had existed yet voter fools still believe in such magic upon which election candidtes made their promises,

Election candidates should not be allowed to say that “my elected government will provide free health care, will give citizen payments for doing nothing”. The promises are not feasible (It is impossible to provide all citizens with service totalling to more than the works supplied the nation plus its imported services).

Rather election candidates should be required to say only what they can actually do such as “my elected government will freely distribute coupons for use at health care centers. Even for people doing nothing they will still get coupons“. Whether the coupons can bring in the promises is quite another matter.

3. Federal Reserve Bank policies reinterpreted:

2a/- As coupons can be printed at will, holders of coupons better spend them before the market get flooded with new coupons from any “Quantitative Easing“.

2b/-With the current economic setting giving 100% tax deduction on all interest payments on business loans, everyone has to borrow to be competitive.

The FRB can jack up interest rates (Monetary tightening) to give bigger shares of profit to lenders of coupons (fiat money), or to next tier of lenders (non-central banks) who issue notes promissing to give coupons to the first 10% of these notes presented (brought back) to them (the next 90% will get NOTHING from the issuers but may get something in consolation from the government who issued licenses to these non-central banks).

References:

[1]. Your fiat money (Part 2), https://survivaltricks.wordpress.com/2017/01/12/your-fiat-money-part-2/.

[2]. https://survivaltricks.wordpress.com/2019/04/28/fiat-money-is-just-institutionalized-scams/

[3]. https://survivaltricks.wordpress.com/2017/03/01/qe-may-be-another-scam-to-steal-national-wealth/

RELATED Money Blogs ,

magnifier horizontal

fiatmoneyc60.jpg

fiatmoneyc60.jpg

,posted on 01 Mar, 2017

fiatmoneyc60.jpg

fiatmoneyc60.jpg

gov finance

Hologram

Miseries-unleashed-by-push-for-cashless-trading, posted August 22, 2017

Negative interest rate is not new, posted December 4 2016,

polymeraust100dollars

Cashless and negative interest go hand in hand, posted December 10, 2016

crystalballc70.jpg

, posted on 17 April 2017 ,

PREVIOUS MONEY Blogs

Your fiat money (Part 2), Your fiat money, Bankers given outrageous incomes by their boards, Signs pointing to an impending crash for small investors, Bankers earn more than interest margin on secured loans.

Click here for my other blogs.

divider43.jpg

polymeraust100dollars

Click here go to Divider63D400 Home Page (Navigation-Survival-How To-Money).

SUBSCRIPTION: [RSS – Posts], [RSS – Comments]

MENU: [Contents][Blog Image of Contents ][Archives ] [About]

Blog image of Contents page of Money

Looking after your money.

These are the contents of MONEY sub-page re-organized in book order for coherent reading.

Blog image of this page

DETECTING COUNTERFEIT CURRENCY

Detecting Counterfeit Currency, US dollars, posted on July 15, 2016

Hologram

Detecting counterfeit currency, Australian dollars., posted on November 15, 2016

fineprint50dollar

Detecting counterfeit currency, Australian notes with transparent stripes., posted on August 10 2017,

polymer 5 dollars transparent stripe

Fiat Money is just institutionalized scams.

KarlMagn

Fiat Money is just institutionalized scams, Part 2: Reinterpreting official narratives.

KarlMagn

fiatmoneyc60.jpg

,posted on 01 Mar, 2017

fiatmoneyc60.jpg

fiatmoneyc60.jpg

gov finance

Hologram

Miseries-unleashed-by-push-for-cashless-trading, posted August 22, 2017

Negative interest rate is not new, posted December 4 2016,

polymeraust100dollars

Cashless and negative interest go hand in hand, posted December 10, 2016

crystalballc70.jpg

Why do people buy Treasury Bonds with Negative Interests ? posted 2019 Aug 16,

crystalballc70.jpg

fiatmoneyc60.jpg

Real life lessons on national economics.posted on September 12, 2018

The next fall of US dollars after their rejection by Shanghai Cooperation Organization. posted on 2019/11/07

It is not GDP, it is the service to the population that counts.

Hologram

, posted on 17 April 2017 ,

, posted on 07 May 2017 ,

, posted on 10 Jun 2017 ,

The Parasites of Western Economy, Part 4: Scammers who entrap acquaintances into being guarantors for their loans. posted on 22 July 2017 ,

moneyd20.jpg

The Parasites of Western Economy, Part 5: Company Asset Strippers and Conspirators posted on 13 August 2017 ,

moneyd20.jpg

The Parasites of Western Economy, Part 6: Robbers of pension money in Australia posted on 02 May 2018 ,

moneyd20.jpg

The Parasites of Western Economy, Part 6B: Robbers of pension money in Australia. posted on 16 July 2018 ,

moneyd20.jpg

The Parasites of Western Economy, Part 7: Providers of invented inefficient service from tax money posted on 18 May 2018 ,

moneyd20.jpg

The parasites-of-western-economy-part-8-body-corporate-robbing-owners-of-low-cost-dwellings posted on 05 June 2018 ,

moneyd20.jpg

The Parasites of Western Economy, Part 9: Over-chargers-for-unfamiliar-types-of-service posted on 04 July 2018 ,

moneyd20.jpg

The-parasites-of-western-economy-part-10: Greedy-politicians-overpaid-with-our-tax-money posted on 21 August 2018 ,

moneyd20.jpg

EARNING OF BANKS

, posted on December 15, 2016

polymeraust100dollars

, posted on November 30, 2016

polymeraust100dollars

Collapse of online banking is not a remote risk., posted on November 20, 2016

polymeraust100dollars

Gold for storing wealth. posted on 28 April 2017

Gold Slab of 37.5g in Vietnam

Bitcoins-tulips-sparkling-diamonds-fiat-moneys-and-gold/ posted on 24 Jan 2018

Hologram

crystal ball

posted on November 20, 2018

Stay calm when they go bankrupt. posted on July 20, 2019

KarlMagn

Stay calm when the Stock Markets crash. posted on 2019 July 26

crystalcrash2c70.jpg

Signs pointing to an impending crash for small investors, posted on December 16, 2016

crystalball2c70.jpg

Avoid-buying-zombie-floats-on-the-stock-exchanges posted on October 20, 2017

The Futures and Derivatives Markets (Part 1).

crystalball2c70.jpg

The Futures and Derivatives Markets, Part 2: Rigging the indices to win

crystalball2c70.jpg

Government may be behind bubble markets posted on February 12, 2018

crystalballc70.jpg

SURVIVAL WITHOUT CASH

SUBSCRIPTION: [RSS – Posts], [RSS – Comments]

MENU: [Contents][Blog Image of Contents ][Archives ] [About]

Bitcoins, Tulips, Sparkling Diamonds, Fiat Moneys and Gold

Bitcoins, Tulips, Sparkling Diamonds, Fiat Moneys and Gold

by tonytran2015 (Melbourne, Australia).

Click here for a full, up to date ORIGINAL ARTICLE and to help fighting the stealing of readers’ traffic.

(Blog No.106).

#Bitcoins, #tulips, #diamond, fiat money, #gold, #investment, #investment mania,

Bitcoins, Tulips, Sparkling Diamonds, Fiat Moneys and Gold.

You may want to store your earning surplus for rainy days. Here are a number of easy options, including those of the current and past investment manias! They are gold, fiat money, sparkling diamonds, tulips and bitcoins.

1. Bitcoins.

Imagine a club with limited number of equal ranking memberships (less than 10 million memberships). The memberships are transferable (can be resold), you can buy more than one membership, and memberships are well protected from counterfeiting

(using Blockchain technology).
Currently the price for each membership is higher than $1000US and keeps on rising. Memberships from competing

similar clubs are also booming.
How much would you pay for one membership to belong to the club? US$16000 or US$10000 or US$1000 or US$100 ?
The club is now known as the Bitcoin Owners Club. Competing clubs are for owners of other crypto-currencies.

2. Tulips

Figure: Tulips (currently at $2 a bulb).

Tulips are beautiful flowers which require skillful cultivation and are perishable.There was an (informal) club of Tulips owners in Holland. Anyone owning a beautiful tulip is automatically its member (You don’t need to grow the flowers yourself, you can buy them from anyone and they are good until they perish!). This informal club flourished then quickly dissolved itself in Holland. The phenomenon is named the Tulips Investment Mania.
Obviously people have to grow tulip flowers to harvest them and the total number of tulips is limited as their total mass cannot exceed the mass of our plannet Earth!How much are you prepared to pay for a beautiful Dutch tulip now?

There were numerous analogue repeats of the tulips mania in Vietnam. They did not use tulips but used instead chameleons, quails, specific types of fish in fish tanks. Those manias all ended up in the same way.

Figure: Any other flowers can also be used to start a mania.

3. Sparkling Diamonds.

Figure: Glass model of a “brilliant cut” diamond.

The sparkling diamonds are mined and marketed by De Beer Group. Its successful marketing slogan is “Diamonds are forever”. You pay high price for any diamond but you would be lucky to get half of that money when reselling the diamond immediately after buying.

Nevertheless, girls are still asking their husbands for diamonds!

4. Fiat money

Figure: Fiat money can always be used to pay taxes. .

You are forced to receive your salary in the fiat money of the country you are living in!

Fiat money may partially “perish” due to inflation or may (very rarely) appreciate due to its scarcity.

Fiat money can always be used to settle your taxes, service fees and fines with your government whereas tulips and bitcoins cannot.

Figure: Modified photograph of a note of US$100, the best known fiat currency in the World.

5. Gold.

Figures: 1 ounce gold slab.

Gold is a compact commodity. It can be swapped for any other commodity when there is a need.

There is always a demand for gold everywhere and the supply cost is almost constant in human history. So gold can be bought as a form of compact property and sold when required.

6. Conclusion

You have now been informed to make some choice with your earning surplus. Be warned, it may PERISH with your wrong choice.

The next level of questioning is how can someone fool so many people in those Investment Manias

References

[1]. https://en.m.wikipedia.org/wiki/Bitcoin

[2]. https://en.m.wikipedia.org/wiki/Tulip_mania

[3]. https://survivaltricks.wordpress.com/2017/01/12/your-fiat-money-part-2/

[4]. https://survivaltricks.wordpress.com/2017/04/28/gold-for-storing-wealth/

Added after 2018 Feb 05:

[5]. https://irishinfosecnews.wordpress.com/2018/02/05/the-new-gold-rush-a-look-inside-cryptocurrency-fraud/

[6]. http://riggedgame.blog/2018/02/06/largest-cryptocurrencies-plunge-50-80-372-bn-gone-in-1-month-will-it-hit-the-us-economy/

[7]. https://wolfstreet.com/2018/02/05/largest-cryptocurrencies-plunge-50-80-372-bn-gone-in-1-month-will-it-hit-the-economy/

[8]. https://venitism.wordpress.com/2018/02/08/cryptocurrency-2018/

Added after 2018Feb20:

[9]. https://wolfstreet.com/2018/02/18/blockchain-stocks-completely-disintegrate/

[10]. https://www.cnbc.com/2018/02/23/secretive-chinese-bitcoin-mining-company-may-have-made-as-much-money-as-nvidia-last-year.html

[11]. https://centinel2012.com/2018/04/17/the-bubble-of-1825-was-also-a-contagion/

[12]. https://business.financialpost.com/investing/investing-pro/nothing-can-save-venezuela-from-its-economic-fate-not-even-a-cryptocurrency

[13]. http://lawrieongold.com/2018/11/30/how-the-bitcoin-bubble-burst-could-lead-to-a-new-golden-era/

RELATED MONEY Blogs

, posted on 17 April 2017 ,

, posted on 07 May 2017 ,

, posted on 10 Jun 2017 ,

moneyd20.jpg

The Parasites of Western Economy, Part 5: Company Asset Strippers and Conspirators posted on 13 August 2017 ,

moneyd20.jpg
, , , Cashless bartering for survival, Federal Reserve Bank charges undeserved fees to Americans., A satirical guide to signs of an impending crash for small investors, Your fiat money (Part 2), Your fiat money, Bankers given outrageous incomes by their boards, Signs pointing to an impending crash for small investors,Bankers earn more than interest margin on secured loans, Can most pension funds last?, … all

Click here for my other blogs on divider43.jpgSURVIVAL

divider43.jpg 

  polymeraust100dollars 

   

Click here go to Divider63D400 Home Page (Navigation-Survival-How To-Money).

SUBSCRIPTION: [RSS – Posts], [RSS – Comments]

MENU: [Contents][Blog Image of Contents ][Archives ] [About]

Inflation is vicious to fiat money users.

Inflation is vicious to fiat money users

by tonytran2015 (Melbourne, Australia).

Click here for a full, up to date ORIGINAL ARTICLE and to help fighting the stealing of readers’ traffic.

(Blog No.57).

#inflation, #fiat money, #taxation by stealth, #indexation, #cost of living

Figure 1: Fiat money are paid to government employees. All citizens have to pay their taxes with that fiat money.

Inflation is vicious to the citizens who have to accept fiat currency from their ruling government. It is half terrible as having to use money with some use-by dates. Only governments like inflation.

1. Inflation.

It is convenient to begin the discussion with my previous posting entitled Your Fiat Money, part 2 (reference [1]). It is easily seen that the government can choose to pay its employees X units of its fiat currency C1 and require the whole population to pay it all taxes amounting to X units of that currency. The fiat money C1 will find its own value in the population depending on how government employees interact with the whole population of the country.

Alternatively, the government can choose to pay its employees Y units of another fiat currency C2 and require the whole population to pay it all taxes amounting to Y units of currency C2. Again the fiat money will find its own value in the population.

As other things are equal, we must have

X*C1 = Y*C2

and the value of a fiat currency is inversely proportional to the amount issued by the government to its employees.

Consequently, if all other things are unchanged but the government increases both the payment to its employees and the tax to be collected by 3% every year then its currency is worth only 100/(100+3) its former value one year ago. This is called an inflation at a rate of 3% per year.

2. Inflation is a rent on fiat money.

After selling his stock, a trader has cash (which is fiat money), he will have to use his cash to buy new stock. If he holds on with the cash for one year, he can buy only (100-3)% of what he could have bought immediately. This works as if he was renting the cash from the government at a cost of 3% a year.

The long standing wisdom is not renting anything you don’t really need and people should not keep cash longer than it is absolute necessery.

Any government will love inflation. It is its best next thing to issueing money with expiry dates and un-redeemable government bonds, vouchers (Old scams but still can be practiced against illiterate, trusting populations)

3. High inflation may feed on itself.

Remember that the fiat money will find its own value in the population depending on how government employees interact with the whole population of the country.

When high inflation occurs people may try to increases prices in anticipation, causing even more severe inflation.

People may then even try to avoid using any fiat money at all and they may choose their own alternative bartering medium such as food (rice grains or flour) or commodities (gold or silver) instead of the readily available but steadily depreciating fiat money.(see [4,5,6,7] for bartering techniques). Such avoidance of fiat money brings even more loss of its value and deepens the inflation.

When inflation is too high, the ruling government may lose its grips on the economy and chaos may follow (as in Germany prior to 1933).

4. High inflation reduces actual interests on government debentures/treasury bonds.

Inflation is to be subtracted from the interest rate given by any government debenture/treasury bond.

The inflation rate is hard to obtain but it must be taken into account when buying government debentures.

Unless the after tax return from a government debenture/treasury bond is higher than inflation, the bond holders may actually LOSE money on their bonds.

The interest rate given on Government Debenture/Treasury Bond is determined at the time of sale while actual inflation is made after that time. A government can easily wipe out its debts to bond holders by producing very high inflation. (see [10]).

5. Inflation rips off members of pension plans.

The loss caused by inflation on cash based holdings (rents on cash) also applies to long term storage of values such as saving for retirements.

Unless inflation has been taken into account, most perceived benefits of pension plans can be only just mirages given to uninformed plan members. To have any real benefit after tax and INFLATION, plan members usually need cash contributions/injections by the government and if they don’t obtain them there will arise the problem of unfunded liabilities.

In most cases, the contributed funds of any pension plan cannot earn any net income AFTER tax and INFLATION. If there is no cash contribution/injection by government, plan members would be MUCH better off using their contributions to buy gold and save the gold for their own retirements.

Vietnamese standardized gold slabs for trading

Figure: Vietnamese standardized gold slabs for trading.

The imminent run (insolvency) of pension plans are only the tip of the iceberg.(see reference [8]).

6. Inflation produces a stealthy wealth tax.

Inflation actually produces stealthy, disguised taxes on your properties.

When you change your house, as you have to move to a new location for new jobs, the value of that succession of similar houses keep on increasing due to inflation. Governments can classify the increases as “incomes” and impose taxes on them. Some governments have already done that. This type of FALSE incomes may also be extended to include your other possessions such as cars, jewelleries, housegold goods and gold holding.

These taxes on FALSE incomes are actually taxes on your possessions such as your houses and the tax rate depends on inflation. Your legislative representatives will not bother to make yearly oversight of it and the governments easily get away with it.

The federal authority may have encroached on the rights of member states if it makes property taxes! So the federal authority has to do it under the guise of income tax on false incomes produced by inflation.

Note added on 15 May 2017:

Only recently, the US State of Arizona admitted that gain/loss made from gold holding is not subjected to Income Tax of that State.[11]

7. Inflation causes non-synchronized price increases.

Inflation causes uneven, non-synchronized price increases due to different flow on times for different types of goods. This allows the government to put unfair short term weighting factors on individual types of consumer goods. The weighting factors let the government artificially select them to manipulate the yearly statistics on the Cost of living to lessen its obligation to pay pensioners their entitled upkeep.

8. Inflation forces people to borrow.

Inflation forces people to borrow with any purchase plan stretching over many years. A buyer would lose to inflation on his cash accumulation/saving if he wants to remain debt free and save up the whole amount for the purchase. House purchases are typical examples where buyers are forced to borrow.

9. Inflation gives government unfair advantages in charging taxes on citizens.

When you made a huge loss and claimed a carried forward loss to offset against possible future gain in calculating income tax, the loss is NOT indexed by inflation! So a loss of $1000 by a future trader in 2010 can only offset against a gain of $1000 in 2017! (Although $1000 in 2017 is worth much less than in 2010)

10. All governments love inflation.

A government loves inflation for the following reasons:

1. Inflation is a rent on its fiat money.

2. It can define False incomes and tax its citizens on the false incomes.

3. It can muddle statistics on Cost of living and the government can fool the world with its manipulated figures on the growths in GDP, GNI.

4. It allows government to gain unfair advantages over its tax payers when calculating their taxable incomes.

So the claims that Inflation is preferred to deflation by governments should be read with skepticism. Unfortunately, the statement has been told often enough and for long enough so that a number of tax payers have started to believe in it without questioning. (A lie told once remains a lie but a lie told a thousand times becomes the truth, by J. Goebbels [9].)

References:

[1]. Your fiat money (Part 2), posted January 12, 2017.

[2]. Your fiat money, posted January 9, 2017.

[3]. Why does the Federal Reserve aim for 2 percent inflation over time?, Board of Governors of the Federal Reserve System,https://www.federalreserve.gov/faqs/economy_14400.htm, updated January 26, 2015, accessed 03 Mar 2017.
[4]. Neha Sharma and Shalu Yadav, The Indian village that has returned to bartering, BBC News Services,http://www.bbc.com/news/world-asia-india-38180075, 5 December 2016.

[5]. Patrick Bodenham, Will Spain’s coal belt survive through online barter?, BBC News Services,http://www.bbc.com/news/world-europe-38731808, 2 February 2017.

[6]. James Melik, Haggling and bartering gain appeal, BBC News Services,http://news.bbc.co.uk/2/hi/business/7883050.stm, 12 February 2009.

[7]. Mark Lowen, Greece bartering system popular in Volos, BBC News Services,http://www.bbc.com/news/world-europe-17680904, 12 April 2012.

[8]. Dallas police fire pension board ends run, bank stops 154m withdrawals. http://www.dallasnews.com/news/dallas-city-hall/2016/12/08/dallas-police-fire-pension-board-ends-run-bank-stops-154m-withdrawals
[9]. Joseph Goebbels quotes, azquotes.com, http://www.azquotes.com/author/5626-Joseph_Goebbels.
[10]. https://www.moneymetals.com/news/2017/05/04/higher-inflation-consumer-prices-001061, (added on 10 May 2017).
[11]. http://www.zerohedge.com/news/2017-05-13/arizona-passes-bill-end-income-taxation-gold-and-silver
References added after 2017 November:
[12]. http://www.gold-eagle.com/article/deepening-crisis-hyper-inflationary-venezuela-and-zimbabwe
[13]. https://us-issues.com/2017/11/21/social-security-inflation-lag-calendar-partial-indexing/

[14]. http://www.silver-phoenix500.com/article/fed%E2%80%99s-%E2%80%9Cfrankenstein%E2%80%9D-policies-are-about-turn-their-master

[15]. https://mises.org/wire/dollar-dilemma-where-here

[16]. https://straightlinelogic.com/2018/08/04/how-inflation-destroys-civilization-by-nick-giambruno/

Added after 2018 Aug 15th:

[17]. https://www.silver-phoenix500.com/article/anatomy-hyperinflation

[18]. https://us-issues.com/2018/08/19/anatomy-of-hyperinflation/

[19]. https://akahinews.com/2018/07/29/venezuelas-bolivar-currency-worthless-as-inflation-hits-1-million-percent/

[20]. https://dailyarchives.org/index.php/history/1046-ben-bernanke-says-hitler-was-the-guy-who-got-economics-right-in-the-1930s

[21]. https://yapaholic.com/2018/08/19/us-national-debt-heres-what-you-need-to-know/

[22]. https://www.caseyresearch.com/how-inflation-destroys-civilization/

[23]. How Venezuela’s crisis developed and drove out millions of people, https://www.bbc.com/news/world-latin-america-36319877

RELATED MONEY Blogs

,

fiatmoneyc60.jpg

Bankers earn more than interest margin on secured loans, posted on December 15 2016,

polymeraust100dollars

Bankers given outrageous incomes by their boards, posted on December 22 2016,

moneyd20.jpg

RELATED MONEY Blogs

Click here for my other blogs on SURVIVAL

Click here to go toHome Page (Navigation-Survival-How To-Money).

SUBSCRIPTION: [RSS – Posts], [RSS – Comments]

MENU: [Contents][Blog Image of Contents ][Archives ] [About]

Federal Reserve Bank charges unnecessary fees to Americans.

Federal Reserve Bank charges unnecessary fees to Americans

by tonytran2015 (Melbourne, Australia).

Click here for a full, up to date ORIGINAL ARTICLE and to help fighting the stealing of readers’ traffic.

(Blog No.51).

#fiat money, #private #Federal Reserve Banks, #unnecessary fees, #questionable fees, #questionable dividends, #new money.

American people keep paying unnecessary fees to private bankers through Federal Reserve Bank.
Every year billion dollars of undeserved fees (or interests) have been paid to private bankers through the Federal Reserve Bank. This Federal Reserve Bank is actually a private bank, not a wholly owned branch of the US Government. There is no ground for using a private FRB and pay it billions of dollars every year.

1. USA need no one to back their newly printed dollars.

fiatmoneyc60.jpg

Figure: Fiat money relies only on the taxation power of its issuing government for its backing.

The said payment cannot be said for supporting (underwriting) the issuing of new US dollar notes. Indeed, the government of USA is a money sovereign. It can print as much fiat money as it likes (and bear the consequences). Its fiat money has value to American people because they have to use it to pay taxes to their federal and states governments.

(See references [1] and [2] for simple explanation.)

2. It is wrong for the Federal Reserve Banks to give interests on the fractional deposits of constituent banks.

There are 2 objections to paying such interests. They are:

2a. The deposits by the contributing constituent, private banks of the Federal Reserve Bank are part of their own effort to make themselves appear more liquid. They cannot demand any interest from the government on their deposits, just like airlines cannot demand government compensation on the costs of carrying their statutory reserve fuel on each flight.

2b. If everyone has to bear a near zero or negative interest, why are those constituent private banks exceptional ? They received 12 billion dollars in interest for the year 2016.

3. The private Federal Reserve Bank has no right to charge that much.

How much had the FRB constituent banks deposited to earn that 12 billions in interest for the year 2016? Is such interest of the same rate offered to most Americans when they buy into government bonds?

4. Past presidents have tried to undo the burden but two got assassinated while doing it.

Presidents Abraham Lincoln, Thomas Jefferson and John F.Kennedy had seen the unfairness of private bankers charging interests to the country and had tried to unshackle the burden on the country. Lincoln and Kennedy had been assassinated while Jefferson survived the assassination attempt. It is currently costing $40 per year per person for the US to keep using the private Federal Reserve Bank.

President Trump may do something about it if Americans protest loudly about it.

5. Americans should demand United States Notes.

A chilling history of private bankers gripping the US government system is given by reference [9]:

“Central bank usury control caused the US Constitution… to get their First Bank Of The United States in 1791. … When their 20-year charter was up in 1811, the Jeffersonian Democrats prevented its charter from being renewed. So the Rothschild bankers summoned their mercenaries (the British army and navy) to teach us a lesson, the War of 1812. … they got their Second Bank Of The U.S., again with a 20-year charter. When Andrew Jackson was elected in 1828, the bankers tried everything to stop him; they created the 1833 recession; had him censured in 1834; and a failed (both guns misfired) assassination attempt on Jan. 30, 1835… Jackson killed the bank in 1836, … During the Am. Civil War, Abraham Lincoln created Greenbacks instead of the 24% to 36% usury the Wall Street bankers wanted to charge, and he was assassinated on Good Friday 1865. … 1913 the Rothschild bank got their …. Federal Reserve Bank. The Federal Reserve Act of 1913 originally had a 20-year charter. But … 1927, the McFadden Pepper Act was signed into law. It made the F.R.’s power over our monetary policy perpetual. . … 1963, President John F. Kennedy created United States Treasury Notes, known as Silver Certificates, with Executive Order 11110, and he was assassinated on Nov. 22, 1963.”

Rather than accepting the FRB Notes lying down, Americans should demand United States Notes (each with a red seal) issued directly by the Treasury just like those issued under Kennedy’s administration. Those notes had nothing to do with the FRB and America can save on the so called “interest” charged by FRB on any new money issued by US government and backed by its own taxation system.

Using the dollar notes with red seals (such as Five dollar with Red Seal Notes in series 1953 A through C, see picture in reference [6]) will save Americans $40 per head each year.

References:

[1]. Your fiat money, https://survivaltricks.wordpress.com/2017/01/09/your-fiat-money/

[2]. Your fiat money (Part 2), https://survivaltricks.wordpress.com/2017/01/12/your-fiat-money-part-2/

[3]. The-thirty-families-made-plans-for-a-future-without-you, theMicky.org, http://mikeyy.org/2017/01/30/the-thirty-families-made-plans-for-a-future-without-you/, originally by horse237, https://vidrebel.wordpress.com/2017/01/30/the-thirty-families-made-plans-for-a-future-without-you/

[4]. Stack Jones, The Banking Swindle-The History of Banking Fraud, criminalbankingmonopoly.wordpress.com, https://criminalbankingmonopoly.wordpress.com/2014/02/20/history-of-banking/#comments, accessed Jan 2nd, 2017.

[5]. Federal Reserve System, wikipedia, https://en.wikipedia.org/wiki/Federal_Reserve_System, accessed Jan 2nd, 2017.

[6]. Five Dollar Bill Red Seal Series 1953 US Currency, Natural Web Solutions Inc.(US), https://www.collectons.com/shop/item/58107/Five-Dollar-Bill-Red-Seal-Series-1953-US-Currency#imgs58107

[7]. Us issues, Central banks alchemists of finance part iii-reblogging, http://us-issues.com/2017/04/05/central-banks-alchemists-of-finance-part-iii/, 03 April 2017

[8]. Dale B. Halling, History of Central Banks in the United States, thesavvystreet.com, http://www.thesavvystreet.com, accessed 03 April 2017.

[9]. http://rudolfhess.net/

Added after 2018 Apri 21st:

[10]. https://us-issues.com/2018/04/21/black-tuesday-october-29th-1929-revisited/

[11]. https://counterinformation.wordpress.com/2018/05/03/i-know-which-country-the-us-will-invade-next/

[12]. https://tabublog.com/2017/05/19/the-federal-reserve-neither-truly-federal-nor-a-full-reserve/

[13]. https://socioecohistory.wordpress.com/2018/07/31/the-dark-agenda-behind-globalism-and-open-borders/

[14]. https://counterinformation.wordpress.com/2018/07/31/the-subservient-role-of-governments-how-economics-changed-to-work-against-us/

[15]. https://christianpatriots.org/2018/10/15/trump-is-right-the-federal-reserve-is-crazy-and-here-are-101-reasons-why-it-should-be-shut-down/

RELATED MONEY Blogs

,

fiatmoneyc60.jpg

Bankers earn more than interest margin on secured loans, posted on December 15 2016,

Bankers given outrageous incomes by their boards, posted on December 22 2016,

moneyd20.jpg

PREVIOUS MONEY Blogs

Click here for my other blogs on polymeraust100dollarsMONEY

Click here go to Divider63D400Home Page (Navigation-Survival-How To-Money).

SUBSCRIPTION: [RSS – Posts], [RSS – Comments]

MENU: [Contents][Blog Image of Contents ][Archives ] [About]

Your fiat money (Part 2).

Your fiat money (Part 2)

by tonytran2015 (Melbourne, Australia).

Click here for a full, up to date ORIGINAL ARTICLE and to help fighting the stealing of readers’ traffic.

(Blog No.47).

1. Fiat money

Figure 1: Fiat money are paid to government employees. All citizens have to pay their taxes with that fiat money.

The simple basis for accepting the fiat money is that those who had done works for the government have the fiat money (a form of certificates) and the population at large have to exchange goods and service for those certificates to pay their own tax (those who don’t pay will be jailed) and buy some goods or service from the government.

2. Pushing for public use of the fiat money as a storage for wealth.

A government will require that its people pay their taxes and government service fees with its fiat money. They must do it or face having no government service or even face punishment.

People in that country have to obtain the money from government employees (who have been paid with fiat money) by supplying them with goods or service.

So the government has created a demand for its fiat money at the time of tax payment.

It is clear that a fiat money requires neither trust in nor support for the government nor any gold or silver holding by the government.

As long as the fiat money has NO EXPIRY DATES, the population at large may prefer keeping it even outside tax time to keeping perishable goods as a form of storing their “wealth” for rainy days.

This second step of using fiat money to store “wealth” relies (rightly or wrongly) on the belief that the government will not suddenly declare those certificates invalid (demonetize some denominations).

The pre-WW2, National Socialist (1933) government of Germany is most known for operating its economy with neither gold nor foreign currency backing using only its own fiat money called Reich Marchs.

The coupon system in communist countries is also similar to fiat currency with the difference that coupons are not freely transferable and may have expiry dates.

3. Fiat money sets its own value against goods and service.

If all government employees are self-sufficient homesteaders spending little money then the fiat money exchanges itself with a lot of goods or service from other people who need them to pay taxes. The population at large has to compete hard for fiat money in order to pay their tax!

If all government employees are like drunken sailors spending money easily then the fiat money exchanges itself with little goods or service (and the drunken sailors may then complain that they had not been paid much !) .

It all follows the rule of Supply and Demand between government employees and the population at large.

4. A government can influence the value of its fiat money.

A government can lower the value of its fiat money by reducing its tax while keeping the payment to its employees unchanged. It can also do that by offering to buy some type of goods from its citizens for government usage or government storage .

Conversely, the government can increase the value of its fiat money by increasing its tax while keeping the payment to its employees unchanged. It can also do that by selling to its citizens goods in government stores (including foreign currency) or rights to use some government resource.

However, when its tax is too high, a government risks causing a revolt by its people (as the British empire had bitterly found out with its taxes on its American colony). On the other hand, if tax is too low relative to government payments, there is a risk of high inflation and the population may try to avoid fiat money until tax time, when they absolutely need it for paying their taxes.

5. Keeping the value of fiat money constant.

It is easy to see that for an unchanged population and an unchanged economy, the fiat money has a constant value when government’s yearly payment is equal to its collected tax.

If the government’s collected tax is more than its payout (having a budget surplus) it will sit on a stack of its own fiat money. In this case, it can even use its own fiat money to buy gold from the population at large.

If the government’s collected tax is less than its payout (having a budget deficit) it will need to draw from the stack of fiat money it has saved up from previous years or it may even have to sell its gold reserve to the people to get back some of its own fiat money to make up for the short fall for spending.

So the gold reserve is just a buffer to cover for years of low tax collection.

6. The gold reserve of a country does not need to be of any fix ratio to the total of fiat money in circulation.

The gold reserve only determines the total of all consecutive budget deficits before the government run out of gold to sell to the people to uphold the value of its fiat money. (See references [4], [5] for the removal of gold backing to the dollars.)

Any government with good record of never having budget deficit does not need any gold reserve . However, some gold reserve is always kept as a precaution against multiple years of natural disasters. It is noted that a number of countries deposit their gold reserves overseas despite the risk of losing them to the keeper countries (see reference [6], [7]).

A government with reckless overspending will have to sell its gold and rights to use national resources until the day it has nothing left to sell. Then the value of its fiat money may plunge.

Leaving aside the question of whether its gold was undersold or not (see reference [8]), the British government might be right in selling its gold reserve in the 1990’s if it can be absolutely certain to always have NO budget deficit from that time, even in the face of natural disasters.

7. Borrowing from the population.

When the government want to borrow X units of its fiat money from its citizens, it may have to conduct an “auction” of one of the following two types:

a. It may offer to all of its people to give the government any each of their spare $900 now to receive $1000 in 1 year time.

Too many of its citizens may accept the offer and the total amount of their money may far exceed the requirement of the government. If that is the case, it may next say No, not $900 anymore, but $910. The amount may goes up again until the acceptance has only about X units, the amount it requires.

Anti-corruption requires that the bidding process be public and transparent.

This is the idea of Treasury Bills, see [9].

If the final auction price is $970 of current money for $1000 of money in 1 year time then the Treasury Bill rate is (1000-970)/970 or 3.1%.

b. It may offer to all of its people to give the government any each of their spare $1000 now to receive a (transferable, resellable) certificate to receive $30 every year and hold it until the end of 10th year to get $30 plus the principal of $1000.

Too many of its citizens may accept the offer and the total amount of their money may far exceed the requirement of the government. If that is the case, it may next say No, not $30/year anymore, but $20/year. The amount may goes up again until the acceptance has only about X units, the amount it requires.

This is the idea of Treasury Notes, Treasury Bonds.

8. The foreign exchange value and the bond rate of a fiat currency in a growing economy.

When the economy goes strongly, there is anticipation of budget surplus and government developing more growth or adding to its gold reserve and there is more confidence in its fiat currency. Its fiat currency is in strong demand by its neighbors to buy its goods and service, hence its exchange rate may rise.

At the same time, its people feel good and want to use their existing money to set up shops or factories. The Treasury Notes auction offers are now less attractive and there would be fewer participants therefore its Bond rate rises.

The converse applies to a weakening economy.

References

[1] . tonytran2015, your fiat money, https://survivaltricks.wordpress.com/2017/01/09/your-fiat-money/, posted on Jan 9, 2017

[2]. , posted on December 1, 2016

[3]. Venezuela follows Indias footsteps in demonetization scheme, econotimes.com, http://www.econotimes.com/Venezuela-follows-Indias-footsteps-in-demonetization-scheme-445257

[4]. FDR takes United States off gold standard (1933), history.com, http://www.history.com/this-day-in-history/fdr-takes-united-states-off-gold-standard, accessed 10 Feb 2017

[5]. Nixon shock, Wikipedia, https://en.wikipedia.org/wiki/Nixon_shock, accessed 10 Feb 2017

[6]. De Gaulle and international monetary relations, charles-de-gaulle.com, http://www.charles-de-gaulle.com/the-stateman/the-modernisation-of-the-country/de-gaulle-and-international-monetary-relations.html, access 10 Feb 2017.

[7]. Germany brings its gold stash home sooner than planned, cnbc news,
http://www.charles-de-gaulle.com/the-stateman/the-modernisation-of-the-country/de-gaulle-and-international-monetary-relations.html, 10 Feb 2017.

[8]. Sale of UK gold reserves, 1999–2002, Wikipedia, https://en.wikipedia.org/wiki/Sale_of_UK_gold_reserves,_1999-2002, accessed 10 Feb 2017.

[9]. https://www.treasurydirect.gov/

Added after 2018 Feb 04:

[10]. http://www.gold-eagle.com/article/last-fed-chairman

[11]. https://venitism.wordpress.com/2018/02/23/quantitative-economics/

[12]. http://www.thedailybell.com/news-analysis/top-10-goals-in-the-communist-manifesto-accomplished-in-america/

[13]. https://us-issues.com/2018/08/12/price-of-gold-in-venezuela/

Australian debts and treasury bonds.

[14]. https://www.abc.net.au/news/2014-06-12/joe-hockey-one-billion-a-month-interest-fact-check/5478480

Alan Greenspan: “Central banks can issue currency, a non-interest-bearing claim on the government, effectively without limit. A government cannot become insolvent with respect to obligations in its own currency.”

St. Louis Federal Reserve: “As the sole manufacturer of dollars, whose debt is denominated in dollars, the U.S. government can never become insolvent, i.e.,unable to pay its bills. In this sense, the government is not dependent on credit markets to remain operational.

[15]. https://mythfighter.com/2018/11/14/the-debt-lies-just-keep-on-coming/

[16]. https://counterinformation.wordpress.com/2019/09/12/argentina-returns-to-capital-controls/

RELATED MONEY Blogs

,

fiatmoneyc60.jpg

Bankers earn more than interest margin on secured loans, posted on December 15 2016,

polymeraust100dollars

Bankers given outrageous incomes by their boards, posted on December 22 2016,

moneyd20.jpg

Gold for storing wealth, posted on 28 April 2017

Click here for my other blogs on polymeraust100dollarsMONEY

Click here go to Divider63D400Home Page (Navigation-Survival-How To-Money).

SUBSCRIPTION: [RSS – Posts], [RSS – Comments]

MENU: [Contents][Blog Image of Contents ][Archives ] [About]

Your fiat money

Your fiat money

by tonytran2015 (Melbourne, Australia).

Click here for a full, up to date ORIGINAL ARTICLE and to help fighting the stealing of readers’ traffic.

(Blog No.46).

You need to know about your money in order to understand the many actions of your government.

1. Fiat money

Figure 1: Fiat money are paid to government employees. All citizens have to pay their taxes with that fiat money.

Nearly every country in the world uses money issued based on its governing power. Such a money is called fiat money.

A fiat money is not guaranteed by any goods such as gold or silver. A fiat piece of money is just a certificate of some amount of work done for the government by some of its employees and those certificates can be used by anyone to pay taxes to or buy some goods or service from the government.

Refusal to pay taxes results in jail terms. Therefore the population at large have to exchange their goods or service for those pieces of fiat money from government employees so that they can have fiat money to pay their taxes to avoid jail terms or to buy goods and service from the government.

It is quite risky to keep too much of any fiat money. The threat of demonetization alone can make the holders of the money suffer and submit to whatever oppressive demands from the issuer of the money if they don’t want to lose all its value. (Even China has been under US pressure when it owned about $1200 billions US in debt in 2016.)

Some people can manage to keep just only enough of fiat money to pay their taxes and daily expenses and so they can survive any devaluation or demonetization.

References

[1]. How Much US Debt Does China Own, about.com, http://usgovinfo.about.com/od/moneymatters/ss/How-Much-US-Debt-Does-China-Own.htm., accessed Jan 10th, 2017.

[2]. Tyler Durden, US Treasury Gives Explicit Warning To China, Germany And Japan Not To Devalue Their Currencies, zerohedge.com, http://www.zerohedge.com/news/2016-04-29/us-treasury-gives-explicit-warning-china-germany-and-japan-not-devalue-their-currenc, Apr 29, 2016

[3]. , posted on December 1, 2016

[4]. Venezuela follows Indias footsteps in demonetization scheme, econotimes.com, http://www.econotimes.com/Venezuela-follows-Indias-footsteps-in-demonetization-scheme-445257

RELATED MONEY Blogs

,

fiatmoneyc60.jpg

Bankers earn more than interest margin on secured loans, posted on December 15 2016, 

polymeraust100dollars

Bankers given outrageous incomes by their boards, posted on December 22 2016, 

moneyd20.jpgRELATED MONEY Blogs

Click here for my other blogs on polymeraust100dollarsMONEY

Click here go to Divider63D400Home Page (Navigation-Survival-How To-Money).

SUBSCRIPTION: [RSS – Posts], [RSS – Comments]

MENU:  [Contents][Blog Image of Contents ][Archives ] [About]