Money Will Disappear Again
by Tom J. Kennedy
the earliest times money has disappeared whenever the moneylenders stop lending
money into circulation. There was virtually no money in circulation after the
"Crash of 1929". That is to say - money disappeared.
were groceries in the corner store. There were tools in the local hardware
store. There were houses for sale in local communities. There were countless
thousands of labourers willing to work for less than 20 cents per hour. Why did
the money disappear?
answer is really quite simple. What happened then had happened before - and
will happen again. To better understand simple exchange transactions that
economics textbooks don't teach study this example:
there is only $10.00 in existence and you borrow it from someone under
conditions that you repay the $10.00 plus $1.00 (usury) you are agreeing to the
consumers being ignorant of the "truth" about economics agree to
impossible conditions similar to the example above when they sign contracts for
personal loans, automobile loans, mortgages etc. It is straightforward
and easy to understand that if you borrow 10 units and you are forced to repay
the usurer 11 units the borrower will eventually surrender all of his/her
collateral as the units (money) disappears. Is it any wonder that many
people face economic ruin because they are unable to repay both the principal
and the usury of loans?
first defaults under such a devious lending system are recorded from the
Babylonian Economic System - 2000 B.C. The Baal priests were lending 10 talents
and demanding payment of 11 talents. By this action the Babylonian money
lenders were not only in violation of God's Law (and the Universal Law) against
usury but they were also reducing tens of thousands of their fellow citizens to
slavery. Today multiple millions of citizens on planet earth are reduced to
poverty by modern money lenders.
1929 the small floating supply of ready money that was in circulation was
quickly used to repay maturing debts. Since all properties already had IOU's
attached, there was absolutely nothing left to mortgage. Therefore, the
banks would not permit citizens to borrow new money into existence to replace
the money that was vanishing when used as payment against former debts.
the case of the vanishing dollar. A consumer pays the grocer a dollar for a
loaf of bread. The grocer gives the dollar to his banker as payment against his
debt to avoid foreclosure. At the moment the banker's computer accepts the
$1.00 credit to cancel out the grocer's debt the dollar vanishes. There was
$1.00 in circulation before the consumer spent it at the grocer's who
immediately paid it to the banker whereupon it disappeared. Because of this
simple transaction there is $1.00 less in circulation.
money vacuum of the 1930's was caused in precisely this manner - without
computers. Money simply disappeared. Employers could not pay workers. Renters
could not pay rents. Farmers could not buy seed to sow their crops and
consumers could not even buy groceries.
knowledge that the bankers control the monetary system and not the government
many people called for the government to print money. Of course, the government
could not do this without violating a sacred agreement made with the bankers.
Finally, after the numbers of destitute swelled to a dangerous level the
government was persuaded to borrow again from the bankers to pay for "make
work" programs. This action, of course put new money into circulation
again so that the bankers could once again exact usury.
citizens of the United States of America and some local communities in western
Canada being just as desperate quickly became creative. They decided to make
and issue their own money just as their ancestors made "tallies" when
money disappeared in England. Various towns and cities printed and issued usury
free scrip otherwise known as tax credit certificates. These tax credit
certificates had value for were accepted as payment for taxes in the city which
issued it. The municipal politicians paid their policemen, firemen, and all
municipal employees with this scrip.
that this scrip had value as a tax credit certificate free enterprisers agreed
to accept it in exchange for goods and services. In fact, many free enterprisers
followed the lead and issued their own unique scrip redeemable for skills,
goods and services from their respective enterprises. In a short time, may free
enterprisers preferred to trade usury free scrip instead of usury-bearing cash.
work projects which had been postponed because of a previous shortage of funds
were now undertaken and successfully completed and paid for with scrip. All
scrip was retired from circulation when it was tendered for taxes. This
municipal scrip system which grew out of a need in the 1930's left no debt in
the local communities. Rather there emerged an abundance of different kinds of
scrip money in addition to the traditional usury-bearing federal money. Free
enterprisers in local communities held regular meetings to determine which
kinds of scrip would be accepted on par with their
respective municipal tax credit
the banks demanded only usury-bearing federal cash as payment for debt, the
public turned against the banks and usury rates plummeted to record low levels.
The politicians who are always indebted to the banking elite made sure that
only usury-bearing federal cash could be accepted as payment for federal taxes.
bankers also refused to accept scrip as payment for mortgages and personal
loans, consequently countless thousands of destitute people had their homes
foreclosed. when the number of foreclosures peaked, the bankers ordered the
politicians to initiate public works programs. It was expected that such public
works programs would "prime the pump" and give the masses just enough
usury-bearing federal cash to start a new inflationary cycle.
the various forms of usury-free municipal scrip were accepted in local
communities, the usury bearing federal cash was acceptable by law everywhere.
If the politicians had listened to the people instead of the bankers the
popular, usury-free scrip may have very well won out over the usury bearing
federal cash in the 1930's.
present indicators and parallels of history point to a day in the not too
distant future when the moneylenders will stop lending and cause money to
disappear again. When new money stops coming into circulation, usury payments
on maturing debts will quickly cause the money to disappear again.
will always need goods and services. The free enterprisers will have goods
available as well as the skills to provide the services, but just like in the
1930's, there will be no way to make a transaction unless people engage in
barter. However, just as happened previously, the free enterprisers will
quickly acquire an abundance of merchandise which they really don't want or
need and they will demand something that can be more easily traded.
they will demand again is municipal scrip or tax credit notes. Given the ease
of modern technology any municipal government ought to be able to have
municipal tax credit notes printed and ready to be paid into circulation within
two days. The popular and proven LETS software can easily be adapted to create
prosperity by any municipal government in any local community. Why should we
wait for a financial crisis? Why not implement a pilot project now using the
The article "The Innovative Proposal" offers an abundance of relevant background information. Readers are invited to review the content of the article and then share it with others.
most of the present breed of local politicians will never have heard of this
economic solution to solve the "shortage of funds" it is up to you,
the reader of this article Money Will Disappear Again to initiate any re-learning process.
Only expect opposition from those who control the local banks and maybe from
any employees who are totally dependent upon the bankers for their livelihood.
The creation of any municipal scrip or tax credit certificates will definitely
slow the foreclosure process in any community where implemented.
more about alternative, usuryfree time currencies. Copy and forward an email of
this article to your local politicians. Suggest that action be taken now -
before it is too late. Encourage them to start the ball rolling by lobbying
other politicians to do as our grandfathers did, pay city employees, the
disposal and recycle contractors, the policemen, the firemen, the teachers, the
social workers and health care workers with municipal scrip redeemable for
property taxes. If you don't take some initiative now your family and friends
may very well face some stressful economic times ahead for most politicians who
hold elected office will be completely baffled - with no answers - when the
Money Disappears Again.
Will Disappear Again
is reprinted from the LEADS Newsletter (Jan/Feb 1986)
The ideas in the above article are
presented with more detail and a clear and concise approach in a book WarCycles/Peace Cycles authored by Richard Kelly Hoskins. His articles have been published in
newsletters, newspapers and magazines throughout North America. Having more
than 30 years experience working with Wall Street, Richard Kelly Hoskins
presents a good understanding of the principles of usury and money from both a
business point of view and a scriptural point of view. All visitors to The
UsuryFree Eye Opener are invited to read WarCycles/Peace Cycles for a better understanding of the
historical machination and manipulation of money.
Cycles/Peace Cycles can be ordered at Amazon and other online bookstores.