Money and More
The Three Varieties of Money
Post From The Final Wake Up Call
By Peter B Meyer
The Illusion of Money
Money and banks are founded on faulty public sentiment. Money should be a symbol of value, the same way a little stone or carved piece of wood is a symbol of God. But, in the modern world, money is a commodity, like beer and cheese.
There are a many different kinds of money in exactly the same way as there are many brands of beer and cheese, and they all present their own national characters and peculiarities.
However, there is a profound difference between money which has a value in-and-of-itself, such as a gold coin that has intrinsic value, and legal tender currencies, like bonds, notes and letters of credit.
Without these two unique circumstances, central banks’ irresponsible QE and ZIRP policies would probably have caused inflation to rise into the double-digit range or even higher, much earlier, maybe as far back as a decade ago?
Nowadays there is no further need to worry about how much governments borrow. Central banks buy government bonds – hold them on their balance sheets – return the interest payments – and the whole thing is set up in such a way as to be swiftly forgotten.
And when the bonds expire, central banks can use the repaid principal to buy more government debt!
In effect, today’s central banksters are doing something they previously could only dream of doing: printing money without causing a noticeable inflation. Politicians, too, are enjoying this once-in-a-lifetime opportunity of unaccounted for recklessness.
They are able to do what none could do before: borrow money without paying it back. The public has not read about these malpractices in the press yet, but it should be coming soon.
Regular readers who understood the earlier explained money scam know already that there is in actual fact no need for governments to repay their loans to central bankers, as the money governments borrow from central banks, doesn’t come from taxpayers, it comes from nowhere; from thin air, like the rest of the world’s money.
Three Varieties of Money
Think of the word “money” for a moment. What’s the first picture that comes to mind? Perhaps the folded pieces of paper in your wallet. Or the balance in your bank account.
Physical cash, no matter where you live in the world, is used by every civilised nation on the planet.
All nations have some form of physical currency in various denominations. Dollars, Pounds, Euros, Yen, Renminbi. These pieces of paper are passed around as a medium of exchange. Go to the grocery store, and as long it is the local currency, you can pay for anything with physical cash. It is that simple.
Bank balances make it slightly more complicated. When logged into your bank’s website, you see a balance displayed on the screen. Don’t think for a second that there are a corresponding number of pieces of paper sitting in your bank’s vault. In fact, most banks have very little cash on hand.
Your balance is nothing more than an accounting entry on your bank’s balance sheet, which is likely maintained in a computer database. There’s no physical ‘money’ backing up this bank balance. It’s an annotation in a computer. Each bank customer’s savings is part of this complex system of accounting entries.
When you transfer money, the bank doesn’t send that amount in cash. They merely make an entry in the ledger, reducing your balance and increasing the one you are sending the money to for the same amount.
The same thing happens when a credit card is swiped to pay for something; banks exchange accounting entries that credit the vendor’s account and debit yours. Nothing physical ever changes hands, it all takes place in digital ledgers.
Given that this type of money exceeds physical cash by a factor of at least 10:1, it is correct to conclude that most modern currencies are in effect digital.
Government bonds are another form of money that most people often forget about. Generally, people will keep the majority of their life’s savings in their bank account. But, big banks or companies that have tens of billions don’t keep such vast sums of money in the bank. Certainly not all of it.
Companies, institutions, banks, and even foreign governments around the globe buy government bonds precisely because of their ‘cash equivalent’ status. This means that if the Chinese government is doing a deal with an African government for $1 billion, they can conduct the transaction using US government bonds as payment currency.
But in actuality, they are three entirely separate currencies: Physical cash, digital cash, and government IOUs.
A this moment in time, these three varieties of money have a 1:1:1 exchange ratio, i.e. they’re freely interchangeable at parity. But this 1:1:1 variety exchange ratio (VER) actually depends on financial stability. And when there are serious problems, the exchange rate breaks down rapidly.
For example; in 2013 when the government of Cyprus froze bank accounts across the entire country. No one could access their bank balances for weeks. Clearly in an instance like this, the value of a bank balance becomes worthless. The only way to conduct a transaction was with physical cash.
So, in the event of a banking crisis, the variety exchange ratio changes quickly. Physical cash becomes much more valuable. It is the same thing in a government debt crisis. It is bizarre to think that the bonds of a bankrupt government are a widely accepted form of ‘risk-free’ savings among institutions.
But what happens when that bankrupt government defaults, or has to restructure its debt? The entire system breaks down. Suddenly the bonds are no longer ‘cash equivalents’, and there is a scramble to dump them and find another safe, reliable investment.
Physical cash is by no means a magic bullet; it’s nothing more than a piece of paper printed by a government agency at the behest of an unelected central bank committee. Fundamentally, it has zero intrinsic value and in the long run all paper currencies will ultimately reach their intrinsic value of ZERO.
Future historians will wonder in utter disbelief how people could be so foolish as to assign any value whatsoever to paper and accept it as payment for delivered goods or services. – Nevertheless, in the short term, holding at least some physical cash makes sense as a hedge against financial calamity.
The misuse of energy in the form of energy money causes suffering and death and is in violation with Galactic Law.
By legally equalising trust-money with debt-money, with an exchange rate of 1:1, debt money is given the same value as trust money, resulting in the fact that hardly anyone notices the scam that energy value equals with nothing. Actually, debt money should have a much lower rating as there is a risk that the issuer could default on the debt!
This aqualisation results in inflation, which in itself is forthright theft; as the increase of the money supply goes far beyond social trust.
The conflict between the two kinds of money – trust versus debt money – must be clear: as a dollar can be spent only once – in principle for private transactions between citizens, but due to this manipulation scheme, it is also promised by governments to pay off the public debt to the central banks.
Through this scheme, governments are engaged in a crime scam, as they allocate and commit people’s money without the consent, nor knowledge and understanding of their citizens.
Government Is Our Enemy
To keep it analytically simple: the creditor of the money is to be paid back – which is the Central Bank – with the same money created out of nothing. This is an abusive scam between the Central Bank and the citizens of the world.
By erecting a smoke screen, most people don’t notice the swindle: This is due to the fact that the government REQUIRES that citizens PAY their taxes in the currency of the central bank.
In short this commitment defines the essence of debt money.
As a result of this scheme, Inflation occurs, due to nothing more and nothing less than the injection of fiat money – debt money – into the existing amount of trust money. This is actually an ‘abuse of trust’ with regard to the people, or plainly defined FRAUD.
Everyone knows that debt must always be paid off, so the people collectively continue to pay off a debt to which they never made a commitment. This is a deliberate and blatant SCAM of the government.
The pledge of trust money is a promise. The collateral of debt money that arises from “debt” requires collateral for which taxes are created, collected by the government to pay off the ‘never-ending’ or perpetual debt to the Central Banks in the currency that the central bank itself has issued out of thin air.
This is subsequently mixed with the trust money already in circulation, making the SCAM invisible.
The System Is Seen For What It Really Is
So, the government is obviously our enemy. We have been betrayed. We should be angry and want to cry from frustration. But on the other hand, we must be glad and thankful to finally see through this scheme and see the system for what it really is, one that is physically and financially ruining us.
Let’s stop putting our trust in this impostor, the government, which, under the guise of being our faithful friend and a good provider, has betrayed us in favour of the multinationals and world financiers, the Deep State’s Brotherhood.
Let’s no longer ask for help, assistance, laws, etc., from our enemy. From today on, we should adopt the attitude of automatically being suspicious of all proposals, decisions or gifts coming from government. Always look this gift horse in the mouth. If it suggests that we go right, we should go left.
Even if we don’t know why, we will be sure to make the right decision, because government works against us, moving in the opposite direction should reap victory.
Remember; we do give the Deep State power by staying ignorant of their existence or by remaining angry about what they do without taking the appropriate action! Read and use the information provided in the book THE GREAT AWAKENING – soon to be released in English – to combat your government, authorities and the evil Elite. Don’t accept your slavery status any longer. Victory can be attained by simply walking away from it!
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