Forum Post: Here's how our current "Fiat Money" system works, only on a much larger scale than described below..this is NOT CAPITALISM!

Here's how our current "Fiat Money" system works, only on a much larger scale than described below:

It is a slow day in the small Saskatchewan town of Pumphandle and the streets are deserted. Times are tough, no one has any money, everybody is in debt and is living on credit.

A tourist visiting the area drives through town, stops at the motel, and lays a $100 bill on the desk saying he wants to inspect the rooms upstairs and possibly pick one for the night.

The motel owner hands the tourist a few of the empty room keys and as soon as the guest walks upstairs, the motel owner grabs the bill and runs next door to pay his debt to the butcher.

The butcher immediately takes the $100 and runs down the street to pay off his debt to the pig farmer.

The pig farmer takes the $100 and heads off to pay his bill to his feed supplier, at the local Co-op.

The guy at the Co-op takes the $100 and runs to pay his debt to the local prostitute, who has also been facing hard times and has had to offer "services" on credit.

The hooker rushes to the hotel to pay her room bill with the hotel owner. The hotel proprietor, surprised to see the bill back, then places the $100 down on the counter so the traveler will not suspect anything.

At that moment the traveler comes back down the stairs, states that the rooms do not meet his needs, picks up the $100 bill and leaves.

All of the people of the town feel relief, because they are "out of debt", but what really happened here?

Because there was no real money, everyone in town had to borrow (thereby creating Fiat money, in a sense) to conduct their business. When all of the business debts were paid, everyone was still broke and there was no money left in the town! But in the real world, everyone would still have to pay their income taxes to cover the interest owed to the central bank (The Federal Reserve), on the money that was really never there, until it was borrowed into existence by the townspeople. But the catch is that there isn't any money left in town to pay those taxes which still need to be paid, until more "money" is borrowed into existence, by the people of the town. As the Fed creates more "money" from debt, the people become further and hopelessly enslaved to the central government and the central bank.

Now you see how the Fiat money scam works! Any Questions????