The global money swindle
by Eberhard Hamer, professor at the Hanover Institute of the Middle Classes
From the state currency to the private currency
The decisive step towards the abandonment of the state currency was the founding, in 1913, of the Federal Reserve System of the United States. Although the US Constitution only provides for gold and silver as legal tender, a cartel founded by private banks and led by the two major financial groups Rothschild and Rockefeller has created a private central bank entitled to issue its own currency, become a legal means of payment and initially guaranteed by the United States Government. After the First World War, this private bank bought the world's gold reserves. As a result, many other currencies could no longer maintain their gold standard and sank into deflation (the first global economic crisis).
• At the end of the Second World War, the introduction of a new dollar-gold standard was therefore decided in 1944 at Bretton Woods. During the World War, the United States demanded belligerents to pay for gold weapons. Germany's gold had to be returned as booty. Thus, more than 30000 tonnes of gold from around the world have accumulated in the United States, more than in any other country combined. This gold served as a hedge for the dollar. But since the world's central banks held a large portion of the dollars as monetary reserves, the United States was able to issue more money than its gold amount. The foreigner needed dollars to buy the raw materials processed only in this currency. In addition to gold, the dollar has therefore become increasingly a monetary reserve of other central banks. The dollar's reign over the world had begun.
• In 1971, US President Richard Nixon has removed the requirement to convert the dollar into gold (dollar-gold standard) and, at the same time, the state's responsibility for the dollar. Since then, the US currency is no longer covered by gold or the guarantee of the state, but remains the free private currency of the Federal Reserve System (the Fed). The dollar and all other currencies in the world therefore no longer retain value, but is a simple means of payment printed and legalized.
• While the law may require the acceptance of an unhedged currency as a medium of exchange, it can not do the same as a means of preserving value. In this case, the note holder's confidence that the value of his currency is assured in the long run is necessary. In turn, the long-term price - the confidence - of a flexible currency depends solely on the rarity of that currency or the size of the money supply. The problem is that the mass of goods has only quadrupled during the last thirty years while the money supply has multiplied by forty.
• An increase in the money supply always implies inflation. And inflation leads to a depreciation of the currency. Three solutions have been used to solve this problem:
Since the founding of the Federal Bank of Germany, German financial science had demanded the establishment of a "fourth power" in favor of the issuing institution to enable it to withstand the pressures for excess of money supply and, therefore, to rely on the maintenance of monetary value. In fact, the Federal Bank was required by law to preserve the value of the mark (the theory of the neutral currency) and was largely independent of the state. Under these conditions, the mark, the most stable currency in the world, has been used increasingly as a reserve currency and investment currency.
Most other states preferred a quantity-based currency. They forced their central banks to determine their monetary masses according to certain objectives, such as economic growth or full employment. National policy took advantage of this development to exert its influence on the central bank and the currency, which regularly led to an inflation of the money supply (examples: France, Italy, Spain).
On the other hand, most dictatorships in developing countries and the Fed have preferred a "quantitatively free money", that is to say a currency whose excesses by the policy or the private owners of the Reserve System are not not limited by law. A "quantitatively free money" has always meant "money that can be abused freely" and has never worked in the long run.
Most importantly, it is important not to underestimate the tensions in exchange rates when parallel currencies, such as the mark, of which the issuing State banks preserve value, and the currencies of the state banks subject to it, private banks, which are manipulated according to the objectives of the issuer: as the German Federal Bank has kept the value of the mark relatively stable and that of other major currencies decreased ever more strongly due to the increase money-holders and inflation, currency holders have naturally tried to invest in long-term currencies and avoid weak currencies.
• Since then, no single currency in the world has any value base whatsoever, the world currency has become detached from any real value, the notes are printed without stopping and their value is continually decreasing because of their constant increase. If people still believe that the paper money they hold has a fixed value, it results from clever manipulations of the exchanges giving the illusion of a relation of values. In fact, the exchanges are manipulated by the groups that also generate the increase of the money supply.
• In practice, the Federal Private Reserve System, led by US-based high finance, has achieved the importance of a global currency system:
The dollar, the private currency of the Fed, already dominates the world by its money supply. More than 75% of the world currency are dollars.
The high finance of the United States has also forced the commodity markets it controls to sell their products in dollars. Whoever does not sell his oil for worthless dollars is declared a terrorist (Saddam).
Central banks in other countries have also been forced to accept dollars as monetary reserves in increasing proportions (more than 90% in the case of the European Central Bank). The value of other currencies - such as the euro - is therefore more than 90% of dollar notes worthless, relying only on the strength and will of American high finance.
Foreign central banks were brought with or without softness (Switzerland) to sell or "lend" their gold reserves for dollars. Thus, the gold of the world has again concentrated, as before the first global economic crisis, among the owners of the Fed, so that a gold standard system could be reinstated only in accordance with their will and that they would do for the century simply because of a monetary reform leading to a new price fixing of gold (Greenspan: "perhaps up to 6000 dollars").
The high finance of the United States therefore determines through the Fed, which belongs to him, the currency and the exchange of the whole world. The dollar is the private currency of this high finance. It is not guaranteed by anyone else, but is abused as much as possible, grown and modeled as an instrument of its dominance over the world and the theft of all raw materials and important real values.
• By unscrupulously increasing the amount of dollars, the United States' top finance has provided unlimited liquidity to buy the world. By this issue, the US state can issue more dollars than it receives (unbridled debt). Both the high domineering finance of the United States and the government it dominates benefit from the increase in the money supply. As a result, the volume of dollars has grown ever faster in the last decade.
• In the same way, the debts of the State have increased considerably towards the foreigner. The United States government therefore orders more and more real property abroad, which it pays for with valueless bills - the modern form of tribute.
• Clever staging and blackmail must be attributed to the fact that this unlimited expansion of dollars has not long led to the fall of this currency and the refusal of clients to accept it: high finance and US government has been forcing the world's major central banks (the European Central Bank, the Bank of Japan, the Bank of China, etc.) economically and politically for years to keep worthless dollars accumulated in exports or purchases of real values and hold them as currency reserves constituting so-called value. This practically means that the central banks of China, Japan and Europe are accumulating in ever greater quantities, as supposedly valuable monetary reserves, the worthless dollars coming to them as a result of the deliveries of their nationals' goods. The currency of the satellite states is thus already guaranteed by dollars whose value is always decreasing; it has also almost lost its value. Thus, all these currencies sail on the same boat of the devaluation, the promoters of the increase of the money supply in New York and Washington as well as their aid increasing the money supply in the central banks of the satellite states.
• However, the US debtor itself decides to what extent it will ultimately pluck its financiers through a formal devaluation of the dollar and get rid of its debt at their expense. The foreigner, who holds 80% of the dollars, will suffer mainly the effects of the devaluation of this currency. The debtor is at liberty to determine to what extent he will devalue his debts and thereby rob his creditors.
• However, the manipulation of the prices makes believe to the public that the currencies manipulated and increased limitless always have a solid course.
• If currency holders knew that they only have paper in their hands, but that everything depends on the manipulations, abuses, power and objectives of US high finance, the speed of circulation the currency would increase further because of the refusal to accept the currency, a flight into the real values would take place, it would follow an inflation accelerating dramatically, even galloping, the depreciation long made investments in nominal value (papers money, bonds, investment funds, etc.) would lead to a second crash, the devaluation would lead to the ruin of the financial sector, which should face lawsuits in damages, so that a monetary reform would become inevitable.
Despite a dramatic depreciation, the illusion of the value of money is still artificially maintained by the obligation to consider the notes as legal means of payment. The profiteers of this system are not only the high finance of the United States which, by his Fed, places in the world of the masses of dollars always more considerable, but also central banks leading the same game, such as the European Central Bank (ECB ) and the Bank of Japan. The directors of these institutes know very well how much the dollar has lost all value, but still reinforce the illusion of the average legal payment dollar, have fallen silent for political reasons and have hedged their own currency with monetary reserves denominated in worthless dollars. If a monetary reform took place, the ECB in particular would be devoid of values. The presence of gold is probably limited to a simple claim and therefore no longer consists of real gold. Most of the time, it is allegedly lent in kind to the Fed, which in turn lends it, so it is no longer seizable in case of collapse. The system is based on the fact that an abuse is neither discussed nor published.
• Fact # 1: The global money supply has been so much increased and has such a fragile base (dollars, euros, yen, etc.) that the corresponding currencies no longer have a real function of value retention, so important to citizen's eyes.
• Fact # 2: Only manipulation and deception about a value of the currency that no longer exists artificially preserves the currency exchange function.
• Fact No. 3: The dollar, the private currency of American high finance, has long since broken all ties with a real value (gold) or with a determined money supply. It has not only lost its function of preserving value, but no longer deceives the world, about a purported exchange value of private money devalued by an unlimited increase, than by manipulations of course prices. the whole planet. Only this deception and the power of high finance in the United States still fuel an artificial "trust" in the dollar. On the other hand, if the market participants knew that they had in hand, with the nominal value of the note, only the worthless promise of individuals in whom have long been no longer trusted, who constantly abuse their power to to manipulate the value of money, this confidence would have collapsed for a long time.
• It's about stocks like money. Most of these titles have no substance and only contain hope. The one who thought he had won a lot in the rapid rise of stocks learned from the crash that action has, besides the value of paper, only hope, but that it can easily disappear. The gain or loss in the game of the Stock Exchange are mere expectations and not real values. This is also the case with money. The only real value is that of paper. The rest is a trust in corrupt but strong global financial powers.
Stranglehold on real values by means of a currency-fiction
If the market participants knew that our monetary system ultimately rests on the private currency that is the dollar and that this currency depends solely on the wishes of manipulation and abuse of the financial oligarchy, they would lose confidence in the currency, would not consider the latter as a means of preserving value, but would try to escape the constant devaluation of money by taking refuge in real values.
This is the action of those who, hidden behind the Fed, are making the largest increase in the money supply of all time. For decades, they have been buying with a currency losing more and more of its value all the real values that they find: stocks of raw materials, industrial complexes, buildings and almost every foreign financial company almost intact by a friendly recovery or hostile, at almost any price. Not only does the high finance of the United States accumulate real world values, but also the State has been importing for years worthless real money from the value paper money, more real values of the world than it can pay. and so indebted to the foreigner - so long as foreign creditors still believe in the value of the dollar, or may be forced, by political blackmail, to take these rotted dollars as monetary reserves.