The Situation





As discussed on the Money & Value 1 page, in 1931 the government removed the last remnant of value backing our currency. By removing the Gold Standard via the Gold standard act 1931. The UK government in cahoots with private banking cartels (Rothschild family) introduced for themselves the power to create VALUE out of fresh air. What this means is that where as you me and everyone else on this planet has to work 9am-5pm, 7 days a week to earn money to feed and clothe ourselves. The bankers can create it out of fresh air. They simply turn on the printing press and print more money.

But why does this matter ?

There are several reasons why it matters, and each one is another nail in the coffin of the people.

The main problem we face is INFLATION. Inflation is caused when bankers create money out of fresh air. You see we as people have forgotten what is important in life. We have catapulted ourselves from an agricultural self reliant producing society which grew vegetables and manufactured goods for export, into a consumer based spending society that produces very little but consumes and spends a great deal. Without even realising what that means or entails.

Let me try and break it down

In order to have a true balanced economy any country needs to EXPORT the exact same amount as it IMPORTS. If you import more than you export you have a "Trade Defecit". If you export more than you import your have a "Trade Surplus". This may seem backwards to some people but it works because by exporting goods you are selling them overseas and thus bringing in money/wealth into the country from other countries. And vice-versa if you import more than you export you are spending more of your countries money/wealth overseas, thus reducing the wealth of the country. This is basic economics.

However and this is where it gets complicated.

Before 1931 the United Kingdom worked hard to produce goods. These goods stood as a store of our VALUE (Meaning: Our time, energy and labour we exerted to create them), we then used these goods to trade with other people's goods overseas in an Equal Value Exchange. The trouble started after 1931 when the bankers in cahoots with government removed the gold that was backing the paper currency (promissory notes). You see it was the physical restrictions of needing gold that was preventing the bankers from creating too much paper money. As they had to have X amount of gold in the vault in order to print X amount of paper promissory note equivalent. After 1931 there were no restrictions on the amount of paper promises they could create. Apart from a few statutory legislated limits.

I Promise To Pay the Bearer On Demand The Sum Of 20 Pounds - 20 Pounds Of What ?
20 Pound Note

Because paper promises (bank notes) also known as LEGAL TENDER ("Enforced by law - meaning everyone has to use these bank notes as payment for debts or face jail .. i.e a protection racket) were now being used instead of gold. Those paper banknotes now legally represented VALUE. Supposedly the value of the labour of the people, when in fact all they represent is a Fictional Value. Because there is no gold, silver or any other commodity of real value backing them.

What this means is that if I owed you 1000 in Value. And I gave you a promise to pay that was redeemable in gold. You could take that promise to pay and get it redeemed at the local bank for 1000 worth of gold. Now because there is no gold backing the paper value, you can only redeem that "promise to pay" for another piece of paper again saying "I promise to pay". The truth is & this is a real shocker NOBODY is actually getting paid anything. We are only being given a promise of being paid at a later date. It is an ILLUSION - a trick of the mind!.

Do you understand what I just explained ? - The bankers in cahoots with government have got us all working for a promise that someday we will be paid! - But we never actually get paid. We only ever get given a promise that we will be paid.. aka, promissory notes from the Bank of England - also known as "legal tender" - Clever ay!.

The greatest trick the devil ever pulled was convincing the world he didnt exist! - The greatest trick the bankers ever pulled was convincing the world that paper money actually had any VALUE. - ME

What is paper worth ?.. Well nothing.. It is PAPER!.. You see money really does grow on trees. Because paper grows on trees. Paper currency (legal tender) only has perceived value that we ascribe to it. Or what the bankers tell us it is worth. Say 10 of value, 20 of value 50 of value. Bankers control the whole world through the control of the value of money. Paper money only has value based on the BLIND FAITH that we think it has. And that it will retain that value when we come to redeem it at a later date for the same value we ascribed to it when we were handed it. The trouble is, paper money NEVER - EVER retains its value. As Inflation steals our value every single day!.

How Inflation Steals Our Value

Most people think of inflation as rising prices. And although this is true, it is not the whole truth. What is really happening is the "value of our money" that we worked hard for is being DEVALUED. Look at it like this. If you wanted to buy a new TV and it cost 500 in January 2011. But you didn't quite have enough money. So you decided to wait 6 months and save the money to buy the TV.

6 Months later in July 2011 you go back to the shop with your 500, but the TV is now for sale at 550. Puzzled you wonder why. The TV has not changed, nothing new has been added to the TV and you do not get anything free with it. So why has the price gone up 50 ?. It is because of INFLATION. And it means your money has been devalued by 10%. Because it takes 10% more VALUELESS PAPER to buy the same TV (meaning an extra 50).

This means that you have to work more (usually overtime, extra shifts, a 2nd job etc) in order to earn that extra 50 to buy the TV. As well as working harder, longer and more hours to pay for that extra 300 on your car insurance, that extra 200 on your council tax, that extra 100 on your utility bills including gas, water & electric, plus an extra 1 for washing powder, an extra 50p on toilet rolls and that extra 10, 20, 30, 40, 50p on sweets, bread, pasta, cereals, soup, fish and any other everday essentials that you need to purchase in order to survive.

Inflation is a disgusting hidden tax used to steal the wealth of entire nations without anyone batting an eyelid. Inflation forces you to work harder, longer and faster for no real reward. You are simply working more in order to stand still. It is a perpetual treadmill of working to stand still. Have you ever felt that you're constantly working harder and still getting no where ? - this is why - it is called INFLATION & it is designed to keep you enslaved to your job by stealing your labour through devaluing paper money.

Because paper money is now a (legalised) representation of our hard work & labour they are enslaving us to this paper money because every time they create more of it the value of all paper money already in circulation goes down. They are in effect inflating away millions & millions of man hours of hard labour. Destroying it by devaluing the value of the paper currency - that supposedly holds that value in tact..It is legalised theft of our hard work & labour on a massive scale!.

"Money is a new form of slavery, and distinguishable from the old simply by the fact that it is impersonal - that there is no human relation between master and slave." - Leo Tolstoy, Famous Russian writer.
"The modern banking system manufactures money out of nothing. The process is, perhaps, the most astounding piece of sleight of hand that was ever invented. Banks can in fact inflate, mint and un-mint the modern ledger-entry currency." - Major L L B Angus.
What Is Inflation ?

Inflation in its simplest form is when there is more money in the economy than there are goods to be purchased. This causes the cost of goods to increase to capitalise on the increase in the money supply, and the VALUE of your labour decreases. Likewise Deflation is the opposite. Deflation occurs when there are too many goods in the economy and not enough money to purchase the goods. This means the price of goods goes down, because there is less money in the economy and everyone still wants to sell their goods, so they lower the price to sell them, so in turn the vlaue of your labour goes up! This is the basics of paper money Inflation, Deflation by using Supply & Demand

So, with more money in the economy, the price of goods in the economy increases reflecting the increase in paper money. It basically means with more money available in the economy, retailers raise prices to make more profit due to the increase in available funds. The trouble with this is manufacturers also see the price rises and believe there is more demand for a product. They then invest in more machinery etc to increase the output capacity of manufacturing in an attempt to earn more money from the higher prices. After all this is capitalism and greed is apparently good. This is what is known as the BOOM of the business cycle.

Deflation is the opposite of Inflation. Instead of too much money, there is too little money to purchase the same amount of goods, and because there is a lack of money retailers are forced to drop their prices (and their profit margins) in order to sell the same amount of goods and keep making money.

However when deflation sets in, manufacturers cut production & stop investing in increased capacity by tightening their belts as they are making less profit. This can quickly spiral into a full blown recession where No-one invests in output capacity, so people lose their jobs because profit margins are down & prices keep falling to meet the ever fewer promises to pay in the economy. This is what is known as the BUST in the business cycle.

The problem is we shouldn't have any "Booms or Busts" at all. As they are 100% MANUFACTURED by the amount of money in the economy. Which is directly controlled by PRIVATE INTERNATIONAL BANKERS. The whole system is rotten to the core, because we are all working to the tune of the pied piper who sets the value of money, the inflation rate of money and controls the amount of money in the economy. Everyone has been led to believe that when house prices rise by 50% everyone is getting richer!. But what actually happened is that the value of their money that they worked so hard to get has been deliberately DEVALUED by 50%. And that is the sad but all too real truth!.

People do not notice at first because the cost of living does not rise in conjunction with the house price rises. But if you look at it that the house price rise is acting like a giant sponge soaking up all the excess money that the bankers pumped into the system. Then you can see that the price rise is built on a false assumption. Once that money starts to feed its way into the hands of consumers and they start to spend that excess money, the cost of living explodes! And we have INFLATION or soon to be HYPER INFLATION. Where the cost of living rises to astronomical costs because prices rise to reflect the amount of excess paper money that can be spent on them.

The more money bankers create the worse inflation will be! - more bailouts anyone ?

Why We Have Inflation

In order to understand inflation completely we have to understand government bonds. Government bonds, also known as "gilts" (in the uk) work on the same principle as paper money. They are promises to pay, but unlike Bank of England bank notes which have nothing backing them up such as gold & silver. Bonds are backed by the UK Government - which basically means YOU & ME!.

A Bond is like a share certificate in the UK corporation. In effect the selling of a government bond is the equivalent of the UK government saying "we think we can extract X amount of VALUE from our employees (citizens) at X amount of interest in the future - so buy shares in our extraction techniques". Because that is all government bonds really are. Investors are gambling on the UK being able to extract enough value from the people in order to pay interest on the loan over X amount of time.

The government in effect auctions off all our future labour including that of our children's future labour to the highest bidder. In a kind of nationwide buy now pay later scheme. The government is living beyond it's means. It is living on CREDIT borrowed against the future labour of it's citizens. But because all money is created out of fresh air - it is nothing more than a giant Ponzi scheme waiting to collapse.

And here's why..

One of the main reason why we have inflation is so the government can pay off these bonds (loans) in order to keep the scam going. The more money bankers create the more money is in circulation. The more money in circulation the more government can raise taxes in order to pay the interest on the loans (bonds). The problem with this is that the whole system is a catch 22. Because all money in circulation comes from the Bank of England. So we have to borrow from the Bank of England in order to pay back the Bank of England. It is a closed system!. The more we borrow - the more we owe, the more we owe, the more we need to borrow!.

This is what is known as compounding. There is a great video about compounding and it's effects here: The Scarriest Video On Youtube. If you have a loan that is working on the principle of compound interest. I suggest you have a re-think about your finances!.

The Problem

The Bank of England does not actually have any money. All it has is the ability to create credit out of fresh air as a service to the UK government. This credit is then loaned to the UK government at a set interest rate. The government then raises taxes on the people in order to repay the interest on the loan. This expansion of money can only grow (compound) until the population is stretched to the limits of interest repayments. Meaning: the limit at which the collective labour of ALL the UK citizens can support interest payments, by using their labour to earn the money printed by the Bank of England in order to pay back the Bank of England. The government does this by confiscating as much of it as possible through taxes, fines & inflation.. It is a completely insane system.

Basically the Bank Of England creates the money, we the people labour to earn that money and the government steals as much of it back as it can through taxation, fines and inflation in order to pay the interest on the loan it took out from the Bank of England. Pure genius of a system isn't it? We are all at the mercy of Central Bankers also known as the INTERNATIONAL BANKSTERS!.

Question:Why did the government in 1694 give the monopoly on money creation to a PRIVATE BANKING CARTEL ?. Which allowed them to enslave all UK citizens to this process ever since ?.

To counter this situation, where by our economy risked defaulting on the unsustainable expansion of credit & inevitable default. The UK government started issuing Bonds to foreign investors like government and corporations from China & Japan. China is called the worlds largest creditor nation, because China is the only country who really produces enough to have a surplus leftover.

The Chinese government then use this labour surplus of the Chinese citizens to buy government Bonds from western governments. They in effect loan us money (their citizens labour) and allow us to keep living beyond our means while there own citizens are kept in a cycle of poverty production.

Can Anybody Spot The Difference ?

All this talk about fiscal policy, fiscal spending, deficit cuts, blah blah.. Is just talk about how they can extract enough money from the citizens in order to repay interest on the loans they took out in previous years without the citizens rebelling.

Now comes the problem

As mentioned above China buys up government bonds in order to allow us to live beyond our means. They are the worlds largest creditor. The trouble is the "west" is at it's Interest Repayment Limits. Meaning we can not produce enough, or work fast enough in order to have any more credit. We have lived beyond our means for far too long and now it's time to PAY UP. Every western nation is so far in debt that the Chinese have got scared about our ability to repay the loans (bonds). And so they have stopped buying our bonds. This causes untold damage to our financial system because we can no longer grow our economy on continuous credit - our credit line has been officially CUT!. But it is not China's fault - although they will & are being blamed!.

It is our fault too. We have gorged ourselves on debt, buying new houses, new cars, new clothes, new gadgets and all on credit, credit and more credit. Thus expanding the money supply. That is not to say that the bankers are not at fault. Because they are 100% guilty. It is to say that we share some responsibility for living beyond our individual means and taking on too much debt.

Bankers are to blame as they fully understand what they were doing by getting us into all this debt. We were sold a lie & were now being hung out to dry. Because the international bankers who run this world have a secret agenda. Which will be part of another article.

Gordon Browns Attempt To Fix It - Quantitative Easing

In true Orwellian Double Speak - Where up is down, right is wrong and false is true. Our government proposed a round of Quantitative easing to fix the problem. Quantitative Easing means the government decides to print even more money to pay off the debts!. Thus creating massive inflation which we are starting to see in our high street shops now. Completely insane isn't it ?. So not only are we borrowing money from the Bank of England to pay back loans to the Bank of England, we are now printing money to pay off loans to International Investors via the Bond market. It is the equivalent of your house being on fire, and the government turns up with sirens blaring and throwing more fire on it - in some bizarre attempt to put it out.

But as with all fires, when they have consumed everything that there is to consume such as materials (labour value) & oxygen (credit). There is only one thing left to consume and that is itself (the economy). Our economy is on fire and is consuming itself at an ever expanding (compounding) rate. Eventually it will burn itself out (very soon). And that is the real truth!. We are in a lot of trouble and we are NOT being told the TRUTH!.

The effects of Quantitative easing & living beyond our means on cheap credit will eventually expand our money supply beyond imagination. This, as shown above will cause massive INFLATION because that money has to go somewhere. And eventually it will come through consumer goods, as happened in Weimer Germany before WW2 when they had Hyper Inflation - the inevitability of all this i'm afraid to say is WAR!.

A historical perspective:



The housing market that crashed in 2008 -9, crashed because of mortgage backed securities (known as derivatives). Which are nothing but more fraudulent promises to pay. This amounted to around $23 Trillion worldwide. That is 23 trillion of man hours in labour value destroyed in the blink of an eye. What the government doesn't want you to know is that there is a further $700+ Trillion derivatives bubble just waiting to burst!. Which includes all commercial real estate, car loans, business loans, home improvement loans and every other type of loan that was packaged up and sold as a derivative.

How Did They Do It

People often wonder how did they manage to pull the greatest heist the world has ever seen without anyone noticing. Well for that we have to delve into the law. You see the Government are the "fat controllers" who create monopolies for their friends the bankers. The banksters are the Mafia bosses who run the system from behind the scenes. The police are the enforcement arm (hired thugs) & the judicial system (law) is the customer service representative to make it all seem legitimate. But in essence it is nothing more than a gigantic Mafia organisation designed to steal the wealth & labour value of all the people. They have an agenda for world domination & they are implementing it through the manipulation of your labour through paper money. In fact they are making you work towards your own destruction under the masonic banner of "Ordo Ab Chao" - Order out of Chaos.

"Everything the state says is a lie and everything is has, it has stolen" - Freidrich Nietzsche
"The thought of how far the human race would of advanced without government simply staggers the imagination" - Doug Casey 1979

Governments ensure that we are thrown enough scraps to keep us quiet, while the ultra-rich get on with the serious business of looting the global economy and crushing attempts to hold them to account.

Our ministers are not public servants. They work for the people who fund their parties, run the banks, newspapers & the main stream media, shielding them from their obligations to society & insulating them from any real democratic challenge.


This seemingly innocent switch from a gold backed paper bank note (value) to a zero backed paper bank note (No value) has had massive worldwide implications. It is the cause of all wars, inflation, deflation, poverty and starvation in the world. The people who control the banking industry really think they are MASTERS OF THE UNIVERSE!

This paper money is now used daily in every transaction around the world. In fact paper money is not even needed anymore we now use digitally created money which has even less value than paper. But its perceived value is (supposedly) the same as gold & silver or hard labour. I hope now you can plainly see it is 100% not the case. Labouring to create goods = real value. Because all true value really comes from human labour.

This combination of digital (credit money) & paper money is used to purchase real goods from our own economy and other countries. This distorts the value of human labour. Which is the only real VALUABLE thing in this world. If people did not labour to create anything. Then nothing of value would be created!. So always remember Human Labour is where REAL VALUE lies.

See our Banking & Money page to understand more about how our banking institutions work.

And remember kids don't have nightmares - do sleep tight. :o)