The Problem & Solutions

The item used as money, Federal Reserve ‘dollars’, increases in quantity dramatically year to year and simultaneously loses value. These new dollars take value from all existing dollars, like the ones listed in your bank account. (see graphic)

Why do prices rise? Since the value of the dollar decreases, companies raise their prices to get the same value. You’re not paying more value, but you have to pay more dollars because the dollars (the money) is worth less.

New dollars are created when someone issues a promissory note (an IOU). The process is called a loan (and there is a ‘loan’ element in the process) but it’s primarily a promissory note. When someone writes a promissory note (via a ‘loan application’), new ‘dollars’ are created.

The solutions:

  1. Choose something to use as money that has a relatively stable quantity.
  2. Stop taxing money. If someone buys a shirt with gold, sales taxes would only apply to the shirt, not the gold. This would be combined with removing the capital gains taxes on items used as money.
  3. Balance the federal budget: the United States Federal government spends much more than it receives via taxes, so it ‘borrows’ from Federal Reserve to make up the difference. This process creates trillions of new dollars, which take value from your dollars. This is a hidden tax, and to hide this tax, the government created and works with the Federal Reserve bank.
  4. Expose the potential fraud of modern-day ‘loans’ since no money is being lent. You issue a promissory note to a bank, then they create an ‘accounts payable’ on their books. We may be using their ledger entries as money.

Brain Teasers

Human head with glowing lightbulb insideHow much does 10 dollars cost? How can you pay for gas with gas?

Corruption of Money

DetourLearn the history of money, from barter to indirect barter to … government fraud.

Protect Yourself

Tourist with hat, sunglasses, and binocularsPrices are going up because your money is going down. Limit your exposure to your local currency like a tourist.

U.S. Annual Inflation Rate: 7.3%

The rate that Federal Reserve banks and the U.S. administration create dollars (and stealth-tax your wealth and earnings.)

Annual changes in Fed Reserve dollar quantity - through 2017 August

12.6 T dollars; Doubled in 8 years

The total dollars and how quickly the banks double the quantity. Dollars are worth half as much, when the quantity doubles.

Line chart of Fed Reserve Dollar Quantity from 1959 to 2017, with callouts showing when total dollar quantity doubled. Current total is 12.6 Trillion



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