Money is a dominant force in the economy.  It is a medium of exchange and solves the double coincidence of wants.  A double coincidence of wants is an extreme barrier to the size and scope of the market.  “What advantage does he derive from the system of book-keeping by double entry?  It is among the finest inventions of the human mind.”  Goethe recognize the extraordinary benefits of money 100s of years ago.

When banking is honest, there are two types: demand and time.  A demand deposit is simply money that can be withdrawn without notice, or it can be withdrawn on demand of the depositor, this does not earn interest.   A time deposit can only be withdrawn at a certain date, or it can be withdrawn at a certain time by the depositor, this does earn interest.  It is the time deposits which are used for loans.  The more money in time deposits, the lower the interest rates will be.  For this, you will pay a monthly fee for your bank account, which is much cheaper than we pay in inflation.

This is how honest banking would work.  Now, lets discuss how the system of fraud and counterfeiting works.  Yes, you read that correctly.  This is not a conspiracy or anything else, that’s exactly what the system is.  It’s called fractional reserve banking to fool the public.  To castrate you mentally.  If they were honest, they would never get away with this monstrous injustice.  This is nothing more than a piece of trickery.

It is called fractional reserve because the honest system is 100 percent reserve.  Demand deposits and time deposits don’t exist, this is fraud.  The system of fraud and counterfeiting creates the business cycle.  Under fractional reserve, all money can be lent.  This means that two or more people have title to the same good, fraud.  That’s not it, they print money or create it.  If they were honest about their actions, its counterfeiting.  They call it other incomprehensible terms so you think it should be left to some esoteric group, like quantitative easing.  Anytime me you hear this, just know it means counterfeiting.

Each unit of money created (counterfeited) means each unit of money is worth less.  So, the money is essentially being taken from your bank account, retirement account, and future paychecks.  This is harmful for nearly all, especially those on a fixed income, like retirees.  This is inflation, the counterfeiting of new money.  It’s not the rise in prices.  The rise in prices is nearly inevitable from the creation of new money.  I know it’s often called the rise in prices, it’s not, don’t let them fool you, its counterfeiting money.  They say that to avoid blame.  But we know the culprit.  If you don’t think its counterfeiting, try to print money.  The only institution that can counterfeit legally is the Fed.

Money arises naturally on the free market, not by allowing a sole counterfeiter.  Money should be a commodity.  This money has value because it had value the day before, and before, and it goes on and on until we are in the barter economy.  This is used as a medium of exchange because it had value in the barter economy.  Money must have arisen as a valuable commodity in the barter economy.  This is properly known as Regression Theorem.  Not enough can be said about the Fed.  Inflation is far more insidious than the visible taxation.