Natural News: The Money System is a Confidence Trick

Posted by The Interest on January 22, 2009

From a post from the Natural News. One more point they need to add: “Where’s the Interest?”

“I thought that, as a scientific man, I ought to know something about economics. So I studied the money system for two years and could make nothing of it. Then, one day, the truth dawned on me. What I was studying was not a system, but a confidence trick.” The conclusion that the money system is a confidence trick comes from “the father of nuclear fission” Nobel Prize winning chemist Frederick Soddy.

A confidence trick is a scam, a racket, a rip off, a con. What makes the money system a confidence trick? Put most simply, money is created for private profit by banks rather than created for the common good by the government. Only the government of a nation should create money. The confidence trick that is the money system takes two forms.

First, rather than simply print money, the government, when it wants more money than it has obtained through taxation, issues bonds. The Federal Reserve then creates new money that did not exist before and uses this money to purchase the bonds. Then the populace, through taxation, is forced to pay the interest on these bonds. This is how the National Debt was created. Rather than impoverishing the populace by forcing them to pay interest on bonds, the government could simply create money instead of having the Federal Reserve create money to purchase government issued bonds.

Second, banks devised a subtle way to counterfeit money. Banks invented a separate and distinct form of money other than cash. Banks invented a kind of money which exists solely as entries in their computers. Over 99% of money exists in this form. Anytime a check, credit card, debit card, or money order is used, electronic bank money is being used. Whenever someone gets a loan from a bank the bank is in fact creating entirely new electronic money that did not exist before. Through this subtle form of counterfeiting banks have been able to take control of the money system. This confidence trick is played not only by US banks but by all banks the world over. The money system is the world`s longest running and most successful confidence trick.

Read the rest here.