I have heard every excuse expressed, from PUBLIC IGNORANCE to PUBLIC APATHY, concerning the deterioration of FREEDOMS in our United States. I cannot accept IGNORANCE because the public would have TO KNOW to ignore; nor can I accept APATHY for the same reason. It is my opinion that very few people would IGNORE or be APATHETIC towards the fact of their being slaves, in the positive sense, if they were ever exposed to that truth. It was introduced so gradually and with such surreptitiousness no one understood the change or was exposed to the significance of what was happening as truth became a scarce commodity.

The public used to own the medium of exchange. The medium of exchange was gold coin. The paper tokens we used to represent gold coin by proxy during exchanges was able to redeem gold coin and WE THE PEOPLE supported government and directed its policies, BUT:

Gold in the hands of the public is an enemy of the state.

Adolph Hitler

Study exhibit 1 to see the manner in which inquires, concerning our money, are handled by our officials. The term lawful money came into use (2nd paragraph, 1st sentence) came into use … later on; The reference to lawful money was dropped from Federal Reserve notes, But in paragraph 3 of exhibit 1 Mr. Vallarreal is saying Federal Reserve notes constitute 90% of all the money today and are … lawful money.

In exhibit 2 Mr. Vallarreal does not feel any discomfort to admit that gold coin was the lawful money. This will acknowledge your letter of December 3, 1974 with which you forwarded a $20 Federal Reserve note to be exchanged for lawful money. As you know, we have corresponded with you before.

Under existing legislation it is unlawful for the U.S. Government to redeem any currency in gold.

No equivocation at all; he asked for lawful money and was answered: it is unlawful … to redeem … in gold. Lawful money WAS gold coin current as money within the United States, but it is NOT NOW!

What took its place?

What is the modern money?

What amount of it is a dollar quantity?

Congress tells us Currency outstanding is backed by the goods and services produced by the economy, but the term backed hides the fact that redemption in specie has been repudiated and the public’s production is being expropriated. See exhibit 3.

We are told that Congress sets the value of the money they coin, but the only coins in use now are copper-nickel and their value is not set by any official document. (exhibit 4, 2nd paragraph, last sentence).

Take a simple thing like money, everybody uses money; everybody knows that dollar is a measurement of money, but no one seems to know what money is, today, or what amount of it is a dollar quantity. Study exhibit 5 the last word of the first sentence in paragraph two is currency which everyone accepts as meaning money! The quote from the Coinage Act of 1792 says the money shall be expressed in dollars. The letter conveys the thought that the money, today, which everybody accepts is Federal Reserve notes, is the same as in 1792, but the last paragraph speaks of a Federal Reserve note as being WORTH a dollar of the money of account, NOT as a Federal Reserve note being the money of account, which is contradiction and confusion.

When questioned on this point (exhibit 6) the answer (exhibit 7) says: Money of account is officially coined or stamped metal currency … a technical definition for the terminology money of account was not stipulated in the Coinage Act of 1792. That Act did, however, specify what quantity of gold and what quantity of silver as money should be a dollar quantity and since only the money of account shall be expressed in dollar units it holds that gold and silver coin was the stipulated money of account (… coined or stamped metal currency) NOT PAPER!

In exhibit 8 (page 1 | page 2) we find that a dollar, literally, is a dollar’s worth of the money of account of the United States, or United States currency. However, currency is, as established above (exhibit 6) the answer (exhibit 7) coined or stamped metal gold or silver coins (gold and silver commodity coinage) which has not changed since 1792 (exhibit 5), but HAVE BEEN REMOVED from circulation, so the letter explains: Money, as money rather than as a commodity, is wanted … What is money — that is not a commodity? Exhibit 8 continues (middle paragraph 4, page 1) … which grants Congress the power to coin money, regulate the value thereof … Please refer back again to exhibit 4; … the value is not fixed by any official document. Exhibit 8 continues on page 2 The term lawful money has not been defined in Federal Legislation. Why not? However, in exhibit 1, a few years earlier Mr. Rudy Vallarreal had no difficulty in declaring: … notes are issued pursuant to law and are, therefore, lawful money. Shortened: … notes are … lawful money which is confirmed in exhibit 8 (page 2, last paragraph, last sentence) as a practical matter, Federal Reserve notes constitute almost the entire currency in circulation in the U.S. today. Shortened: … Federal Reserve notes constitute currency. But Federal Reserve notes are PAPER and exhibit 7 says again: Money of account is officially coined or stamped metal currency …

Exhibit 8 continues (page 2, paragraph 2, 1st sentence) states: Currency is not, as you suggest, the money of account of the United States. Shortened: Currency is not … the money of account …, but that is an absolute contradiction of exhibit 7 (2nd paragraph, 1st sentence) Shortened: Money of account is … currency … Then insult is added to confusion injury (exhibit 8, page 2, Last paragraph) I trust that your questions have been adequately answered, as this virtually exhausts the information we have on this subject. We are left with the same unanswered questions:

What is money today; what is modern money?

What amount of it is a dollar quantity?

However, if we return to the last sentence of paragraph 2 on page 2 of exhibit 8: Currency is, however, expressed in the money of account. we are being led into considering that: Currency is … expressed in money …

Then currency is not money?

But since money is expressed in dollars that: the expression dollar is the money?

But how can a WORD dollar be the thing it measures?

AGAIN IF CURRENCY IS NOT … MONEY … EXHIBIT 8, BUT MONEY … IS CURRENCY … EXHIBIT 7 … it leads to exhibit 9 asking: … which of the above statements is correct, …

Exhibit 10 states in. other words, dollars (and subdivisions thereof) are the money of account of the United States. Strictly speaking, currency is not the money of account, but is expressed in terms of the money of account, that is, it is expressed in terms of dollars. Shortened: … dollars … are … money … currency is not … money … but it is expressed … in … dollars. In two sentences we have

  1. Dollars are money!
  2. Currency is not money!
  3. Currency is expressed in dollars!

But the Coinage Act of 1792, still in effect today (exhibit 7) IN exhibits 5 and 10 saying: The money of account of the United States shall be expressed in dollars …

Now we have:

  1. Notes are money! exhibit 1
  2. Gold is money! exhibit 2
  3. Goods and services are money! exhibit 3
  4. Money value is not fixed! exhibit 4
  5. Modern money is the same as in 1792! exhibit 5
  6. Money is currency! exhibit 7
  7. Currency is not money! exhibits 8 & 10
  8. Notes are currency! exhibit 8
  9. Money is expressed in dollars exhibit 5 & 10
  10. Dollars are money! exhibit 10
  11. Currency is expressed in dollars! exhibit 10

That the courts will not help is very significant to the writing of this book. The Federal Courts take the view that the MONEY HOAX is political in nature, therefore, not a matter for the courts. I have been told to take the MONEY HOAX up with Congress. I wanted you, the reader, to see the futility of acting on that advice. No one will do FOR us what WE THE PEOPLE must do for ourselves. I promised the last Federal Court Judge, that told me to take it up with Congress, again, that I would take it to the court of Public opinion. I chose the route of associating the MONEY HOAX to the income tax issue because in thousands of years it has always been true that you cannot discuss taxes without discussing the means of payment.

I will state everything as simply as I can. I assure you that this is NOT MY issue; it is OUR issue. We are being expropriated out of all the results of our labors, our representative government, our unalienable rights guaranteed under constitutional law, and everything else; we the people are no longer free we are slaves.

From the official documents it should be obvious that something that is extremely important for us TO KNOW is being KEPT from us. It concerns what, actually, is or is not money. It concerns what we think is or is not money. IT concerns the money and it is about time we concerned ourselves about what is or is not money. A study of exhibit 20 will make clear what the thing was, that we thought was money. It attempts to put into perspective gold certificates, silver certificates and Federal Reserve notes. It attempts to make clear why we thought these pieces of paper were the money and how the Federal Reserve notes were NOT the same as redeemable certificates, but being accepted alongside them as their equal for years, BEFORE having their specie redemptive powers removed, allowed them to replace the gold and silver certificates without notice.

Exhibit 21 extends the perspective to include the modern, as yet, unspecified money of account. The imaginary, mysterious, everybody uses, but nobody knows what it is, medium of exchange.

Exhibit 22 literally speaks for itself and also makes clear that the mystery is still there. LET’S CLEAR IT UP!

Was and still is anything WITHOUT parity accepted during an exchange.
Was and still is anything WITH parity accepted during an exchange.

When gold and silver coin were called money it was an improper application of the term money; they were barter used as media of exchange!
Medium of exchange:
Anything accepted in exchanges for use in subsequent exchanges.
The value of any one thing expressed in terms of another; equal worth or value.

If my simple definitions appear TOO simple; if it is your first thought that it could not be that simple and have gotten as messed up as the official documents indicate; then please read: Free Money, in which the validity of my definitions is confirmed.

This book is involved with how we are controlled, almost completely, and the ultimate destruction the means of that control will inflict upon the Earth and its population.

There is nothing sinister about a medium of exchange as long as it is barter. IT is when the nature of the medium of exchange changes to money per se that the users and holders of money become slaves to its creators and issuers and the beginning of the end commences to be a Treadmill to Oblivion.


Perhaps the title of this book seems a bit unusual, but it should seem very familiar. Reduced to the simplest language using most familiar terminology it is exactly the philosophy of the space age. Everybody is doing it — buying now to pay never. Just as we vote for one thing and get another, so it is with our spending — we think we are paying when in fact we are not! If you do not understand — that is the reason for this book.


p. 33 Fed. Pub. Two Faces of Debt, Free on request: Chicago Fed. Res. Bank.

Buy now — pay never!

All the currencies (paper tokens accepted as money) of the world are floating and the entire world is drowning in debt. All currencies are fiat but the public of the world does not seem to understand the significance of that. Currency has always been the claim check for the medium of exchange it represented. Like a warehouse certificate the paper token unit had to be redeemable to maintain a stable parity relationship with goods and services.

It was not the paper token that maintained the stable parity, it was the commodity, that the paper token redeemed, that maintained the parity relationship. But since the paper token unit was the physical thing (issued against a given commodity held for its redemption) that changed hands it became accepted as being as good as the commodity that it redeemed.

Because the paper token (dollar bill) was the physical thing handled and it remained the physical thing handled, after its specie redemptive powers were removed; the significance of specie-redemption-removal (issued without any commodity held for its redemption) went unrealized. The paper tokens (dollar bills) themselves became accepted as the mediums of exchange and the fact that they were FIAT (non-redeemable) did not seem to hinder their use as mediums of exchange. It seemed as though currency did not have to be worth anything to function as a medium of exchange. THIS FALSE PREMISE TOOK ON THE CLOAK OF CREDIBILITY BY THE VERY NATURE OF THE REASONABLE AND LOGICAL SUPERSTRUCTURE THAT WAS BUILT UPON IT. CURRENCY WAS ONLY A medium of exchange THAT EACH INDIVIDUAL HAD TO WORK FOR; TO OBTAIN IT FROM ANYONE ELSE, THEREFORE, ALL INDIVIDUALS EXPECTED EVERYONE ELSE TO WORK TO GET IT FROM THEM. A REASONABLE AND LOGICAL CONCLUSION.

Who realizes that the ENTITY that creates the money pays ALL EXPENSES of that creation WITH part of the money created and gets ALL ITS money for nothing?

Who realizes that currency worth nothing, being accepted by producers for their goods and services is a drain on production and a creator of accelerating cumulative debt that can never be paid?

How is it possible for a system like this to exist and continue to go on without anyone exposing it? How can bankers and accountants continue to use the system every day without seeing it for what it is? The illogical, unreasonable premise built to hide the true nature of MODERN MONEY is as quoted above: CURRENCY DOES NOT HAVE TO BE REDEEMABLE TO FUNCTION AS A MEDIUM OF EXCHANGE. Bookkeeping and accounting procedures require that there be assets as well as liabilities to make the system function. What asset can be represented by a non-redeemable currency? The answer lies in the very nature of the currency itself, being non-redeemable it causes debt, and debt in the form of OBLIGATIONS-TO-PAY by BORROWERS is the modern justification for the issuance of currency. Debt which is a liability, when used as the COLLATERAL for the issuance of currency becomes an asset as a borrower’s OBLIGATION-TO-PAY in bookkeeping and accounting. This twist by which debt (a liability) becomes money (an asset) in accounting carries with it some strange conclusions.

Modern currencies of the world are issued on public and private debt collateral in the form of Government bonds, private notes and commercial paper. The amount of currency issued is equal to the amount of debt offered by the borrower. The more debt incurred the more money received by the borrower therefore:


The above is a totally irrational conception that appears to be rational only if one accepts that there is no intention of anyone ever paying-off the debts.

Debt — public and private — is here to stay … What is required is not the abolition of debt, but its prudent use and intelligent management.


In addition to securities, the federal government issues noninterest-bearing debt-currency or paper money. Currency is so widely accepted as a medium of exchange that most people do not think of it as debt.

Page 6 Two Faces of Debt, Free on Request: Chicago Federal Reserve Bank.


Normal concept is that debt is a liability and money is an asset. When debt is money — liabilities are assets and bookkeeping no longer determines net worth, but simply records transfers of OBLIGATIONS-TO-PAY. Obligations-to-pay are not final payment therefore MONETIZED DEBT results in a run-a-way accumulation of debt THAT CAN NEVER BE SETTLED!

A warehouse receipt for PEAS, COULD NOT redeem BANANAS. A warehouse receipt for BANANAS, COULD NOT redeem PEAS. In our former MONETARY system, a GOLD CERTIFICATE COULD redeem SILVER, a SILVER CERTIFICATE COULD redeem GOLD and the Banker’s created CREDIT COULD redeem GOLD or SILVER from deposit. This FRAUDULENT procedure was made possible by the symbol ($) representing the quantity specification DOLLAR mistakenly accepted as an ENTITY, thereby removing all respective identity of things deposited.

Modern money, based on debt, referred to and measured in terms of dollars and without redemptive powers on any commodity only serves to represent the RIGHT to TRANSFER OBLIGATIONS-TO-PAY. A transferred obligation-to-pay CANNOT be final payment therefore MONETIZED DEBT NEGATES THE PAYMENT OF DEBTS and debt accumulation accelerates at an ever accelerating rate (runs away)!

The currency (paper tokens) cannot be considered redeemable with the borrower’s collateral because the currency issuers will not redeem the currency by paying-out the collateral. The currency (dollar bills) are no better than BAD CHECKS for which there is nothing on deposit, yet they seem to function without anyone realizing the embezzlement they perform. There is a very understandable reason for that. A bad check is eventually FOUND OUT when the endorsement space on the back is used up and it is deposited for collection. Bad currency (dollar bills), however, do not require endorsement, therefore they pass from hand to hand without their true nature ever being exposed, until debt accumulation, with its unpayable interest burden, brings about the inevitable, final collapse.

In this MODERN MONETARY SYSTEM where debt is referred to and measured in terms of dollars, accepted as ENTITIES, there is a built-in perpetuating force called INTEREST.

In the course of issuing money to a borrower, the issuer always charges a fee. The fee for borrowing money is called interest. The interest is specified in terms of dollars and must be repaid by the borrower in addition to the principle amount. Only if we consider ALL BORROWERS as ONE can we understand that MORE CANNOT BE RETURNED TO AN ONLY SOURCE than is TAKEN from it. All commercial banks, the creators of MODERN MONEY, are regulated by the Federal Reserve Board (the Monetary Authority) and are the only source of modern money.

Currency borrowed by one borrower can be earned and used by another to pay interest, but the currency borrowed also bears an interest burden. In the public’s efforts to pay interest they are collectively borrowing more with which to pay it. As the additional currency is borrowed with which to pay interest, it becomes principle itself and draws interest. Interest burden never goes away. Interest is perpetual. INTEREST CANNOT BE PAID!

If all borrowers were to pay-back all the money borrowed, (ALL THE DOLLARS they RECEIVED), they would still owe all the interest and have no dollars with which to pay it. The interest burden climbs until it is greater than the total production of all borrowers, then the system collapses. THE PEOPLE, IN FULL USE OF PERPETUAL DEBT AS MONEY, A BUY NOW — PAY NEVER SPREE, ARE TOTALLY UNAWARE OF ITS CONSEQUENCES, AND ON A TREADMILL TO FINANCIAL OBLIVION.

Why should you believe me when we the people have been led to believe that all the economic problems we experience emanate from a mysterious monster called INFLATION? A monster so complex and devious that our best NOBEL PRIZE winners and high officials cannot understand it?

Rising inflation and rising unemployment have been mutually reinforcing, rather than the separate effects of separate causes.

Mr. Milton Friedman — Nobel Prize Page 3 N.Y. Times 1-30-77

The rules of economics don’t seem to work like they are supposed to.

Mr. Arthur F. Burns, Chairman of the Federal Reserve Board Page 3 N.Y. Times 1-30-77

One reason why economists are in such disrepute is that they have pretended to understand inflation and to know how to control it, when obviously we do not.

Mr. Wassily Leontieff — Nobel Prize.

If I have done my thinking clearly and objectively there is only one thing that IS INFLATION and that is modern money which is DEBT represented by paper tokens called dollar bills which are accepted by the people as our currency. Now if government prints the currency they should only print enough for the public to use to pay their taxes with. That is all they are entitled to. If they print more than they have coming in taxes that would be the same as counterfeiting would it not? The Government could not spend more than they print, but they could print and spend more than they have coming in taxes. That must be what they call deficit spending.

The public has to give-up some production or perform a service to get currency. That is why the system works because everyone has to work to get dollars therefore they expect everyone else to work to get dollars; except Government, which has the power to tax the public. If the government can print and spend more currency than it has coming in taxes, why don’t they just print what they want and forget about taxing the public?

Government uses the currency it takes in taxes to spend for the goods and services it needs to operate. Why don’t the public use THAT currency it receives with which to pay its taxes? Why does Government have to print so much, all the time? Some is needed to replace old and worn paper tokens. Some is needed to accommodate expansion. But the prodigious amounts being printed cannot be for just those two reasons.

Why does the Government print so much currency? What do they do with it when they are finished printing it? If they print it and have it why don’t they spend it into circulation or is that what is done? If they spend it into circulation and print such prodigious amounts of it, why does the Government have to borrow?

We know that the government prints it. We know that the people have to work to get it. But how do the banks get it to loan to the people and to government?

If the banks get it from the government why does the government have to pay interest to the banks when they borrow it back? Why do they have to borrow it back when they had it in the first place, why didn’t they just use it? If they just use it, that would be unfair if what they used exceeded what they had coming in taxes. However, they are printing prodigious amounts of it. What is being done with it? Who gets it and for what?

In the old days, before this modern money, the printed currency was all silver and gold certificates. There was silver or gold coin on deposit that could be redeemed with the certificates, and surrendering the certificate took it out of circulation.

Gold and silver coin had to be on deposit for redemption of the certificate outstanding. Government could not print more certificates than there was gold or silver coin on deposit to be redeemed. We knew exactly who got the certificates printed by the government. Whoever deposited gold and/or silver coin got gold and/or silver certificates as receipts of the deposit. Who deposits what; to get the modern money? Government printed a modest amount of currency to replace old worn out paper tokens and some additional to cover new deposits of gold and/or silver coin but never the prodigious amounts as now. What is increasing at such prodigious rates that it can justify this accelerating acceleration of the currency volume. It is not gold and it is not silver coin — what is it?

Government printing such huge volumes of currency, far exceeding any claim on taxes, must be printing it to represent something. The currency being printed does not have anything ON DEPOSIT to represent. The currency cannot ever be removed from circulation in the old way by redeeming a deposit because there isn’t any deposit. It must represent something that is growing at the same prodigious rate as the money volume. Something that cannot be deposited and yet establishes a link between the printing of currency and who should get it.

When I finally discovered the truth, it boggled my mind. No wonder our trained and learned Nobel-Prize winning economists could not discover it. Their minds could never conceive that a condition like this could develop. The answer is accurate but thoroughly unbelievable.

The only thing growing at the same prodigious rate at which currency is being printed is DEBT. The currency is being printed to represent DEBT. When a borrower accepts the liability of a loan he receives money. The deeper in debt he goes the more money he receives. The currency (paper tokens) looks the same as the old gold and/or silver certificates that were issued when gold and/or silver coin was deposited. The new Federal Reserve notes are paper and are issued, not upon deposits being made (coins coming into the bank), BUT upon loans being taken out! Currency for which there is nothing on deposit cannot represent anything but DEBT ITSELF, therefore anyone accepting a liability is entitled to the currency representing their debt. The amount of currency received is commensurate with the volume of their loan

No self-respecting economist could possibly accept a concept that boils-down to: THE DEEPER IN DEBT YOU GO THE RICHER YOU BECOME. It is too fantastic and unbelievable. But the evidence of its BEING is irrefutable. The debt volume and money volume are both growing at prodigious and respective amounts. The very fact that currency can be spent, and the currency is given to those going into debt gives the system its name. The Modern Money system is called the MONETIZATION OF DEBT.

Making DEBT SPENDABLE is quite an invention and it is in full operation, though how to justify it, DEFIES ME. There is proof that some recognition of this condition does exist.

Expansion of Central Bank holdings of Government debt provides the Treasury with funds just as certainly as increased output of its engraving and printing facilities.

Page 17 Federal Reserve Bank of St. Louis Review February 1975

Debt is spendable, but the paper tokens issued to represent it and make it spendable, are not collectable from the issuer. The issuers of the paper tokens are not producers of goods. The issuers can never be called upon to give up anything for currency The debt represented by the currency is used by the issuer to obtain production without any fear of ever having to pay for it; BUY NOW! — PAY NEVER The issuers of currency get everything IT buys for nothing. The producers never get wise to their loss because they never suspect the truth. The PRODUCERS all exchange the currency with ONE ANOTHER, giving and receiving in turn, using the currency as a medium of exchange. It never occurs to the producers that the ISSUERS get the currency for nothing and will not give anything for it.

How could any self-respecting economist admit to being a part of a system like that if he truly understood it? There is a possible touch of remorse in the words of Darryl R. Francis then President of the Federal Reserve Bank of St. Louis before the Committee on Banking & Currency, House of Representatives, July 18, 1974:

I doubt that monetization of debt has been a conscious act on the part of the Government or on the part of the Federal Reserve System. Rather, I believe the reason it has occurred lies in the relative visibility of the three methods of financing Government expenditures — taxes, borrowing from the public, and indirect debt monetization … in the case of debt monetization, the immediate and even the short-run impact is neither an increase in taxes, nor an increase in interest rates. And yet, real resources still are being transferred from private to Government use.

The above quote points out that through DEBT MONETIZATION it is possible to STEAL without being found out. Stealing is what debt monetization really is when it is analyzed from any objective viewpoint. How can an economist, trained in these matters, be around it so long without seeing a truth so obvious?

With currency being printed in such prodigious quantities, how come they do not ask themselves who is getting it? For what? Why? Thousands of economists World Wide and no one can see this as STEALING! I am amazed and full of wonderment at a profession that flounders around trying to out guess one another as to what is wrong. Why rules of economics do not seem to work like they are supposed to. It only took a few pages here to reason out that no amount of debt can eliminate debt. Any multi-year excursion into the realm of fantasy and nonsense must end in disaster.

There are only two conclusions I can come to: Either the entire economist membership is totally incompetent, or they are united in their efforts to prevent the panic that will surely come when the public finds out. In the words of Jacques Rueff 1961:

It is the product of a prodigious collective error which will remain in history and, will eventually be recognized as an object of astonishment and scandal:

All I could add to that is that the United States and the world is running wild on this BUY NOW! — PAY NEVER! Spree, and it is for certain a Treadmill to Oblivion!

Our earth is degenerate in these latter days; bribery and corruption are common; children no longer obey their parents; every man wants to write a book, and the end of the world is evidently approaching.

From an ancient Assyrian tablet

How no one can correct a fault of which he is unaware

The world is Governed by very different personages from what is imagined by those who are not behind the scenes.

Benjamin Disraeli

Any one who has seen a Magician perform cannot deny the powerful effect of his illusion. He is billed as a Magician and we expect the illusion and so it is entertainment. To say that truth is stranger than fiction is much easier than getting anyone to accept that premise. Yet, truth IS stranger than fiction. In the above quote Benjamin Disraeli brings out how important viewpoint is, by his reference to behind the scenes. From a vantage point behind the Magician some of his magic may become exposed. Viewpoint is the deciding factor in observing many false premises accepted as truth by the public, as a whole. Some acknowledgment of this is accepted as can be proven by a well known saying: You cannot judge a book by its cover. Well known and accepted as it may be, investigation indicates that more books are sold by title than by content.

There seems to be no limit to which humans will not stretch their imagination to accept a false premise. I was once told, in no uncertain terms: The truth will not sell. There is a great amount of evidence to support that statement and yet I feel that if the truth will not sell, nothing else is worth selling. Truth is fact, correctness, actuality, reality, etc., not as something appears to be, but, what it actually is. To arrive at truth about anything requires observation, calculation and deduction. Only theory is debatable, truth is final. The volume of what is accepted as truth, but is not, is far beyond any human’s normal ability to accept. If this were not so, then truth would not be stranger than fiction.

The entire world as the general public knows it, is not as it appears to be. What the public believes is true is really false and what is really true they are not aware of and will not accept when informed of it — The truth will not sell. Shakespeare’s As You Like It contains the line: All the world is a stage etc., that is true. All the people are performing unaware that they are performing, in accordance with directions from a director, stage-manager, and a scenario they are completely unaware of. The words of Benjamin Disraeli again The world is governed by very different personages from what is imagined … repeat the world is governed. No mention here of nations, countries, or municipalities, repeat: the WORLD is GOVERNED. Was he wrong or is there a force on Earth that directs the behavior of its occupants. That directs them to believe in nations, and nationalities, wars of aggression and greed when in fact none of that is really true. It happens and we see it happen and it is played out upon the stage for us to participate. People are killed, wounded and missing-in-action, that is real only as long as we do not look into the wings or into the audience. This scenario is acted out on a stage that is the Earth itself. There is no wings or audience as such.



  1. Who is this invisible government?
  2. What is its force?
  3. Where does it get its power?
  4. When will it end, if ever?
  5. Why does it persist over the truth?
WHO The invisible government of the world is its world wide interdependent banking system.
WHAT Its force is the monies of the world it creates.
WHERE It gets its power from the fact that all monies today are monetized debt. The people’s credit, monetized by the bankers and used to control the people.
WHEN It will end when its exposure will be accepted by the people and they refuse to use monetized debt as a medium of exchange.
WHY It persists over the truth because all the power of modern money is used to subvert the truth and support a belief in the false world the people SEE all around themselves.

How can this small group of people, hidden within the main body, direct the policies of the body as a whole, without detection? It is possible because most people accept what they see and what they hear without applying any tests for truth. When only gold and silver coins were used and called money, it was believable that one nation might attack another to get needed material it could not pay for. But with modern money, created by the billions, and used to purchase with, why fight, for something you can get with modern money, which costs you nothing?

The people will believe that one country attacks another for chrome, or nickel, or copper, never realizing that with modern money it can be bought for nothing. Who could you not corrupt, if money were no object? What could you not buy, if money were no object? Where could you not go, when could you not use it? Why would you not use modern money if you were the one licensed by the world to create it? You do not have to go beyond the pages of the Wall Street Journal to find this truth.

In Kingston, Jamaica, this week, 20 representatives of the 128 members of the International Monetary Fund will be playing a marvelous game. The IMF Interim Committee — 10 delegates from the industrial nations, 10 from the developing countries — will create about $14 billion in fresh money, after they haggle over who gets to spend it, under what conditions.

The international bureaucrats assembled in the sunny spa don’t normally admit that what they are doing is simply printing money; they describe the process as an expansion of IMF quotas. Nor is a printing press used. The IMF members — including the United States — merely agree that the IMF should write in its ledger that it has an extra $14 billion to lend to the poor and deserving.

Now this inflation-groggy world certainly does not need the injection of another $14 billion in base money, likely to be multiplied into a far larger addition to the world’s money supply.

Review and Outlook Wall Street Journal Page 12 Wednesday, January 7, 1976


20 representatives of the 128 members of the International Monetary Fund.


… after they haggle over who gets to spend it,…


… fresh money …


In Kingston, Jamaica …


… merely agree that the IMF should write in its ledger that it has an extra $14 billion …


… this week …


… to lend to the poor and deserving.


Now this inflation-groggy world certainly does not need the injection of another $14 billion in base money, likely to be multiplied into a far larger addition to the world’s money supply.

AGAIN: How was the $14 Billion in New Money created?


AGAIN: Who did the haggling over who gets to spend it?


Money power denounces, as public enemies, all who question its methods or throw light upon its crimes.

William Jennings Bryan 1896

We have awakened forces that nobody is at all familiar with.

John Connally — Newsweek 8-14-71

What’s at stake is nothing less than the economic order of the free world.

Austria’s then Central Bank Chief Wolfgang Schmitz 9-11-72


Those who create and issue money and credit direct the policies of government, and hold in the hollow of their hands the destiny of the people.

Rt. Hon. Reginald McKenna former president of the Midland Bank of England, ex-secretary of the British Exchequer 1920

Twenty representatives of 128 nations create money, which is all powerful on government policies and destinies of the peoples of those governments. Representatives of 128 nations joined in one organization, to create a belief in monetized debt, to fool and exploit all the people of the world. No one nation could act independently without breaking the conspiratorial agreements that keep the world’s people fooled.

… what is a dollar its just something artificial we throw out there … what you’re doing is you’re fooling people …

Denis Karnofsky — Chief economic adviser St. Louis Federal Reserve Bank — on NEWSMAKERS Ch. 4 TV June 10, 1978

Make-believe money can only be used when it is created in one human mind and accepted in ALL others. If any group of people or nations stopped believing in the monetized debt-make-believe money, its power to support belief in a false world, would be replaced by truth, proportionately. The whole world is in the grip of this monetized debt, MODERN MONEY MADNESS and are believing that the world, as they SEE it is the real world.

How modern ‘money’ is control over people

  • If anyone points a gun in you direction — you fear!
  • If anyone flourishes a knife in a threatening manner — you fear!
  • If anyone raises a club as if to strike you — you fear!

An individual does not have to have been shot to fear a gun. No one has had to have their throat cut to fear a knife. It is not necessary to have been clubbed before, to fear the hurt a club can inflict. What then makes you fear anything, if we have not had personal experience with its potential for creating agony? It is the enlightenment we have had through the various media of information that tell us people can use guns to inflict injury and death.

From the time we were children we have been taught that knives are sharp and used improperly can inflict injury. All of us at one time or another have been cut and this lesson makes knives a most effective weapon to threaten anyone with.

In the case of the club or any heavy object raised in a threatening manner, the fear generated is from self-deduced obvious conclusions of what it would feel like to have that object come in contact with our body.


Modern money (inflation) wrecked Germany in 1923. The people when questioned readily agreed they would accept another WORLD WAR I before they would go through another monetary collapse.

Our own historical experience with Continental Dollars caused the Constitution to specify only gold and silver coin as the money of account of the United States.

Only through the reintroduction of gold coin into France, was Napoleon able to bring order out of chaos, after the French monetary collapse.

Throughout its entire existence, the NAZI REGIME outlawed the use of gold as a medium of exchange in Germany. The results of the NAZI’S use of modern money will live in history for ages as the most heinous. What war cannot be started, continued, and the outcome decided by the nation with the most modern money? What war could be continued after the modern money ran out? If it is not modern money — what then is the ultimate weapon for all time?

Modern money (inflation) accepted as a medium of exchange subjects people and their government to the influence of its creator.

Jenkins Law 11 1971

OLD MONEY (gold and silver coin).

MODERN MONEY (monetized debt).

I can find no benefits accruing to the whole of society from debt monetization, but the risks are very serious and can be expressed in one word — INFLATION.

Darryl R. Francis, then President of the Federal Reserve Bank of St. Louis.



  • What function of Government could not be corrupted, by you?
  • What business could not be destroyed, by you?
  • What manner of injustice could not be inflicted on anyone, by you?
  • What truth could not be suppressed, by you?
  • What commodity could not have its price suppressed, by you?
  • What commodity could not have its price supported, by you?
  • What commodity could not have its supply decreased, by you?
  • What commodity could not have its supply increased, by you?
  • What information media policy could not be directed, by you?
  • What educational material could not be distorted, by you?
  • What school could not have its policies directed, by you?
  • What crime could not be gotten-away-with, by you?


Government, Business, Justice, Truth, Prices, Supply, Information, Education, Schools and Crime are all subject to corrupting influences by anyone to whom MONEY IS NO OBJECT!

Government is controlled by Modern money, therefore Government does not create Modern money, or it would control itself. There is only one entity to whom Modern money is no object. It is the commercial banking system (under regulation by the Federal Reserve Board) that has an OPEN ENDED checking account.

These are the men who create the money we all spend … in effect they determine whether you will be able to buy a car, can afford to take a vacation or buy a new home. Their decisions can effect the security of your job … in the deepest secrecy they plot their strategy … everything is cloaked in deepest secrecy … in making decisions they check with no one — not the President, not the Congress, not the people.

Page 14 PARADE MAGAZINE October 26, 1975

The Commercial Banking system through its monetized debt (Modern Money represented by non-redeemable paper tokens) is the SUPREME force WHO’S WILL IS LAW in the United States.


How compound ‘creation’ increases embezzlement potential

DEMAND LIABILITIES of Commercial Banks are money. DEMAND LIABILITIES are DEPOSIT CREDITS, a MAKE-BELIEVE medium of exchange CREATED by the bank upon receipt of commercial paper or personal notes from the borrowers. The deposit credits become units of IMAGINARY medium of exchange created out of nothing and consisting of nothing, but their make-believe presence as RECORDED on the books. They are represented by physical tokens issued by the bank in exchange for the borrower’s claim to those MYTHICAL units of IMAGINARY medium of exchange. By the use of checks (written directions to banks to shift claims on units from one account to another) and paper note tokens and alloy metal coin tokens, the presence of the not present is accepted and used daily in the economy.

The units of make-believe medium of exchange are actually what is called banker’s credit; the RATIONAL FOR banker’s credit is that there EXISTS an unwritten acceptance of the fact that since the banker is a respectable business man with a large investment in buildings, vaults, and equipment, that his credit in the neighborhood is preeminent. Where a member of the non-bank public may default on a note, the banker’s business depends on his reliability and integrity. A member of the non-bank public (borrower) gives the banker a pledge to pay-back and the banker gives the borrower the right to use his banker’s credit as THEIR OWN, up to the limit of the loan amount.

The banker has a very unique SPECIAL LICENSE: he is allowed to use his credit INDIRECTLY, through borrowers, WITHOUT GIVING A PLEDGE OF PAY-BACK TO THE MERCHANTS. The banker lends the purchasing power he DOES NOT HAVE DIRECTLY to borrowers to use in the economy. The system is so subtle its fundamental premise (THE RIGHT OF ANY GROUP TO CREATE DEMANDS, WITHOUT COMPENSATION, UPON THE PRODUCTION OF OTHERS) is never questioned. All the checks that are deposited by merchants are deposited into the banking system, which is so secret about its records that no outsider has ever audited the Federal Reserve. The deposit credits are the bankers entering in the borrower’s account the numerical notation to ACCEPT AS GOOD ALL CHECKS written by the borrower up to the NUMERICAL LIMIT of the LOAN. The purchasing power represented by this numerical notation, to accept as GOOD checks written to that amount, is the NUMBERS IN A BOOK that IS the recording of the mythical, psychological, entity (demand liabilities of commercial banks) called MONEY by the public.

There isn’t any gold in the vaults, there isn’t any silver, in the vaults, there are no shoes, eggs, quarts of milk, cars, buses, airplanes, toys, candy, jewelry, diamonds, clothing, medicines, art supplies, or any produced goods, for which these numbers can be redeemed. The bank will issue copper-nickel alloy coin tokens and paper note tokens to represent these numbers in the economy, to give credibility to the mythical, psychological, entity; but because there is no production or ANY tangible thing on deposit for their redemption they are not redeemable by the issuer (the commercial banking system) for gold or silver coin as SPECIFIED in the United States Constitution.

The banker’s credit or deposit credit or demand liability or whatever terminology is applied to this IMAGINARY purchasing unit does not really matter. What is imperative to know and understand is that this unit of NOTHING that is being USED by everyone is the ONE AND ONLY MONEY IN USE TODAY. The modern money which in times past was known as banker’s credit was recognized, for many years, as being a competitor and expropriator of the, so-called real money (gold and silver coin). Today with gold and silver coin no longer in use, the only legal tender we have, WE DON’T HAVE, because it is only an object of thought (totally mythical and psychological in nature).

Money is such a routine part of everyday living that its existence and acceptance are ordinarily taken for granted. A user may sense that money must come into being either automatically as a result of economic activity or as an outgrowth of some government operation. But just how this happens all too often remains a mystery … the actual process of money creation takes place in commercial banks. As noted earlier, demand liabilities of commercial banks are money.

MODERN MONEY MECHANICS Page 2-3 Published by Chicago Federal Reserve Bank — Free on request

… the PROCESS of money creation … Its a MENTAL process! BUT!

The original creation of deposit credits (demand liabilities of commercial banks) which are records of a make believe medium of exchange loans on the basis of commercial paper or personal note collateral is ONLY THE BEGINNING!

Creating an IMAGINARY medium of exchange is fantastic enough (the actual thing used is an object of thought), but the procreation (regeneration) or expansion of the volume, PROCESS is considerably MORE fantastic.

The RATE of INCREASE in total volume of deposit credits that are procreated (generated) is regulated by the rules of the system. The RATE of total volume increase is the result of basing an allowable increase amount on a multiple of the AMOUNT of original deposit credit (demand liability) claims REDEPOSITED in the bank by the claim holders. The entire system depends on CONFIDENCE in it, and acceptance by the non-bank public that as long as you can keep on borrowing there is never any NEED to STOP EXPANDING, but only a need to REGULATE the GROWTH RATE of the total money volume.

Debt — public and private — is here to stay … What is required is not the abolition of debt, but its prudent use and intelligent management.

Page 33 Two Faces of Debt, Publication of Chicago Federal Reserve Bank — Free on request

If the RATE is TOO GREAT the fallacy of believing you can borrow yourself out of debt becomes exposed, because the purchasing power per unit deteriorates too rapidly (prices rising). By tempering the system the fallacy remains obscured, prices rise slowly and people accept the changes as PROPERTY APPRECIATION.

The system makes use of a take-off on an extremely successful scientific control device: the feed-back loop. By monitoring the amount of output that returns to the system as input, the output is made proportional to the input. The system is tempered not to create imaginary purchasing power TOO RAPIDLY by linking it to how much of that ALREADY CREATED is NOT BEING USED and is REDEPOSITED as SAVINGS. Money not being used in the economy, has no effect on prices, (Jenkins Law of Competitive Bidding as opposed to the Law of Supply and Demand).

Maintaining a PROCREATION-to-SAVINGS ratio fairly constant (if that were possible) would make the ultimate effect of constantly accumulating debt APPEAR SO GRADUALLY that its appearance at all would be, for all practical purposes, not possible or more readily accepted as being natural appreciation of property.

Deposit credits (demand liabilities) are originally created by the bank for a borrower. There is no other way, there is either a borrower or there is no original creation. The bank creates and the borrower takes possession by receiving a written deposit receipt that he owns the units of imaginary medium of exchange. He can hold units or exchange units in the economy, passing his claim on to another by means of physical tokens (checks, paper notes, or alloy coin tokens) that represent units of imaginary medium of exchange. The holder of a claim on units no matter how received, or in what form they might be, may dispose of units in exchange, hold units, or he may DEPOSIT units.

A deposit of units is handled just as though it were a deposit of something physical. Nothing really entered the bank except tokens, but the records are altered to show the NEW STATUS of the claim. A deposit — (returns a claim on units to the status of a demand liability of the bank), for the claim holder, in a SPECIFIC account. It may be the claim holder moving funds from his savings account to his checking account, or from his checking account to his savings account, or it may be a merchant depositing a claim received in exchange. If it is a checking account then the claim on units can only be shifted by the owner issuing a check (transfer instructions) to the person from whom he received something in exchange. If it is a savings account then the claim can only be altered through withdrawal, by surrendering a portion or all of the claim on units noted in a pass-book in exchange for paper or metal tokens or deposit credit in a checking account. If the claim on demand liabilities is in a specific account, checking or savings, then the deposit is considered to be part of the bank’s RESERVES, which means that UNTIL instructions come in to alter the record of claim, the bank itself, can use those units for ITS reserve requirement DEPOSIT at the Federal Reserve. The AMOUNT of units REDEPOSITED in various types of REDEPOSIT accounts is the result of the actions of the non-bank public. To neutralize any negative effect, an increase or decrease in RATE of redeposits might have on their plans, the Monetary Authority SETS the MULTIPLE that must be applied in THEIR subsequent procreation (expansion of the accumulated volume by new creation for new loans).

A 100 unit claim redeposited in a checking account will justify a specific increase in the total volume of units. The rules specify that the bank MUST hold a portion of that 100 unit claim as its own reserves, when it lends the difference out to another borrower. If the reserve requirement is 8% then the bank will hold 8 units, out of the 100, as its reserve and lend out the remaining 92 units. With 8 held and 92 issued it establishes a Multiple of 11.5 for expansion. The banking system at that reserve requirement would be maintaining a PROCREATION to SAVINGS ratio of 11.5 to 1 (92÷8 = 11.5). The amount of procreation is then 11.5 times the redeposit AMOUNT of THOSE ORIGINALLY CREATED. Units of IMAGINARY mediums of exchange (nothing) is giving BIRTH to additional units of IMAGINARY mediums of exchange (nothing) with the birth of 11.5 units from 1 unit. Nothing is procreating (generating) more nothing to swell the accumulated volume, in ever accelerating amounts, as this TOTALLY UNBELIEVABLE — PROCESS — continues.

The claim holder who redeposits 100 units in a checking account, obviously, does it with the intention of eventually writing checks against that claim. The bank loaned out 92 of those same 100 units to a borrower, — and kept 8 for itself — in its reserve account. There is now DOUBLE the amount of purchasing power that there was BEFORE the redeposit. 100 units the redepositor can write checks against, 92 the new borrower can use and 8 in the bank’s reserve account. A total of 200 units where before there was only 100, hardly a MULTIPLICATION BY 11.5, BUT as mentioned earlier; THIS IS ONLY THE BEGINNING!

Remember the borrower who borrowed the 92 units put those in his checking account so that he could write checks against them. The bank took 7.36 units (8%) of that 92 unit redeposit and put it in its reserve account, as per the rules and loaned out the difference of 84.64 units to a 2nd borrower. The total now looks like the following:

Original claim redepositor 100.00 units
Bank’s reserve on 1st loan 8.00 units
Units loaned to 1st borrower 92.00 units
Bank’s reserve on 2nd Loan 7.36 units
Units loaned to 2nd borrower 84.64 units
Total units now existing 292.00 units

The system using an 8% reserve requirement which allows an 11.5 multiple of new creation (procreation) to savings (those created originally redeposited) will create 1,150.0 new units of imaginary mediums of exchange for every 100 redeposited as savings and the effect of this amount added to the existing volume produces a RATE of increase that is NOT considered TOO RAPID!

A 3% reserve requirement allows a multiple of 32.33 or a procreation (generation) to savings ratio of 32.33 to 1 which advances as follows:

Original claim depositor 100.00 units
Bank reserve on 1st loan 3.00 units
Procreated for 1st new borrower 97.00 units
Bank reserve on 2nd loan 2.91 units
Procreated for 2nd new borrower 94.09 units
Bank reserve on 3rd new borrower 2.82 units
Procreated for 3rd new borrower 91.27 units
Bank reserve on 4th new borrower 2.74 units
Procreated for 4th new borrower 88.53 units
Total units now existing 482.36 units

On and on until the 100 units originally created through the magic of redeposit in a banking system account will justify by the fractional reserve system the generation of 3,233.33 units of newly created (procreated) IMAGINARY purchasing power to the volume already accumulated. Observing the ultimate LARGE effect in the accumulated volume that a SMALL change in the reserve requirement causes, it is evident that a change in the reserve requirement, whenever is directed by the Fed. is a significant move. Whenever the reserve requirement is lowered (say to 5% from 8%) the banking system has MASSIVE MONEY CREATING (LOAN) JUSTIFICATION AND the Fed. is said to have LOOSENED THE PURSE STRINGS. Whenever the reserve requirement is raised (say to 8% from 5%) the banking system has SEVERELY CURTAILED PROCREATION JUSTIFICATION and the Fed. who sets the reserve requirement rate is said to have tightened the purse strings.

The license to set the reserve requirement amount percentage, lobbied for and obtained by the banking system, from Congress is one of the Monetary Authority’s coarse adjustment tools which it uses regularly to attempt to regulate the GROWTH RATE of the total money volume.


As UNBELIEVABLE as the original creation of imaginary mediums of exchange is to begin with, it is only by the procreation (self-generating) aspect of the system that we can understand that the seeds of its own destruction are sewn within it! In the beginning even though the geometrical progression on the accumulated volume is great, its base is small and its effect on Prices is minimal because of the time lag for its invasion to be felt in the far reaches of the economy (trickle down to the last man). In the beginning the rapid expansion appears as a boon and savings are HIGH minimizing the amount that actually bids for goods. With an imaginary medium of exchange that multiplies itself — at 8% — in twelve cycles.

1. 1 unit of original creation expanded = 11. 5
2. 11.5 units of procreation expanded = 132.25
3. 132.25 units of procreation expanded = 1,520.00
4. 1,520.87 units of procreation expanded = 17,490.06
5. 17,490.06 units of procreation expanded = 201,135.71
6. 201,135.71 units of procreation expanded = 2,313,060.00
7. 2,313,060.00 units of procreation expanded = 26,600,198.00
8. 26,600,198.00 units of procreation expanded = 305,902,286.00
9. 305,902,286.00 units of procreation expanded = 3,517,876,289.00
10. 3,517,876,289.00 units of procreation expanded = 40,455,577,323.00
11. 40,455,577,323.00 units of procreation expanded = 465,239,139,220.00
12. 465,239,139,220.00 units of procreation expanded = 5,450,250,101,030.00

5 Trillion 450 Billion 250 Million 101 Thousand thirty.

How ‘confidence’ schemes increase the ‘power’

To be the Monetary Authority (money creator and manager) is not enough in itself to guarantee complete control over the non-bank public. It is necessary to develop and introduce schemes that make certain that the non-bank public’s accepted authority (government) in Washington is also under complete control. The term accepted authority is used here to indicate the duly elected officials, who were elected to office by the votes of the people, in full accordance with the original U.S. Constitution and its first ten amendments, known as the Bill of Rights.

Once the Monetary Authority was brought into being, by Act of Congress, the banking system that LOBBIED to get the Act passed became the ACTUAL government. Congress as a victim of its own actions, has its policies directed by the creators of the money who openly admit that laws are made for those who can pay for them. The Monetary Authority creates money (the bidding material) so they can out-bid the non-bank public at EVERY turn. The public may VOTE for one of the choices they are given, but the official is ELECTED by those that put up the money for his campaign and buy him the vote via the media (television, radio and newspapers).

The Constitution spelled out States rights and made the state more powerful than the federation, it also made the people more powerful than the state. There were checks and balances that were supposed to preserve that arrangement. The Founding Fathers knew of the corruption of which bankers were capable and they made it very clear.

No state shall … make anything but gold and silver coin a tender in payment of debts …

Article 1 Section 10 Paragraph 1 Constitution of the United States.

If the American people ever allow private banks to control the issue of currency, first by inflation, then by deflation, the banks and corporations that will grow up around them will deprive the people of all property until their children will wake up homeless on the continent their fathers conquered.

Thomas Jefferson

Lobbying in Congress was successful and an amendment was passed circumventing those provisions in the Constitution. We now have FIAT (unfunded paper tokens as currency) and every day that passes sees the Monetary Authority, through its front the Federal Government, becoming increasingly more powerful over the will of the people. Through the Federal Government as its front the real governing body (the Monetary Authority) is coming closer to being a true MONARCHY by virtue of a few simple schemes. One of the most difficult to explain is the initial scheme, the Monarch’s own version of the Pigeon Drop (matching funds) and its future mate, of a more diabolical nature, revenue sharing!

The individual members of the non-bank public are the only source of production and services, they labor to turn resources into useable-production. If there is INCENTIVE they will work harder and increase production. WITHOUT incentive they will work less and the production rate will decline. Anyone with enough ambition will eventually try to expand his enterprise by employing additional people, at a fair share of the profit from the increased capacity to produce, and in so doing increase his own total net return. The ability to profit from investing savings in business in a free enterprise atmosphere makes people successful, independent and proud. If these people are supporting their accepted authority (visible government) with taxes, they have a DEGREE of influence on its policies. The Monetary Authority does not want ANY interference with ITS policy directives. They develop ways to weaken their opposition (the will of the people) by reducing the non-bank public’s independence and making them more dependent on the Monetary Authority. They introduce laws through THEIR front (our government) to tax the profits of free enterprise and reduce the net income from which lobbying funds could come. Income tax was and is a violation of the original Constitution of the United States, and the Bill of Rights. The States were supposed to tax the people by-the-numbers to collect the necessary support for itself and to pay their fair assessment for the support of the Federation. Income tax does its bit to keep down the opposition’s (people’s) power to influence while it has absolutely no effect on the Monetary Authority, because the tax is collected in the form of money and the Monetary Authority and commercial banks get all their money for nothing.

In spite of the Income Tax, private business managed to continue and in fact, by greater technological advancements, increase its production, trim its overhead and make a profit.

Next, Social Security was introduced to carry out a new way for the Monetary Authority to influence the opposition’s take-home pay and keep the non-bank public on the borderline of existence. Income Tax was assessed on the basis of net profit. Social Security was a tax that could be taken without regard as to whether or not there was a profit.

Along with the necessity to withhold income tax and social security tax from the employee, the employer was required to MATCH THE FUNDS deducted from the employee’s pay for social security. The employee was receiving a fair share of the profits of the business in the form of wages, NOW BY LAW, the Fed. could INCREASE the share of income of the business that would be TAKEN from the business before it could be given to the employee as an increase in take-home pay. And it could do all this without any regard as to whether it was fair or not. The true nature of this diabolical thing is exposed when it is observed that under the law, if an employee has too much taken out of his pay in a year (because of two or more jobs) he can get a refund, but the employer cannot get a refund of his matching funds! Once a requirement like this is established by an Authority, the victim is at the mercy of the Authority, for AS LONG AS money is accepted in exchange by the non-bank public, and the system is continued. No matter HOW MUCH money that business may be able to send to lobby for a change in the law; the Monetary Authority can out-bid them. You would have GREATER success fighting the ELECTRIC utility with an ELECTRIC machine gun (you could throw it at them)!

When it is necessary for the Monetary Authority to bring a prosperous city or state to heel, they employ methods that have proven themselves over a period of time and in various circumstances. A prosperous city or state paying all its debts on time and actually improving its public facilities is approached by a Federal agency with a proposition: you put up 50% of the cost of a new highway and the government will, MATCH THE FUNDS with Fed. money. The City or State is influenced to increase spending beyond its means to GET the matching funds. The City or State may or may not see their tax revenue being used up too rapidly and decide to pass-up a few propositions. The advertising campaign is then begun, through T.V. Radio and Newspapers and the non-bank public is subjected to all kinds of rhetoric on pollution, crime, criminal rehabilitation, etc., etc. until pressure is brought for the city or state to accept the government’s kind offer. So the city or state finds itself employing more Police, more Pollution Control Inspectors, more employees at the prisons etc.; etc.; with the increased cost of maintaining all these expenditures the city or State begins to falter financially. Government then comes to the rescue with another proposition; Revenue Sharing. The government agrees to refund to the city or state, some of the funds collected from its residents by the government. Federal grants will be made by government to the city or state to help pay the increased costs of the expanded Police dept., Educational expense, Pollution control, upkeep of streets and highways etc., etc. It should be understood that if St. Louis, Missouri gets a share of the taxes paid-in by New Jersey residents so that St. Louis can have a new Symbolic Arch; that New Jersey is getting a portion of St. Louis resident’s taxes paid-in to get the Mosquitoes out of their swamps, in reality, nothing is for nothing to the non-bank public!

Somehow it must be seen that the cities and states are being influenced to spend money for projects that good financial management would never permit them to attempt. Expecting to get, SOMETHING FOR NOTHING, is the most powerful incentive to lead someone astray that was ever invented, it is like the Pigeon-Drop, a con game scam. Matching Funds & Revenue Sharing are just such diabolical schemes; like the cruel trick of hanging a sausage from a stick tied to a dog’s back, so he will run himself to death; so are our cities and states rushing headlong into financial oblivion!

The purpose for all this is CONTROL. The city or state through its Mayor or Governor respectively, attending a Mayor’s or Governor’s council in Washington, asks for handouts from government (grants). GRANTS FROM THE MONETARY AUTHORITY THROUGH ITS FRONT OUR GOVERNMENT ARE THE MOST EXCELLENT MEANS OF IMPOSING POLICY DIRECTIVES!

If you collect the money — you disperse the people!

If you disperse the money — you collect the people!

Ancient Chinese Proverb


He who pays the Piper calls the tune,


When money talks — everybody listens.

Those with the most money, control the most votes.

If the city or state does not CONFORM to the SUGGESTIONS of the Monetary Authority presented through its front the controlled Congress, then the MATCHING FUNDS & REVENUE SHARING FUNDS are WITHHELD until the city or state DOES conform. The system guarantees that no matter how much independence the public tries to maintain through its elected officials, in reality, its elected officials ONLY LISTEN to the DIRECTIVES of the group that put up the money for their election. The people only get the privilege of VOTING for candidates. Their CANDIDATE CHOICES are DECIDED FOR THEM by those already in power. The perpetuation of the system AS IS, is ASSURED because the one ELECTED will be one of those PRESENTED for the VOTES. It doesn’t matter what party affiliations a candidate may have, because in the end all elected officials are compelled, directly or indirectly, to respond to the directives of the Monetary Authority.

It does not matter what you CALL the system, it still allows CONTROL OF A NATION’S PUBLIC to be vested in one INDIVIDUAL; the one who directly controls the Monetary Authority. The Founding Fathers with their Constitution gave us a Limited Republic, the Fed. made us believe it is a Democracy (majority rule) when in FACT we really have an OBSCURED MONARCHY!

… the world is governed by very different personages from what is imagined by those who are not behind the scenes.

Benjamin Disraeli

How industry is forced to become dependent on the banks

Rolling over debt is the inevitable means taken by mostly all industrial borrowers who eventually arrive at the point where they cannot meet the principle and interest payments on time. It is inevitable because as the volume of money increases and the resulting increased bidding per unit of production or service rises (price inflation), industry finds itself having to add more to the selling price of its output. They pay more for labor and materials and charge more for their products, and it would appear that everything balances out. However this is not so. With larger salary and wage payments there are larger wage withholdings and the necessity for industry to match the withholding. So much out of the employee’s pay must be matched by the employer that this alone increases overhead OUT OF PROPORTION to the allowable price increase on the production.

Taxes are applied with sliding scales and although the manufacturer gets a higher price per unit produced and the yearly monetary numerical total income is higher, raising his tax base, the total number of units produced remains the same, for the same number of employees. The tax base on higher wages is also a sliding scale, the higher the pay, the higher the percentage of tax to be withheld, and the higher the amount to be paid by the employer. So even if the employers were allowed to reflect all wage increases and material costs in price increases — they would still continue to suffer because the sliding scale applied to their tax base would reduce their net income. This is the classic story of our nation since 1966 when the first SUPER EXPANSIONS of created money began. Industry, faced with SHRINKING NET INCOME at the same time as HIGHER GROSS INCOME, keeps trying new management, new accounting methods deferring debt etc., but the longer they hold on the greater the differential becomes.

With net income shrinking, industry finds it increasingly more difficult to meet its interest burden. All efforts to expand the business only makes it worse. The depreciation taken against equipment in past years cannot possibly buy the updated replacement in the present inflated economy, because Congress did not allow an inflation adjusted increase in depreciation allowances. In an effort to get the TAX ALLOWANCE FOR NEW EQUIPMENT PURCHASES industry borrows more money to expand with and goes deeper in debt with still higher interest burden. Industry finally cannot pay the principle and interest on time and simply has to borrow a LARGER AMOUNT to pay-off the EXISTING AMOUNT and to get some EXTRA for current expenses.

The gross national product (G.N.P.) is the exchange value of the total amount of goods produced annually expressed in monetary terms (dollars). The G.N.P. keeps increasing as higher prices per unit of production makes the total exchange value higher, even if the number of units remains constant or falls. With a RISING monetary expressed G.N.P. (false G.N.P.) and a FALLING amount of actual produced units (real G.N.P.), which is the actual case now, eventually even the price increases will not make-up for the lack of production. The REPORTED G.N.P. falls, exposing the truth that the UNITS PRODUCED (real G.N.P.) has been falling rapidly. Official statistics now report a G.N.P. and a real G.N.P.

The high unemployment rate confirms that the interest burden has finally seriously effected our industrial productive capacity. As the two G.N.P.s (real and false) fall, the total gross and net earnings are falling for mostly all of industry, however, the DEBT and its BURDEN (INTEREST) are still there and RISING. The debt to assets ratio keeps rising and units of industry begin to collapse. Corporations in existence for over one hundred years find they cannot survive. The G.N.P. falling indicates the whole income producing industrial system is collapsing, the high unemployment rate confirms it.



When government officials see this happening they discuss whether or not to correct the situation by repealing the Legal Tender Act and returning to a 100% reserve system. The Monetary Authority manages to convince them that any exposure of the truth would be an indictment against those in office and that the TRUTH WILL NOT SELL (buy votes for reelection). Congress is influenced by the Monetary Authority to believe that there is nothing wrong with the system — it just needs some FINE TUNING.

Congress is influenced by the monetary authority to pass laws giving tax breaks to the sufferers (individuals and income producing corporations). Congress is influenced by the Monetary Authority that an income policy must be introduced; because if people did not spend their earnings so freely, prices would not rise so rapidly. Here for the first time we hear the OLD ECONOMIC LAWS DO NOT SEEM TO BE WORKING ANYMORE EXCUSE ROUTINE, FROM OUR ECONOMIC ADVISORS. IT USED TO BE: THE MORE PEOPLE EARN AND SPEND THE HEALTHIER THE ECONOMY WILL BE. Now we must have income policies, to fine tune the economy. An income policy is the different ways that the non-bank public spending can be influenced such as: INCOME TAX, INCOME TAX SURCHARGE, COMPULSORY SAVINGS, SOCIAL SECURITY, MEDICARE, MEDICAID, SOCIALIZED MEDICINE, etc., etc.

Meanwhile congress is influenced by the Monetary Authority to authorize greater expenditures for all sorts of aid programs. Pseudo-Quasi, Government-Private enterprises and schemes to keep the economy going and sponsor the recession recovery are tried, Amtrak, semi-private postal service, etc., etc.

To pay for all of this the Treasury must issue greater amounts of debt instruments to the non-bank public to get the money with which to pay. The debt must be recycled as rapidly as possible (do not spend your Social Security Check, deposit it).


Those machines over there, says Mr. Baron, pointing to two whirring presses, used to be printing currency, but now we have them working pretty steadily on the debt.

Mr. Arthur Baron — Foreman Bureau of Engraving & Printing Washington, DC Front Page Wall Street Journal 9-30-75

The Treasury is issuing these fancy pieces of paper at a once-unthinkable pace of more that $1.5 Billion a week.

James P. Gannon — Staff Reporter Front Page W. S. J. 9-30-75

As the Treasury rolls over debt, constantly borrowing LARGER AMOUNTS to pay off EXISTING AMOUNTS, the money volume grows WITHOUT RESTRAINT. In reference to the GERMAN INFLATION of 1923:

Rates were quickly reached, however, that completely disrupted the economy, and they could not be long continued. The attempt to enlarge the revenue in the closing months thus produced the characteristic pattern of the hyperinflation: price increases did not peter out; they exploded.

Page 23 St. Louis Federal Reserve Bank Review February 1975.

How unlimited confidence will not prevent the collapse

With the creation of the first dollar came the beginning of its end. The dollar is a unit of monetary roll-over. The economic system of the U.S. has changed from an original one based on private property as mediums of exchange to one based on a system of extended credit created by the commercial banking system allowing everyone to just borrow their way into hyperinflation.

The accepted principle of modern money is to use records of who owes who, kept by the commercial bankers, and accepted by the non-bank public as its medium of exchange. Instead of gold and silver certificates (claim checks on gold or silver coin stored for their redemption) we now use Federal Reserve notes. Fed. notes are the replacement for the gold and silver certificates, but are not the same in several ways. The Fed. note is not a claim on a record of debt. It is a token that represents the right of its holder to transfer the record of debt to a NEW holder! in exchange for private property.

A Fed. note received in exchange for private property is physical evidence that there is a unit of transferable debt on the books of the banking system that the Fed. note represents. The Fed. note is a token that will allow the holder of it to claim the private property of another person later on in exchange for it.

Each recipient of a paper token is IN REALITY accepting a unit of ROLL OVER record of debt (modern money) that the paper token represents a right to transfer, until he exchanges it for the private property of another. While the paper token is held it ONLY HAS the value he EXPECTS to get for it; TOTALLY PSYCHOLOGICAL.

In the past each recipient of a gold or silver certificate was IN REALITY accepting a unit of gold or silver coin that the certificate can be used to obtain ON DEMAND. While the certificate is held it HAS the value of the gold or silver coin it can be used to redeem; TOTALLY REAL AND LOGICAL. With gold and silver certificates we were using warehouse receipts as the medium of exchange. With MODERN dollars we are using units of imaginary claim on FUTURE PRODUCTION as the mediums of exchange, that is why we are told to BELIEVE that the G.N.P. backs the dollar.

Backed was a word applied to the dollar’s imagined gold reserve when all actual REDEMPTION FOR GOLD COIN was removed from all paper tokens representing dollars. It was used to facilitate a belief on the part of the public that backed with gold and redeemable in gold were similar terms. Actually backed DOES NOT mean redeemable. Eventually the total absence of any gold for dollar redemption was OFFICIALLY ACKNOWLEDGED and the story was tendered that gold backing was not necessary; we owed it all to ourselves and therefore the G.N.P. backed the dollar. This promoted the idea that a dollar held was a claim against the future production and services of other holders.


What really occurred was that when someone bought some thing for a certificate claim on gold, is that the thing was received in exchange for its parity in gold. The certificate was just an interim paper token (accepted as a medium of exchange) acting by proxy FOR the gold.



A certificate that was a claim on ONE OUNCE OF PURE GOLD — COULD NOT be used to purchase ONE OUNCE OF PURE GOLD!! Just the costs of regular business overhead, handling, shipping, insurance and sales tax would have made it prohibitive.


It is an accepted FACT that the DOLLAR can PURCHASE the Gross National Product (G.N.P.). Let us examine the meaning of the words backing and purchase as used, by the following word equation.


1. The dollar can Purchase the G.N.P. True
2. The dollar cannot be backed by the thing it purchases. Because if it were it would be at a loss to the seller of overhead and various other burdens on sales. True
3. The dollar cannot purchase the thing that backs it! Because if it were it would be at a loss to the seller of overhead and various other burdens on sales. True
4. Conclusion: A Only an unbacked dollar can purchase True
5. Conclusion: B Purchase is a word to express expropriation True


If a farmer sold a Watermelon for one dollar, the dollar the farmer holds would be backed by the Watermelon he sold. If the buyer was to EAT the Watermelon, there would no longer be any backing for THAT dollar.

Dollars which are claims on future production and services of others EXPROPRIATE THAT PRODUCTION upon ENTERING the economy. Since they are not warehouse receipts there is NOTHING that can be brought INTO the economy by dollar redemption. The dollars accumulate and as the volume increases the exchange value of each unit decreases requiring more units per unit of production in exchanges. The volume forever increasing causes additional units to be bid per-unit of production which is referred to as prices RISING.

Prices rising are proof that the increase in the volume of money is proceeding at a faster rate than the increase in production. The increase in the money volume is regulated by a reserve requirement expressed as a percentage. A portion of that which was CREATED, BEFORE returning as DEPOSITS in the system is called reserves. In order to prevent prices from rising too fast, the rules of the system specify that the creation of NEW dollars be in proportion to the reserves.

The reserves being the portion of previous creations that have not been used to bid up prices as yet, the difference between the VOLUME CREATED and the volume NOT YET USED is the amount USED SO FAR! By basing NEW CREATION on the portion of old creation NOT USED YET (reserves) the new creation can be kept PROPORTIONAL to the amount of previous creation BEING USED. That is how the reserve requirement QUALIFIES as a regulating device.

When the system was young, (1913-1930) the reserve requirement was high because the volume of accumulated dollars was low and the interest burden did not require large roll-over borrowings. As the system progressed, large volumes of newly created dollars were needed to feed the interest burden of the accumulating mass, and the reserve requirements were adjusted accordingly. Some dollars created on one day, as a multiple of the reserves return on a subsequent day to be reserves themselves, upon which the multiplier will be applied to justify creation of many more dollars. The system generates its own procreative force interest and the reserve requirement is simply adjusted downward to allow the creation of NEW dollars to accelerate. If the reserve requirement were kept at a CONSTANT percentage the volume would still INCREASE at an ever INCREASING rate. The volume of dollars increasing over the many years has reached an accumulation with an interest burden that is greater than the total productive capacity of this nation is able to support. With income from production unable to support the interest burden, borrowers are forced to roll-over (establish a new line of credit to pay off the old one). Rolling over debt does not eliminate debt; it is IMPOSSIBLE for anyone to BORROW themselves OUT of debt.

Creating more money faster to facilitate the rolling-over of debt for some big borrowers like the Treasury, Ginnie May, Reits, etc. simply buys time by postponing the immediate collapse by default, at the expense of shortening the time to the day, which will arrive, when the system cannot create money fast enough to accommodate ALL borrowers rolling-over. As some borrowers are unable to roll-over (restructure their debt) they default and go bankrupt. Businesses in operation for over one hundred years, collapse and cease operations. As more businesses fail and production drops further the gap between money volume and production increases.

As the volume of money increases and the volume of production falls, it causes PRESSURE on prices to rise (dollars to depreciate) and the reserve requirement is powerless to prevent their RISING (dollars depreciating). As time passes the prices rise at a faster rate, businesses collapse at a faster rate, unemployment rises at a faster rate. Prices rising IS the purchasing power of the money falling, and when it falls far enough it becomes impractical to use. The numbers become too large for adding machines and calculators. Prices change so rapidly that Life Insurance becomes impractical. The face value of a policy isn’t enough to mail a letter just weeks after the policy is placed in force. Catalog prices must change so rapidly that a system of base prices are used with a rapidly changing multiplier which is adjusted daily. Eventually prices rise (money depreciates) so rapidly that it becomes totally impractical to use money. People are forced to exchange things directly. A Baker refuses to sell bread, but will readily trade bread for flour, eggs, butter, or milk. Shortages and prices CHANGING too rapidly makes obtaining materials with money an almost impossibility and whether people believe it or not the collapse is REAL and they MUST acknowledge it by refusing to accept money.


How the ‘dollar’ collapse would trigger world monetary collapse

In any other time in our history (last 200 years) the end would come as an exchange of paper tokens is ordered with a substantial depreciation of the currency being phased out. A new dollar with new guarantees of constant value in exchange for a thousand of the old dollars. It is done by closing the banks and moving the decimal point three places to the left on all ledger accounts. Germany in 1948 moved the decimal point one place to the left. France in 1960 moved it two places to the left. Brazil in 1967 moved it three places to the left. Chile in September 1975 moved it three places to the left and changed the name of its unit back again from ESCUDO to PESO. It took 1,000 old Escudos to get one new Peso. In our case if you had ten thousand dollars in the bank ($10,000.00) and they moved the decimal point three places ($10.00000) you would have only ten dollars ($10.00) when they reopened.

The paper tokens are reduced in QUANTITY by rubber-stamping one cent on a ten dollar bill. Metal tokens are punched or distorted to change their volume parity with new issues. The collapse of the money this time will not be in the usual manner as just described, because this time it is not a single currency or one nation that is about to suffer monetary collapse. This time the whole world is involved and the banking system of the world will collapse. The world currencies were tied together in 1944 at Bretton Woods with the formation of the International Monetary Fund (I.M.F.). The U.S. dollar was accepted as a reserve currency (constant unit reference for all other currency parities) and the coming total collapse of the dollar will effect all other currencies. This explains the support of the dollar all around the world. Every nation is supporting the dollar at a tremendous cost to their own monetary well-being in order to postpone the total collapse of the world wide monetary system. The other nations create massive amounts of their money to buy dollars to POSTPONE its collapse, when it should be observed that the collapse IS COMING because the volume of money is too great. Why then do they increase the volume when it is the volume increasing that is causing the inevitable downfall of the money system? Is there conflict?

Increasing volume causes collapse.

Increasing volume postpones collapse.

When the collapse day arrives it will be sudden, triggered in one of many possible ways. Three possible ways it could happen:

Collapse Trigger #1. would be if the prices rising too rapidly: in reality the money Purchasing Power falling too rapidly, triggered an AWARENESS of the inevitable collapse to the Public and they lost confidence in the money. The Public losing confidence in money would try to rid themselves of it IMMEDIATELY, and in so doing trigger the PRICE RUN-A-WAY that would make the collapse immediate.
Collapse Trigger #2. would be if the volume was restrained to hold down price rises thereby making roll-over difficult and triggering bankruptcies and loan defaults which would collapse the banking system.
Collapse Trigger #3 would be the final Physical inability of the system to create new money fast enough to facilitate all those borrowers that wish to roll-over debt. It is this PHYSICAL END to the accelerating volume, that is speeded up by the increases to that volume. There will be a time when increasing the volume will not be Practical.

The Problem is how to sustain the system for as long as Possible. When the money volume is increased, it facilitates roll-overs and allows the system to Perpetuate itself; but some of the increase is used by the Public to bid up the prices. If prices rise TOO RAPIDLY it will trigger loss of confidence and trigger immediate price run-a-way (hyperinflation) which is collapse #1. If the volume DOES NOT increase fast enough it will cause bankruptcies due to lack of LIQUIDITY (money) for roll-overs and defaults on loans will collapse the banking system from within which is collapse #2.


Geometrically Progressing increases in the money volume will cause the system to collapse, because it hastens the day when it will be Physically impossible, even with electronic-transfer to record the numbers fast enough (collapse #3).

This is the end that will occur by the natural laws.

But the increasing money volume also causes rising prices, which, if too rapid, will psychologically effect the public and cause loss of confidence which will trigger run-a-way prices and total collapse that way. The Monetary Authority alternately loosens and tightens the purse strings, to first postpone collapse from one condition and then from another. Loosening speeds up the inevitable (collapse #3), while slowing the immediate psychological collapse #1, and tightening causes bank failures jeopardizing roll-overs (collapse #2).




The system had Progressed beyond the point of no-return. No matter what the Monetary Authority may decide to do, the collapse is inevitable. No amount of confidence can carry the system beyond its physical limits. The units of imaginary mediums of exchange are used by the public in everyday exchanges for goods and services. When they are no longer able to purchase the necessities to sustain life, the public in the misery of starvation will defy the state and resort to bartering.

Money is accepted in exchange for wealth only until the psychological nature of money is exposed, or until the wealth expropriation consumes most of production and the public begins to starve.

Jenkins Economic Truth #20 Money: The Greatest HOAX on Earth

The above holds true for the other nations of the world that are members of the I.M.F. They are all approaching the physical limits of their sections of the over-all world monetary system. The bankruptcies are increasing and the juggling of the money volumes is reaching unmanageable proportions. The expropriation of wealth is trickling down to the last pockets of wealth in the world left to dissipate; the suppliers of raw oil, copper, aluminum, coffee, sugar,, and spices etc., etc. World wide industries are following the paths of national industries like Penn Central, W.T. Grant, and others into bankruptcy. Price rises in other lands are accelerating faster than in the U.S. The world wide monetary system is fast approaching its physical limits to perpetuate itself.

The collapse of any one singular nation is being postponed by the support being tendered by others in an effort to postpone the collapse of the system as a whole. The nations of the world are all suffering the collapse as a whole but are individually INCREASING their OWN potential for collapse by helping to postpone the collapse of the weakest link in the system as it becomes apparent. The result is the strengthening of the weak by the weakening of the strong and an inevitable collapse of ALL AT ONCE. A sudden cataclysmic crash of the world monetary system due to some eventual straw-that-breaks-the-Camel’s-back trigger: probably a series of bank failures somewhere in the world.

The result of this weakening of the strong to strengthen the weak to postpone the inevitable, will be the abatement of the Domino Theory of collapse. The very process of letting the weakest one collapse and it leading to the next weakest to collapse IS the Domino Theory. What they are doing will lead to a NEW theory which is herewith tendered:

The Jenkins Balloon Theory.

Balloon: to inflate; to expand.
to expand; 3. to expand or increase abnormally or improperly; to extend imprudently as, to inflate currency or credit.

Money has been expanded and increased abnormally and improperly. Money has been extended imprudently, and like a balloon, when the end comes it will be as though a balloon were pricked. The more inflated a balloon becomes, the more vulnerable it is to sudden collapse due to bursting. The more inflated it is at the time of bursting the harder it is to find a piece of it after the SUDDEN collapse.


How to return to government as a servant to the people

If the Government were dependent upon the public for support then the public would direct the policies of Government. Government would be a servant of the people.

The Public does not direct the policies of Government or we would not have: Income tax, Social Security tax, Forced Bussing, Matching Funds controls, Revenue Sharing domination, Imperial grants to colleges and universities which enforce directed courses.

If the Government was independent it would not require the support of the public and would direct its own policies and be nobody’s servant.

The Government is not independent or it would not require tax collections for its support. If it collects taxes from the public, but is not the servant of the people, then what ever happened to the natural law:

He who pays the piper calls the tune!

The answer lies in the NATURE of what the public pays its taxes with. If all money today were gold and silver coins or other forms of tangible production, then the public as its producers would be the only source. Government requiring these tangible items with which to pay its bills, would naturally have to obey the wishes of the public and the public would direct the policies of Government.

The public still produces tangible goods. Gold and silver are still mined, but they are no longer being used as the monetary mediums of exchange in the world.

The Government today is dependent upon the commercial bankers, who as the Monetary Authority (Federal Reserve System) have an OPEN ENDED CHECKING ACCOUNT and produce all the monetary medium of exchange called Monetized Debt. It is this Monetized Debt we call money, that is the thing the public pays its taxes with. Since the Government deficit spends (spending huge amounts beyond that which it collects in taxes), it must have a source BEYOND taxes. The only source of Legal Tender is the Monetary Authority (Commercial Bank Members of the Federal Reserve System), therefore the Government is dependent on the commercial bankers (even the public must get it from them). The bankers direct the policies of Government and hold in THEIR HANDS the destiny of the people.

He who pays the piper calls the tune!

Is exonerated, it is still true, it is still very valid! The public just doesn’t seem to realize, that it no longer pays the piper; the banker does, (if the Public refused to pay all taxes Government would still continue to spend).

Government Treasury prints notes, bills, and bonds, and borrows from the bankers directly and from The Public, who gets it from the banker also. The Monetized Debt as money is the only medium of exchange that is legal tender and must be used, therefore the creator of that, is the supreme will in power over the Public and their Government today.

For the News Media to proclaim and the Public to accept, that what we have is what we want or we would not have voted for it, is an untruth. We are responsible, we let it happen, that is true, but what we voted for and thought we were getting is something entirely different.

Our lives and our very pursuit of happiness is being suppressed by a very oppressive force. That force is ruining business and industry, perverting the judiciary, killing our children, in no-win wars and distorting every facet of natural law.

We are being forced to accept an idea, that what we want is cradle-to-the-grave welfare and direction from an elitist group that will take care of us, as though we were cattle.

There are those who, after spending many years in prison, when released, are so lost they only want to get back inside again. But, give any number of people a free CHOICE of prison life or freedom and they will choose freedom. Why then are they voting for and supporting this inexorable, inevitable-outcome-assured, movement to a totally controlled and docile society? Why? Because the power of this force Monetized Debt is being used to convince the Public, that IS what they want!

Social Security, Medicare, Medicaid, Forced Savings, Socialized Medicine, Consumer Protection, etc., etc. are all designed to destroy our sense of responsibility to ourselves. To make us totally dependent on the creators of Monetized Debt money so that our PRODUCTION can NEVER AGAIN be our source of INDEPENDENCE.

How can the Public ever return Government to the role of servant of the people, if the Public themselves cling to the disruptive power and the corrupting influence of Monetized Debt? The Public must refuse to use it first and use their own produced goods as mediums of exchange to destroy the power of Monetized Debt money.

The public may allow Government to continue to use the monetized debt. The Public though should only use tangible mediums of exchange, gold, silver, copper coins at commodity parities in their personal exchanges. The monetized debt tokens would then depreciate so rapidly, that Government would be forced to accept the will of the people. Government would return to allowing tangible goods to be used as mediums of exchange, by removing the Legal Tender Act.

The proof of this, is in knowing, that only the public produces the goods and services that Government must have to operate. If the Public gave Government all that it demanded as taxes, in the form of monetized debt money, but refused to accept, monetized debt money FROM EACH OTHER, for goods and services, the result is obvious.

The public in order to pay taxes in monetized debt, would demand huge quantities per unit of goods, from Government, but use only tangible mediums themselves. If Government tried price Controls, the Public would go underground with their markets and Government would be forced to offer huge quantities of monetized debt to get goods, through the Black Market.

There is not one case in history where, when the people resorted to underground free markets (Black Markets) that the Government did not have to give-in and return to reality.

He who pays the piper calls the tune!

With tangible goods as the mediums of exchange and no, RIGHT-OF-CONTRACT-DESTROYING, LEGAL TENDER ACT, Government would have to depend upon the Public for support. The Public would direct the policies of Government and the Government would once again, truly be, the SERVANT OF THE PEOPLE.

How the system’s ‘Achilles Heel’ offers the solution

If you collect the money you disperse the people. If you disperse the money you collect the people.

Ancient Chinese Proverb.

He who pays the piper calls the tune.


Those who create and issue money and credit direct the policies of government, and hold in the hollow of their hand the destiny of the people.

Sir Reginald McKenna 1922

Modern Money accepted as a medium of exchange subjects people and their government to the influence of its creator!

Merrill M. E. Jenkins Sr., M.R. 1971

The great mass of People on Earth are not leaders, but are followers. They follow those that appear to prosper with less effort than themselves. As an instinct humans observe the efforts and conditions of fellow humans and if their neighbor’s lot seems an improvement over their own, they tend to emulate them. Any instruction from the neighbor as to how they may acquire easily what he has, is accepted with alacrity, and as this passes up the line, each leader of a lower level becomes a follower of an upper level. It is this natural instinct that gives rise to the successful application of a chain of command. This condition accounts for an error made at a high enough level being transmitted to the mass of the Public without them ever becoming aware of the error or its consequences.

If a basic premise is wrong, but the structure built upon that false premise is sound and logical then mankind can be kept from ever examining the basic premise! The longer the false, but apparently true superstructure is accepted the firmer it becomes in the minds of mankind.

Repeat a lie often enough and it becomes fact in the Public mind.

Adolph Hitler

The longer it remains undetected the more difficult it is to expose a false premise. Resistance to change builds with time due to familiarity and association causing less individual thought and effort required to perform a function. Changes always cause increases in the amount of human effort required to perform any given function and mankind has always sought to satisfy its desires with the least amount of effort. Thinking is a very special ability, that in fact raises mankind above the level of animal, but it appears to require a greater amount of effort than physical labor.

There is no amount of physical labor man will not resort to, to avoid the effort of thinking.

Thomas Alva Edison

If the Public was to give some thought, they could not accept such concepts as Monetized Debt which is based upon the basic premise that the more you borrow the richer you become.

Thinking about the existing conditions today: the government insists that the G.N.P. backs the currency in circulation. It APPEARS true because an individual has to work to get currency therefore it is expected that others will give up their production or possessions to get it, (logical and rational superstructure). The Monetary Authorities (the commercial banks) that issue the currency say that the currency represents the monetization of debt and that in fact, nothing backs the currency. Currency is accepted by individuals, for their goods and services because they believe that some one else will take it from them later in exchange for other goods and/or services. No one looks beyond the fact that the currency is still being accepted in exchange. Three quarters of all the money created is created by private institutions which through its purchasing power, exact three times greater influence upon government than the Public, and actually hold the non-bank public as their slaves. (Ref. Chapter LXXI Money: The greatest HOAX on Earth.

…Private institutions issue the largest part of the money stock …

Page 16 Federal Reserve Bank of St. Louis Review February 1975

On page 22:

The decrease in purchasing power incurred by holders of money due to Inflation imparts gains to the issuers of money …

On page 23:

Monetary expansion and inflation come about primarily as the result of actions of the monetary authorities.

On page 4:

When the Federal Government in June 1969 stopped trying to do anything about inflation it turned its activities toward developing scapegoats in order to get Americans to blame their neighbor for their problems. Had the scapegoat strategy not been so effective, it would be humorous.

The creators of the money pay for all costs of its production out of the quantity produced. They purchase all they desire in the world at no cost. They design and execute conditions to influence the public’s honest response to be anything they want it to be. It is never necessarily to bribe anyone directly to do anything, their form of bribery is much more subtle. They use money to create whatever condition is necessary to bend public opinion and reaction in whatever direction and to whatever degree their plans specify.


Ask yourself how you would think and behave if you were the possessor of the exclusive right to create money that all the Public must accept for their labor or possessions (put yourself in the place of the commercial bank elite). Your first thought might be to purchase the world and tell everyone else to get off! Your second thought would be to keep them for slaves. Your third thought would be to control the media and all means of commutation and production so they all had to conform to your indirect directives or starve. Through control of commutation and their elected government you could prevent them from leaving the flock. The Public would be your sheep ready and anxious, through unawareness, to be shorn whenever you wished.


These are the men who create the money we all spend … in effect they determine whether you will be able to buy a car, can afford to take a vacation or buy a new home. Their decisions can effect the security of your Job … in the deepest secrecy they plot their strategy … everything is cloaked in deepest secrecy … in making decisions they check with no one — not the President, not the Congress, not the people.

Page 14 Parade Magazine October 26, 1975

Your (banking elite’s) almost absolute control of the media keeps the Public quite confused, but what about individual conversation. Some individual might find out the truth and tell another, and that one, several others, and they each many others, and the word could get out. One way to combat the truth being distributed by word of mouth would be to pervert the language so that a scientific discussion about money could never take place.

A pre-IMF seminar of eminent economists couldn’t agree on what money is or how banks create it.

Front Page Wall Street Journal 9-24-1971

Another way would be to turn neighbor against neighbor and shut-off word of mouth communication. The easiest way would be to take advantage of the natural chain of command and direct your money-is-no-object influence to control the nation’s natural leaders, the ones the Public looks up to and takes guidance from. Your (banking elite’s) field of endeavor would be noticeably diminished and you could concentrate on a much smaller target. Keep the natural leaders confused and you have the entire public in your flock. As creator of money and master of all natural leaders (without their awareness) you (as the banking elite) have THEIR control of the elected officials they influence and the chain of command is whole and operating without anyone really aware of who the supreme commander is. Because of your control of government is SECRET and INDIRECT through the natural leaders there is a way in which your control could be canceled, a new set of instructions fed through the system, the legal tender act rescinded and the public permitted to turn in their bogus bucks for whatever wealth is still remaining.

Your (the banking elite’s) control must be secret, because if it were not then everyone would want the privilege of creating money and no one would work for it, therefore there would not be any labor or production to steal. Your control is through the natural leaders who must be made to believe that they are the ones who are in charge.

The natural leaders (big business men, fraternal club directors, university alumni, and union leaders etc., etc.) support Senators and Congressmen and lobby for laws which they think favor themselves — never really understanding the over all plan of the banking elite behind the scenes. The natural leaders react to the money creator’s suggestions and directives without ever realizing they are manipulated and are themselves vulnerable to the every whim of the banking elite. With the banking elite indirectly controlling the policies of government through the big corporate leaders and union heads (mechanics), using as tools the Senators and Congressmen they support, means that to initiate any action of the Congress that is not desired by the banking elite would necessitate that we ALERT THEIR DUPES (mechanics) to the truth and have them influence those in Congress (their tools) to rescind the Legal Tender Act. If the natural leaders really understood the part they play in the overall exploitation of the Public, as a whole, and themselves, they would not lose any time in initiating the repeal of the Legal Tender Act, (more specifically ITS REVERSAL and the reintroduction of redeemable mediums of exchange).

To understand why electing new Senators and Congressmen will not get the changes the Public needs to have, we have to resort to the transposition of terms more specifically. If the banking elite are the CONTRACTORS, the natural leaders are the MECHANICS and the Senators and Congressmen their TOOLS, and you do not like what they are doing with the tools, then changing the tools will not have any effect upon the outcome. The only corrective measure would be to discharge the contractor and instruct the mechanics yourself. But the contractor has the money-is-no-object POWER; discharging him and taking over his mechanics will have to be done with something more powerful than money!

There is only one thing in the universe more powerful than money, and that is truth. Money in huge quantities can keep the truth hidden for long periods of time, but in hand to hand combat the truth wins every time. We must remember that although the contractor (banking elite) have SUPERPOWER through money, they are only able to use it SECRETLY to control the mechanics. There is the ACHILLES HEEL. No amount of money could bribe a healthy man to kill himself: once he knows the truth he will not act against his own best interests. The methods employed by the banking elite to manipulate the population cannot stand the light of day. Once the method of control is exposed and understood, by those controlled, they would know their own power and act to return to the system of free enterprise in a free market.

To get BACK to free enterprise in a free market from the present degree of chaos requires some real knowledge about, WHO owes WHO, FOR WHAT. All the existing improvements apparent to the eye were constructed by the people who applied their labor to the structures and units of production. WE THE PEOPLE built and produced everything! If there had not been ANY EXPROPRIATION of wealth taking place, everyone would have exchanged with each other and all debts remaining would be between individuals. To some who do not understand the mechanics of monetizing debt it would appear that the banks only loaned out money they borrowed from someone else and that automatically we owed all debt to ourselves, but that is not the way it is.

The commercial banks created and issued the money they made loans with, and in so doing acquired the title to the wealth pledged for those loans. The cars we have, the homes we have and all the luxuries we have were all produced by the people who work, the banker never made any of it and yet we all owe the bankers for them. He created the money and issued it into the economy and as the initial owner acquired the wealth it purchased, by whatever means, for no effort on his part, all his expenses and salaries were paid out of the proceeds of the loans he made with the money he created.

The bank hath benefit of interest which it earns on money it created out of nothing.

William Patterson 1694

All title to wealth still remaining and presently held by the commercial banks, having been acquired through the expropriation of wealth should be forfeited in a standard bankruptcy procedure, with the title to all wealth they hold auctioned off to the highest bidder, using as the bidding material all the bogus notes and recordings of the money previously created by the bankrupt system. Possession of any dollar balance of currency notes is perfect evidence of the bearer’s right to bid for the wealth with it. Holding any note or instrument of the defunct entity is absolute proof of having been exploited of wealth or labor. Those individuals holding such notes or instruments wishing to accept a lessor rate of redemption FOR EARLIER RESTITUTION would bid HIGHER than others willing to wait until later for a greater rate of redemption.

Each commercial bank group would be audited, and the title to wealth vested in the corporate entity would be subject of Auction. Bank Presidents, all other employees being human, would have the right to bid with their dollars the same as anyone else. Shareholders of the commercial banks and savings and loan associations would be allowed to bid with only those dollars they have that were not obtained through the lending or other manipulation of CREATED money, all other dollars would be forfeited and destroyed.

As all physical token Fed. notes, U.S. notes, and records of dollar balances are use up in bidding, they would be replaced by the Public depositing gold, silver, copper and whatever other units of wealth the people would decide to use as mediums of exchange. All units of wealth would be recorded as to material, weight, and purity. All checks drawn thereafter by anyone would not be honored unless they stated in what material, weight and purity redemption was to be made.

All buildings and equipment owned by the entity bankrupted would either remain in the same hands or change ownership as determined by the outcome of the auction. The banks remaining in business in the absence of legal tender laws would be allowed to issue certificates of deposit just as the Public may write checks. Bank deposit certificates would have to specify material, weight and purity for which it would be redeemed at the bearer’s request, at any time during a normal business hour. The other banks may honor checks not drawn upon themselves subject to clearing just as checks are handled today, with periodic shipment of wealth to and from banks to adjust balances. Any bank or entity issuing false certificates would be subject to severe penalties along with anyone who issued a bad check.

Lending operations would involve the lending of depositor’s wealth under contract or the bank’s own excess wealth with a rent specification involving material, weight and purity. The bank would charge a fee for handling checking accounts for its depositors and pay a fee for the use of depositor’s wealth in lending operations.

No lending operation would be permitted that violated a borrow long to lend short policy.

Government mints might again adopt a constitution arrangement and perform free coinage for whoever brought silver, gold or copper bullion. Producing various size coins all stamped with material, weight and purity. UNDER NO CIRCUMSTANCES would any given quantity of any material be allowed to acquire a NAME such as Continental Dollar or Dollar, or symbol such as ($) for bookkeeping purposes. UNDER NO CIRCUMSTANCES would any bank be allowed to redeem with silver a certificate, check or any other claim unit specified redeemable in gold, or use gold to redeem any unit specified to be redeemable in silver etc., etc. UNDER NO CIRCUMSTANCES would any entity, government or private, be allowed to fix the relative values of any units of wealth for certificate redemption or for any other reason. All parities for all things would be a natural result of free market free enterprise operations.

Where freedom reigns, those who do not produce food directly, have to produce wealth or perform service to exchange for it.

Economic Truth #21 Money: The greatest HOAX on Earth

Any exchange between producers involving an element of time between acceptance and redemption of a unit of 100% redeemable certificates, subjects the bearer to the risk of parity change of the wealth accepted (supply) by proxy and the wealth or service offered (demand). 100% redeemable certificates can never be the thing it is a claim check for (the certificate cannot be the supply) and therefore can only represent that thing by proxy; since the thing it represents may be used as a medium of exchange, for instance: gold if the certificate is redeemable in gold (gold is the supply redeemable on demand). The gold is the medium of exchange and the certificate is a token representing it and acting as a claim check for it. The certificate itself is no part of the medium of exchange (gold)! If the bearer of the 100% redeemable certificate is satisfied to hold the proxy claim check (for gold on demand) and hasn’t any concern over its validity or the ability of those who issued it to redeem it, all well and good, it is the holder’s prerogative! To accept or refuse the 100% redeemable certificate in exchange should be the producer’s choice, just as he has a choice to accept or refuse any type of check, and for whatever reason he may fancy.

For those producers who do not wish to accept promissory notes and checks there should be certificates and coin available that is full comparable parity itself, during exchanges. These should be coins minted by government or in private mints with their correct material, weight and purity stamped on them. To protect the coins from shaving or dusting practices of the past (debasing techniques) they should be encased in clear plastic, perhaps with a chemical enclosed also, that would cause a color change in the plastic if the chemical becomes exposed to air. Such an arrangement would immediately make it evident if the plastic envelope had been tampered with and also indicate when it should be replaced to prevent wear of the coin enclosed within. The plastic coating would in no way impair the ability of Coin Vending or bank equipment electronics from checking the validity of the coin’s precious metal.

Precious metal woven into a cloth, encased in plastic exactly as described above, printed with material, weight and purity of the cloth could be a form of sheet wealth with full comparable parity for exchanges. all parities for all coinages and sheet wealth would be determined by the operations of the free market as a natural result of the free enterprise exchanges that developed.

The precious metal coins and sheet wealth would be the private property of the individual holder to do with as he or she pleased. They could be melted, dissolved, saved, consumed or used as mediums of exchange. New coinage or sheet wealth would come into existence when individuals brought precious metals to the Government Mints to be fabricated, as a free service of government to its taxpayers or for a modest fee to the individual requesting the minting. Any number of different metals could be used and their eventual numerical volume of units would be determined by their popularity with the people as mediums of exchange or wealth storage units.

Using precious metal coins, 100% redeemable certificates, and sheet wealth simultaneously as mediums of exchange would guarantee maximum facility for exchange of goods and services in the marketplace. Any exchange value (parity) changes that developed between them would be real and correct because of having been determined by free enterprise in a free market.

If the legal tender acts were rescinded and the environment envisioned above where to come to pass, with it would come the greatest prospect for progress ever to be seen on Earth. Without the corruptive influence of money the policies of government would be directed by the wealth producing public. The laws that would prevail would be those that protected free enterprise and assured just reward for creative and progressive effort. With the true cost of running government being paid by the people with taxes equal for each and all as per the Constitution, there would be no Income Tax penalty for ingenuity and extra effort. Without restrictions on competition and taxes on improvements the Public would produce as never before. Those who are handicapped or in any other way unable to produce would have the benefit of a return of volunteer supported charities, that would flourish, as they did before income tax and social security, instead of Government sponsored, freedom robbing, welfare. The standard of living would rise as the cost of living fell and we would enter an age of progress and plenty. As it is we are seeing the work force diminish daily and the G.N.P. in real terms shrinking.

Eventually the loss of production will generate the beginnings of a famine in the world and the onset of underground free markets (which government will label black markets), then rapid deterioration of freedoms along with ever increasing government control over every phase of public endeavor.

The solution given here would return to the Public the greatest portion of restitution for the expropriation of wealth that has taken place. If the Achilles Heel is ignored, and the situation is allowed to continue its deterioration, the final outcome will be a deflationary exchange of three or more places to the left or total economic collapse.

About the author

Merrill M. E. Jenkins, Sr., M. R. had over twenty years of effort devoted to the creation of electro-mechanical devices used by the Automatic Vending Industry for the detection and rejection of counterfeit coin and paper currency before he discovered the fallacies of U.S. paper and metal tokens. He has devoted almost all his time since June 24, 1968, to alerting the U.S. citizen to the most unbelievable world monetary upheaval that is inevitable in our future. He wrote:

  1. ‘Money:’ The Greatest Hoax on Earth — Merrill Jenkins’ first book is an extremely detailed publication for those who desire a scientifically accurate, in-depth, knowledge of MONEY — what it is and isn’t. After countless letters to officials in many branches of government, all fruitless, Mr. Jenkins wrote the IRS and requested return of all income tax collected or accepted from him since June 24, 1968.
  2. Everything I Have Was TheIR$ — After several attempts to be a witness for defendants in cases involving IRS entrapment and being refused the right to be a witness (in violation of the Constitution) he decided to write an expose of I.R.S. as his second book. Some one hundred sixty pages of that correspondence with officials including all letters to and from IRS are reproduced herein.
  3. IRS ‘Indicted’ for Fraud and Extortion — The third book by Merrill Jenkins.
  4. Free Money (1979) — The fourth book by Merril Jenkins explains in very simple language the exploitation of the people as a whole by the few clever ones who enjoy the free lunches we are told are not available. It discloses the justification for all producers to avail themselves of free money.
  5. Treadmill to Oblivion (Buy Now, Pay Never) — Here is one specifically written for the business world, from industrialist to stockbroker. Anyone who works for or uses modern money should know where it is leading them. This book is not for the easily frightened. IT IS for those who want to know the whole shocking truth no matter what! Reading this book will change your life!
  6. Aeonic Monetary Delusion — The public has been burdened with a disease for thousands of years; never suspecting that their Monetary System is inimical to their interests. This book explains it in simple understandable terms! The cure for a disease can only come after the identity of its cause.
  7. A Treatise on Monetary Reform — Traces the history of the Monetary System disease and its manifestations through thousands of years. A chronological presentation of symptoms with a solution presented in total perspective to those symptoms.

Mr. Jenkins does not wish to create trouble for the United States, BUT that is all he can see in store, if the U.S. does not return immediately to operating within the parameters of the Constitution. He is not a TAX PROTESTER or TAX RESISTER, his stand is concerned with being forced to fill out forms with information he cannot, and the officials will not, verify.

Mr. Jenkins calls himself a Constitution Conservation Consultant and has registered himself with the proper agency of government as THE MONETARY REALIST. His intentions are to use whatever legal and lawful means, that are still available to him, to alert the Public of the dangers spawned by their unawareness of the blatant deviations from the chains of the Constitution being exercised daily.

For information on how to obtain the above mentioned books contact Liberty Books.