National debt, your debt and how they "create" paper money?

Defining what money really is - The first step to eradicating money worries forever.

Step1 - Defining RealityThis page is part of Step 1 of a 3 step process to Stop Money Worries.
To learn about these 3 Steps click here

National debt, personal debt, corporate debt - everyone's in debt!
Even organizations that could not have conceived of being in debt a decade ago are in debt. Even many churches are in debt!

Look at the astounding pace of the increasing debt of the USA. 

The US Gross National Debt:

Now remember this figure is in TRILLIONS of dollars.
Here's what a trillion dollars looks like.

Debt plays a huge role in the history of money, the creation of paper money and the future of our own money, but few know how much a part it plays. Thankfully this small number is rising rapidly.

We've stated here that we believe that knowing the history of paper money is to understand one of the most important fundametal foundations of life and liberty in the 21st century.

We left off at the last page discussing how paper money was created only at the point that a loan is applied for and approved.

Yes...The money is created from DEBT!

The money can't be created until somebody borrows something!

Contrary to common sense and logic the loan money is not takenBank Vault from a vault full of the savings from thousands of people.

The concept that most of us have is that when we go to the friendly bank for a loan they pop out the back and take the money out of the vault.

The money got there in the first place as a result of heaps of people all depositing their hard earned savings.

Although this is the logical and most commonly held belief it simply is not so!

The money was never there! At least, 90% of it was never there.

Seem a bit unbelievable? IT DOES, but it's all true!

Have a look at these quotes...

"We are completely dependant on the commercial banks. Someone has to borrow every dollar we have in circulation, cash or credit. If the banks create ample synthetic money we are prosperous; if not, we starve. We are absolutely without a permanent money system.... It is the most important subject intelligent persons can investigate and reflect upon. It is so important that our present civilization may collapse unless it becomes widely understood and the defects remedied very soon." - Robert H. Hamphill, Atlanta Federal Reserve Bank , on money and national debt.

"Bankers own the earth. Take it away from them, but leave them the power to create money and control credit, and with a flick of a pen they will create enough to buy it back." -- Sir Josiah Stamp, former President, Bank of England

"I sincerely believe ... that banking establishments are more dangerous than standing armies, and that the principle of spending money to be paid by posterity under the name of funding is but swindling futurity on a large scale." -- Thomas Jefferson to John Taylor, 1816.

"Banks lend by creating credit. They create the means of payment out of nothing." -- Ralph M. Hawtrey, former Secretary of Treasury, England

It may be a surprise to many but governments do not create our money as is the popular public belief!

Banks create our money and they create it out of ..NOTHING but DEBT! It springs into existence at the moment someone borrows it. 

It's the ultimate magic trick!
The ultimate magic trick

This is a bit "Mind Tilting" for us average citizens, but it is SO important to understand.

We, the general public, you and me, are not educated into the "mysteries" of the banking magicians, and we still think that our money remains "in the bank."

This is just not so!

This causes what must be the most absurd situation in man's history...When you borrow you create more money, that is vital to keep the present money currency system operating, AND you contribute to the problem that requires more money to be created.

The ultimate winner is the banking system.

Money created at the government level by banks, specifically a nation's central bank, is effectively created the same way but the customer is the government through the issuing of bonds. This adds to the national debt, creating a perfect environment for inflation!
The Money Cycle

Sounds a bit like Dr Seuss and the Mad Hatter rolled into one doesn't it!

It would ridiculous if it wasn't true.

It doesn't take much to see a great BIG glaring problem here!

There is NO extra, outside money source to pay interest! Interest is paid only from money borrowed from somewhere!

As an ever increasing volume of loans must be made in order to repay and pay interest on existing loans, the desperation to lend becomes paramount.

This is why the citizens of all nations are being fooled into believing that borrowing and spending is the "financial messiah" that will save the economies of the world.

As less people are interested in taking loans because of a dawning realization that they can't pay them back, less money is created, more loans will not be able to be paid, interest payments to banks will slow, ever increasing numbers of individuals and organizations will default and the entire system will be under the threat of collapse.

So the government steps in to do the borrowing and spending that the individual is not!

This dramatically increases the national debt and, as a consequecnce, the tax burden of each and every one of us.

We, the citizen, will pay for this spending either through direct taxation or through the greatest robbery in history, spiralling inflation.

When will this insane system come apart?

No one knows... because we've never faced anything quite like this before.

Although every civilization that has used this "fiat" money currency system in the past has collapsed, there's never been a time when the entire globe was in the same boat at the same time!

If you live outside the United States don't think you're off the hook. This is a global predicament.

The collapse will come when the level of national debt reaches it's limit, or, when the public's faith in this money currency system disappears.

Let's be ready.

Look at this simple to understand video to get a really good understanding of what we're talking about...

If you have an inquiring mind and a desire for understanding paper money, you would ask, "Who actually creates this 'Fiat' money, who decides on its value and who is creating the personal and national debt that is basis of the money creation?"

Well, click the pages below to find out, BUT prepare for shock it's not what you may think.

DEFINING money, the national debt and how it affected us personally, (at least the "layman's overview"), was where we started on our quest to Stop Money Worries forever.

It enabled us to become less of a victim of the powers that control our money and currency and allowed us to plan simple but effective strategies to eradicate personal debt, increase savings, protect against inflation and position ourselves for true prosperity.

Click here to see who gets to create money, why the US national debt is growing out of control and affecting every nation and every individual on the planet.

Go back from "National Debt" to the Home Page

Go back to "How to manage your money - The 3 Step Process"

Define what's real

More pages DEFINING what money really is...

A History of Money
Why is it so important to have at least a basic understanding of the history of mone?

Paper Money
What is it and how did we come to use it in today's form?

The Federal Reserve Bank?
What is it and how does it affect every individual of every nation?

From our Article & News Blog...
** More stimulus fewer jobs. Read...
** Who were Perc and Gwen Wood and what can they teach us about money? Read...
**Recommendations from Samantha Spruckler. Read...
**Does the Fed really create money from thin air? Read...
**The Normalcy Bias. What is it and how could it prevent your prosperity. Read...

Article Archive
Article Line
Why not subscribe to our eZine for...
...up to date tips and information to help control money and much more.
Stop Money Worries eZine



Don't worry -- your e-mail address is totally secure.
We promise to use it only to send you our eZine.
Article Line
Our Unique Products
A complete Package of tools to help Stop Money Worries
(Available by instant Download only)
See more about our products here.
The Stop Money Worries eBook
The Stop Money Worries EBook

The Stop Money Worries Personal Finance Software
The Stop Money Worries "Money Controlling" Software
See a video.

The Goals Planner
The Stop Money Worries Goals Planner

The Stop Money Worries Debt Paydown Planner
The Stop Money Worries Debt Paydown Planner
See a video.

Quit Your Worrying
The "Quit Your Worrying" Ebook
Get the Complete Package here!