After analyzing how the monetary system works, what basics it is supported on and finally, what it needs to survive, we may begin to comprehend not only why sustainability and a money based economy just do not fit together, but also why 1% of the world population is outrageously wealthy while over 50% starve on a daily basis.

How the monetary system functions is no secret. However, it is the economists and bankers´ jargon and the apparently complex math involved that stop most people from giving its basics and functioning enough attention to understand it. It is also this confusing terminology that prevents the majority from realising that money is one the most unjust, aberrant and destructive systems that humanity has endured throughout history.

The basics of money creation can be identified in the booklet titled Modern Money Mechanics published by the Federal Reserve of the United States.

The following public information has been extracted from Modern Money Mechanics by Federal Reserve Bank of Chicago, the documentary Zeitgeist: Addendum by Peter Joseph and The Mystery of Banking by Murray Rothbard.

The mechanics go as follows:

A. The government asks the Federal Reserve for money.

B. The Federal Reserve accepts bonds from the government (treasure bonds) in exchange of the money.

C. The government then deposits this money into a bank account and in this deposit it becomes legal tender. Money has been created. It is important to note than all these transactions would have been made electronically as in fact, only 3% of the U.S.´s money supply exists in physical currency. The 97% left only exists digitally.

D. Let´s remember that the government has exchanged bonds for money. Bonds are, by design, instruments of debt. When the Federal Reserve receives these bonds in exchange of the money they have created, out of thin air, is that the first debt is created. The government, through the bonds, has requested a loan.

Money is created out of debt and/or liability.

E. A commercial bank has the money from the government deposited into one of its accounts, thus becoming instantly part of the bank´s reserves, as all deposits do.

F. The bank must maintain legally required reserves equal to a prescribed percentage of its deposits. This figure, under current regulations, is 10%. This means that 10% of the money deposited by the government is held as the required reserve while 90% is considered as an excessive reserve and hence can be used as the basis for new loans.

G. It would be logical to think that this 90% comes from resting the required reserve of 10% from the total of 100% deposited by the government. However it is now that the fractional system of Modern Money Mechanics gets really insane, for this 90% is created (again, out of thin air) on top of the existing 100%.

This is how the money supply is expanded.

H. As Modern Money Mechanics states: “Of course, they do not really pay out loans from the money they receive as deposits. If they did, no additional money would be created. What they do when they make loans is to accept promissory notes (loan contracts) in exchange for credits (money) to the borrowers’
transaction accounts”.

Basically, 90% of money is created on top of the 100% deposited because there is a demand for that kind of money in loans and there is a 100% deposit to satisfy the reserve requirements.

I. We would expect that the borrowers would deposit their borrowed money into their respective bank accounts. The process starts all over again then and new money is created for more loans. Loans which will create more money towards more loans.

This deposit money creation/loan circle can technically go on infinitely. The average mathematical result is that about 900% can be created on top of the original 100%. Or in other words, about 9 times of the deposited money can be created out of thin air.

The money that already exists would be giving value to this newly created money. This means that the total money supply is increased irrespective of the demand for goods and services. As demand and supply find equilibrium, prices rise diminishing the purchasing power of each individual dollar/pound/euro etc. This is the famous inflation.

Essentially inflation is a hidden tax on the public.

Inflation is also inherent to money expanding.

However, if perpetual inflation just seems ridiculous for its destructive nature, we will also find absurd the fact that money is debt and debt is money.

But that is what it is. Any comparison made in any country of their economy charts for a certain period will show you that as their money supply increases so does their national debt.

The only way money can come into existence in the first place is from loans. If everybody (including the government)   was suddenly able to re-pay their loans, there would be not one currency note in circulation.

But the truly fraudulent nature of the system itself becomes clear with the application of interest.

Whether it is the government or the average individual that borrows, the loan always has to be re-paid with interest. But, where is the money supply that covers or backs up that interest?  You guessed it. Nowhere.  It does not exist.

The amount of money that is owed to the banks will always exceed the amount of money that is in circulation.

That is why perpetual inflation is needed, to cover the perpetual deficit built within the system, caused by the need to pay the interest.

It is this system that pulls people into labour,so they can pay for the basic needs in life, although they are still susceptible to bankruptcy as the perpetual deficit always, by its very nature, propels the majority into poverty.

American President Andrew Jackson called for an investigation into the national bank’s policies and political agenda as soon as he settled in to the White House in March 1829. To Jackson, the bank symbolized how a privileged class of businessmen oppressed the will of the common people of America.

He had already denounced the bold attempts of the financial institution to control the government and predicted this would be the fate awaiting the people should they continue to be deluded by such or similar institutions.

Financial institutions, in coalition with governments and corporations, are the perpetrators of economic warfare.

“Custom will reconcile people to any atrocity; and fashion will drive them to acquire any custom.  ~George Bernard Shaw”

Now that we have unveiled the true nature of the monetary system, we should tackle a commonly accepted notion: the apparent scarcity of clean renewable (naturally replenished) energy and natural resources.

Backed up by scientific data, we know that we count with the following clean renewable energy that comes from the following natural resources:

Sunlight
Wind power
Rain
Tides
Geothermal Heat

Is sunlight scarce?
Is wind scarce?
Is rain scarce?

Aren´t we surrounded by seas, are tides uncommon?
Isn´t geothermal heat (which comes from the heat of the Earth´s core)
available everywhere in the planet?

So, where has the notion of a scarcity of natural resources come from?

Who does this fake notion serve?
Who would resent abundance?

We may think that we do not have the technology to harvest and manage efficiently these sources but the truth is that we could have enjoyed sustainable living many decades ago. The scientific and technical knowledge that could make this possible has been available since the late 20´s.

So what has been holding our governments back from preserving Earth, feeding the whole world and utilizing our abundance of natural resources in an intelligent manner so they never run out?

For a moment, forget about the season finale of Lost or the last episode of Glee or the latest blockbuster or even the World Cup and ask yourself:

What makes things valuable?

In a world where scarcity did not exist, money would have no value.

So, the next question is almost unavoidable:

Who truly needs money to rule the world?

Who is most interested in telling people that the technology to utilise natural resources intelligently and efficiently does not exist?

Who is enslaving your mind and your life to perpetuate this system?

Who do governments really work for?

We are led to think that we are free within our democracy, but isn’t a democracy that only represents two or three perspectives ultimately fake?

We are intelligently manipulated and distracted by a democracy that is as fake as it is controlled by the money issuers and the corporations. Once the majority realises that we are not truly free, the whole system will be in danger.

But all those who threaten the system are labeled by the government and the mainstream media, who also work for, yes you guessed it, the monetary system, as: terrorists, activists, criminals or at the very least, parasites to society.

“Divide and conquer” is as old a concept as it is systematically efficient.

Instead of directing our existent technology to work on harvesting and managing our abundant natural resources, billions are spent in military armamentso we can invade the countries that produce the oil that pollutes our environment, so we can continue living in scarcity and hence perpetuate the existence of the monetary system for the benefit of those that control it.

However, we humans live in symbiosis with our environment; therefore it is obvious that sooner or later this system is doomed to fail for it only leads to the destruction of all.

Nature does not do insanity.

Is there a feasible alternative to the monetary system?

THERE IS.

It is called Resource Based Economy, and it applies existent advanced technology to the harvesting and efficient management of our abundant natural resources for the liberation of the human race and the preservation of planet Earth.