|Home | Faq | Links | Sitemap | Login | Contact|
|Eco-Nomics >Frugality > The Value Of A Dollar|
The Value Of A Dollar
'Give me control over a nation's currency and I care not who makes its laws.' ~ Baron M.A. Rothschild
From bartering, to the use of representative money or federal reserve notes (otherwise known as FRNs, 'fiat money' or 'funny money'), every society in the world has some form of trade. Bartering is a system by which goods and services are traded directly for other, equally valuable goods and services. Representative money is paper money that is traded for the said value of gold, silver or other valuable commodity it represents, which had been previously stored in a bank or other lending institution. Fiat money on the other hand, is a medium of exchange that represents only credit and debt, which cannot be redeemed at any bank or other lending institution for goods, services, commodities, or anything else of value -- yet it is the most common of all currencies in use today.
'It is well that the people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning.' ~ Henry Ford
Fiat currency in the US is made in the form of coins by the US Mint, and printed by the Bureau of Engraving and Printing in the form of paper money called Federal Reserve Notes. It takes very little time or labor to create, issue and circulate fiat money, no matter the said value of any bill or coin. The Federal Reserve and US government get their currency into circulation by loaning it to Federal Reserve banks and the government, who are charged interest and other fees, in addition to that which was borrowed. Banks loan the money to one another and the public in exchange for the loan balance, plus interest and service fees. The government also uses this money to buy their own securities (such as Treasury bills, notes, debentures and bonds), and loans money to itself, often by selling government securities to the Federal Reserve, broker-dealers, banks and other lending institutions, which again, must all be paid back with interest.
'Money is a new form of slavery, different from the old in that there is no direct and personal relationship between the master and the slave.' ~ Loe Tolstoy
All fiat currencies are essentially loans from the Federal Reserve to banks and governments, which use a nation's citizens as chattel and collateral, and their citizens' time and labor as the source of income to pay back the loans, with interest. Congress has spent more than its income every year since 1969, resulting in much of the government debt we have today. When a government spends more than it receives in taxes, it often finances the deficit by borrowing more from the public, whether by raising taxes, reducing spending (usually on public programs and services), selling government securities such as Treasury bills, notes, debentures, bonds or other debt instruments, borrowing more fiat money from the Federal Reserve, or via intra-governmental loans and transfers that are taken directly from what was supposedly set aside for public lands, programs and services. Interest is then charged in addition to that which the government borrows, and it all becomes part of the national debt, which could not exist without the creation, existence and use of fiat money.
The use and value of fiat money is regulated and manipulated by the federal reserve, federal banks and our governments -- via deflation, inflation, taxation, government and municipal bonds, interest rates or other debt and money debasement schemes. In the case of inflation, the more loans and debt there is, the more fiat money is created and put into circulation, which reduces the value of every dollar that was already in circulation, and thus increases the amount of money it takes to buy the same amount of goods and services. An item that costed $1 in 1913 for example, would cost about $22.85 in 2011, which is a loss in the value of every dollar of about 2,285% since 1913, or an average of 23% per year, due to inflation alone. There is no real limit to the amount of US coins and FRNs that may be created and added to what is already in circulation, and so, there is no real limit to the potential loss in the value of a dollar. Fractional reserve banking then adds fuel to this debt creation and money debasement fire, by allowing banks to lend $9 for every $1 deposited into their banks. Then as all this funny money is being spent, its value is continually regulated, manipulated, deflated (rarely) and inflated (usually), taxed, bought, sold, loaned and further devalued, until every penny eventually goes back to where it came from, and is either re-circulated or replaced with more fiat money.
Economic EnslavementOur government lives off the backs of the People, as more than 90% of all government income is derived from taxes, while other government revenue sources generally include such debt and money debasement schemes as the selling of government securities (which are really loans at the People's expense), usury (which is the charging of interest on loans), inflation and market manipulations. The People on the other hand, must give up to 15-35% or more of their own income to federal income taxes (not including other federal, state, county and city taxes, etc.), another 23% to inflation (not including that lost to other money debasement schemes), and an average of 30-40% or more for basic living expenses, leaving the average citizen with roughly 2-32% of the money they earn, to spend as they wish. In all cases it is also the People who pay for all loans to their banks and government, and all interest on those loans, with their own time and labor -- whether the citizens choose to borrow and benefit from any of those loans or not. If a government loans money without value to itself and others, using the time and labor of its own citizens, with or without their consent, to create and pay for (but never pay off) those debts, what does that make its people?
Frugal Money Saving SolutionsDespite the many federal and political methods of monetary control, regulation, manipulation and debasement, the existence, use and value of any currency ultimately depends on the faith a nation's citizens place upon it. It is therefore, up to a nation's citizens, to choose the method of trade, or form of currency (if any), to accept and use between one another. If we insist upon using a certain monetary system, then we would do well to at least learn more about how that system works, so as to avoid working our lives away to pay for our own subjection to others. Though it may be difficult, it is not impossible to work with such an economic system, and there are ways to help protect yourself from being enslaved to it. For example:
Resources for simple, sustainable living, and how to simplify your life by living lightly on the Earth
Home | Faq |
Links | Sitemap | Login |
© 2012 Eco-Nomics. All Rights Reserved.