Money Will Disappear Again

by Tom J. Kennedy

Since 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.

There 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?

The 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:

"If 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 impossible."

Most 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?

The 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.

In 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.

Consider 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.

The 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.

Without 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.

The 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.

Recognizing 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.

Municipal 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 certificates.

Since 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.

The 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.

While 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.

Various 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.

People 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.

What 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 LETS software?

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.

Since 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.

Learn 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.

Money 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.

War Cycles/Peace Cycles can be ordered at Amazon and other online bookstores.