If we no longer know what real asset value is…
Hans Christian Faerden - Founder of JA til Kontanter "Yes to Cash" , and contributing writer...
The illusion of value
If we no longer know what currency backed by real intrinsic (natural; material) value is, how can we even begin a fight to keep it? I had this thought here the other day when trying to go even deeper into understanding why the banks and most governments are fighting so hard to remove cash. How can I even get this question in my head? We all know what the purchasing tool called money is, for we use it every day, right? We know that money more or less moves regularly in and out of the bank accounts of anyone having a job? Then why is there this question about real value? Money is money…right? Have you ever wondered why the world’s economic system is so overloaded with debt? The official number is $217 trillion USD, in debt, or more than 3 times the total GDP of the world’s countries combined. How can this have happened? Backed by IOU’s
Have you ever heard the phrase “monetizing debt?” One way to explain this phrase is: When a country is using more money that it actually has, it creates bonds which can be bought by the central banks and other financial institutions who cover its value. This increases the amount of available money, and money can theoretically be used to create more money. But basically, this is nothing more than what we the people do when we use our credit cards! We can either invest the borrowed money like the banks do, or we can use the same money as collateral for trade…but what guarantees do we the people have on a level that makes it possible to pay our loans back wherein we might actually receive a return on our investments with an additional interest and/or a little extra recourse added to it? The only real interest free loan any country can obtain is their currency notes. These are nothing more than debt based instruments/IOU’s for the central banks, and we the people are the creditors…the only creditors who can be sure to lose on the money they lend out. There is nothing more behind these debt instrument currency notes, as they are based purely on the faith and confidence of those who use them, just like it is for any other digital currency. What we the people get in return…is inflation, heading toward hyperinflation. In fact, our money is reduced in value every year as we allow the de facto central bank to borrow from us through the working hours we spend, and taxes we pay to our governments. Cashless serfdom In the financial system we have today, we are now required to give our skills, time and energy where we work now for our nation. The issuer of our nation’s currency, the central bank, gives us the debt instrument called notes back. If we’re lucky. Because, in the cashless society which the banks and many politicians now push so hard for us to have, all we will have in return to prove that the central bank owes us a real material value, will not even be in our possession! Whoever controls the servers and the networks between us and the bank will be the one(s) in power, not “We the Creditors.” A hacker, a governmental decree, a single push on a button….and we’re broke! There will be no tangible proof concerning the debtor of record pursuant to the biggest group of creditors this world has ever seen, We the People of the world. What can we call a creditor like that? One having given everything he or she owns away to the debtor, to include their time and energy, and having NO CONTROL or any REAL PROOF of having done so. Such a creditor will have no power to hold the debtor accountable. That is the cashless society, and that in my view should be called the cashless serfdom society, because the “Debtor” holds all the cards against “We the People,” just as the feudal masters held over their serfs in medieval ages. Faith and confidence
This is the theory and reality of our monetary system today. Debt built on debt, built on debt…and who the creditors are for this debt should be fairly obvious, while the commercial banks and their owners exploit these credits for their own gain. Central banks formally issue the currencies, but they are of course just as dependent as anyone else in this currency system, holding “the full faith and confidence” the market and public have in the nation they work for. Everything to date has been played into the hands of the commercial banks. It has become so bad, that when we ask a commercial bank to help us finance our home the bank do not even need to have the money in their vault to lend it to you for interest. Our signature on the debt instrument is all that is needed to create the money needed for the home. Our willingness/ability to pay back is all collateral needed behind these monies.
This also has some other severe implications that few of us think about in our daily lives. The global monetary system we have today is called a “Fiat System.” As mentioned already, the currency printed today is backed by nothing other than the full faith and credit of the nation that issues it, and declares it a legal tender. But in a world like now, with indebted nations far beyond their ability to pay back their obligations, seemingly more than any time in human history, all we have now is of course a house of “debt instruments cards,” and built illusions in a pit of quicksand we in a normal world would call “lies.” How can faith and confidence even dream of sustainability, when we “live in the same banking house” as those who commit Libor fraud, subprime debt instrument schemes, “helping” countries to commit financial suicide, whitewashing of drug money and the building of derivative mountains worse than a mentally ill gaming addict? "If a house is divided against itself, that house cannot stand." ~ Mark 3:25
All about control The current financial system is dead…even though we do not fully see it now at the time of this article written at the end of September 2017. It’s still kept artificially alive on “quantitative life support” by paying debt with even more debt! The longer it continues the more severe our financial death will be. It could’ve been a very good financial system if it had not been for the power hunger and greed of the human hearts in control. If our fiat money system had its debt balanced by real growth, it would have brought a lot more people out from poverty levels, simply due to the fact that it would grow much faster than any pure real value system would ever be able to do. One may really wonder if it is it all about controlling everything that has real value? And as a part of that, to socially remove the idea of real value from everyone else, while labeling those who are in opposition as fools? Because this illusion of value surely still exists in the world like we have now, but why? A system of debt monetized currencies without any other value than a rapidly disappearing confidence, and trust in a system now built wholly upon lies.
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