The Bilateral Banking System 2.0 July 10, 2021 By Anna Von Reitz

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The Bilateral Banking System 2.0 July 10, 2021 By Anna Von Reitz

In these first forays into the actual topic, it is important to establish the history and background for the discussion, because much of this is unknown to the man on the street and is fundamental to an understanding of how we got into this mess in the first place.

The concept of money, that is, that a coin could "stand for" a bushel of wheat or a bale of cotton, started in Babylon thousands of years ago. This was initially a token system. The Queen of Babylon basically said, instead of moving bushels of wheat and bales of cotton around, we are going to use these little round pieces of metal stamped with an image of wheat baskets or cotton balls to represent these things. And by royal decree, these coins will entitle the Bearer to either a bushel of wheat or a bale of cotton from our storehouses. One wheat coin equals one bushel of wheat. One cotton coin equals one bale of cotton.

So it began.

Such token systems are still in use today, though we use paper receipts called coupons and vouchers instead of coins stamped with an image of the commodity. Such systems maintain a direct relationship of the token to the item specified.

A coupon giving you a dollar off the price of a three pound can of Folgers brand coffee can't be cashed in against a three pound can of Kirkland brand Coffee.

A voucher issued during World War II for a pound of butter was good for a pound of butter regardless of brand name or source, but was still only "good for" a pound of butter, and the butter was doled out at a requisition center run by the military to make sure that the butter vouchers were being matched up with butter in the correct quantities.

The problem with such systems, despite their item-by-item utility, is that you have to have a separate coin, a coupon, a voucher, etc., standing for each and every item (Folgers coffee) or class of items (butter).

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