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The Money Myth Exploded

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  • Light Eye
    Dear Friends, Click the link if you don t receive the images or can t proceed to page 2. http://www.michaeljournal.org/myth.htm Love and Light. David The
    Message 1 of 2 , Nov 3, 2006
      Dear Friends,

      Click the link if you don't receive the images or can't proceed to page 2.

      http://www.michaeljournal.org/myth.htm

      Love and Light.

      David


      The financial enigma resolved — A debt-money system
      français español italiano português Deutsch po polsku
      by Louis Even
      “The Money Myth Exploded” was one of the first articles of Louis Even, and remains one of the most popular to explain how money is created as a debt by private banks. It is available in the form of an 8-page leaflet (tabloid format) that you can order from the “Michael” office, in several languages: English, French, Spanish, Italian, German, Polish, Portuguese.
      1. Shipwreck survivors
      An explosion had blown their ship apart. Each one grasped the first bit of wreckage that came to hand. And when it was over, there were five left, five huddled on a raft which the waves carried along at their will. As for the other victims of the disaster, there was no sign of them.
      Hour after long hour their eyes searched the horizon. Would some passing ship sight them? Would their make-shift raft finds its way to some friendly shore?
      Suddenly a cry rang out: “Land! Look! Over there, in the direction the waves are carrying us!”
      And as the vague silhouette proved itself to be, in fact, the outline of a shore, the figures on the raft danced with joy.
      They were five. There was Frank, the carpenter, big and energetic. It was he who had first cried, “Land!”.
      Then Paul, a farmer. You can see him, front and left in the picture, on his knees, one hand against the floor, the other gripping the mast of the raft.
      Next is Jim, an animal breeder; he's the one in the striped pants, kneeling and gazing in the direction of land.
      Then there is Harry, an agriculturist, a little on the stout side, seated on a trunk salvaged from the wreck.
      And finally Tom, a prospector and a mineralogist; he is the merry fellow standing in the rear of the picture with his hand on the carpenter's shoulder. 2. A providential island
      To our five men, setting foot on land was like returning to life from the grave.
      When they had dried and warmed themselves their first impulse was to explore this little island on to which they had been cast, far from civilization.
      A quick survey was sufficient to raise their spirit. The island was not a barren rock. True enough, they were the only men on it at the moment. But judging from the herds of semi-domesticated animals they encountered, there must have been men here at some time before them. Jim, the animal breeder, was sure he could completely domesticate them and put them to good service.
      Paul found the island's soil, for the most part, to be quite suitable for cultivation.
      Harry discovered some fruit trees which, if properly tended, would give good harvests.
      Most important were the large stands of timber embracing many types of wood. Frank, without too much difficulty, would be able to build houses for the little community.
      As for Tom, the prospector, well, the rock formations of the island showed signs of rich mineral deposits. Lacking the tools, Tom still felt his ingenuity and initiative could produce metals from the ores.
      So each could serve the common good with his special talent. All agreed to call the place Salvation Island. All gave thanks to Providence for the reasonably happy ending to what could have been stark tragedy.
      3. True wealth
      Here are the men at work.
      The carpenter builds houses and makes furniture. At first they find their food where they can. But soon the fields are tilled and seeded, and the farmer has his crops.
      As season followed season this island, this heritage of the five men, Salvation Island, became richer and richer.
      Its wealth was not that of gold or of paper bank notes, but one of true value; a wealth of food and clothing and shelter, of all the things to meet human needs.
      Each man worked at his own trade. Whatever surpluses he might have of his own produce, he exchanged for the surplus products of the others.
      Life wasn't always as smooth and complete as they could have wished it to be. They lacked many of the things to which they had been accustomed in civilization. But their lot could have been a great deal worse.
      Besides, all had experienced the depression in Canada. They still remembered the empty bellies side by side with stores crammed with food.
      At least, on Salvation Island, they weren't forced to see the things they needed rot before their eyes. Taxes were unknown here. Nor did they go in constant fear of seizure by the bailiff. They worked hard but at least they could enjoy the fruits of their toil.
      So they developed the island, thanking God and hoping for the day of reunion with their families, still in possession of life and health, those two greatest of blessings. 4. A serious inconvenience
      Our men often got together to talk over their affairs.
      Under the simple economic system which had developed, one thing was beginning to bother then more and more; they had no form of money. Barter, the direct exchange of goods for goods, had its drawbacks. The products to be exchanged were not always at hand when a trade was discussed. For example, wood delivered to the farmer in winter could not be paid for in potatoes until six months later.
      Sometimes one man might have an article of considerable size which he wished to exchange for a number of smaller articles produced by different men at different times.
      All this complicated business and laid a heavy burden on the memory. With a monetary system, however, each one could sell his products to the others for money. With this money he could buy from the others the things he wanted, when he wished and when they were available.
      It was agreed that a system of money would indeed be very convenient. But none of them knew how to set up such a system. They knew how to produce true wealth - goods. But how to produce money, the symbol of this wealth, was something quite beyond them. They were ignorant of the origin of money, and needing it they didn't know how to produce it. Certainly, many men of education would have been in the same boat; all our governments were in that predicament during the ten years prior to the war. The only thing the country lacked at that time was money, and the governments apparently didn't know what to do to get it.
      5. Arrival of a refugee
      One evening, when our boys were sitting on the beach going over their problem for the hundredth time, they suddenly saw approaching a small boat with a solitary man at the oars.
      They learned that he was the only survivor of a wreck. His name: Oliver.
      Delighted to have a new companion, they provided him with the best that they had, and they took him on an inspection tour of the colony.
      “Even though we're lost and cut off from the rest of the world,” they told him, “we haven't too much to complain about. The earth and the forest are good to us. We lack only one thing — money. That would make it easier for us to exchange our products.”
      “Well, you can thank Providence,” replied Oliver, “because I am a banker, and in no time at all, I'll set up a system of money guaranteed to satisfy you. Then you'll have everything that people in civilization have.”
      A banker!... A BANKER!... An angel coming down out of the clouds couldn't have inspired more reverence and respect in our men. For, after all, are we not accustomed, we people in civilization, to genuflect before bankers, those men who control the lifeblood of finance?
      6. Civilization's god
      “Mr. Oliver, as our banker, your only occupation on this island will be to look after our money; no manual labour.”
      “I shall, like every other banker, carry out to complete satisfaction my task of forging the community's prosperity.”
      “Mr. Oliver, we're going to build you a house that will be in keeping with your dignity as a banker. But in the meantime, do you mind if we lodge you in the building that we use for our get-togethers?”
      “That will suit me, my friends. But first of all, unload the boat. There's paper and a printing press, complete with ink and type, and there's a little barrel which I exhort you to treat with the greatest care.”
      They unloaded everything. The small barrel aroused intense curiosity in our good fellows.
      “This barrel,” Oliver announced, “contains a treasure beyond dreams. It is full of... gold!”
      Full of gold! The five all but swooned. The god of civilization here on Salvation Island! The yellow god, always hidden, yet terrible in its power, whose presence or absence or slightest caprice could decide the very fate of all the civilized nations!
      “Gold! Mr. Oliver, you are indeed a great banker!”
      “Oh august majesty! Oh honorable Oliver! Great high priest of the god, gold! Accept our humble homage, and receive our oaths of fidelity!”
      “Yes, my friends, gold enough for a continent. But gold is not for circulation. Gold must be hidden. Gold is the soul of healthy money, and the soul is always invisible. But I'll explain all that when you receive your first supply of money.”
      7. The secret burial
      Before they went their separate ways for the night, Oliver asked them one last question.
      “How much money will you need to begin with in order to facilitate trading?”
      They looked at one another, then deferentially towards the banker. After a bit of calculation, and with the advice of the kindly financier, they decided that $200 each would do.
      The men parted, exchanging enthusiastic comments. And in spite of the late hour, they spent most of the night lying awake, their imaginations excited by the picture of gold. It was morning before they slept.
      As for Oliver, he wasted not a moment. Fatigue was forgotten in the interests of his future as a banker. By dawn's first light, he dug a pit into which he rolled the barrel. He then filled it in, transplanting a small shrub to the spot about which he carefully arranged sod. It was well hidden.
      Then he went to work with his little press to turn out a thousand $1 bills. Watching the clean new banknotes come from his press, the refugee turned banker thought to himself:
      “My! How simple it is to make money. All its value comes from the products it will buy. Without produce, these bills are worthless. My five naive customers don't realize that. They actually think that this new money derives its value from gold! Their very ignorance makes me their master.”
      And as evening drew on, the five came to Oliver — on the run.
      8. Who owns the new money?
      Five bundles of new banknotes were sitting on the table.
      “Before distributing the money,” said the banker, “I would like your attention.
      “Now, the basis of all money is gold. And the gold stored away in the vault of my bank is my gold. Consequently, the money is my money. Oh! Don't look so discouraged. I'm going to lend you this money, and you're going to use it as you see fit. However, you'll have to pay interest. Considering that money is scarce here, I don't think 8% is unreasonable.”
      “Oh, that's quite reasonable, Mr. Oliver.”
      “One last point, my friends. Business is business, even between pals. Before you get the money, each of you is going to sign a paper. By it you will bind yourselves to pay both interest and capital under penalty of confiscation of property by me. Oh! This is a mere formality. Your property is of no interest to me. I'm satisfied with money. And I feel sure that I'll get my money, and that you'll keep your property.”
      “That makes sense, Mr. Oliver. We're going to work harder than ever in order to pay you back.”
      “That's the spirit. And any time you have a problem, you come and see me. Your banker is your best friend. Now here's two hundred dollars for each one of you.”
      And our five brave fellows went away, their hands full of dollar bills, their heads swimming with the ecstasy of having money.
      9. A problem in arithmetic
      And so Oliver's money went into circulation on the island. Trade, simplified by money, doubled. Everybody was happy.
      And the banker was always greeted with unfailing respect and gratitude.
      But now, let's see... Why does Tom, the prospector, look so grave as he sits busily figuring with a pencil and paper? It is because Tom, like the others, has signed an agreement to repay Oliver, in one year's time, the $200 plus $16 interest. But Tom has only a few dollars in his pocket, and the date of payment is near.
      For a long time he had wrestled with this problem from his own personal point of view, without success. Finally, he looked at it from the angle of the little community as a whole.
      “Taking into consideration everyone on the island as a whole,” he mused, “are we capable of meeting our obligations? Oliver turned out a total of $1000. He's asking in return $1080. But even if we bring him every dollar bill on the island, we'll still be $80 short. Nobody made the extra $80. We turn out produce, not dollar bills. So Oliver can take over the entire island, since all the inhabitants together can't pay him back the total amount of the capital and the interest.
      “Even if a few, without any thought for the others, were able to do so, those others would fall. And the turn of the first spared would come eventually. The banker will have everything. We'd better hold a meeting right away and decide what to do about it.”
      Tom, with his figures in his hand, had no difficulty in proving the situation. All agreed that they had been duped by the kindly banker. They decided upon a meeting at Oliver's.
      (continued on page 2)


      [Non-text portions of this message have been removed]
    • Jahnets
      That was very good... Dear Friends, Click the link if you don t receive the images or can t proceed to page 2. http://www.michaeljournal.org/myth.htm Love and
      Message 2 of 2 , Nov 3, 2006
        That was very good...



        Dear Friends,

        Click the link if you don't receive the images or can't proceed to page 2.

        http://www.michaeljournal.org/myth.htm

        Love and Light.

        David


        The financial enigma resolved — A debt-money system
        français español italiano português Deutsch po polsku
        by Louis Even
        “The Money Myth Exploded” was one of the first articles of Louis Even, and
        remains one of the most popular to explain how money is created as a debt by
        private banks. It is available in the form of an 8-page leaflet (tabloid
        format) that you can order from the “Michael” office, in several languages:
        English, French, Spanish, Italian, German, Polish, Portuguese.
        1. Shipwreck survivors
        An explosion had blown their ship apart. Each one grasped the first bit of
        wreckage that came to hand. And when it was over, there were five left, five
        huddled on a raft which the waves carried along at their will. As for the
        other victims of the disaster, there was no sign of them.
        Hour after long hour their eyes searched the horizon. Would some passing
        ship sight them? Would their make-shift raft finds its way to some friendly
        shore?
        Suddenly a cry rang out: “Land! Look! Over there, in the direction the
        waves are carrying us!”
        And as the vague silhouette proved itself to be, in fact, the outline of a
        shore, the figures on the raft danced with joy.
        They were five. There was Frank, the carpenter, big and energetic. It was
        he who had first cried, “Land!”.
        Then Paul, a farmer. You can see him, front and left in the picture, on
        his knees, one hand against the floor, the other gripping the mast of the
        raft.
        Next is Jim, an animal breeder; he's the one in the striped pants,
        kneeling and gazing in the direction of land.
        Then there is Harry, an agriculturist, a little on the stout side, seated
        on a trunk salvaged from the wreck.
        And finally Tom, a prospector and a mineralogist; he is the merry fellow
        standing in the rear of the picture with his hand on the carpenter's
        shoulder. 2. A providential island
        To our five men, setting foot on land was like returning to life from the
        grave.
        When they had dried and warmed themselves their first impulse was to
        explore this little island on to which they had been cast, far from
        civilization.
        A quick survey was sufficient to raise their spirit. The island was not a
        barren rock. True enough, they were the only men on it at the moment. But
        judging from the herds of semi-domesticated animals they encountered, there
        must have been men here at some time before them. Jim, the animal breeder,
        was sure he could completely domesticate them and put them to good service.
        Paul found the island's soil, for the most part, to be quite suitable for
        cultivation.
        Harry discovered some fruit trees which, if properly tended, would give
        good harvests.
        Most important were the large stands of timber embracing many types of
        wood. Frank, without too much difficulty, would be able to build houses for
        the little community.
        As for Tom, the prospector, well, the rock formations of the island showed
        signs of rich mineral deposits. Lacking the tools, Tom still felt his
        ingenuity and initiative could produce metals from the ores.
        So each could serve the common good with his special talent. All agreed to
        call the place Salvation Island. All gave thanks to Providence for the
        reasonably happy ending to what could have been stark tragedy.
        3. True wealth
        Here are the men at work.
        The carpenter builds houses and makes furniture. At first they find their
        food where they can. But soon the fields are tilled and seeded, and the
        farmer has his crops.
        As season followed season this island, this heritage of the five men,
        Salvation Island, became richer and richer.
        Its wealth was not that of gold or of paper bank notes, but one of true
        value; a wealth of food and clothing and shelter, of all the things to meet
        human needs.
        Each man worked at his own trade. Whatever surpluses he might have of his
        own produce, he exchanged for the surplus products of the others.
        Life wasn't always as smooth and complete as they could have wished it to
        be. They lacked many of the things to which they had been accustomed in
        civilization. But their lot could have been a great deal worse.
        Besides, all had experienced the depression in Canada. They still
        remembered the empty bellies side by side with stores crammed with food.
        At least, on Salvation Island, they weren't forced to see the things they
        needed rot before their eyes. Taxes were unknown here. Nor did they go in
        constant fear of seizure by the bailiff. They worked hard but at least they
        could enjoy the fruits of their toil.
        So they developed the island, thanking God and hoping for the day of
        reunion with their families, still in possession of life and health, those
        two greatest of blessings. 4. A serious inconvenience
        Our men often got together to talk over their affairs.
        Under the simple economic system which had developed, one thing was
        beginning to bother then more and more; they had no form of money. Barter,
        the direct exchange of goods for goods, had its drawbacks. The products to
        be exchanged were not always at hand when a trade was discussed. For
        example, wood delivered to the farmer in winter could not be paid for in
        potatoes until six months later.
        Sometimes one man might have an article of considerable size which he
        wished to exchange for a number of smaller articles produced by different
        men at different times.
        All this complicated business and laid a heavy burden on the memory. With
        a monetary system, however, each one could sell his products to the others
        for money. With this money he could buy from the others the things he
        wanted, when he wished and when they were available.
        It was agreed that a system of money would indeed be very convenient. But
        none of them knew how to set up such a system. They knew how to produce true
        wealth - goods. But how to produce money, the symbol of this wealth, was
        something quite beyond them. They were ignorant of the origin of money, and
        needing it they didn't know how to produce it. Certainly, many men of
        education would have been in the same boat; all our governments were in that
        predicament during the ten years prior to the war. The only thing the
        country lacked at that time was money, and the governments apparently didn't
        know what to do to get it.
        5. Arrival of a refugee
        One evening, when our boys were sitting on the beach going over their
        problem for the hundredth time, they suddenly saw approaching a small boat
        with a solitary man at the oars.
        They learned that he was the only survivor of a wreck. His name: Oliver.
        Delighted to have a new companion, they provided him with the best that
        they had, and they took him on an inspection tour of the colony.
        “Even though we're lost and cut off from the rest of the world,” they told
        him, “we haven't too much to complain about. The earth and the forest are
        good to us. We lack only one thing — money. That would make it easier for us
        to exchange our products.”
        “Well, you can thank Providence,” replied Oliver, “because I am a banker,
        and in no time at all, I'll set up a system of money guaranteed to satisfy
        you. Then you'll have everything that people in civilization have.”
        A banker!... A BANKER!... An angel coming down out of the clouds couldn't
        have inspired more reverence and respect in our men. For, after all, are we
        not accustomed, we people in civilization, to genuflect before bankers,
        those men who control the lifeblood of finance?
        6. Civilization's god
        “Mr. Oliver, as our banker, your only occupation on this island will be to
        look after our money; no manual labour.”
        “I shall, like every other banker, carry out to complete satisfaction my
        task of forging the community's prosperity.”
        “Mr. Oliver, we're going to build you a house that will be in keeping with
        your dignity as a banker. But in the meantime, do you mind if we lodge you
        in the building that we use for our get-togethers?”
        “That will suit me, my friends. But first of all, unload the boat. There's
        paper and a printing press, complete with ink and type, and there's a little
        barrel which I exhort you to treat with the greatest care.”
        They unloaded everything. The small barrel aroused intense curiosity in
        our good fellows.
        “This barrel,” Oliver announced, “contains a treasure beyond dreams. It is
        full of... gold!”
        Full of gold! The five all but swooned. The god of civilization here on
        Salvation Island! The yellow god, always hidden, yet terrible in its power,
        whose presence or absence or slightest caprice could decide the very fate of
        all the civilized nations!
        “Gold! Mr. Oliver, you are indeed a great banker!”
        “Oh august majesty! Oh honorable Oliver! Great high priest of the god,
        gold! Accept our humble homage, and receive our oaths of fidelity!”
        “Yes, my friends, gold enough for a continent. But gold is not for
        circulation. Gold must be hidden. Gold is the soul of healthy money, and the
        soul is always invisible. But I'll explain all that when you receive your
        first supply of money.”
        7. The secret burial
        Before they went their separate ways for the night, Oliver asked them one
        last question.
        “How much money will you need to begin with in order to facilitate
        trading?”
        They looked at one another, then deferentially towards the banker. After a
        bit of calculation, and with the advice of the kindly financier, they
        decided that $200 each would do.
        The men parted, exchanging enthusiastic comments. And in spite of the late
        hour, they spent most of the night lying awake, their imaginations excited
        by the picture of gold. It was morning before they slept.
        As for Oliver, he wasted not a moment. Fatigue was forgotten in the
        interests of his future as a banker. By dawn's first light, he dug a pit
        into which he rolled the barrel. He then filled it in, transplanting a small
        shrub to the spot about which he carefully arranged sod. It was well hidden.
        Then he went to work with his little press to turn out a thousand $1
        bills. Watching the clean new banknotes come from his press, the refugee
        turned banker thought to himself:
        “My! How simple it is to make money. All its value comes from the products
        it will buy. Without produce, these bills are worthless. My five naive
        customers don't realize that. They actually think that this new money
        derives its value from gold! Their very ignorance makes me their master.”
        And as evening drew on, the five came to Oliver — on the run.
        8. Who owns the new money?
        Five bundles of new banknotes were sitting on the table.
        “Before distributing the money,” said the banker, “I would like your
        attention.
        “Now, the basis of all money is gold. And the gold stored away in the
        vault of my bank is my gold. Consequently, the money is my money. Oh! Don't
        look so discouraged. I'm going to lend you this money, and you're going to
        use it as you see fit. However, you'll have to pay interest. Considering
        that money is scarce here, I don't think 8% is unreasonable.”
        “Oh, that's quite reasonable, Mr. Oliver.”
        “One last point, my friends. Business is business, even between pals.
        Before you get the money, each of you is going to sign a paper. By it you
        will bind yourselves to pay both interest and capital under penalty of
        confiscation of property by me. Oh! This is a mere formality. Your property
        is of no interest to me. I'm satisfied with money. And I feel sure that I'll
        get my money, and that you'll keep your property.”
        “That makes sense, Mr. Oliver. We're going to work harder than ever in
        order to pay you back.”
        “That's the spirit. And any time you have a problem, you come and see me.
        Your banker is your best friend. Now here's two hundred dollars for each one
        of you.”
        And our five brave fellows went away, their hands full of dollar bills,
        their heads swimming with the ecstasy of having money.
        9. A problem in arithmetic
        And so Oliver's money went into circulation on the island. Trade,
        simplified by money, doubled. Everybody was happy.
        And the banker was always greeted with unfailing respect and gratitude.
        But now, let's see... Why does Tom, the prospector, look so grave as he
        sits busily figuring with a pencil and paper? It is because Tom, like the
        others, has signed an agreement to repay Oliver, in one year's time, the
        $200 plus $16 interest. But Tom has only a few dollars in his pocket, and
        the date of payment is near.
        For a long time he had wrestled with this problem from his own personal
        point of view, without success. Finally, he looked at it from the angle of
        the little community as a whole.
        “Taking into consideration everyone on the island as a whole,” he mused,
        “are we capable of meeting our obligations? Oliver turned out a total of
        $1000. He's asking in return $1080. But even if we bring him every dollar
        bill on the island, we'll still be $80 short. Nobody made the extra $80. We
        turn out produce, not dollar bills. So Oliver can take over the entire
        island, since all the inhabitants together can't pay him back the total
        amount of the capital and the interest.
        “Even if a few, without any thought for the others, were able to do so,
        those others would fall. And the turn of the first spared would come
        eventually. The banker will have everything. We'd better hold a meeting
        right away and decide what to do about it.”
        Tom, with his figures in his hand, had no difficulty in proving the
        situation. All agreed that they had been duped by the kindly banker. They
        decided upon a meeting at Oliver's.
        (continued on page 2)

        [Non-text portions of this message have been removed]






        [Non-text portions of this message have been removed]
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