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BORROWING CURRENCY INTO CIRCULATION

    It is true that vesting in the hands of a private entity the power to issue a fiat paper currency gives to that private entity extraordinary power over not only the economy of a nation but its society as well. While many constitutionalists are acutely aware of this fact, little discussion has been made concerning an important corollary of this power. Not only is the power to issue a fiat paper currency extremely important to the currency creators, but the ability to loan such currency into circulation gives to them absolute and complete control. The issuing power probably would be absolutely useless unless the currency so issued is borrowed into circulation by the users thereof. It is through this process of borrowing currency into circulation that our creditors, the currency creators, wield complete power over the debtors, the users of currency. This inherent flaw in our currency system has not received adequate discussion.

    The most convenient method to demonstrate the inherent flaw of borrowing currency into circulation is the extremely simple example of a card game. Let us imagine 5 people sitting in a room, and 4 of them desire to play a game of cards. Four players sit down at a card table, but, although possessing the desire to play a game, it is noticed that they have no cards with which to play. The fifth person in the room approaches the 4 players and notices their lack of cards. This fifth person just so happens to have in his possession a deck of cards, which he acquired for less than two cents per card. Being a character of predatory nature, the fifth person offers to loan his cards to the players upon stringent terms and conditions. This villain makes to the potential players the following proposal: "I have 52 cards and I will loan each of you players 13 cards apiece. However, each of you players must execute and deliver to me a promissory note wherein you promise to repay me 13 cards, plus 1 card in the way of interest, within one hour. And in order to afford me protection that I will be paid in full at the end of one hour, each of you must give me a mortgage upon certain of your real and personal property." To this "take it or leave it" offer, each player agrees, they each give to the fifth person the required promissory note and mortgage, and the fifth person delivers 13 cards to each player. Upon obtaining the cards necessary to play, our four players engage in their game. However, when one hour has passed, the fifth person notifies the players and demands payment of the notes. Each player still only possesses 13 cards apiece, and no player can repay the principle and interest due to the owner of the cards. The fifth person then forecloses upon each player and obtains possession of all pledged collateral.

    What was the fatal flaw committed by our unfortunate card players? This mistake occurred when they decided to borrow their cards into circulation in order to play their little game. An examination of the promissory notes they gave to the fifth person discloses that the aggregate principle amount borrowed was 52 cards; however, aggregate liabilities of all 4 players was 56 cards, which was 4 cards more (the interest) than were in circulation. Our fifth person was most definitely playing with a deck stacked in his favor and he most assuredly knew that by creating liabilities greater than the amount of cards in circulation, he would eventually acquire possession of all the collateral of the players.

    The above scenario can be varied in different ways, but the outcome is always the same. One player can possess enough cards to discharge his note, but invariably another player will not have such ability, thus allowing foreclosure. Whether you play the game through the execution of only one set of notes or whether you continue playing the game by means of continually renewing the notes, the position of the players never changes - the aggregate liabilities are always greater than the number of cards in circulation.

    The above simple example is an apt description of our present currency system. The four card players represent government and industry. The fifth person represents banksters, and the cards represent our currency (which is not lawful money). Three of the players, representing industries, desire to engage in trade and commerce for mutual advantage and gain. The fourth player, representing government, desires to provide public goods and services for the other three players. All will benefit and grow by engaging in trade. However, if such trade is consummated and achieved by borrowing the medium of exchange into circulation, the banksters will eventually acquire possession of all the productive facilities of government and industry.

    However, while our banksters (the Fed and private banks) could eventually acquire all of our productive facilities through the process of loaning our currency into circulation, they are not content to eventually take over through this simple process. Like the cat playing with the doomed mouse, our friendly banksters desire to manipulate the currency and add "zest" to their lives. During economic booms (currency expansions), the banksters load up the economy with debt; once the targeted society is "loaned up" as much as possible, the banksters deliberately, intentionally and with malice aforethought (ask Paul Adolph Volcker) contract the currency supply. Contraction of the currency supply allows these villains to foreclose upon collateral pledged by innocent victims. Loaning currency into circulation is an instrument of silent warfare as is also expansion and contraction of the currency supply.

    The above example of the card game and its comparison with our present currency system demonstrates a very simple economic and societal rule of natural law. Allowing any organization, either a privately owned monopoly or the government itself, to loan currency into circulation will allow the entity vested with such power to eventually take over the whole of society. Vesting such power in any entity will also allow such entity to expand and contract the currency system at will, thus allowing over a period of time such entity to eventually control all productive assets of a society through the process of foreclosure. If any entity is vested with such power, eventually that entity will either foreclose upon all of society or will make an outright attempt to buy all the productive assets of a society. Such power should not be vested in any human hands. The power to issue a fiat currency, combined with the power to loan the same into circulation, is inherently dangerous and is the chief tool for conquest of a society from within.