Understanding the Money System: Haircuts, Chickens and Eggs

Do you understand the money system? If you do not, this article and the sources cited will provide a quick tutorial on what money should be, but is not. Why is money something besides what it should be? Because of fiat money. Know what that is? Take a look at this film and you’ll be unpleasantly surprised.  Money as Debt-A full length Documentary will provide information on the Federal Reserve System. The film may be viewed on Youtube. Paul Grignon is credited with the film and he also wrote a book using the same title. Here is the link to a website containing information on the money system.


Essentially, fiat money is a representation of a monetary system’s currency without full backing of hard assets, commonly known a the gold standard. A gold standard is foreign to the United States money system as well as other countries which have a central bank controlling their money and setting monetary policy.

Remember, inflation is a made up, academic-type of term designed and invented to hoodwink followers of news into believing devaluation of money is a normal phenomenon, instead of a dilution process of purchasing power over time due to excessive printing of money-the printing of paper currency or credit offered by digital money. Either way, more U.S. Dollars, Yen or Eurodollars equal more money in the system than prior to the new printing. Hence, less value and the erosion of purchasing power. You may want to review an article by Baily who provided a simple, fictional illustration of a responsible money system.

Here is the link:


Eustace Mullins wrote a book explaining the Federal Reserve System.

Read about it at:


Federal Reserve System. Hmm. That implies Federal Government, right?

Did you know the Fed isn’t Federal?

G. Edward Griffing wrote another book explaining the Fed. By the way, each of these works contain footnotes throughout in case readers question any information. One can see a film or read the book, The Creature from Jekyll Island. This film is from youtube and G. Edward Griffin is credited with the film. He is also the author of the book, The Creature from Jekyll Island.

Here is the link to G. Edward Griffin’s film, The Creature from Jekyll Island and it is on you tube:


Imagine a patron walking into a barber shop in 1816. He forgot his money and can’t pay for his haircut. He lives twelve miles from the barber and doesn’t want to return to pay the bill. However, he is on the way to the butcher shop to sell his chickens and eggs. He offers to pay the barber in the form of one chicken and a dozen eggs. The barber is willing to accept this form or barter because it has value similar to the value of the haircut.

Today, if the value of a chicken and a dozen eggs is calculated, this value will be approximate to the value of a haircut. Keep in mind, certain barbers charge higher or lower rates and all chickens and eggs are not of equal value. However, you can find chickens and eggs-one chicken and a dozen eggs that have similar value to certain barbers’ haircuts. This is the point: “hard assets” have a constant, consistent value.

This example illustrates the value of “hard assets” behind a monetary system. Certain goods and services can be exchanged for other goods and services and the value of this exchange will remain constant throughout time.

Does a haircut cost the same today as sixty years ago? Why not? A chicken and a dozen eggs would buy a haircut at that time and the value of these foodstuffs will buy one today.

You can now ponder the “value” of a fiat money system and why people who stop working have their savings eroded by the devaluation of their money. Truly, the Federal Reserve System is an irresponsible monetary system designed to rape citizens over time through the loss of purchasing power while enriching the central bankers through the printing of money out of thin air. See the article at the link at:


James Clark King, LLC

Publisher, Privacy Crisis Books




Do bankers understand money?

Inflation. CPI. Nonsensical terms to be sure. But ask any managerial level banker and they probably subscribe to those terms-meaningless, oxymoron-like, bordering on the absurd and in the vocabularies of all who make your mortgage and loan decisions.

Devaluation not inflation is the correct way to describe the erosion of purchasing power. However, in order to understand this correction in verbiage, it is necessary to first learn the basics, the fundamentals of any monetary system or medium of exchange without biases. An article which may be useful to understand the loss of purchasing power is located at:


Imagine people in a land with diverse products and services to sell. Mabel has a pie baking business and her husband Cleve has hogs and milk in excess supply. Art is a skilled mechanic and his brother Billy builds houses while their sister Ruth and her husband practice medicine and provide nursing services. Sue, their neighbor teaches school. Bret writes computer programs and provides search optimization services. May makes winter coats. Gabriel cuts hair. Charlie has used cars for sale. And three hundred other community members possess skills and services and have products for sale.

There is no accepted method of exchange in this fictional community.

Grant Hall wrote Privacy Crisis Banking and this book explains money and banking as well as business and investment privacy. The book is available as an e-book for immediate download at:


It becomes cumbersome for Cleve to hall hogs and milk to May’s store to trade like values for like values. Charlie wants Mabel’s pies for desert, but doesn’t want eleven hundred of them at once-the number that is valued to equal one of his used automobiles. And others face the same dilemma. How to “buy” goods and services? What to do?

A community meeting is held to establish a suitable and convenient means of exchange, a monetary system that can serve the consumers and survive without being devalued over time. This community is aware of what happened to previous currencies-those money systems that began at 100 and were devalued to 2 or 3 due to the instant gratification needs of the cons who initiated them in the first place without consent of those who eventually lost everything because of the Ponzi scheme. This responsible community is determined to establish a money system that works-without devaluation or “inflation,” that scam word that money creators conned everyone into believing was a normal phenomenon when in fact it is nonsense, a lie used to control and make a population poor within a hundred years or less, or much less depending on how much abuse is exercised by the controllers.

Property is held by the community in the form of farmland  and producing oil wells. The city hall and the surrounding buildings are also owned by “the state.” In addition, money is owned by the community which has been collected for revenues on these properties.  And there is an income stream from other diversified properties.

First, the value of all properties is determined as well as the bottom line figures  for all businesses. The final value is established based on the current value of spot Gold. Next, this figure is converted to the value of Gold in troy ounces. It is determined that this state owns property and current profits from their business that is the equivalent to 99,000 ounces of Gold at today’s price. With this value in mind, this community establishes a money system and a bank. The properties and business revenues remain owned by the community while the bank has the power to distribute receipts in paper or digital form up to the value of all their assets. Receipt issuing power is only increased when new business profits are generated and only up to that value per the value of the new profits. And this becomes the money policy of the people who own the money.

Stockholders or community members are entitled to their share of ownership of the property and may receive this ownership in the form of the receipts. Or their account is credited to equal their share and this account may be drawn from to buy goods and services.

A means of exchange has been established and commerce begins without the inconvenience associated with bartering hogs for coats and the like.

Devaluation of the community bank will only occur when the collateral behind the money receipts fluctuate in value such as a decrease in the price of oil and land and buildings and other property held by the community.

Market values only contribute to any debasement of the newly established currency.

J. Baily