DO YOU TAKE FEDERAL RESERVE NOTES HERE
"Do you take FEDERAL RESERVE NOTES
here?" This is the question I
ask any cashier when I am paying for a purchase
in cash. I find the
fish-out-of-water look to be entertaining. Especially if the
cashier asks another cashier who asks the supervisor who then goes and
asks the manager. About that time I hold up one of these:
As I hold that piece of green paper up, I place my two index fingers so
that I am bracketing and pointing to the words FEDERAL RESERVE
NOTE. I then ask, "What does
this say right here?"
I ask people if they take FEDERAL RESERVE NOTES to
see just how ignorant they are of certain information.
Information that I myself was quite ignorant of for most of my
life. If I can, depending on how busy the place is, I start
educating those people. This web page is a continuation of that
education that I may or may not have had opportunity to impart.
This
web page is also a challenge to you to start asking that question
yourself. Feel free to print up cards leading people back to this
web page.
A FEDERAL RESERVE NOTE IS AN IOU
Every FEDERAL RESERVE NOTE has
these words inscribed on its face:
"THIS NOTE IS LEGAL TENDER FOR ALL DEBTS PUBLIC AND
PRIVATE" and of course, "FEDERAL
RESERVE NOTE".
The key word in "FEDERAL RESERVE NOTE" and the
key word in "THIS NOTE IS LEGAL TENDER..."
is the word "NOTE".
My
American Heritage Electronic Dictionary defines a NOTE as follows: 5.a. A piece of paper currency. b. A certificate issued by a
government or a bank and sometimes negotiable as money. c. A promissory note. It just
so happens that all three definitions apply to a FEDERAL RESERVE
NOTE.
Folks, this stuff is NOT money.
FEDERAL RESERVE NOTES ARE
PSEUDO-MONEY
A FEDERAL RESERVE NOTE is treated AS
money. A FEDERAL RESERVE NOTE is used AS
money, but it is NOT
money. In order to
understand why a FEDERAL RESERVE NOTE is not money, we must examine
what "real" money is.
Money is both a measure and a
store of value.
I credit G. Edward Griffin and
his book The Creature
from Jekyll Island : A Second Look at the Federal Reserve for
opening my eyes as to the real definition of money.
A FEDERAL RESERVE NOTE is used in the same way that real money is used, but it just
doesn't function as well as real
money does. A FEDERAL RESERVE NOTE, like real money, is used as a measure
and as a store of value. The problem with FEDERAL RESERVE NOTES
is that as a measure and store of value, it is much like a bucket used
for measuring and storing water; a bucket with a pin-hole or larger in
it's bottom. That leak in the bottom of a FEDERAL RESERVE NOTE is
called "inflation". If
you store value in an item that allows the value to leak away, then that's not really a
store of value, is it?
WHAT INFLATION IS NOT
I ask you to pause at the end of this paragraph and think about the
definition of inflation that you have in your mind. What is your
definition of inflation?
If you are as ignorant as you were taught to be by the government reprogramming
center, by the public school system, then you think "Inflation is the price of everything going
up." BZZZZZZZ!
Sorry, wrong answer. If that is the case, you are going to be
focused on the question of what the hell is wrong with these greedy
merchants always raising the price of everything. The real
culprits profit from your ignorance. They are stealing from you
and you are too ignorant to know it.
WHAT INFLATION IS
What inflation is, will be shown to you by an Einsteinian "thought
experiment".
First, we must set the scene. You and I have just survived a
crash in the Sahara desert. (Think Flight of the Phoenix, book or
movie.) Fortunately the crash was not quite so far in. With
one liter of water, a person could manage to walk out and
survive. Without one liter of water, a person will perish on the
walk out. Now that annoying mineral water sales robot survived
the crash also. It just happens to have one bottle with one liter
of water, it doesn't drink water so the bottle of water is for sale to
the highest bidder.
I have ten dollars and a nickel in my pocket. You have ten
dollars in your pocket. What is the going price for that bottle
of water?
If you did not say, "Ten dollars and
a nickel" then you do not understand supply and demand.
A person flying over in an airplane has two ten dollar bills in his
pocket. He opens a window and both bills blow out the
window. You get one, I get the other. I now have twenty
dollars and a nickel, you now have twenty dollars. What is the
going price for that bottle of water now?
Exactly. "Twenty dollars and a nickel."
That is inflation. That ten dollar bill now has half the value it
used to have. It now takes two ten dollar bills to equal the same
value that one ten dollar bill used to have. It now takes two ten
dollar bills to equal the same liter of water that a single ten dollar
bill used to be worth. This brings us to the correct definition
of inflation. Inflation is the value of your FEDERAL RESERVE
NOTES decreasing. That's why it takes more of them to purchase
the same items.
With your focus OFF of the greedy merchants, you can now ask the
questions: How is the value of
my FEDERAL RESERVE NOTES diminishing; Who is making the value of my
FEDERAL RESERVE NOTES diminish; and; Why
are they causing the value of my FEDERAL RESERVE NOTES to
diminish? Simply put, the crooks are stealing from you.
HOW INFLATION STEALS FROM YOU
Money is both a measure and a
store of value. Since
most of us acquire money and other property by working for it, the
value of what we receive in exchange for our labor is the value stored
in that money.
If you had a job twenty years ago, and you made $2.40 an hour, then an
hour's worth of work would earn you 4 gallons of milk at the historic
price of 60 cents a gallon.
In order for money to store
value it must have intrinsic
value. The intrinsic value of a penny is the value of its
copper.
What is the intrinsic value of a FEDERAL RESERVE NOTE? In other
words
what is the intrinsic value of a piece of paper with green ink numbers
printed on it?
A NOTE is shorthand for a
promissory note. American Heritage says a promissory note is a written promise
to pay or repay a specified sum of money at a stated time or on
demand. When you write an IOU to the friend that just lent you
$5.00, you have just drafted a promissory note. Your friend has
an IOU note which is your promise to pay.
Since you, your friend, and your other friend who is the convenience
store shopkeeper are in the same neighborhood, you all know each
other. The friend who lent you the $5.00 had lent you the last
$5.00 he had in his pocket. He had a sudden need come up so he
went to the convenience store. He bought exactly $5.00 worth of
goods and paid the shopkeeper by giving him your IOU. The
shopkeeper knows you so he didn't have a problem being paid with an IOU
written by you. This process is called monetizing debt.
You just monetized your debt by creating a NOTE that is a negotiable
instrument.
With this in mind, you now know that a FEDERAL RESERVE NOTE is an IOU.
Federal Reserve note
Paper currency issued by the Federal Reserve Banks. Nearly all the
nation’s circulating currency is in the form of Federal Reserve notes,
which are printed by the Bureau of Engraving and Printing, a bureau of
the U.S. Department of the Treasury. Federal Reserve notes are
obligations of the Federal Reserve Banks and legal tender for all debts.
http://www.federalreserve.gov/pf/pf.htm
