Exactly How Do "They" Benefit by Controlling the Currency?

The ability to debase a currency at will provides the simplest of all tools to control masses of humanity (not a single shot fired is required). In effect the common man will never have the ability to own real wealth (hard assets). It is no different than indentured servitude.

The US now has close to 40% of the working US population near "retirement" If these folks have any "money" at all it is likely in the form of money market funds/ treasuries, etc., "safe investments". At the stroke of a pen the FED can change the purchasing power of those retirement funds to half their value, or 25% of their value. That is scary and most people do not understand that this is the risk of a fiat currency. It is really all make believe based on the concept of "trust me".

Now with a specie currency (gold, silver) no matter what the FED does or the State does, or the terrorists do , or the Arabs do, or the Jews do, or Mexico does, etc. the underlying value of your wealth and its purchasing power is protected.

Human effort is required to produce specie therein is why it always has an equivalent "purchasing power parity" with: buying bread, buying gas, buying cattle, etc.. No effort is required whatsoever to create fiat paper other than "trust us it will be ok" just as the Baron said to his servants.

how astute the members of the Daily Paul have become - really good explanations. Let me add one.

The powers that be also like to create a situation where they can come in and buy up troubled assets, especially banks, for pennies on a dollar.

Look at all of the consolidation of the great depression and then look at the current situation where the big banks are buying up the smaller banks for pennies on a dollar!

Other than banks, their favorite scheme is war. That war kills and injures millions of people is only a minor detail that can be easily ignored by those with no conscience.

Let's imagine that you had a little counterfeiting operation in your bedroom. Imagine further that you never got caught.

Obviously, you would become very wealthy very quickly. But what would be the consequences to the wider economy?

Apart from yourself, the people who would benefit most would be the first recipients of your money. The guy who builds your new mansion, your lear jet dealership, your family, etc.

Next step in the chain would be the people who received money FROM the mansion builder, the lear jet dealer, your family, etc.

Then consider the people who would receive money from those recipients, and so forth...

An inflation bomb would hit the economy at large and prices as a whole would rise. The people who would get screwed by the inflation most would be those Americans who were furthest away from you - economically speaking.

The legal money creation process impacts the economy in a similar way to an actual counterfeiter. Only the recipients are different.

Who are the "first recipients" of new government money? Those companies with government contracts and other special interest groups.

"That Socialism would be immediately practicable if an omnipotent and omniscient Deity were personally to descend to take in hand the government of human affairs is incontestable." - Ludwig Von Mises.

It's when they get you to trade a real hard asset for a fiat monetary note that they have you. They started slowly and got us to take the notes for our gold by promising that a note could be redeemed for a specific amount of gold. Now that they have gotten away with breaking that link, they can print as much of the notes as they want making it impossible for us to ever buy back the gold or the hard asset we initially gave them to obtain the notes.

The banks create money out of thin air and loan it into existence. Ever wonder why the banks are the nicest buildings in town? They collect interest on the new money they loan out. They pay little interest on the checking account or savings account side of the transaction, so there is a big spread. This is a huge benefit.

Not only do they benefit from the interest, but they make loans to government and politicians which gives them leverage over them.

They benefit by having the privilege of creating the money, not by controlling the currency. Currency is just a part of the money supply, the part that is loaned into existence by the Federal Reserve Bank. Checking account balances are a much more significant part, and these are principally created electronically on the books of local banks and loaned into existence.

People in Congress generally are supported by special interest, the banking people being one of those groups, so they have little incentive to bite the hand that feeds them. Many of the people in Congress don't have a clue how the monetary system works. Ron Paul has been discussing the monetary issue, but he is only one man, and the good ole boy network has effectively marginalized him. And the general public is generally ignorant of this issue.

The only difference between toilet paper and a dollar bill is the amount of ink and cost to produce. The toilet paper has a purpose, the dollar bill does not perform any service except the perception of value placed on it by all who agree that it is valuable. We have all agreed to treat the dollar as having value, but in and of itself it is nothing more than a pretty piece of paper (although you could use it for toilet paper, and soon that is all it will be good for). It used to be you could take an American bill and exchange it for silver or gold. That is why most people think paper money has value, but we can't get gold for paper anymore, so the paper is just paper. If I am the Fed, and decide to replace the current paper with electronic numbers, the electronic numbers are now valuable. If I say each cat in the country is now worth a million dollars, people will let them breed faster than they do now. That is what the Fed is doing, except not with cats, just paper money and "derivatives" etc. They are creating it as fast as they can, because it still has value in most peoples minds.

http://www.bibliotecapleyades.net/sociopolitica/esp_sociopol...

it is all about having the same ideology. generally that follows in families and class but not always. as you can see ... it isn't a very big group of people. they are always recruiting for skills and minds. but they recruit you not the other way around. and you have to have something they want.

why would anyone rat anyone else out?? they have each other's back because they have a vested interest in the whole system.

This is about the best explanation I've seen:
http://www.deprogram.us/deprogram.php

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