Let's say over the course of the third year, the borrowers paid back $1,200 worth of principal and $800 in interest. There is still only $1,000 in notes backed by REAL gold. $6,700 in loans outstanding, $5,000 in total notes circulating and the goldsmith has pocketed another $2,000, totaling $6,000 thus far.
A History of Money and Recession
People tighten up their spending for no apparent reason, but it is soley because there are less notes in circulation. So, prices start to fall. Businesses can't survive with the lower incomes, so they lay people off, thus giving even fewer people money to spend. And, now we have the beginning of a history of money and RECESSION. Year four, the borrowers paid back $1,300 worth of principal and $700 in interest. There is still only $1,000 in notes backed by REAL gold. $5,400 in loans outstanding, $3,000 in total notes circulating and the goldsmith has pocketed another $2,000, totaling $8,000 thus far.
Year five, the borrowers paid back $1,400 worth of principal and $600 in interest. There is still only $1,000 in gold. $4,000 in loans outstanding, $1,000 in total notes circulating and the goldsmith has pocketed another $2,000, totaling $10,000 thus far, but $4,000 is still owed.
With only $1,000 in total notes circulating, people obviously cannot continue to pay, so there is one thing left and that is the confiscation of their assets, and the remaining $1,000 in total notes circulating. Can you say BANKRUPTCY. (which is now almost impossible)
A History of Money and the FED
Oh, I know says the goldsmith, I'll just have to keep lending this counterfeit money backed by nothing so they can work hard for me for free, and I will own every asset on this planet for free. So the goldsmith starts to lend out money again and lends out $10,000 the first year which again causes the BOOM. And, on and on it goes.
The only difference today is that there is no limit to the lending, so there's continual money being created which forces us to fight each other to get our hands on it, to pay back our own share of debt, while the price of everything skyrockets endlessly.
And, the goldsmith's are now called the Federal Reserve System and the funny money counterfeit notes are called Federal Reserve Notes. In the 1930's there was roughly $30 Billion in gold at Fort Knox, and now we owe $7,937,046,735,823.
So, then I ask you fellow American, is this a history of money and debt that you thought was going on when you borrowed from Capital One or Providian? Find out how to get out of credit card debt by visiting us at http://www.avoid-new-bankruptcy-laws.com/
Mark A. Cella
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