Blood Money 2 April 8, 2021 By Anna Von Reitz

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Blood Money 2 April 8, 2021 By Anna Von Reitz

Think of it this way --- you go to work and exchange your labor (energy and skills) for $2000. You take the $2000 symbolizing the value of the work you contributed to the electric company and deposit this in your account, after having already paid your bill for the month. This creates what? A pre-paid $2000 credit on the account, paid in blood money --- your energy, your skills, your time on Earth.

Pre-paid credit can be a very tempting thing for bankers.

On one hand, it's pre-paid. It's standing there on the books as a credit. It has some of the same liability characteristics of any other kind of deposit for a banker, but because its credit the whole picture gets a little stranger and fuzzier.

Why?

Think of it this way --- if someone deposits ten one-ounce gold Canadian Maple Leaf coins in a bank box in your bank, you are responsible for returning those same coins, unharmed, on demand. While in your "custody", those coins are a liability for you. You have to keep them safe, provide a vault, a security system, etc., so, how are you to pay for this service?

It used to be that depositors simply agreed to pay a deposit fee --- a service fee for the service of safe-keeping someone else's gold, until the rats, acting under the demand for new sources of money and credit described in the first Blood Money article, began the practice of "fractional reserve banking".

Under that system, the bank became the title owner of the assets deposited with the bank, and used those assets as the basis of investment capital. Your twenty silver dollars allowed the bank to loan out between 140 and 200 "silver dollars-worth" of credit.

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