We all know that money is a median of exchange for goods and services. Generally speaking money is a claim on labor. Money can be spent on goods that were manufactured. Money can also be spent on a lawn service that maintains your lawn. With that being said we could say that debt is a future claim on labor. Now lets think about this. If you take out a 30 year mortgage on a piece of property you will be making payments to the bank. You will pay the city property taxes, which you pay as long as you own the property. Property insurance will also have to be paid because the bank wants the property insured. You will be indebted to all three of these entities until you either sell the home or fulfill your contracts. Having a 30 year mortgage puts a future claim on your labor for the next 30 years. If a government or corporation owns our future labor can we really claim to be free?
The way our money system works is every dollar is borrowed into existence by the Federal Reserve Bank. The U.S. Government creates a treasury bond, or T-Bond, which is an I.O.U. for future labor. The government trades it with the Federal Reserve Bank for federal reserve notes. Federal reserve notes are what we call dollars. If every dollar is borrowed with interest then would it be safe to say that our money really is not money? Would it be safe to say that every dollar in circulation is debt because it has to be paid back? If this is the case then we are all slaves to the Federal Reserve Bank which is privately owned.
According to Investopedia a federal reserve note is no more then a piece of paper currency(or dollar) that circulates in the United States and around the world. The definition of money according to Wikipedia is “any object or record that is generally accepted as payment for goods and services and repayment of debts in a given country or socio-economic context.” Furthermore, “Money originated as commodity money, but nearly all contemporary money systems are based on fiat money. Fiat money is without intrinsic use value as a physical commodity, and derives its value by being declared by a government to be legal tender; that is, it must be accepted as a form of payment within the boundaries of the country, for all debts, public and private.” Our current dollar is not backed by anything of value except the good faith of the U.S. Government, making it a fiat currency and having no intrinsic value. “NO VALUE!” The majority of Americans trade their whole lives for this debt based system, barely getting by, without knowing how it works. Please leave a comment or your thoughts. Thank you for stopping by The Basics Of Living.
