Part 3 The western countries.
This lead to a reaction in the production and dristributing sector
In desperation those private capitalistic sectors ower-flow
segments with more cash / value than other sectors and the
sectors with lower cash / value are forced to the production
sector as capitalistic socialistic slaves.
Vladimir I Lenin
Our one class-based system isn’t a thrue one class system
It’s a two level based system , those working towards the
system and those working against us.
In fact we must face that value / cash flow out of our system.
In a typicalli western industrial country this mean , the production
accumulate to a limit where the market has no need , this again
leads to a reaction in the production and distributing sector and
Value “papers” decreese in value ( mentioned in cash )
In a communistic central based system this means with other
words : somebody is stealing the society’s value.
In the western socalled socialistic countries this means :
Finanicial crisis ……… Yes the same old story again and again.
Before we can understand this we must understand the
Principles behind the capitalists bourgeoisie ,
the class of modern capitalists , Industrial owners , landowners
and up in the classbased system.
OK lets talk MONEY.
Member this from part 1
Trade has always existed in some kind of valuebased
system , between humans.
Trade was born of the uneven deployment of production
in different communities.
Credit was born of the uneven development of production
among different producers within the same community.
We start in relative new time on a timeline about
“sort of money” compared to humans existence.
We turn ourselves to Europe 1600 -and to our time.
It was in England eah Britain that public fiduciary
The bank note received it’s classic form.
In this country it also originated from private
fiduciary currency , the goldsmith notes , .
The British merchants at first deposited their jewels , gold
other “value ” ect . With the King.
But in some 16..something in the middle. Charles 1
Came up with some wider financial idears .
He confiscated their financial deposits .
After that the merchants quickly adopted the custom
of depositing their riches withb the goldsmiths who
in exchange issued deposits reciepts called “goldsmith notes”
, then when the goldsmiths began calling themselves “bankers”
they call them ” bank notes”
Before we can understand the class of modern
capitalists the ,bourgeoisie we must understand
At first these notes were issued for the total
amount of the deposit ;
if the depositor withdraw a part of this deposit
the note was given an aditional inscripton
recording this withdrawal.
Later the bills were drawn up in fixed sums and
a depositor received a number of notes with
a total value of what was in deposit.
Now the bankers / goldsmiths found new
tecniques to expand their “buisness “.
They started up and began lending to
third parties the stock of metal currency
which did not belong to them.
In exchange for those loans they was given
acknowledments of debt.
From that time the fiducery currency circulating
among the public was covered not only by a
stock of metal coins but also by acknowledments
of debt from third parties.
When the bank of england was founded in
the end of the 16 hundred something it issued
notes covered by it’s stock of metal coins and
by a state debt owed to it.
Experience thaught the bankers that banknotes
covered by third parties can be issued up to a
definite limit the value of the stock of metal currency.
For example 3 to 4 times the stock value , because
the public newer all at once try to convert their
banknotes to metal curency.
Slowly during the 18 hundred century
The Bank of England established a procedure by
which the issues of banknotes was regulated
both by the stock of metal currency in it’s
position and by the discounting.
First of government bonds only and later
above all the rediscounting of merchants
bills was during the 19 hundred century
the chief sources of creation af banknotes
of public fiducery currency not only in
Britain but in all capitalist countries in
the whole Europe.