By Anna Von Reitz
First, let's review what actual money is.
Actual money has value in its own right ---- meaning intrinsic value. Gold has value based on what it is, so does silver. Coinage made of these metals has intrinsic value as a result, and that value can be determined and unitized based on how much of the metal is used to make the coin, the purity of the metal, and so on. This is called the bullion value.
There is also the face value, which is stamped on the coinage. The two things, bullion value and face value, may or may not be closely associated depending on market fluctuations, inflation, reputation of the issuing authority, and other less tangible factors.
A coin may also have numismatic value, which is its value as a collector's item.
These three values taken together establish the Market Value of a coin.
Any of the other things that we use "as" money, including paper notes and credit cards and bitcoin-type digital currencies, are not money. They are certificates representing actual gold or silver assets held in a repository, or they are notes amounting to "promises to pay" or other forms of Commercial Script. Paper has no significant intrinsic value, so must be "accepted" as having whatever face value is printed on it. The act of accepting it gives it value.
Understandably, people resist accepting "paper for gold" ---or oil, or silver, or any other actual commodity, and must usually be imposed upon by Legal Tender Laws before they will do so.
The classic example we have just used to describe actual money must be amended somewhat due to the advent of other asset-backed currencies, such as the "Petrodollar". The value of such currencies is also "pegged" and related to a unitized value of a specific commodity, such as one gallon of grade A crude oil. There is no theoretical end to the variety of such asset-backed currencies.
We could trade, to a limited extent, in Strawberry Dollars.
In addition to all these commodity-based currencies, there's "blood money".
Most Americans recognize this term as being related to bounty-hunting, where a reward is posted for the apprehension of an outlaw. The reward in this instance is called "blood money" as it involves exchanging money for a living (or sometimes dead) body.
Judas's thirty pieces of silver represent blood money -- a reward paid for the "service" of betraying Jesus to the authorities of the day.
These examples, however, may give you the wrong idea that blood money is restricted to these sorts of sordid and specific kinds of performance rewards. In fact, blood money is far more common in other contexts and represents the value of human life energy --- that is, the value of your labor, your thoughts, your patents, copyrights, and trademarks, all those "intellectual properties" that are yours by nature --- make up another whole trading sector and form of money.
This is because we not only trade money for goods, we trade money for services.
We unitize the value of services much as we unitize the value of gold. We establish hourly wages and minimum wage standards, which then peg in a very general sense, the value of labor being traded for money. A skilled laborer simply commands more of the "units" per hour.
Herr Hitler demonstrated how simple and arbitrary this is, when he famously defined the new post-World War I Deutsche Mark as being equal to either one hour of labor or one loaf of bread. This established the exchange rate of the DM in one stroke, for both commodity purposes (bread) and labor purposes (basic hourly wage).
To the amazement and chagrin of all the money snobs paying attention, it worked like a charm.
German productivity soared and the DM, set free of all the contrived manipulation of the European monetary regulators, soared also. If nothing else, this foray into simplified monetary policy proved that the value of a currency increases to a natural settling point and stabilizes by itself once it is properly defined.
People can have faith in it, because they know, for sure, the value of a Dollar --- or a Deutsch Mark, both in terms of trading commodities and trading labor.
Beginning in the 19th century we began bumping into the ceiling of currency values on a worldwide basis. There simply wasn't enough gold or silver in this world to backstop the burgeoning demand for currency needed to build industry and fuel the demand for infrastructure and government services. Even when they added the value of the blood money --- the labor commodities --- into the equations, there still wasn't enough "basis" to issue enough currency.
This demand for money as a commodity coupled with the physical limits of both the trading value of commodities and labor (the "believability" factor) led to the demand for both: (1) extreme exercise of all assets to provide basis for currencies, and (2).....credit. Lots of it.
Credit, unlike any form of money --- either commodity-based or labor-based blood money --- does not exist in the actual world. It has no basis but faith in a future ability to pay, and as we all know, the future does not exist in the present---sic., "good faith and credit".
This all results in a situation in which we have borrowed the assets of a projected future, including future labor assets, to pay for otherwise insupportable economic expansion today. This, combined with the money commodity rigging scheme known as the Economic Stabilization Fund (ESF) has allowed us to proceed without currency wars that would otherwise naturally erupt as each country battled to preserve its own living standards and more efficiently and completely sell-out future generations in exchange for more comforts and bigger welfare payments today.
It seemed innocent enough at the time. After all, it's all "in the future" and the future isn't actual. It's theoretical. And once we begin dealing in such theory, we have left Earth behind and entered the Never-Never Land, where both Peter Pan and the Land of Oz exist.
This fundamental unreality and the "theoretical" consequence is what drives the increasing disconnection between fact and fiction.
In the construct concocted by Bretton Woods and more recently by the World Economic Forum, average people counted as "citizenry" of each country are born as the carriers of a completely insurmountable debt and exist only as debt slaves. This, while these same people are in fact the owners and possessors of everything of actual value on this planet, including the value of their labor.
The world of monetary theory and future indebtedness in the form of credit has created a head-on collision between fact and fiction, and everywhere you turn, you hear the whispered and horrified refrain, "Somebody's got to pay for this!"
Let's begin with the fact that you can't in-debt something that doesn't exist, but you can honor credit that is pre-paid.