OUR WORLD

1) We were taught that money stored value, a unit of account and act as a medium of exchange. This is what have been taught in the class room in university days.


2) Unfortunately, today this is not the case. We are living in the fiat money system, where the money no longer stored value and far from being the medium of exchange.


3) In fiat money system, money no longer backed up by commodities (normally gold) and money is traded as if it is the commodities. Today money does not represent anything, it just a piece of paper.


4) Originally money is only a legal tender or paper receipt, where people use as a medium to exchange the gold with foods or any human neccessities. People use receipts because gold is heavier, and not suitable to be carried around especially involving larger transaction. To avoid this people introduce paper receipts which later made a legal tender.


5) Imagine you require a pair a shoes, you will use the paper receipts issue out by the bank in equivalent value to the gold you deposit in the bank earlier. Say, that for one coin of gold you deposit in the bank, the equivalent value is $100, therefore bank will issue paper receipt for $100 value. With this $100 value of paper receipt, you will carry in your wallet to shop around to get the pair of shoes and other necessities.


6) When everyone in the world start using this paper receipt, consensusly people start accepting this method is infact easier to execute everyday transactions and the solution to the heavier gold. People start calling this receipt as MONEY.


7) After purchasing a pair of shoes at $100, the MONEY has now changing hand to the seller, in exchange for the pair of shoes that you take home. The seller will go to the bank to reedem the $100 money with your coin of gold deposited earlier in the bank, thus the ownership of the gold coin is now transfer to the seller.


8) This is the true spirit of money, used before and should be used forever. However, today money circulated in our economy does not 100% back up by gold, especially in the US. The US Dollar infact has no value, because there is no gold to back it up. As the former Prime Minister Mahathir quoted in his blog chedet.com, US is a bankcrupt nation. The Federal Reserve issue money at their own will for their own interest.


9) The rightful responsibility to issue money should lies in the government hand, however the US government delegate this important power to the Federal Reserve. It should be issued directly by the Treasury Department. To make thing worst, the Federal Reserve does not even owned by the US government. The Federal Reserve is own by a group of smart bankers (bank cartel) who manipulate the law to their advantage.


10) JD Rockefeller and Morgan family, is the true owner of Federal Reserve, which later evolve through time spinning around to the few big boys who owned the World. It does not matter who control the US government, as long the power to print the money stays with them. Who control the MONEY is actually own the world not the US government. The US government control the World because they allowed it to happen.

11) The Federal Reserve is perceived by the public to issue the money upon the instruction of Senate. This may be true, but look carefully, if you care to read, they actually is the one who suggest what to do in the crisis. When crisis arises, the government will look for them for a solution not the treasury department.

12) Ever came across to your mind, where the US$700 billion package announced recently would come from, when everyone knows US is the bankcrupt nation. Does the gold reserve in the Federal Reserve increase out of sudden. Does the gold fall from the sky out of sudden.

13) When they print the money, apart from no gold reserve to back it up, the Feds make the profit called seigniorage profit which is the difference from every US Dollar face value issued with the cost of manufacturing and distributing the dollar.

14) This new money issued by the Feds, will be loan out to US government attached with the interest charges. The US government will never be able to pay this debt, because the debt keep on balloning and never paid. This mean each American citizen is indebted to the Federal Reserve.


15) Originally the US Dollar currency, like other majority currencies in the world has gold reserve to back it up, but when the demand for dollar is high, the Feds has to print it more and more to fulfill the ever increasing demand, bacause the dollar is worldwide accepted and highly used. When the demand is high, the Feds issue the money without gold reserve to back it up, since the gold is not easily available, accessible and in short supply.


16) The Feds job is much more easier, when no one is questioning the gold reserve issue, everyone thought that the Feds has already had the gold before they issue the money.


17) When the money in circulation become too many, the value of money is halved. They say this was caused by the time value of money effect, because $1 value you keep today will not be the same with $1 value, 2 years later. The truth is the value of money is diluted everytime the Feds pump in the money in circulation, forcing us to buy less with the same value of money. This is inflation.

18) Our money have been stolen right infront of us, without us even notice. The money value in or wallet is getting less and less, everyday.

19) This is the real story of what is happening in OUR WORLD. If you care to read this article, you do not have to believe me totally, but for our future generation sake, do your own research, MASTER THIS TOPIC. This is a continuous learning objective, the more people understand this dubious scam in our financial world, the easier the financial reform effort and support could take place. This is not the struggle of alone but together we would be able to change the World or at least at our very own nation and community.