The Collapse of Paper Money & the Vertical Move of Gold

[CrackSmokeRepublican]

The Collapse of Paper Money & the Vertical Move of Gold

Darryl Robert Schoon
Posted Jul 14, 2011

    Money in capitalist economies is an IOU, an IOU that can't be repaid

Paper money, invented by the Chinese, first appeared in the West in the 13th century. Brought back from China by Marco Polo and his uncles, author Ralph Foster describes the West's reaction to the hitherto unseen phenomena of money as a piece of paper.

    Upon returning to Italy, Polo showed off some Chinese currency notes and explained how they were used... An article in the November 1995 issue of 'The Bank Note Reporter' describes the Venetian reaction:

    The Emperor of China (who we call Kubalai Khan) gave the Polos a camel loaded with 1,000 cash paper notes as a gift from their sovereign. The doge (chief magistrate of Venice) and the cardinal (the Pope's cousin) looked at these...notes in awe and dismay.

    The hen-scratched writing was not in Latin or Greek but in a secret language, most likely the language of the Devil. They proceeded to burn these notes and accused Polo of heresy.- pg 38, Ralph Foster, Fiat Paper Money: the History and Evolution of our Currency, 2nd ed.

In retrospect, the disturbed reaction of the Venetians was not without cause. For when paper money was later issued in the West, it was to assume a far more sinister guise—no longer was money a savings-based instrument of exchange as it had been throughout human history. In the West, paper money was to become an integral part of a scheme to profit by the spread of debt, i.e. usury.

DEBT-BASED CAPITALISM AND THE RISE OF MODERN BANKING

The human species, according to the best theory I can form of it, is composed of two distinct races, the men who borrow, and the men who lend.- Charles Lab, Essays of Elia, 1833

The above quote is from Will Slatyer's The Debt Delusion, Evolution and Management of Financial Risk (2008). In his remarkable book, Slatyer traces the origins of debt to before the coinage of gold and silver.

Slatyer notes: In ancient times, interest was rarely charged on advances of precious metals ... However, if one did not pay the loan back as agreed, interest was charged at very high rates ...The word 'interest' refers to the compensation under Roman law which was due to the debtor who had defaulted, i.e. compensation. (pg 12)

Debt distinguished the West's paper banknotes—issued from central banks in the form of loans—from China's paper money issued by the state. In the West, however, debt was to replace savings as the basis of commerce.

Although it was two Scots, William Patterson and John Law, who introduced paper money to the West, paper money as debt, i.e. capitalism, can be traced to the Jews who had observed the earlier use of paper money and paper financial instruments in the East

Ralph Foster notes: Jews doing business in China observed and studied the use of promissory notes, vouchers, draft notes, and negotiable certificates of deposit. They saw how this paper circulated freely among the general population rather than only among merchants. Eventually, they adapted these financial instruments to their own use—long before the first Christian travelers had even heard of them.

Europe was thus an indirect beneficiary of eastern financial knowledge. Max Weber, the famous sociologist, recognized the importance of Jewish contributions to the development of capitalism and lectured on their common oriental origin. - pg. 34, Ralph Foster, Fiat Paper Money: the History and Evolution of our Currency, 2nd ed.

HOW CHINA'S FIAT MONEY BECOME DEBT-BASED PAPER BANKNOTES IN THE WEST

Ralph Fosters' Fiat Paper Money: the History and Evolution of our Currency explains how China's paper money came to the West: Those who benefit from fiat money's devious gifts would rather its origins remain forgotten. Thanks to Ralph Foster's scholarship, however, the history of fiat money is now known.

Note: To order Fiat Paper Money send check or money order for $29.95 to Foster Publishing, 2189 Bancroft Way, Berkeley, CA 94704, free shipping in USA, Global Priority mail outside USA $18.00, email: nasoe@kt-solutions.de

The Austrian school of economics emerged at a time when communism and socialism were offered as alternatives to the capitalist model. Because of the central role of government inherent in communist and socialist models, the potential for tyranny was obvious.

That capitalism, however, offered the same potential is less obvious. The threat of capitalism to human freedom is even more insidious because of its covert agenda and global presence, an agenda described by Carroll Quigley in his seminal work, Tragedy and Hope (1975)

Quigley was a professor at Princeton and Harvard Universities, and later at the School of Foreign Service at Georgetown University where he was a mentor of Bill Clinton.

Quigley's observations are to be valued as they are an insider's look at the activities of powerful elites who use government and commerce to accomplish their aims and disguise their activities.

Because of his position as an academic and scholar, Quigley had access to individuals and elite groups who influence events and activities far outside the purview of others; and, in Tragedy and Hope, he exposes the hidden agenda of these elites:

The powers of financial capitalism had another far reaching aim, nothing less than to create a world system of financial control in private hands able to dominate the political system of each country and the economy of the world as a whole. This system was to be controlled in a feudalist fashion by the central banks of the world acting in concert, by secret agreements, arrived at in frequent private meetings and conferences. The apex of the system was the Bank for International Settlements in Basle, Switzerland, a private bank owned and controlled by the worlds' central banks which were themselves private corporations. The growth of financial capitalism made possible a centralization of world economic control and use of this power for the direct benefit of financiers and the indirect injury of all other economic groups.

The global economic collapse is perhaps humanity's greatest hope for escaping the debt slavery the world's financiers and bankers have planned for the world. However, to escape slavery one must first know he is a slave.

Debt is the slavery of the free -Publilius Syrus, Sententiae, c 50 BC

Man's wisdom is most conspicuous where he is able to distinguish among dangers and make choice of the least. -Niccolò di Bernardo dei Machiavelli, The Prince, 1513

The above quotes are from Will Slatyer's The Debt Delusion, Evolution and Management of Financial Risk (2008)

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Darryl Robert Schoon
email: http://www.drschoon.com
website: http://www.survivethecrisis.com
Schoon Archive

About Darryl Robert Schoon

In college, I majored in political science with a focus on East Asia (B.A. University of California at Davis, 1966). My in-depth study of economics did not occur until much later.

In the 1990s, I became curious about the Great Depression and in the course of my study, I realized that most of my preconceptions about money and the economy were just that - preconceptions. I, like most others, did not really understand the nature of money and the economy. Now, I have some insights and answers about these critical matters.

In October 2005, Marshall Thurber, a close friend from law school convened The Positive Deviant Network (the PDN), a group of individuals whom Marshall believed to be "out-of-the-box" thinkers and I was asked to join. The PDN became a major catalyst in my writings on economic issues.

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