What is money and from where does it come?

John Maynard Keynes revealed a lot in his book “Consequences of the Peace” …“If governments should refrain from regulation (taxation), the worthlessness of the money becomes apparent and the fraud upon the people can be concealed no longer.”

Well, at least he was honest. Problem is that most university Banking and Finance Departments within Schools of Business conveniently leave out that part of Kynesian economic theory.

Bottom line: There will never be any peace on earth-goodwill toward men any where on earth as long as the idea of a central bank is allowed to exist. — jtl, 419

from Personal Liberty


The myth of money is so cleverly concealed that no one even bothers to inquire. I doubt seriously if members of the Federal Reserve board know what money is and whom it serves.

I know they didn’t 40 or 50 years ago. In fact, the late Merrill Jenkins, the monetary realist who wrote the book “Money, The Greatest Hoax on Earth,” proved in court that Federal Reserve members called as witnesses and their counsel did not know what money is or from where it comes. They could not explain it and could not define it under cross examination.

The method of money creation is witchcraft. It has been witchcraft for thousands of years. Modern economists and sophisticated eggheads only imagine that they understand money.

Yet nothing that affects our lives could be so all-important.

Money is not a dull subject. The study of money is a study of tyranny. It makes a mockery out of human freedom, property ownership and the accumulation of wealth. Once we understand money, we then know that any imagined personal freedom that we have is a license or privilege given by the government and taken away by the government. The purpose of money is to transfer wealth from the producers (the people) to the nonproducer money creators.

John Maynard Keynes revealed a lot in his book “Consequences of the Peace,” published in 1920. He stated, “If governments should refrain from regulation (taxation), the worthlessness of the money becomes apparent and the fraud upon the people can be concealed no longer.”

Keynes said in this statement that the system of income tax covers the fraud of the government printing press. What does this mean? It means that the government and its partner the Federal Reserve are printing money (creating credit) out of nothing and paying it into circulation for whatever the government wants, whether that be a fleet of ships or an army to attack Russia. In fact, all wars fought since the 1900s began are nothing more than bankster wars.

To cover the fraud of massive confiscation of wealth with printing press money, we have an income tax system. The income tax system has a very serious purpose. But contrary to what Americans think, the income tax has absolutely nothing to do with funding the government.

The income tax is a consumption tax. The income tax regulates consumption. Note Keynes’ word “regulation” in the aforementioned quote. The income tax system penalizes those who are successful. It is a social and economic leveling system.

The income tax also is used to take as much “money” out of circulation as possible. The more “money” taken out through the income tax, the more the money creators can create. The less “money” there is, the better it keeps its imagined value.

The federal government funds itself with “printing press money.” The income tax does not fund the federal government. Almost nobody knows this, but it is extremely important to understand. The power to create money is the source of government force and bureaucratic tyranny in our lives.

In 1945, Beardsley Ruml, the chairman of the New York Federal Reserve Bank during World War II, gave an amazing and revealing speech to the American Bar Association in which he explained the operation of our monetary and tax system in a most enlightening way. His speech was published in a periodical named American Affairs in its January 1946 issue.

From the article titled “Taxes For Revenue Are Obsolete,” is this quote:

Mr. Ruml read this paper before the American Bar Association during the last year of the war (World War II). It attracted then less attention than it deserved and is even more timely now, with the tax structure undergoing change for peacetime. His thesis is that given (1) control of a central banking system and (2) an inconvertible currency, a sovereign national government is finally free of money worries and need no longer levy taxes for the purpose of providing itself with revenue. All taxation, therefore, should be regarded from the point of view of social and economic consequences.

In other words, the government just prints the money it needs to accomplish its move toward collectivism and egalitarianism.

Ruml’s direct quote was, “The necessity for a government to tax in order to maintain both its independence and solvency is true for state and local governments, but it is not true for a national government.”

What does all this mean to us? It means that we live under an authoritarian system and we are at its mercy. The federal government has monopoly power to create money (credit or debt) backed by force. And it disguises this system from the people with the income tax system as explained above. Simply stated, corporate government is transferring unbelievable and unimaginable wealth to itself with “money” that it creates and which costs it nothing. Does this not make “organized crime” look like Sunday school? The true purpose of money is to expropriate wealth.

This is how and why world wars are financed that cost millions of young lives. This is how social and economic policy is forged into so-called public policy, a euphemism for government social engineering and government force.

“Public policy” is government force in our lives based on monopoly power to create “money.”

For a follow-up study, order Jenkins’ book “Money, The Greatest Hoax on Earth” from Amazon if you can find and afford it. The book is no longer in print and difficult to find. I’ve seen copies priced above $300 on Amazon in years past, but they are currently listed at $17 to $40. Or we have reproduced transcripts from one of Jenkins’ lectures on money in which he describes the court case mentioned above, along with an explanation of what money is, is not, and how the Federal Reserve is sanctioned theft. They are available here.

A truth about the central bank

Here is a truth that is understood by fewer than one in 10 million people. It is beyond comprehension how so-called economists and learned men completely ignore and are absolutely indifferent to the fact that no country with a central bank is economically free.

As President James A. Garfield said, “He who controls the money supply of a nation controls the nation.” Any child who is not yet brain dead, as adults are, can understand this simple, indelible, unalterable truth.

All national fronts have a central bank and all central banks are interdependent and all cooperate in the rulership of the world. They not only rule the world, they own the world. You as an individual may possess something, but you don’t own it.

The central banks own everything in existence, including the universities, the medical schools, the media and the organized church. And they own the thoughts of the people and the intents of their hearts. (I will cover how this is works future articles.)

The fact that most people on this Earth are oblivious to this truth should prove to any rational mind that millions of people live their lives in an unconscious state of mind. This fact is a monument to the power of propaganda.

Doubtless, Edward L. Bernays is smiling from hell.

Environmental and Natural Resource Economics: The Austrian View

edited by

Dr Jimmy T (Gunny) LaBaume

Is now available in both PAPERBACK and Kindle

BookCoverImageMurray N. Rothbard was the father of what some call Radical Libertarianism or Anarcho-Capitalism which Hans-Hermann Hoppe described as “Rothbard’s unique contribution to the rediscovery of property and property rights as the common foundation of both economics and political philosophy, and the systematic reconstruction and conceptual integration of modern, marginalist economics and natural-law political philosophy into a unified moral science: libertarianism.”

This book applies the principles of this “unified moral science” to environmental and natural resource management issues.

The book started out life as an assigned reading list for a university level course entitled Environmental and Natural Resource Economics: The Austrian View.

As I began to prepare to teach the course, I quickly saw that there was a plethora of textbooks suitable for universal level courses dealing with environmental and natural resource economics. The only problem was that they were all based in mainstream neo-classical (or Keynesian) theory. I could find no single collection of material comprising a comprehensive treatment of environmental and natural resource economics based on Austrian Economic Theory.

However, I was able to find a large number of essays, monographs, papers delivered at professional meetings and published from a multitude of sources. This book is the result. It is composed of a collection of research reports and essays by reputable scientists, economists, and legal experts as well as private property and free market activists.

The book is organized into seven parts: I. Environmentalism: The New State Religion; II. The New State Religion Debunked; III. Introduction to Environmental and Natural Resource Economics; IV. Interventionism: Law and Regulation; V. Pollution and Recycling; VI. Property Rights: Planning, Zoning and Eminent Domain; and VII. Free Market Conservation. It also includes an elaborate Bibliography, References and Recommended Reading section including an extensive Annotated Bibliography of related and works on the subject.

The intellectual level of the individual works ranges from quite scholarly to informed editorial opinion.


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About Land & Livestock Interntional, Inc.

Land and Livestock International, Inc. is a leading agribusiness management firm providing a complete line of services to the range livestock industry. We believe that private property is the foundation of America. Private property and free markets go hand in hand—without property there is no freedom. We also believe that free markets, not government intervention, hold the key to natural resource conservation and environmental preservation. No government bureaucrat can (or will) understand and treat the land with as much respect as its owner. The bureaucrat simply does not have the same motives as does the owner of a capital interest in the property. Our specialty is the working livestock ranch simply because there are so many very good reasons for owning such a property. We provide educational, management and consulting services with a focus on ecologically and financially sustainable land management that will enhance natural processes (water and mineral cycles, energy flow and community dynamics) while enhancing profits and steadily building wealth.
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