Where We Went Wrong: In God We Trust by JUSTALUCKYFOOL@AOL

“Ex nihilo nihil
fit. Nothing comes from nothing..” Frederick Soddy.

After 5,000 years; an answer.
Yes Virginia, banks do create money “Out of Thin Air.”
“Verified by Empirical Evidence”
****Can banks individually create money out of nothing? – The theories and the empirical evidence ☆***by Richard A. Werner
http://www.sciencedirect.com/science/article/pii/S1057521914001070

ABSTRACT:
This paper presents the first empirical evidence in the history of banking on the question of whether banks can create money out of nothing. The banking crisis has revived interest in this issue, but it had remained unsettled. Three hypotheses are recognized in the literature. According to the financial inter mediation theory of banking, banks are merely intermediaries like other non-bank financial institutions, collecting deposits that are then lent out. According to the fractional reserve theory of banking, individual banks are mere financial intermediaries that cannot create money, but collectively they end up creating money through systemic interaction. A third theory maintains that each individual bank has the power to create money ‘out of nothing’ and does so when it extends credit (the credit creation theory of banking. The question which of the theories is correct has far-reaching implications for research and policy. Surprisingly, despite the longstanding controversy, until now no empirical study has tested the theories. This is the contribution of the present paper. An empirical test is conducted, whereby money is borrowed from a cooperating bank, while its internal records are being monitored, to establish whether in the process of making the loan available to the borrower, the bank transfers these funds from other accounts within or outside the bank, or whether they are newly created. This study establishes for the first time empirically that banks individually create money out of nothing. The money supply is created as ‘fairy dust’ produced by the banks individually, “out of thin air.”

” This study establishes for the first time empirically that banks individually create money out of nothing. The money supply is created as ‘fairy dust’ produced by the banks individually, “out of thin air.”
AFTER more than 80 years-Vindication for the “crank” Frederick Soddy.
” It is important to realize that whichever way it works, it is a case for the bank of
” Heads I win, tails you lose “…”…(U)sually by some such lying phrase as” Every
loan makes a deposit”
“Genuine and Fictitious Loans.
For a loan, if it is a genuine loan, does not make a deposit, because what the borrower gets the lender gives up,
and there is no increase in the quantity of money, but
only an alteration in the identity of the individual owners of it. But if the lender gives up nothing
at all. What the borrower receives is a new issue of money and the quantity is proportionately
increased. So elaborately has the real nature of this ridiculous proceeding been surrounded with
confusion by some of the cleverest and most skillful advocates the world has ever known, that
it still is something of a mystery to ordinary people, who hold their heads and confess they
are “unable to understand finance.” It is not intended that they should.”(The Role Of Money)

“Where We Went Wrong-“In God We Trust.”

“Capitalism is the “best” system to date devised by mankind. As it is administrated, perhaps, is where the “flaw” is manifested. If capitalism used its Central Bank properly, that is for the betterment of the common good, with equality and justice for all, capitalism could be the greatest achievement of mankind.”
” Did Soddy get it right?”
“Give Soddy his just due.”
.”Money is a concept” when ‘coined’,’printed’, or digital form (an entry on a balance sheet) it is a physical representation.
As Soddy stated,
“Money now is the NOTHING you get for SOMETHING before you can get ANYTHING,”
Frederick Soddy (The Role Of Money.”
Economists mention the “Fatal Flaw,”” BOOM & BUST” yet do not ‘see it coming’
ASK again,” Did Soddy get it right?”
The “Fatal Flaw” is the ability of mankind to exponentially create more “Fictitious” money then “Genuine ” money; when unrestrained
you have-inflation-systemic failure, or monetary collapse.

There exists in this world, this universe more wealth than mankind could possibly use. Man has been given dominion
over this wealth. Mankind can not create any wealth and must distribute that which already exists.
Wealth is SOMETHING of value.
ALL Wealth on earth and in the universe exists and is expanding.

“As the world’s population has gone up, the total amount of product available per capita…has gone up.
…exactly the opposite of what…predicted. Indeed, the correlation of increased population with increased
per capita product is so strong that any scientist examining these data would immediately suspect causality…
.(S)o the more people there are, the faster the rate of technological progress, which multiples product per capita,
and whose are cumulative.
So the more of us there are, the more there will be to go around.”(The Human Factor, Robert Zubrin…2015)

We now no longer believe “In God We Trust” as having created all wealth that is needed by mankind.
Yes, we have lost our TRUST In God; now We Trust In Man to create “wealth” from nothing.
” All smoke and mirrors.
All designed with ONE intention: ‘ To Hide The Issuers Alchemy ‘. It does not matter how the ‘money’ is coined, printed, or digitized – It is not wealth. When one understands this basic universal law, they will know of this deceit.”(SODDY)
Wealth is SOMETHING of value.
ALL Wealth on earth and in the universe exists and is expanding.

Money now is the NOTHING you get for SOMETHING (a created value)
before you can get ANYTHING (a created value).
Money is a receipt for SOMETHING (a value given up).
Money can not create ANYTHING (an exchangeable value).
“The Role Of Money”
Frederick Soddy,
“The Monetary System Impedes the Flow.
Since, in all monetary civilizations, it is money that alone
can effect the exchange of wealth and the continuous flow of goods and services
throughout the nation, money has become the life-blood of
the community, and for each individual a veritable license to live at all.
The monetary system is the
distributory mechanism, and this reading of
history, therefore, supports up to the hilt the con-
clusions of those who have made a special study
of what our monetary system has become. It is
the primary and infinitely most important source
of all our present social and international unrest
and for the failure, hitherto, of democracy.

A very slight knowledge of our real existing
monetary system makes it abundantly clear that,
without democracy knowing or allowing it, and
without the matter ever being before the electorate
even as a secondary or minor political issue, the
power of uttering money has been taken out of
national hands and usurped as a perquisite by
the moneylender. Practically every genuine
monetary reformer is unanimous that the only
hope of safety and peace lies in the nation
instantly resuming its prerogative over the issue
of all forms of money, which, legally, it has never
surrendered at all.”

So how is this, to most people not understood, that money is wealth while at the same time
money can not increase wealth, but merely store or exchange what has already been
given up.
What is the “basic flaw?”
Why is that flaw not understood?
Soddy answered these questions, ““So elaborately has the real nature of this ridiculous proceeding been surrounded with confusion by some of the cleverest and most skillful advocates the world has ever known, that it still is something of a mystery to ordinary people, who hold their heads and confess they are” unable to understand finance“. It is not intended that they should.”

As Frederick Soddy has stated as an axiom:
“**** THE THEORY OF MONEY. VIRTUAL
WEALTH….

“WHAT is Money? Let us commence our
study of the role of money by a compre-
hensive definition of what modern money is.

Money now is the NOTHING you get for SOMETHING
before you can get ANYTHING.

Our task is to understand all that this implies.
The definition is, of course, an economic one
referring to ordinary transactions such as earning,
buying, and selling among ordinary folk generous
uncles and other voluntary benefactors not being
under contemplation and the nothing, something,
and anything of the definition refers to things of
real value in themselves usually termed goods and
services, or simply wealth, unless hair-splitting
or purely technical distinctions turning on the
precise definition of wealth is involved. More-
over, it refers to ordinary people,
in the sense of those who neither have the opportunity nor the
power of uttering money themselves. ”

Nowhere is there a mandate to create wealth (money),
the “giving up of SOMETHING before you can get ANYTHING (money).”
The Fatal Flaw is that we do not recognize that MONEY AS WEALTH must be in existence before it can be created (issued). We are flawed in calling…bank issuance MONEY when that issuance is made “out of thin air.” BTW, that has been empirically proven as being ‘credit money’. The same “word”-“money” is used with two opposite meaning. One as a receipt or a value of wealth that is to be redeemed at a future time for wealth. The other use is a copy of a receipt (made out of thin air,’Fairy Dust”), a copy of wealth already owned by someone else.
ALL wealth has already been created, the entire expanding universe.
A Monetary Sovereignty can not create wealth. An MS can by law ‘coin or print’ transferable receipts of wealth in a transferable measured form for its sovereignty.
A Monetary Sovereignty should be allowed to “borrow” from the wealth of the entirety
at zero cost, use that ‘borrowed’ money to help fund “a more perfect union.
Remembering that it must put that money back into its secure holdings so the lawful owners may redeem their individual value upon demand. A Monetary Sovereignty should use for the betterment of all the members of the community, this just method to produce a revenue stream; to charge interest to fund the sovereignty!
We must go back to “IN GOD WE TRUST.”
We have dominion over this universe, all its wealth. As mankind exponentially grows so does the universe; a perfect system.
Only we can screw it up!
Our forefathers understood what “In God We Trust” meant
An HONEST CENTRAL BANK can not, or shall not create wealth.
An honest Central Bank is the guardian of the wealth given up,
…the sole and only entity that may issue receipts on the community wealth,
…must operate with transparency,
…be held accountable.

“THEY” have used the same words to create different meanings!
“MONEY” as a receipt of wealth; “MONEY” as a creation of wealth “out of thin air”.
Nowhere is there a mandate to create wealth (money), the “giving up of SOMETHING
before you can get ANYTHING (money).”
The Constitution allows Congress
…TO BORROW
…TO ‘Coin’
…TO punish counterfeiting.
This is clear in that borrowing, coining, or printing
is authorized of that which is already “wealth given up” and this is also clear
“other then that is ‘counterfeit.”

*** U.S. Constitution.
ARTICLE . 1. ..SECTION. 8.
“The Congress shall have Power …(A). To borrow Money on the credit of the United States;
…(B).To coin Money, regulate the Value thereof, and of foreign Coin, and fix the Standard of Weights and Measures;
The Congress shall have Power …(C).To provide for the Punishment of counterfeiting the Securities and current Coin of the United States;…”
What the Constitution declares:
****(A) “TO BORROW”. It may not ‘create’ Genuine money; that is SOMETHING already owned by individuals and the community.N.B., There is no reason (or request) to pay interest when borrowing from your own sovereign wealth.
**** (B) “TO COIN MONEY, REGULATE.It may either by printing, making stamped tokens, digital dots maintain and control that standard of Weights and
Measures,i.e., the physical representative form of Genuine Money.
**** (C)”To provide for the Punishment of counterfeiting…”
No entity may “create out of thin air” and turn it into SOMETHING that is guaranteed to be redeemable as Genuine money.

SODDY, “Let us right from the start get the signs right.
The owner of money is the creditor and the issuer of it is the debtor, for the owner of money gives
up goods and services to the issuer. In an honest
money system, the issuer of money who gets
for nothing goods and services would do so on
trust for the benefit of the community. In
a fraudulent money system, he does so for the
benefit of himself. It makes no difference whether
he passes off the money and puts it into circulation
himself or lends it at interest for others to pass off
for him. In every case what he so gets to spend or
lend is given up by someone else. Ex nihilo nihil
fit. Nothing comes from nothing…”

“Capitalism is the “best” system to date devised by mankind. As it is administrated, perhaps, is where the “flaw” is manifested. If capitalism used its Central Bank properly, that is for the betterment of the common good, with equality and justice for all, capitalism could be the greatest achievement of mankind.

THE K.I.S. SOLUTION TO DECREASE INEQUALITY GAPS, POVERTY, and NATIONAL DEBT.
ONE SENTENCE -A REPUBLIC DEMOCRATIC CAPITALISTIC ECONOMY WITH An HONEST CENTRAL BANK.
AN HONEST CENTRAL BANK (GUARDIAN) THAT BORROWERS MONEY FROM ITS LAWFUL OWNERS, LENDS IT AND CHARGES INTEREST (TAX) TO SECURE AN INCOME STREAM TO TURN OVER TO CONGRESS TO USE FOR THE BETTERMENT OF ALL.

Read more:…email…. justaluckyfool@aol.com
or click on …
https://bestsolutionsfl.wordpress.com/

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One Response to “Where We Went Wrong: In God We Trust by JUSTALUCKYFOOL@AOL”

  1. Where we went wrong, AMI, Public Banking, and Soddy Solution | The Basilovecchio Blog Says:

    […] https://bestsolutionsfl.wordpress.com/2016/11/12/where-we-went-wrong-in-god-we-trust-by-justaluckyfo… Where We Went Wrong: In God We Trust by JUSTALUCKYFOOL After 5000 years; an answer. Yes Virginia, banks do create money “Out of Thin Air.” “Verified by Empirical Evidence” ****Can banks individually create money out of nothing? – The theories and the empirical evidence ☆***by Richard A. Werner http://www.sciencedirect.com/science/article/pii/S1057521914001070 […]

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