Government exists for the purpose of picking which banks will be allowed to counterfeit money.
In the past, gold was coined in order to facilitate trade. Under this system, gold mines were required using hard labor under difficult and dangerous conditions. The gold was placed in a bank owned by the state or by a private concern and money was issued on the value of this precious metal.
The problem encountered by both the state and the bank(s) was that the temptation to print more paper money than was backed by gold was always paramount in this routine.
The bankers and state understood that a system of inflated currency printed from paper could fire the engines of commerce by creating a false push similar to a drug on a person. If money is seen as speed, the faster rush of persons to work in order to earn some of it can be seen as the effect of a speeding drug on an individual, causing him to move more rapidly and to perform more work as a reaction to the amphetamine effect of paper money.
Greed motivated both the banks and the government. Greed also motivated investors, mines, government treasuries, stock and bond traders, and the public itself.
However, during a crash in confidence, people would come to banks to retrieve gold coins in return for their paper dollars. However, the bank always printed more money than their gold reserves could back, and, instead of metallic gold coins, the banks maintained a vault of paper equity in the homes, machinery, and lands on which non-existent gold vouchers had been issued to the borrowers.
Now, the borrowers were told that the paper they were borrowing represented real gold, but such was almost never the case. Instead, they were borrowing paper printed at 1/1,000th the cost of gold, yet pretending to represent gold that never existed. As such, the money system based on gold was a fiction and an illegality of scandalous proportions.
Eventually, the fiction of gold backing had to be eliminated. This became necessary, because repeated bank failures made the fiction that gold backed the vouchers printed by the bank meaningless, because the last person holding the paper could never receive gold which the paper said was on deposit, because it had been loaned out many times over and over.
All interest exacted by banks and their government cronies in the criminal fiction of paper money is illegal and is as counterfeit as the paper which was loaned out by contractual loans, because the paper itself was worthless, never backed by the gold it was said to represent. Each loan is therefore illegal.
So, banks eliminated the gold backing from the fiction of counterfeit dollars. That way, no gold having been promised, the borrowers had no recourse when turning in their dollars, as they were by agreement totally without worth.
Now, the banks were free to print as much money as loans would justify. Under this arrangement, involving the federal reserve system, private banks formed a private corporate known as The Federal Reserve System which was ruled by its member banks. The Federal Reserve System now orders the U.S. Treasury to print fresh counterfeited paper money to issue as loans to its customers. These fake dollars, representing nothing, are handed over for high interest rates to customers, so that money costing banks practically nothing are nonetheless loaned to other citizens for between 6% to 29% depending upon the risk and the type of loan.
The development of plastic credit cards furthered the illusion of commercial currency, because under this system, banks could issue money upon the approved demand of a customer, even though no paper money had been created at all to cover the loan. All that was necessary for such transactions was the transfer of numbers representing non-issued currency from one bank to another and then to the account of a merchant. Such money was free to the banks and represented money created from nothing, not even paper and ink.
According to Staff Writer Jack Sirard wrote of the Sacramento Bee, Sunday, March 24, 2002 "The Federal Reserve reports that total installment consumer debt rose from $731 billion in 1992 to about $1.5 trillion today." Sirard quotes the National Foundation for Credit Counseling as reporting that credit card debt now averages $8,562 per household. At an average of 20% per card for these loans on non-printed and non-legal currency, the average household spends more than $1,6500 per annum in interest to their credit issuing banks.
Money is printed in order to enslave the population using debt as time share collateral.
All economies in the world which allow banking operate on the monetarization of private debt between banks and the owners of property.
Banks are a construct. They are formed in order to achieve the deception necessary for the transfer of all property into the hands of the state through its banking functionaries.
The banks are allowed to participate in a fiction of bookkeeping. By placing numbers onto a ledger, banks create the illusion of loans using pretend money which is created by the issuance of debt and the securing of property under the system of equity.