My grandparents never owed anybody a cent. They paid cash for everything, never had an "account"at a shop, and a credit card was something unheard of. They understood real money and real money was backed by gold and silver. If a country did not have paper money backed by gold and silver in their vaults, then they did not have money.
Every Christmas my grandmother would bake the Christmas pudding, that is what they did in those days, they actually MADE THEIR OWN FOOD! And she would dutifully put tickies in it. A ticky for those who were only born yesterday, was a small silver coin. It was real money. It had real value and if you were lucky enough to almost break a tooth on a ticky while eating Christmas pudding , you were rich!
Then these "clever"people at the Federal Reserve Bank in New York came up with a great idea. They had a money machine......... really! A machine that made bits of paper with pretty pictures on it and they actually managed to convince the US Treasury that this confetti had value, even though the stuff was not backed by anything, not gold, not silver, not wheat, not chickens......... nada! Not even a cabbage!
They got even smarter than that, they printed all this stuff, gave it to the US Treasury and told them they had to pay back this "money" with interest. So the US Treasury told the American people that they had to work hard and pay tax to the Treasury so the Treasury could pay the Federal Reserve for the bits of paper, and then some.......... the "interest.". Imagine that!
Then these banks got even smarter, they created "credit,"lending people money they did not have in the first place , other than some numbers on a screen, and charging them interest for these loans, however, these banks would lend each other money at NO Interest and they would bet on the Stock Exchange, and when they lost.... as in 2008, they needed a "bail out." This crazy game of theirs not only brought the American economy to it's knees, it nearly wiped out the whole world's economy.
So, the Federal Reserve Money Machine gave the banks all they needed and then had another wonderful idea! The people of America and Europe would have to be taxed some more to pay back this money!
Yes I know.......... it sounds like Space Men from Monopoly at the Mad Hatter's Tea Party!!
The trouble with this whole insane story is the whole system is about to come crashing down. The world is going back to gold and silver backed currencies, the dollar is no longer the sole International currency of exchange......... and we can all heave a sigh of relief ..... the Mad Hatter ( at the corner of Wall Street and Zuccotti Park , where it says, do not pass go.......... do not collect $200.00 and for goodness sake DO NOT RIDE THE BULL - go to jail) ....is no longer in charge!
However, these madmen have instilled some very bad habits into us and we really need to go back and take a look at my grandparent's day. They did not have this thing called "Debt,"they did not have this thing called "Credit Cards,"and they sure as hell did not end up paying back three times what a thing cost, that they really did not need or want in the first place, because of "interest,"and even ten times more with "compounding interest,"when payments were late, making the banks rich on money they never had to lend out from the start. In the old days people saved up for something and then paid for it outright. They had savings accounts where the bank paid them interest on their money.
Xmas wish list #4, 2013 Freedom Year: May we owe nobody money, may all our bills be paid, and Savings Accounts become the next great fashion statement of 2013! And the next time you eat Christmas pudding, I hope you break a tooth on a silver ticky!
Links and information wish #4
MAX DOES WESTMINSTER- Max Keiser is a world renowned economic commentator & presenter whilst George Galloway is a highly respected member of British parliament.
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