Our Money and Its Threat To Our Freedom
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This is a brief explaination of what our money is today as compared with
the past, and how it directly threatens our economic freedom, which
affects our our freedom as a whole.


Where does money come from?  Today money is simply credit, created by our
banking system out of thin air.  Hard to believe, but true.  Banks create
credit based on the needs of the private and public sector backed by our
labor and guarenteed collectable taxes enforced by our gov't. (local,
state, and federal).

Do banks loan out the money you deposit with them.  NO!  Banks, by the
good graces of our federal gov't in which NO LAW ON THE BOOKS gives them
authority to do, "expand deposits".  All banks, S&L's, and credit unions
are allowed to CREATE NEW CREDIT based on a small fraction (usually about
15%, determined by the Federal Reserve).  With a 15% reserve requirment
the banking system can "expand a deposit by 85%. A $100 deposit can create
an additional $85 in new credit. The original $100 is not borrowed or
deducted from to create this new $85. BUT, here's the catch 22, when a
loan is paid off, the account is deducted, and in turn the banks' assets
decrease when you write a check.  So money is created when a loan is
created, and extinguished when its paid off.

So what's the problem, you might think, we have an unlimited supply of money
as long as we produce.  The PROBLEM IS, interest must be paid on ALL this
money.  Banks only lend into circulation the PRINCIPLE of a loan.  The
more we all borrow, the more in debt we get into. A debt that's impossible
to pay off as a whole.  Someone, and some businesses must fail in our system
since there's never enough "money" in it to pay interest.

This is the reason we have all these gov't programs to make up for the
failure our monetary system brings on.  It is true, some people are just
lazy and leach off the system BUT in our ever materialistic world WHY is
there such instability in our economy.  The reason is the policy makers
of the Federal Reserve KNOW the more money that is put into circulation,
the more debt is incurred and debt CANNOT be paid off in more debt.  The
cost of our own money is part of the reason prices steadily rise.

What about gold and silver?  The only reason gold and silver didn't serve
to stabilize economies is banks in the past would issue more gold or silver
notes than they had on deposit. (which is the basis for expanding deposits
today) This practice goes back 4000 years when goldsmiths became our
first bankers creating paper receipts for accual gold on deposit.  Instead
of just collecting dust, they discovered they could make huge profits in
interest on gold people thought was on deposit.  As then as is now, when
the interest comes due some people fail and a run on the bank would occur
and the fraudulent money system would collapse on itself.  The Federal
Reserve was established to try correct this problem.  The only measure
it can take it to regulate the flow of credit plus or minus to give us
stability.  What's your opinion of their success?  Pretty hard to have
a stable situation when the debt always exceeds the amount of liquid money.

So there you have, we are living on borrowed money, and time.  Today, the
interest payment alone on our national debt is the 2nd largest item on its
budget, and is growing everyday.  The huge and realitivly quick borrowing
spree our federal gov't has been on proves that using debt as money is
not only unwise, but makes a slave of the productive elements of society
to the money creators.  If you fail on a loan, the bank gets your hard
assets you worked so hard for.  The only time you can turn your non-money
assets into a payment to a bank, is in BANKRUPTCY court.

There is an answer to this big mess we allowed our politicians to get us
into.  Its called the Monetary Reform Act.  Its in the Libertarian library,
under the file name MoneyR.txt. (I was only allowed to put it in 1 library.

For more information on money, and the people who are lobbying Congress
for the past few years to pass the Money Reform Act, contact:
The Coalation To Reform Money (CRM)  7007 Lynmar Lane, Edina MN 55435.
They produce a newsletter, books, tapes, bumperstickers, all to raise
funds to lobby Congress.

Byron Dale, the founder, learned from the SOHK Univ (School of hard knocks)
being a farmer who tried to pay off a farm loan legally by using a law on
the books (not enforced) to turn his farm production into Federal Reserve
Notes and was literally beat up by the law for standing his ground (non-
violently).  "Bashed By the Bankers" is a good read.

By the way, I am not on the payroll or affiliated with CRF. Just a subscriber
who believes in its cause...

Gary Pearl
Vineland, NJ