Paper Money & Little Bit of History

HOW CHINA’S FIAT MONEY BECOME DEBT-BASED PAPER BANKNOTES IN

THE WEST

Ralph Fosters’

Note: To order

When the Scot, William Patterson, proposed his idea of a central bank to King William III of England, banks and paper money were unknown, at least in the West. In the East, paper money had for 600 years led to reoccurring episodes of runaway inflation and the collapse of dynasties. Finally in 1661, China outlawed paper money; and thirty-three years later, in 1694, paper banknotes became accepted as money in England.

Patterson’s central bank combined paper money with usury, i.e. money-lending. In Patterson’s scheme, money would henceforth be issued as loans from banks, i.e. if all loans were repaid, all money would disappear. Earlier, the Venetians had feared China’s paper money was the work of the devil. They were wrong. Patterson’s money was. The underlying purpose of Patterson’s central bank was not to replace gold and silver with paper money (although it eventually did) but to instead profit by the charging of interest on the loaning of paper banknotes

Taken from article by D.R. Schoon.

Fiat Paper Money: the History and Evolution of our Currency explains how China’s paper money came to the West: Those who benefit from fiat money’s devious gifts would rather its origins remain forgotten. Thanks to Ralph Foster’s scholarship, however, the history of fiat money is now known.Fiat Paper Money send check or money order for $29.95 to Foster Publishing, 2189 Bancroft Way, Berkeley, CA 94704, free shipping in USA, Global Priority mail outside USA $18.00, email: tfdf@pacbell.netas if they were gold or silver.