Placebo Currency
For too many reasons than can be listed here, (but not here, here, here, and here, etc... etc...), the Banks have counted on the very thing Doctor's use when Not practicing medicine, ie, they have counted on Not having to practice real banking.
What do I mean?
Well, in medicine, if you have a condition for which a common drug is prescribed which in most cases, causes the condition to lessen, or at least its symptoms, you prescribe it regularly whenever patients present commonly associated symptoms or are diagnosed in other ways.
But what happens if you are a hospital that runs out of this medicine?
(and for those who protest, let's just for the sake of argument, rule out the idea that alternative drugs are equally unavailable?)
Well, you could tell everyone you were out of the medicine and refuse to treat, in which case patients would continue in their agony.
Or, seeing the masses storming the doors of your practice, you could lie to them and give them a placebo. As in, "Take two of these and call me in the morning." for which you still bill a consult fee and collect from insurance.
Now it is likely that the supply will arrive back to the hospital in short order, and that you will only give out placebos for at most a few days until the shipment arrives. Because of previous tests in psychology, you know that maybe half of those who have presented and received placebos, will feel better without real treatment. The disconnect in your mind concerning the value of medicine you do perscribe is not calculated in your mind.
Still, by the time the other half come back with their complaints, you have the real medicine and can treat them, and you know from studies that results are higher for treatment.
The Placebo saves the cycle of supply downturns by providing a psychological quick fix to the problem.
But no doctor ever went into medicine to dish out placebos all the time.
Now, let's turn back to the Bankers...
A Bank's chief task is to lend money others have deposited to collect interest payments from those that it lends. For example, if I lend out $100 and collect $20 in interest on repayment, Then for every 5 $100 loans, I make $100.
There is an optimal amount of lending vs banking deposits that can be plotted and graphed before too much lending and not enough deposits will cause a vote of no confidence in the bank and a run ensues.
But what if you insisted on the profits you could only get under such an arrangement? What if making money the old fashioned way was no longer enough for you? What if you needed to keep up the illusion because you needed the profits, to keep up the stock price?
The answer is the Federal Reserve. Think of the FED as the Placebo manufacturer. In our medical case above, if doctors did not run out of their supply of medicine, placebos would be used much less often. So if you want to increase the use of Placebo, you hire drug sales reps to work for your placebo Rx company and sell placebos to doctors with popular sounding names that they will prescribe, even inadvertently or sometimes, just for the kickback.
In this case, the FED does not manufacture precious metals, it hoards them, by trading lies (formerly promises in good faith) for real wealth. It will dole out as many lies in the form of Federal Reserve Notes as possible so that it can collect very REAL interest payments from those it loans. It does not care who has the ability to repay, it can afford to throw mud (money) at the wall, and see where it sticks. In a world where dollars are lies, and sometimes they are believed by those who possess them, they will receive REAL value back in the form of interest from those who believe the very lies they are loaned.
The FED, unlike the doctors, does not care about the health of the pocket books and wallets of its depositors, they are the delusional suckers who believe the lies they are told in their account balances.
But, if the people ever stopped believing, just like those who received placebo medicine and were not cured, they would see how insolvent they really are, and they would demand whatever money left of theirs at the bank before it closed for good.
The only wealth the bank can really trade back to its depositors is Gold or other precious metals. When a bank run occurs today and depositors are paid in cash (more lies), the bank has gotten away with larceny again, by not making whole its customer.
This is why other banks were loathe to accept Federal Reserve Notes and other forms of bank payments to depositors of failed banks, because it was clear that all the money being handed from that bank had no real value, and other banks do not want to trade their real wealth either, for unreal lies. After all, banks are separate corporations and their is no reason to force corporation A to accept the lying deposit value from Corporation B just because the FDIC said they should. In other words, they will exchange lies with active banks in their own economy but do not wish to trade at the point of a gun or other government force.
Those who want real Gold for their money are paying dearly for it today in lie script. As of today it takes over $1000 FRN USD to buy 1 troy ounce of Gold. This is the price the banks place on their own lies, and a price they manipulate in the market.
They are saying that one ounce of Gold is worth 1000 lies. Sometime, when the price of Gold goes to 2000 American Lies, and higher, Gold will decouple and no amount of American lies will buy it.
This is already happening relative to other currencies in the world who do not wish their value further diluted. It is happening in commodities markets like Oil, where all the world competes. It will happen to Gold.
This will cause the American Dollar to no longer be accepted as a median of echange for real wealth. It has been baked in the cake since the Bank of England, The Bank of the United States, and the creation of the FED at Jeckyll Island.
If it was still common for men and women to have Gold or Silver in their regular possession, ie common, the FED could not pull off the scam. It took 50 years for the FED to pull its bait-and-switch swindle of the American taxpayer. Originally, before the FED, people traded in money that was backed by Gold and Silver for a majority of their purchases because they believed the Gold and Silver they had on deposit was redeemable on demand at the bank. The notes served as promises to pay, and were legitimate as they were backed by the US Treasury guarantee that Gold or Silver could be redeemed.
But after Jeckyll Island, from 1914 to 1933, the notes changed ever so slightly. They would represent less and less integrity to the promise of redemption in Gold until so much of the notes were in circulation that in 1933 it was announced that Federal Reserve Notes would no longer be redeemable in Silver or Gold, that is was now illegal. So this caused the initial run by all those holding Certificates to make their demands and removed the certificates from the system. In this way, you could hold Gold or Silver in 1933, but you were forced to accept Federal Reserve Notes as forms of payment for debts, products, services, etc. You could not lawfully discriminate between a payer in Gold or a payer in Federal Reserve Notes, and most of the public had been lulled into Full Faith and Credit of the Government that there was not a significant protest. This also meant, that Gold and Silver, which have real value, intrinsic to them, would have no value as a medium of exchange because no one would trade real Gold or Silver for Federal Reserve Notes knowingly if they realized the promise for redemption was gone.
From 1934 to 1971 the price of Gold was relatively constant, at about $35 or $36 Federal Reserve Notes per ounce. Since very few people had Gold, this amount did not benefit the public the way it would today if Gold could be bought at $36 and sold for say $1000. Instead, this pricing was handled for the exchanges between countries. As the Dollar was originally 1/20th the price of an ounce of Gold, the US Government received the best of its own Arbitrage by assigning a price of $35. No one would trade at that price who knew Dollars were worth less, but if they did, the US Government would profit on the limited exchanges, and most of the Gold was kept safely in the US. The problem was that back then, the Arbitrage developed that a foreign investor could buy Gold from the FED and make a profit in the exchange due to the gradual devaluing of the dollar in the difference of the value of the currencies. Thus, Nixon finally put the final nail in the coffin of Gold for Dollars August 15, 1971.
After that, the price for Gold in terms of Dollars sky-rocketed. This was done to protect the stores of Gold at the American Federal Reserve from being depleted by foreign countries, their investors, etc.
Today, the price of Gold increases to protect the store of Gold at the FED from American citizens and the rest of the world. However, by making it increasingly impossible to buy Gold using Dollars, it forces those who once believed in the Full Faith and Credit of the United States, that this is merely a lie, a plecebo. Government money will not buy real wealth and soon we are all impoverished. It is the new Gold Rush. Buy your gold at whatever the price, in American lies, not because you need it now, but because you will need it later, and sooner than you expect. When the Dollar is decoupled from Gold itself, no amount of American Lies will buy real money or things real money buy today- Food, Clothing, and Shelter.
econin1lesson
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