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First, decide how much money you would like per week to live on-100.00-$200.00 or 300.00 or what. Then decide when you want your payday to be, daily, weekly, or monthly. For our example we will start with $125.00 a week, and we wish to be paid daily, on weekdays. On Monday we write ourselves a check for $25.00, and cash it at the local supermarket; that is our first $25.00, use it, and enjoy it, it is for spending on the good life. Tuesday write a check for $50.00, cash it at the supermarket, and send $25.00 to the bank to cover the check from Monday, the other $25.00 is for spending, use it, and enjoy it. Wednesday write a check for $75.00, cash it, and send $50.00 to the bank and spend the other $25.00. Thursday write a check for $100.00, cash it, send $75.00 to the bank, and the other $25.00 is yours. The life you are leading is good; you decided on $25.00 a day, but you could have $50.00 or $100.00 a day, it is just as easy. You do not have to pledge anything to qualify for the money. You just write checks, and cash them, and as long as you write a bigger one every day, and send the amount needed to cover the check from the day before to the bank, you can go on like this. It takes more than one day for the check you write to go from the store where you cash it, to its bank, and then through the clearinghouse to your bank for collection. As long as you make sure you cash a bigger check each day, and deposit the amount necessary to cover the check from the day before, you have got it made. What you are doing is using your "credit-creation" power. When you cash your check at the store, the cashier believes you have the money in your checking account to cover it, and since your intentions are good, its no use to get sticky about it, you know that by the time the check gets to your bank for collection, the money will be there, so it's a silly rule to say that you must have the money on deposit before you write the check. You know you are good for it. You know the Treasury of the United States sells treasury bills to the people before they get the tax collections from the people to cover them. They do it all the time every day, day in and day out. Why can't you? Big corporations, when big loans come due, simply refinance. Well, is that any different, when you have a check due for collection, you simply write a bigger one to cover the one due, and a little extra to live on; that isn't any different from what big business does each and every day. Writing bigger checks each successive day, it doesn't take long till the check is quite large, and it might be difficult to cash it at the store, so simply write two checks at that point, and use two stores. You can go on quite a bit longer then before the two of them become large, and you might have to split again; but if you just keep your wits about you, you can live like a king, and only have to write checks and cash them as your only labor expended. All you are doing is using your credit creative powers, and since only you are involved in it, you can decide how much credit to extend to yourself. Our Treasury has been creating bonds for over fifty-eight years (since 1921) at this writing, and is still going strong. They "cash" the bonds at the bank as collateral for the loans, and they simply create more bonds when they need money for interest (writing a bigger check). Our system is even better. You don't have to make a loan, just decide to use your own credit creative power like the bankers do themselves. The banker creates the dollars; there isn't any deposit anywhere with which to pay them off. They have even a better system. They create it to start with, and use it to buy from us. We cannot ask them to redeem them, but they insist you send them the money to redeem your check, but then, again, one system is as good as another as long as none of us ever has to pay off the debt we ring up. There is a debt that accumulates. Just at $25.00 a day at the end of the first year, you would be writing checks in the amount of $6,200.00 a day, going up $25.00 a day from there.
Creating all this credit for ourselves, and purchasing the good things of life for the money, and not working, we have been taking $25.00 a day in goods and services out of the market. By not working, we haven't been putting anything into the market; we have been creating a lot of imaginary demand, without creating any supply. And that, we know, is creating an imbalance, and that imbalance will cause”falling dollar parity". In creating a little credit for ourselves, we have created inflation and its effect upon our economy is to embezzle a little wealth from each of a great many others. Well, right there is the whole thing in a capsule. If we had first produced, sold in the market place, and then put our wealth in the bank before we used it to buy other products, the check we wrote would have been an order to transfer our wealth on deposit in our account to the account of the one who cashed our check, and there would have been supply that can also be real demand. By creating an imaginary demand (credit-money) without producing any goods, we have influenced our free market operations, and created an imbalance, which will have to be absorbed by the market. The extra imaginary demand, which is not in itself supply, will still be out there claiming the products of others while not being products themselves. Inflation is this Imaginary demand (that is not supply), the bonds of the Treasury, in advance of the supply to back them up, issued as imaginary demand, or the money created by the bankers for which there will never be any supply. The production of all the workers in industry which is demand or supply in itself will now be diluted by the addition of this imaginary demand which is not supply, like adding water to wine. The more imaginary demand (water) added to the demand-supply media (wine), the "weaker" the media become, and the "weaker" they become the lower in value; and the lower in value, the more it takes to buy something with them. This condition is called "rising prices" in error; it is the ' falling dollar ferity" (inflationary effect). As soon as any medium is allowed to be used in the market place that is not in itself supply that is real demand, there is the possibility of counterfeiting and wrecking the market "price level" (falling dollar parity). Whether it is ten per cent counterfeit or ninety per cent counterfeit, the wrecking begins with the first bit. The degree determines the time till collapse, and since in just seven years (1964-1971) our last line of defense, the silver coin, has gone from 10% counterfeit to 97% counterfeit, the time between now and the collapse is reducing at a rapid rate. Let us go back to our little experiment; at the end of the first year you were writing checks amounting to $6,200.00 a day. We'll say that approximately, $400.00 was about the most you could cash at a store, and almost any store will cash a $50.00 check, so say a good round average would be $200.00 that you could reasonably expect a supermarket to accept and cash for you. With a $6,200.00 a day creation, you would have to reach 31 markets in a day, and every eight days you would have to add another one to your list. The list would have to keep expanding because your over-all debt would be expanding, and since you have been using the money For the good life as you created it, it is gone and cannot be used to pay off this debt. In fact, once started, it cannot be stopped, and, continued onward, it leads to another market every eight days. 62 checks, and markets in the second year, 93 checks, cashing at markets, and deposit a day. How wide an area would you have to be able to cover in a day cashing checks? Unless you carried the cash to the bank from each check separately, you would be going around with $18,000.00 a day in cash just to get your $25.00. How long would it be before the $25.00 a day would not pay the expenses of making out 93 checks a day, taking them to 93 supermarkets for cashing? Can we agree now that this cannot lead anywhere except to utter financial collapse of your economy? Your economy in the example was based on credit instead of already produced wealth. It was based on money instead of wealthsavings from your employment or business. Any economy so managed as to be dependent on credit expansion is doomed also; it cannot escape. But, like our little experiment-who knows when-they will realize it, and give in to natural law. Some people would give up at 31 supermarkets a dayothers at 62 supermarkets a day, and, I suppose, some would keep trying, and never see the light until they themselves collapsed from exhaustion.