I created this blog to collect articles related to gold because I'm interested in gold investment. Hopefully this blog is also useful for anyone who wants to invest in gold.
This blog is a translation of the blog version of Indonesia by using google translate

Dead In Central Pile Banknotes

Trust the paper money system, like gambling against the jack-pot in Las Vegas, sometimes luck, but many of his stump.

"Does man think that he will be left just like that?" (Surat al-Qiyamah: 36)

Trust the paper money system, like gambling against the jack-pot in Las Vegas, sometimes luck, but many of his stump. How not? Through the paper money, the Jews deceive billions of human beings from generation to generation, tied with magic national currency - the multinational. The price is a hollow, through the bank as if it is worth, as printed on the sheet illustrated Banknote. But the actual payments to be borne by the recipient's own paper money, ie by producing goods and services. That means the bank to accumulate wealth, deceptive passing numbers are printed on paper money, while people who have to bear.

In Europe, the first paper money was the disastrous issue of notes of John Law's Banque Royale of France, Louis XV was changed Banque Generale on December 14, 1718. This bank is the result of lobbying from Scottish gambler - John Law who later awarded the title of duc d'Arkansas, title to the pioneer French Banknotes to fill the royal treasury was almost bankrupt, and the financing of colonization in the new continent America. After changing the name of the bank became Banque Royale, Law contributed to the colonial set up two companies and the Compagnie des Indes Compagnie d'Occident (Company of Mississippi).

In the first year, Law Notes provides flowers for the holder, to persuade the owners of silver coins and gold livres in order to exchange them for bank notes. The nobles and merchants rushed to buy up shares of the Mississippi Company, the bright hope of the future of the company that will get plenty of gold. To deceive the public, the director of the unemployed Like dressing mining workers will dredge the wealth of the new continent. They make campaign hijinks and, with parades, to finance continued to print paper money. Consequently Law Notes exceeds 2 times the number of coins in circulation throughout France, in the year 1720. Finally there was inflation, which makes people angry because of the abundance of paper money.

When the lie of the 'miracle of paper money' has caught spots, the holders of Notes invaded Law Banque Royale, requires exchange of the coin. They crowded in the Palais Royale with menggotongi the bodies of their colleagues who suffocated suffocated, shouting demands the death of John Law. At the same time, investors panicked scramble seize the assets of the duc is left, because the Law fled to England and then to Venice. Mississippi Company finally collapsed along with Banque Royale, the two years since its founding, millions menyisahkan bills scattered around Paris. Not long ago, John Law died in exile in Venice in 1729.

No deterrent for the tragedy that menimpah Law Notes, Louis XVI repeated the same mistake by printing paper money assignats, since the date of March 24, 1776. Worse, when that authority is not just a publisher assignats Emperor monopoly, but other authorities such as the church, nobility, banks and the military went along with his assignats print each causing economic chaos. In this situation, Napoleon Bonaparte's French Revolution pan (1789-1794), established Government Republic, then became Director Government (1794-1799), and then transformed into Government Consulate (1799-1803). Finally lifted himself as emperor in the year 1804 to 1814.

At the beginning of the revolution, the Government of the Republic passed the 40 million Livre assignats devalued. Livre didevaluasi eventually became 1 / 10 of the original value in 1795. But it seems that Napoleon had to throttle back the paper money, that is, when inflation continued to swell on January 1, 1796, and exploded into public anger at the Place Vendome on February 18, 1796. Do not want to blamed by the people, republican officials fill mengkambing error printing machines and paper materials used to make paper money assignats Republic, who destroyed with fire of hatred.

In America, paper money was disastrous since the founding of the country. After the war at Lexington (1775), Congress issued paper money worth $ 13 million of Treasury Notes - but popular in Continental called Notes. Continental dollar initially equivalent to 1 dollar silver Spanish - Mexico, but he continued to decline in value. As the year 1780, Continental fell to $ 40 paper for $ 1 silver, because the amount of Notes Continental has reached $ 241 million

 Bank Notes After independence from England, $ 10 Continental appreciated only 1 cent copper. This means that only $ 1000 Continental for $ 1 silver, or 100,000% inflation in just 5 years (1776-1781). And unfortunately Continental Congress refused to exchange Notes for silver coin, so that the patriots-veterans upset with this policy, they are angry and do a scene. How not upset? Regular soldiers salaries average only $ 5 Continental month! Until finally appeared in the American popular cliche: Not worth a Continental, means worthless.

The idea comes from a paper dollar propaganda Benjamin Franklin, in 1730, he scored some kind of paper money diusia young colony, 23 years old. He was inspired by the paper money of the colony of Massachusetts Bay (1690). Because fighting bills, even facing the British Parliament in London, he was in Mr. gelari American Banknote, and his portrait appeared on the sheet 100 dollars.

Prior to becoming a world currency, the dollar should kelamnya during the past 160 years. Among other things: the event Wild Cats (post-Panic 1857), when the Liberal law gives freedom to the banks and individuals to make paper money (Lax Banking Law). In this era, the circulation of the paper dollar was released as the ability of the publisher. So that each bank has a dollar exchange rate different from each other. As a result, the circulation of paper money, private and state became unstoppable overflowing, and people confused choosing dollars.

Wild Cats (wild cat) is the nickname for the bankers who print paper money then went bankrupt, leaving the money worthless paper dollars. They are accused of embezzling customer deposits of gold and silver dollar, exchanging content with a pile of coins brangkas or a horseshoe nail. Profession so that bankers were like bandits, in the eyes of the American people at that time. These conditions ended in 1863, when the Federal government took over the publication of a paper dollar.

Then events duel two dollars of paper currency, the dollar against the Union Green Back Dixie Confederate dollars (1861-1865), civil war era. Once the Union soldiers - Yankees win, no doubt Dixie is no longer valuable. As a result of thousands of wealthy people in the southern United States suddenly poor, because they can not spend their dollars dixie, worthless. The once fertile area became barren, and filled by the fields neglected, because the farmer who was once recruited to be soldiers Confederation, did not have the money to pay for their land, their salaries because of the dollar is now only a dixie trimmer wallets!

Then events Dollars 1928-1935 Depression, inflation is out of control, causing massive bankruptcies, layoffs and long queues to get groceries. To stabilize the situation, the Federal Government raided gold and silver from the hands of its people and incorporate these 2 types of metal to the list of forbidden items such as narcotics.

The tragedy of Germany experienced hyperinflation (1922-1923) is the climax of the depravity of paper money system. Millions of German people from too much stress to have paper money, so the suicide rate soared! Loh, is not that much money should be added happy people? Consider this verse: "To kill people do not need a knife (weapon) is a piece of paper which says the numbers (money)." Albert Pick, Numismatic USA.

In Berlin, at the end of the year 1922, the price of basic foods suddenly soar up to 1500 times, and then soared over one billion times the previous price. Just a short time, the price of bread shot a 2 mark 2,400,000,000,000 mark (read: 2.4 trillion marks) in the year!

Moneylenders to set interest rate from 30 to 40% per day, even at the peak of inflation of 200% per day or 10% per hour. So money borrowed at 06.00 am for 100 billion mark, must be paid back 220 billion mark for the 06.00 pm, on the same day! When 30 days old loans, then debt of 100 billion marks to pay for 6,000,000,000,000 mark (read: 6 trillion mark) counted as follows: Debt interest 100 billion x 200% x 30 days.

Counts above is a matter of cut corners made the neighborhood loan shark (RT). In such conditions, the prices of goods and services rose in a matter of days, for example: egg prices Monday 10 billion mark / point, then the price of eggs Tuesday 20 billion mark / point, and so on. All activities in the life of forced work more rapidly to compensate for inflation.

Farmers should harvest more quickly: wheat, vegetables and fruit must be sent to the city as soon as possible! Similarly, cattle breeders, they have to milk cows in the early morning, because the milk-milk must be collected by the supplier prior to factory workers and other employees off duty. Traders against the clock, the receiving, counting and depositing money into the bank. After the business calculations are done, the basic food supply immediately fill their warehouses to store and then sold without rearranging the window.

Daily wage workers who want paid in cash, and quickly spend their wages to buy groceries as quickly as possible. Once they arrived late at the store, they found that his salary was gepokan money powerless to buy something, and moments later the paper currency soon became the paper change function fuel stove, kitchen, or end up as wallpaper.

By Sufyan al Jawi - Numismatic Indonesia

Source: http://www.wakalanusantara.com