Making Money!

The modern banking system manufactures money out of nothing. The process is the greatest magic trick ever invented. The bankers own the earth. Take something from them, but leave them the power to create money and control credit and they will create enough money to buy it back. Take them this power and all great fortunes like mine will disappear. But if you want to continue to be slaves, let them continue to create money and control credit "- Sir Josiah Stamp, banker, former director of the Bank of England, 1927

What is money?

The economic sciences study how money works and how wealth circulates, but almost no savings book talks about what money is. Money is just information on wealth flows within a group of people. It has no intrinsic value and can be represented in the form of coins recognized by the community.

In societies where exchanges are few no money because riches are exchanged directly for each other. No need to represent information about values ​​because the value of the goods exchanged is in themselves. But when the exchanges are intensified from a point is eventually necessary to carry out exchanges with those who have not exactly what you are looking for: is there that spontaneously currency arises. It can be exchanged for goods or services and vice versa - this is because the community is assigned to the object that will serve as the currency a value beyond their utilitarian value: This value is the information as the other products are worth against the currency , that is, the money. The object currency itself is not important, can be salt, shells, gold, notes or digital bits.

The money represents a debt. When Janet produces 20 tomatoes and exchange X currencies, this means that the entire community has an X size of her debt. Any person who produces a wealth equivalent to that produced Janet can exchange it for the same x coins. If your neighbor, Mr. Hattori, produces swords that take a year to be made, ask for each of more than X coins Janet asked for 20 tomatoes, which require less time, work and dedication. The amount of available coins in a community have to be enough for all exchanges happen.

few coins and abundant coins

The way the coins are created will determine whether there is enough money to make all the desired changes or not. The creation of the coins is depends on which item was chosen to represent money. When currency trading a society is something abundant, such as salt, for example, missing coins to represent all current wealth, just need someone to bring some salt next salar. This not only allows more exchanges happen, it also prevents the accumulation of wealth in a few hands. If a community member has a large salt reserves and wants to use it to control other people, just more salt between circulating in other ways. Soon it will become somewhat valuable, ending with an attempt to reign.

For thousands of years, empires discovered that they could force the use of minted official coins and thus control the flows of wealth - such as changes needed through official currency, everyone had to have it to pay taxes and not be arrested. At that time, the coins have become artificially scarce. When governments equate currency rare metals such as gold or silver, all the changes that people want to accomplish in the community are conditioned to the amount of metal mined and coined as the official currency for the government.

A coin only fulfills its function to make it happen when trade flows - it stands still, only serves to represent the power that its owner has. When scarce items are used as currency, this leads to their accumulation by the powerful, who use money to control who does not have enough must agree to change anything you have or do - time, knowledge, a house - the rare coins. It is not the money itself that creates a social power structure, but he catalyzes and reflects. Some say that money is the incarnation of the spirit of a society, so those that work based on the concentration of power and intentional generation of poverty also have a concentrated and little money. The information that the scarce money and accumulated charges is that all people are indebted to the few who control the monetary production, hindering rather than facilitating the horizontal wealth flows.

The banking system

Until the 60s, the paper money and the money deposited in banks should be linked to an amount of gold in a system called ballast gold. As this metal is limited, so it is ensuring that the production of money was also limited. Over time, the bankers realized that no one was interested in exchanging money for gold and created maneuvers, such as fractional reserve to lend much more money than it had gold in the vaults. In crises, as in 1929, everyone wanted to withdraw money to pay their bills and banks broke for lack of funds, leaving nothing people who believed they had their savings safely stored.

In 1971, the US president ended the gold standard. Since then, the money in the form of notes and of amounts in bank accounts, no longer having no material wealth to represent, is created from loans. When someone goes to the bank and get a loan, the value placed on your account is generated at that moment, created from an administrative decision, and thus enters the economy. This explanation remained controversial and hidden for a long time, but today it is clear in a report by the Bank of England 2014.

Virtually all the money that exists in the world is created thus invented from lending. What makes it strange and perverse is that on this loan, a debt is charged. So if I ask for money to the bank, he invents numbers in a table with my name and asks me to return a larger amount than this. To pay the debt, to go to the so-called "free market" and work, fight, maybe cheat, to get the money that the bank invented the account of others. This is money that will be used to repay the debt, as the only source of currency is the bank loan. In the end, the banks end up with all the money that was invented and even confiscate the property of the person whose money I indebted.

Thus, the current monetary system works with a currency that is both scarce and abundant. Scarce because only bankers can create it, and abundant because it is generated by simple manipulation of databases. The result is an accumulation of wealth and unprecedented power: a world where equity of 80 people is greater than 3.6 billion, and where the richest 1% have more than the other 99% together.

Limits and alternatives

Another perverse characteristic of systems with few coins is that they must always grow. What happens there millenniums years in societies where the state or banks create few coins is that there is much work to be done and a lot of people wanting to work, but these changes do not happen because lack circulating money, after all it is all accumulated in the accounts the powerful. The solution proposed is that these institutions unlimited growth: the promise is that poverty will no longer exist if we make a few more mines, power plants, farms, factories, buildings, etc. This is an outright lie, because it is artificially produced by domination and the lack of money! It is clear that the greed of bankers is finally coming into conflict with the limits of the planet - the engine of civilization is destroying all life and land riches to transform them into a money only brings misery.

If we want to end the eternal war between civilizations and against the natural world, we need to get rid of the big lie of the monetary system, the lie that the currency must be scarce and have value in itself, that we should love and venerate the role of our contract easement. To think of new ways of living and exchange what we have and we know we need to re-appropriate the production and significance of the coins, and it is so simple that seems to lie. With the help of technology and abundance of material resources, we can create beneficial monetary systems, such as banks of hours that are happening in Greece and Portugal, or online crypto currency Bitcoin, which can not be monopolized its production. What has the greatest potential, however, are the local currencies, which strengthen exchanges in small communities, and strengthen human contact and precipitate real encounters and smiles. Their use reflects how the community sees - autonomous, free and empowered - and not as the banks see us - as subjects. The circulation of an abundant local currency could catalyze and facilitate many projects (as Steemit) And bring a lot of people.