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A History of Money and Banking Secrets That Banks Don`t Want Published
By Mark Cella


A History of Money and Trade

To start with a history of money and debt, we must go back many years ago when people used to trade their wares for the things they wanted and needed.

In place of money or Federal Reserve Notes, you could trade a well made pistol for a cow, which you could eat or trade a remainder of for other items like clothing.

It didn`t take long for people to realize there needed to be a more efficient means of trade. If you were a farmer, it was too difficult to carry baskets of fresh corn around to trade for a new horse. And, the person selling the horse might not want any corn at all.

A History of Money and Gold

So, people used gold for cash money, which always had a stable value, to trade for the items they wanted and needed. This way the horse dealer could always trade the gold received from the farmer for the clothing he really wanted instead of having to take the corn.

In a history of money and gold, this only posed one problem. Gold was very heavy to carry and hard to conceal. In the beginning of our banking history what people would do is leave their gold with a goldsmith.

The goldsmith would then give them a note, or paper money, that stated how much gold they had on deposit with the goldsmith (bank).

The farmer could then take this paper money note, say worth $50 to the horse dealer and buy a horse with it. The horse dealer could then spend this $50 paper note or go back to the goldsmith to pick up the $50 of gold that he had just acquired by selling the horse to the farmer.

Well, why would the horse dealer want to trade in the cash money note for the heavy gold, when he just wanted to trade it for clothing and food anyway. So, the note would continue to trade hands and very few people would ever go redeem it for the gold it was backed by.

It didn`t take long for the goldsmith to understand this reality. So, here he is storing all of this gold for other people. Let`s give it a value to make this next principle clear.

Let`s say the gold he is storing is valued at $1,000 and there are $1,000 in real cash money notes backed by this real gold being circulated.

A History of Money and Loans

When many people wanted a loan for say a total of $1,000, he decided no one would notice and it would be real easy to lend them someone else`s gold, well actually a funny money note which was a promise to pay gold upon redemption of the note. And, he`d only charge 10% interest. In a history of money and loans, this caused another problem. If everyone came in to redeem their notes, there would not be enough gold to pay back everyone because there was only $1,000 in real cash money notes backed by REAL gold.

That didn`t matter to him, why not lend out to anyone who looks like they can repay? And, that year he lent out a total of $10,000 worth of newly created or you could say counterfeit, funny money notes. Oh well, who cares says the goldsmith, no one is coming in to get their gold anyway.

So, now there is $1,000 in real cash money notes backed by REAL gold, and $10,000 in funny money loans, thus $11,000 in total notes circulating. The goldsmith is charging his 10% or $1,000 per year of interest and don`t forget every penny of the original counterfeited principal is his to keep. For simplicity, lets say he now stops lending!

A History of Money and Inflation

Lets look at what this causes. There is now ten times as much currency/notes floating around then there is real gold to back it. This causes the value of the original $1,000 to loose 90% of its value. Therefore to buy a horse now, it would cost $500. Thus, a history of money and INFLATION.

Everyone now has way more money then they did the year before, they feel rich. There are still the same amounts of products and services being sold, just a lot more dollars to bid for them, thus most prices go way up. This is called a boom.

Now the next thing this causes is for the $1,000 of interest and any portion paid to the principal of these loans to go directly into the goldsmith`s pocket. Let`s say over the course of the first year, the borrowers paid back $1,000 worth of principal and $1,000 in interest.

This means there is still $1,000 of real cash money notes backed by REAL gold. $9,000 in funny money loans outstanding, $9,000 in total notes circulating and the goldsmith has pocketed $2,000.

So, the goldsmith is now up $2,000 out of thin air, and there is now $9,000 in notes circulating which needs to pay back $9,000 owing. And the cost of everything has gone up ten fold. Now lets move forward another year.

Let`s say over the course of the second year, the borrowers paid back $1,100 worth of principal and $900 in interest. There is still only $1,000 in notes backed by REAL gold. $7,900 in loans outstanding, $7,000 in total notes circulating and the goldsmith has pocketed another $2,000, totaling $4,000 thus far.

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/

For more information about this article and/or the author visit http://www.avoid-new-bankruptcy-laws.com/out-of-credit-card-debt

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Pr Surveys - Pr Surveys
... impact is your product having on the general public? If you are a lucky enough business to have a nationwide product or service, then you may be interested to know just what the publics opinions of your product or business are. But how do you go about learning such facts? you could internally hire many new staff members to go about on the busy high streets, with questionnaires asking people about you. But lets be honest, you don`t want the hassle of all that extra paperwork. By far the best idea is to get a company in to do your PR Surveys for you. With a professional firm you are sure to find all the right answers to your questions. No matter if you are in the business of selling gifts, or the restaurant business, PR Surveys will help you get to the bottom of people`s opinions. Increasingly these days people are hiring just such companies to gauge what the general public th...
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Cd Duplication - Cd Duplication
...nt months working on your demo, it`s finally ready to send out. But you need tons of copies in a hurry. No need to worry. Cd duplication is now easily accessible over the net. There are some fabulous companies out there who offer you a professional, reliable service for a reasonable price. They will ensure that not only will they give you the highest quality copies of your disk ? they will even ensure your disks are protectively shrink wrapped to make sure there is no possible damage on despatch. When a company performs your Cd duplication for you they will give you a choice in the style of disks you can have ? which in turn will give you a choice in the colours of printing on your disk. These companies can also print your disks with any design you want for an extra charge to give your cd the ultimate professional look. Cd duplication can be carried out in three to five days, b...
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Plant Management - Plant Management
...t uses and at any one time there can be many items of plant on sites around the country. For some companies this can prove to be quite a headache as they try to keep on top of the location of certain items and manage the hire costs of specific machines. What these companies need is an efficient Plant Management software package that would enable them to keep up to date with all their plant equipment. An office based software package could be used to manage all types of machinery effectively. This Plant Management software package has been specifically designed with the construction industry in mind. It`s a complete solution for companies that constantly use plant and machinery on site. Once their software is installed they`ll know exactly how much they are a spending on hire costs. They can check where all of their plant i...
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Structured Products - Structured Products
...ial advisors take their time to research the latest structured productsthat are on the market? Do they compare and contrast, analyse and evaluate the products that will be suitable for their clients? If they take their role seriously they will and they`ll use all of the information that is readily available to them at the present time. It`s not as if it`s hard to find structured productswithin the marketplace and IFAs should make it their business to recognise the ones that will best suit their client`s needs. A service is available online to assist IFAs and the aim of the site is to promote the sector making it easier to understand. With this in mind the site is sponsored by product providers and they are open for financial service professionals. Registration is free and no commitment is required and a wealth of useful services can be found. IFAs will find...
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Plant Hire Software - Plant Hire Software
...t and trying to keep a track of it at all times. If you are a site manager and are responsible for the movement of hire equipment from one site to another, I`m guessing that it can prove to be quite a balancing act most days. If you had some form of Plant hire software wouldn`t this make life a little easier as you could control the movement of the plant from the site office? A new software system is available for the construction industry and it makes hiring plant a much simpler process. Instead of keeping manual records and trying to work out what needs to be off hired you could be told this information by the software. Any plant that was due to go back to the hire company would be brought to your attention so that you don`t have to pay any additional costs. You`d be able to monitor the plant locations so that at the touch of a...
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