Make Believe Money

If you are like most people, you believe the "money" in your wallet has value.   Actually, it only has the value that you and I and everybody else, collectively, believe it has.   Paper dollars were originally receipts for the deposits of gold and silver that was held safely in someone's vault.  The receipt holder could go the the vault owner and get gold or silver at any time he chose to.  

The dollars have changed drastically, but the beliefs about those dollars has hardly changed at all.   Today the used-to-be-dollar is backed up only  by the governments promise to pay.   But when you examine that process, you'll find that the promise is a just another fairytale.  ^**mb1    

Sure, if you go the bank and demand payment for the money in your account, they'll pay you, but they will only give you pieces of paper.   Those pieces of paper are called fiat dollars.   They have no intrinsic value.  They are simply promises to pay something of value.   

When you take those paper promises and go to the gas station, you must have noticed that those paper promises are only partial promises.   It now costs three and a half promises (dollars) to purchase a gallon of gasoline that you used to be able to purchase with one promise (one dollar).  

What's wrong here?   Why the huge difference?   To answer that we need to take a detour into some very basic economics.   It's really simple, so bear with us for a moment.

Supply / Demand / Price

One of the most basic principle of life revolves around the relationship between supply, demand, and price.  When you alter any one of these three values, keep one of the other two the same, the third value must change.   For example, if you increase the supply of money in a market where the demand is steady, the price has to rise.    

That's exactly what's happening in the U.S. monetary system.   The rise in price is actually a reduction in the value of the promise (the Dollar).    So in the gasoline example above,  it now costs three and a half promises (dollars) to purchase a gallon of gasoline that you used to be able to purchase with one promise (one dollar).  

Let's examine how this scam is pulled off.   One of the major tools is called "fractional reserves."

Fractional Reserve Lending

Interest on Nothing:   You can't lend someone your car or your bicycle if you don't have a car or a bicycle to loan.   But if you're a banker, you can loan non-existent money to your customers and charge them interest on the loan.   It's called  "Fractional Reserves."    It is explained in detail on our "Money" website.   ^**mb2

Global Disneyland

Because life is not what you've been led to believe it is by those who claim to know,  you, I, and everybody else have  been (and still are) making critical,  irreversible, life-altering  decisions based upon false,  incomplete, and/or intentionally-deceptive information!    Fairytales about religion, about the environment, and about money are the most common and the most destructive and dysfunctional.  Here's just one  example from each of the three categories:   

   We, as humans, are separate form God, separate form nature and separate form each other.   

   We can destroy our environment and not reap the consequences.  

   Why your money is losing its value  is a huge unsolvable mystery.