Hi Hank. This very interesting. I have read through multiple times and am still struggling to understand. A picture of the money creation would help. I am having trouble keeping all the parts in my mind as I try to follow what you are saying. I sense the scam but can’t articulate it. 😊
Maybe look at it this way, when you use dollars to purchase an asset of value, rather than trading one asset for another, you are really trading a liability for an asset. It's false accounting, made that way by the very first transaction in which the dollar is created. When you trade a dollar for an asset of value, you are really trading an asset of NEGATIVE value, in other words a liability, for an asset of POSITIVE value. This system is from the pit of Hell. It is a lie from the very creation of dollars all the way through until those dollars are retired.
The way the system SHOULD work, is for those very same dollars to be created as equity, in other words, positive value, rather than liabilities of negative value. Read this part again:
"The biggest scam in the history of mankind operates by the use of a simple scheme of double-entry book-keeping in which dollars are created as liabilities rather than assets by the Federal Reserve. Reverse that scheme, creating the very same dollars as assets rather than liabilities, performing that accounting function at the US Treasury rather than the Fed, and the national debt immediately begins to be paid down. That’s how you do it. That’s the only way to do it."
I say if you reverse these entries and do it at the US Treasury, then the economy would be flooded with positive valued, equity dollars. Those dollars do not have to be paid back. There is no debt created with their issuance. When those equity dollars pay off debt dollars, the debt dollars are retired. So this is not inflationary.
Hey I am new here and I am actually fighting in court and arbitration with a bank and a credit card company trying to get them to transfer the credits they received from my promissory note for setoff of the account. They are really fighting me about this
but to get back on topic here for this comment is how do we make a dollar a positive asset? I thought the only way to do that was to have it backed by gold or something of substance..
Love what you're doing brother and would love to connect with you!
Thank you. Whether dollars are issued as debt vs. equity goes back to the initial transaction under which it is created. Since 1913, that transaction is the creation of a debt instrument by the US Treasury Department, that instrument being sold directly or indirectly to the New York Fed. Upon receipt of promissory note of the government, the Fed booking it as an asset, it generates an equivalent amount of dollars, booking them liabilities and deposits them into a bank account. The liability account on the Fed balance sheet is called, Currency in Circulation.
But rather than the process beginning with the US Treasury going into debt, the Treasury Department could simply create the same dollars,book them as an asset, which becomes Equity below the line, and deposit those dollars into the very same account. That dollars are created as liabilities is the trick of the entire system.
Hi Hank. This very interesting. I have read through multiple times and am still struggling to understand. A picture of the money creation would help. I am having trouble keeping all the parts in my mind as I try to follow what you are saying. I sense the scam but can’t articulate it. 😊
Maybe look at it this way, when you use dollars to purchase an asset of value, rather than trading one asset for another, you are really trading a liability for an asset. It's false accounting, made that way by the very first transaction in which the dollar is created. When you trade a dollar for an asset of value, you are really trading an asset of NEGATIVE value, in other words a liability, for an asset of POSITIVE value. This system is from the pit of Hell. It is a lie from the very creation of dollars all the way through until those dollars are retired.
The way the system SHOULD work, is for those very same dollars to be created as equity, in other words, positive value, rather than liabilities of negative value. Read this part again:
"The biggest scam in the history of mankind operates by the use of a simple scheme of double-entry book-keeping in which dollars are created as liabilities rather than assets by the Federal Reserve. Reverse that scheme, creating the very same dollars as assets rather than liabilities, performing that accounting function at the US Treasury rather than the Fed, and the national debt immediately begins to be paid down. That’s how you do it. That’s the only way to do it."
I say if you reverse these entries and do it at the US Treasury, then the economy would be flooded with positive valued, equity dollars. Those dollars do not have to be paid back. There is no debt created with their issuance. When those equity dollars pay off debt dollars, the debt dollars are retired. So this is not inflationary.
Hey I am new here and I am actually fighting in court and arbitration with a bank and a credit card company trying to get them to transfer the credits they received from my promissory note for setoff of the account. They are really fighting me about this
but to get back on topic here for this comment is how do we make a dollar a positive asset? I thought the only way to do that was to have it backed by gold or something of substance..
Love what you're doing brother and would love to connect with you!
Thank you. Whether dollars are issued as debt vs. equity goes back to the initial transaction under which it is created. Since 1913, that transaction is the creation of a debt instrument by the US Treasury Department, that instrument being sold directly or indirectly to the New York Fed. Upon receipt of promissory note of the government, the Fed booking it as an asset, it generates an equivalent amount of dollars, booking them liabilities and deposits them into a bank account. The liability account on the Fed balance sheet is called, Currency in Circulation.
But rather than the process beginning with the US Treasury going into debt, the Treasury Department could simply create the same dollars,book them as an asset, which becomes Equity below the line, and deposit those dollars into the very same account. That dollars are created as liabilities is the trick of the entire system.
Way to go, Hank and thanking you for a slimmed down version of your presentation on this whole issue…
Once again, you nailed it and painted it shut!!!
I am going to take a look at Modern Money Mechanics now.
Here is a FB post I made just on MMM.
https://www.facebook.com/search/posts?q=modern%20money%20mechanics&filters=eyJycF9hdXRob3I6MCI6IntcIm5hbWVcIjpcImF1dGhvcl9tZVwiLFwiYXJnc1wiOlwiXCJ9In0%3D
I’m not on FB. When I click the link it says it does not exist.
I'll be making it into a Substack soon.
Neither am I, Laurie…so I was ecstatic when I found Hank and his posts here