The truth about money

You broke free of the holo-hoax matrix. Now break free of a much more pernicious matrix.

The MONEY MATRIX is far more powerful set of lies than the holo-hoax matrix, but it is just as easily shattered…

Let me show you something…

On the sports scoreboard below, the score is 0-to-0 until one team scores a touchdown, thereby making the score 0-to-7. But there was a penalty, so the touchdown doesn’t count, and the score reverts to 0-to-0.

Where did the seven points come from? Nowhere. Where did the seven points go to? Nowhere. In both cases the numbers were simply changed. Points are not physical. Points are mental constructs that we agree to, so that we can have a game.

Below is another scoreboard. It is an actual screen-shot of my Bank of America account, with the identification numbers changed. I start with zero money in my account, but then the  Social Security administration (which is part of the US government) sends instructions to the BofA to credit my account for $1.000. Later the US government decides that I am not eligible for Social Security benefits, so the government orders BofA to debit my account for the $1,000. I am back to zero.

Where did the $1,000 come from? Nowhere. Where did the $1,000 go to? Nowhere. The bank simply changed the numbers, exactly like they were points on a sports scoreboard. Nothing physical moved. Money isn’t physical. Money is a mental construct that we agree to live by so we can have a society.

This is how money has always worked in all societies. Money is simply a way to keep score. It is a purely mental construct that people agree to live by. Scammers (such as bankers and politicians) are those who manipulate the scoreboard for their own gain.

The hundred-dollar bill below is not money. It is a currency note. It represents 100 non-physical dollars — i.e. one hundred non-physical points in the US money system.

Huh? How could the hundred dollar bill not be money?

Suppose we were playing football, and I gave you a stone that represented seven points. The stone would merely stand for seven points. It would not actually “be” seven points until you redeemed the stone, and the number on the scoreboard was changed (or “credited”) by seven points.  The seven points on the board are not physical. The points are mental constructs. But only mental constructs count.

Money is exactly the same. It is not physical. It only exists on the scoreboards of banks.

Gold is not money either. Gold merely represents money, in whatever amount we agree on.  If governments collapse, and there are no money systems, then gold will be next to worthless. You can’t eat gold, or wear it, or hunt game with it, or grow crops with it, or sleep under gold. Just as the scoreboard is what gives value to the stone in your hand, so do monetary systems give value to gold. Yet. you have been brainwashed to think the reverse: that the stone (i.e. the gold) gives value to the scoreboard. It is WE who give value to the scoreboard, simply by mental agreement.

People who want to sell you “gold” as a protection against the “collapse of the dollar” are hucksters. They don’t want to sell you gold. They want to sell you “shares” in their “gold exchange,” which is the same as a place to trade cabbage patch dolls or pet rocks. They have no physical gold at all, and even if they did, it would not matter.

If this sounds too simplistic to be true, it is because you have been brainwashed all your life to think of money as physical and limited. You are born, live, and die in “The Money Matrix,” along with 99.99 percent of the rest of humanity. The money masters are those who control the Matrix.

We saw above that when the US government “sends me” $1,000, nothing physical moves, since money itself is not physical. Instead, the US government sends electronic instructions to my bank to credit my account by $1,000. That is, the government instructs my bank to change the numbers. Voila: one thousand dollars are created out of thin air, simply by changing the numbers. Likewise, we create points in a sports scoreboard out of thin air, simply by changing the numbers.

Later the US government says I owe $1,000 in taxes. So I send a check to the IRS, which sends back instructions to my bank (BofA) to debit my account by $1,000. My account returns to zero. Where did the 1,000 dollars (i.e. 1,000 points) go to? They went nowhere. The “score” was simply changed. Voila: $1,000 has just been destroyed. It was removed from the US economy.

From this we see that the US government has no need or use for tax revenue, and in fact destroys such revenue upon receipt. In FY 2015 the US government will create $3.6 trillion dollars / points by crediting accounts. $3.6 trillion in hundred-dollar bills laid flat, one on top of the other, would make a stack 2,443 miles high weighing 39,600 tons. (A hundred-dollar bill is .0043 inches thick. A million dollars in hundred-dollar bills weighs 22.026 pounds. You do the math.) Obviously the US government does not send out $3.6 trillion in currency bills. It’s digital.

Less than three percent of the money supply is coins and bills. The other 97 percent is purely digital. And since even the coins and bills are not money (they represent money), all money is digital.

Therefore anyone who says the US government is “broke” is a liar or a brainwashed fool. Politicians (like Obama) are notorious liars. They claim that there is “no money” for social programs that help average people, although there is infinite money for war, for corporate subsidies, and for Wall Street bailouts (since money is not physical).

For the endless wars, the US government creates endless money, calling it “funding for Overseas Contingency Operations.” No one knows how much money this is, but it flows to weapons makers and everyone else that profits from the infinite “war on terror.”

For the US government, the money is infinite because money is not physical. It is as impossible for the US government to be “broke” as it is for a sports scoreboard to be “broke” in points. Just change the numbers!

Don’t get confused by the term “debt-free money.” There has never been “debt free money.” All money is debt. However not all money occurs as loans.

How can this be?

A debt is a claim. If you owe me $100, then I have a claim to $100 worth of your time, or your energy, or your assets, or whatever. If your bank account says you have $100, then you have a claim to $100 worth of the “full faith and credit of the USA.”

That’s why a dollar bill has the words, “Legal tender for all debts, public and private.” A debt does not necessarily denote a loan. If you sell me a car for one dollar, then you are selling to me your ownership claim to that car. In money-speak, a claim is a “debt.”

This is a minor semantic point, but people confuse themselves when they speak of “debt-free money.” What they actually mean is loan-free money, such as the $3.6 trillion the US government will create in FY 2015.

A LIE WORSE THAN THE HOLO-HOAX

Money is limited for you and me, and for state, county, and municipal governments, and corporations, and euro-zone nations. For all of us, the amount of money coming in must equal or exceed the money going out, or we will go broke and die.

Not so with the US government, which can create infinite money by simply crediting accounts. In one sense the US government has no money at all. (It creates money). In another sense the US government has infinite money. Therefore the US government has absolutely no money problems. How could it? It creates the money that the rest of us use.

And yet, everywhere you go, throughout your entire life, you hear people saying this is not so. Every single day, pundits, professors, and politicians lie to you, claiming that the US government is “broke.” They claim that if you want more social programs, then you must pay higher taxes, even though taxes do not pay for any federal social programs. [As noted above, the US government has no need or use for tax revenue, and in fact destroys such revenue upon receipt. Likewise, a sports scoreboard has no need to tax people to get points. We just change the numbers.]

Let me show you how easily I can use the lies to enslave the planet. I shall use my Bank of America account. I start with zero money. Then, being the US government, I create 900 trillion dollars by simply changing the numbers in my account, thus….

Voila! I have literally created $900 trillion dollars. Next, I distribute that money sparingly, telling everyone that money is limited and “doesn’t grow on trees,” and “there’s no free lunch,” and other such bullshit.

Everyone believes my bullshit, since I can buy all the propaganda services I need. I can buy any weapon, any army, and any politician. Everyone grovels at my feet, begging me for pennies. I scold them, saying they must “learn to live within their means, just like I have to.” I am a god. They are worms. Why? Because they agree to it. They refuse to question my lies. They refuse to ask where my money comes from.

This is the Money Matrix. It is a BIG LIE that is deeper and more pernicious than the holo-hoax. It is the lie that a money creator (the US government) is the same as a money user (you and me).

WHO ARE THE LIARS?

I created $900 trillion dollars by simply changing the numbers in my bank account. (I credited my account.) In real life, I cannot do this, but the US government can. However the money masters don’t want you to know the US government does that.

Who are these money masters? Who are the purveyors of the BIG LIE? Who are the conspirators?

Answer: anyone who knowingly repeats the BIG LIE for his own gain.

It starts with the richest people in society. They want you to think the US government is “broke,” so that you grovel in poverty, while rich people rule over you as gods.

MEDIA PUNDITS repeat the BIG LIE because rich people own the media outlets, and they will fire any pundit who reveals the truth.

ECONOMICS PROFESSORS repeat the BIG LIE because universities rely on donations from the rich, who will fire any professor who speaks the truth.

POLITICIANS repeat the BIG LIE because they work for the rich, and because they want you to grovel. They want to punish you with austerity, which widens the gap between them and you. Moreover, if any politician tells the truth, then rich people will remove him from office. Treasury officers and assorted federal bureaucrats repeat the BIG LIE for the same reason. Lie and get rich, or tell the truth and get fired. And since no one will care about you if you are fired, why not lie and take the money?

BIG BANK CEOs repeat the BIG LIE because they want you to rely on loans, rather than on money created by the US government. By convincing you that the US government is “broke,” the bankers get away with scams like the student loan nightmare.

AVERAGE PEOPLE repeat the BIG LIE that the government is “broke,” because they want the government to spend money only programs that they approve of. If I hate poor people, then I say the US government is “too broke” to afford Food Stamps. If I hate old people, then I say the US government is “too broke” to afford Social Security. If I hate black people, then I say the US government is “to broke” to afford programs like Head Start. If I hate rich people, then I say the US government is “too broke” to not tax them.

Whatever I personally hate, the US government is “too broke” to subsidize it. Whatever I personally approve of, the government is “right” to subsidize it.

The masses have become so utterly brainwashed that they will attack you if you suggest that the government should create more money, so that all of us can have more money in our pockets.

Thus, the BIG LIE is like the holo-hoax: it continues because it offers something for almost everyone. And just as the holo-hoax excuses Jewish atrocities, so does the BIG LIE justify your poverty, and legitimize the gap between rich and poor.

INFLATION

When defenders of the BIG LIE can no longer get away with falsely claiming that the US government is “broke,” they resort to “Plan B”: they falsely claim that if the US government created more money for social programs (instead of creating infinite money for war and for Wall street bailouts) it would cause “hyper-inflation.” The liars use words like “Zimbabwe” and “Weimar Republic.”

This is nonsense for two reasons. First, hyperinflation happens when people lose all confidence in their government and its monetary system. This loss of confidence can be caused by a war, a natural catastrophe or (in the case of Zimbabwe) a financial attack from abroad. The government can try to compensate for this loss of confidence by creating massive amounts of new money, but it usually doesn’t work. The point is that the emergency money creation is a result (not a cause) of hyperinflation. That is, hyperinflation can happen when there is very little money in circulation, or a lot of money. It doesn’t matter. In any case, the US government and monetary systems show no sign of collapse. Hence there is no risk of hyperinflation. It’s all nonsense designed to protect the BIG LIE.

Second, when a government creates and circulates more money, (as opposed to banks creating more money as loans with a debt load), it stimulates economic activity. (Bank loans with their debt load slow down the economy, but they make bankers rich.) When economic activity rises with the money supply, there is no inflation.

The inflation bogeyman is designed to protect the BIG LIE.

THE “NATIONAL DEBT”

This is another bogeyman designed to maintain the BIG LIE.

The “national debt” is trivial.

When you buy a US Treasury security, a savings account is automatically opened for you at the Federal Reserve.  If you buy a Treasury worth $1,000, then the Fed debits your checking account at your own bank by $1,000, and credits your savings account at the Fed by $1,000.

When the T-security matures, the Fed debits your savings account at the Fed by $1,000, and credits your checking account at your own bank by $1,000 — plus interest. The Fed creates that interest money out of thin air, simply by crediting your checking account. Nothing physical moves. (Money is not physical.) It’s just a changing of numbers, like points on a scoreboard.

The so-called “national debt” is simply the sum total of the amount of US Treasuries that have been purchased. In other words it is the amount of money that people have deposited in their Fed savings accounts, which is currently about $16 trillion. It has no bearing whatsoever on the US federal government’s ability to create the government’s spending money out of thin air. The so-called “national debt” could be $900 trillion and it would make no difference to the US government’s ability to keep creating money, simply by crediting accounts. It’s just a changing of numbers, like points on a scoreboard.

If the Fed wanted to, it could instantly pay off the entire “national debt” by debiting all its savings accounts, and crediting all the checking accounts of everyone who currently has a savings account with the Fed. as I said, all those savings deposits add up to about $16 trillion. And it wouldn’t be inflationary, since that $16 trillion already exists.

Remember how I created $900 trillion above, simply by changing the numbers in my account? If I could do that in real life (like the US government can), would I need to borrow? Would I worry about debt? Would I need to collect taxes? Would I have to “live within my means”? Would I have a “deficit crisis”? No, no, no, no, and no.

The “national debt” bogeyman” is designed to make you submit to less federal government spending on social programs that help YOU as an average American. Thus, Social Security is supposedly “insolvent” (yet another lie), but the Pentagon is never “insolvent.” Nothing in Washington is ever “insolvent.” Even amid the 1930s depression, no government office was “insolvent.” The only things said to be “insolvent” are things that help YOU, like Social security or Medicare or Food Stamps.

It’s all lies, designed to widen the gap between the rich and the rest. The FICA tax does not pay for social security or Medicare. It is designed to keep you impoverished. No taxes pay for any federal programs. People who make more than $116,700 a year don’t even pay any FICA tax.

More bogeymen include the “deficit crisis,” and the call for a “balanced budget.” I will explain why these are bogeymen if asked.

Shall we tax corporations? That would simply destroy money. It would take money out of the economy. Instead of that, why not increase government spending into the real economy — i.e. into Main Street?  Instead of trying to bring the rich down (which will never happen) why not bring everyone else up?

There is more I want to say. I want to give you more proof.  However this post is lengthy, and  I don’t know if anyone is interested. Therefore  I will cut it off here. I also wanted to show some example of how the media lies, but I can do so down below in the comments section.

Ask questions if you wish, so that I may explain more.

If you can understand what I am saying here, then you will understand more about economics than 99.99999% of the people out there, including the so-called “experts.”

 

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