Topic category:  Money, Stocks, Bonds & Precious Metals

When they print more IOUs the government has to collect value from somewhere to cover the debt. Sometimes it comes from foreign governments and some from taxes. But when the government can't raise taxes or borrow, they still print the notes and rely on the the value of the new notes coming out of IOU's currently in the economy by reducing their value. If the government prints up 50% more IOUs then your note loses half it's value compared to what it was before the new notes were issue. value

Prices eventually rise to balance the lower worth of the Notes. Inflation of prices does not net any more value to sellers. It merely assures that the value exchanged remains the same as before. Inflation of Prices is equal to deflation of the Note value. Assuming you can even call Debt valuable. It is a fiim flam. The people always pay for government spending (by issuing bond debt to the FED.) It is a stealth flat tax on everyone.

Example: I give my Dad 3 bucks in the store because he forgot his wallet. I get an IOU from my dad for 3 dollars. I exchange that note for a comic book from Joe. Now my dad owes Joe 3 bucks. Now Joe being a smart banker decides to borrow 3 bucks from Stanley based on the IOU Joe has. My Dad is trustworthy isn't he?

So Joe issues a Joe's Bank IOU Note on Dad's note. Stanley can always come back for his 3 bucks and Joe can redeem his note from Dad for 3 bucks from Dad. Then unbeknownst to Stanley Joe does the same with 9 other friends. After all they all won't come back at the same time. If they do, that is called a run on the bank/ Joe's bank declares bankruptcy and each guy divides up the assets of 3 bucks.

Next time Joe says sorry you can't take my note from the Dad, you can only exchange your note from Joe for another note from Joe. But don't worry everyone will honor that note as though it was money because Joe is the government and can issue a decree that his notes are legal tender for all debts public and private.

Notes can be duplicated, as opposed to Gold coins or Bitcoins that can not. . So Joe prints up 9 more notes. Problem solved.for Joe. But what are these notes actually worth? One 10th of 3 bucks. The grocer though says. Wait a minute my goods haven't changed and are still worth 3 bucks. Your note is now one tenth of that. The grocer need 9 more notes from you to keep the exchange as it was when there was only one note. The price in notes went up to keep the exchange fair.

Trust in debt Notes is trust that government will pay back their debts. Except government has no money. It collects it from the people. So Government taxes Dad and Stanley and his friends, the people of the United States to get value to back the notes the government issued. In effect each note issued takes that amount of value out of the economy and transfers it to the government. The more the government takes the more value you and everyone else loses from your property and wealth.

Lawrence Rosner
The Society Project (Founder)

Biography - Lawrence Rosner

Lawrence spent his career solving the problems of major businesses. He created software, business processes and systems that save millions of dollars a year and make people’s work life easier and more productive. He was a founding partner in a company which is instrumental in streamlining the practice of medicine and helping both patients and Doctors cope with the problems created by government health care.

During an assignment on the 98th floor of the WTC in 1993, he experienced first hand Islamic Terrorists' nearly successful attempt to take down the WTC. He and tens of thousands of others were trapped in the building in darkness and choking smoke.

After the government’s whitewashing denial of the root cause of the bombing - the evil built into Islam, the deepening confusion of American values, the negative end results of unnecessary and even immoral government intervention, the deterioration of the US economy and widespread systemic government corruption and unchecked power, he founded The Society Project to provide a blueprint for restoring our unique government Of the People, not Above the people, as it has become.

The Society project is dedicated to restoring the Constitutional Republic of the United States by educating, motivating and facilitating people to act to repair our society, through the Amendment process, before our society becomes another of the world’s failures.