Vol. XIV No. 5 ECONOMIC EDUCATION BULLETIN May 1974 Published by
AMERICAN INSTITUTE for ECONOMIC RESEARCH Great Bafrington, Massachusetts 01230
Toward a New World Monetary System by John Exter (see page 3)

True US Dollar Money Unit Personnal Property – Money Functions

“What is money anyway? Money performs three functions. First, it is a means of payment, or medium of exchange. We use it to pay our bills, to buy goods and services. We accept it when we sell. Second, it is a standard of value. We quote values of goods and services in terms of it. The resulting ratios are prices. A good standard of value must be stable over time. Third, (significantly, Paul Samuelson in his famous textbook omits this most important function) it is a store of value. We hope over time to avoid loss by holding it. Money holds its value if it is scarce and remains scarce. Scarcity is the keystone of store-of-value money and enables it also to serve as a stable standard-of-value money over time. Today no money in the world fully performs all three functions. National currencies are being used as means-of-payment and standard-of-value money, but none in this inflationary age is an assured store-of-value money, and they are serving less and less satisfactorily as standard-of-value moneys over time. In fact, a foremost concern is that so many currencies are so rapidly losing their value in terms of commodities and services. Commodities like gold and silver, which are being used as store-of-value money, are not being used as either means-of-payment or standard-of-value money. The world we have so long known, in which most currencies are redeemable at a fixed price in a store-of-value money like gold, is in disarray. People are confused and wondering what money they can trust.

See also the Overview and Who We Are sections


Due Diligence On The Secrets Of The “Financial” World





It is commonly known that brilliant scientists, political leaders, eco-warriors, and religious gurus can no longer save us from ourselves. The military are powerless since the word finance itself is interpreted by many people from different walks of life as meaning budget, economy, etc.

The Book “THE DOW JONES-IRWIN GUIDE TO INTEREST – What you should know about the time value of money” by LAWRENCE R. ROSEN provides his evidence with his Editorial Advisor Melvin Bloom, Ph.D.

Page 1 of the Book uses 4 % and 1 year. Here we are using 7% and 10 years for simplicity sake to reveal another secret. If one invests $1,000 today at 7% simple annual interest, after ten years the account is worth $1,700.00 and so on. Interest paid only on the original principal is called “simple interest”



I = P X i X T

I equals P times i times T


I = interest earned
P = principal
i = rate of annual interest
T = time in years


A simple example is as follows: The Department of the U.S. Treasury issues a Bond for 1,000 dollars at 7 percent (0.07) simple interest per year for 10 years

Therefore I = $1,000 X 0.07 X 10
I = $700.00

Thus the value of the account (S) is the original principal ($1,000) plus the interest earned ($700) (over ten years)

Thus, S = P + I

Therefore, the value of the account (S) is $1,700 after 10 years using simple interest. For simplicity sake we will continue to use simple interest for 10 years to reveal more secrets.

It is evidenced that for profit to occur a double-entry system was needed to be put in place. This is John Maynard Keynes economic laboratory of the world in action as per his published work in February 1936 as The General Theory of Employment, Interest and Money.

The Book “DOUBLE ENTRY How the Merchants of Venice Created Modern Finance” by Jane Gleeson-White evidences material in her book about history’s best-kept secrets of the corporate world and government.Page 177 “…May 1934…John Maynard Keynes…” said “In Washington… ‘Here, not in Moscow, is the economic laboratory of the world.’” “…his theory of effective demand’…” “…publish in February 1936 as The General Theory of Employment, Interest and Money.”

Page 179 “And Keynes…” (John Maynard Keynes page 8) “…applied the principles of double-entry bookkeeping to construct his whole-economy framework.” To quote “…(or real income, ‘Y’) of an economy is determined by the consumption and the investment (Y= C + I).

Page 146 and 148 is evidencing here the purpose and use of INCOME and taxes on income also “…because profits derive from income, not from capital.” “…How to calculate income or profit?” “…found in Pacioli’s double entry, a tool perfectly made for distinguishing between capital and income and therefore for calculating profit. The power of calculating the difference between capital and income is one of the basic characteristics of double-entry bookkeeping…”.

It requires repeating that all forms of property from the population are given over for a said economy through a registry that holds titles. The Registries mentioned in the beginning of this Due Diligence exists to hold and have title. Then the registrars of the registries provide to you evidence in documented form that they are holding title on behalf of a member in the population. Through the income that a population makes revenue is received by the United States organizations and corporations. Reporting the income for taxes is the evidence of this.

The U.S. Treasury has become and is the borrower and must assign collateral to borrow from the Federal Reserve System in order to circulate Federal Reserve Notes. The educated population refers to the Federal Reserve Note as the U.S. Dollar. This is a Federal Reserve note from the Federal Reserve System only.

While using the evidence above a real life process is taking place as follows:

– The U.S. Department of the Treasury (Treasury) borrows through its issuance of debt in the form of bonds, notes, bills, guarantees and all forms of “securities” marketable and non-marketable,
– This Treasury debt called securities carries with it “…A PROMISE TO PAY…”,
– These Treasury debt “securities” “…PROMISES TO PAY…” principal and interest,
– The Treasury assigns their “…PROMISES TO PAY…” to the Federal Reserve System,
– The Federal Reserve System issues paper notes as FEDERAL RESERVE NOTES paper back to the Treasury,
– The Treasury re-distributes to the banks these Federal Reserve notes to be re-distributed to the population,
– The population is now responsible for the Treasury’s debt when they carry the Federal Reserve note to buy food with it.
– The population is now charged with interest, taxes and revenue back to the Treasury.

The profits in a double-entry bookkeeping system received from the population in the form of revenue, taxes, interest is collected from the population holding the Federal Reserve note.

The population has agreed to pay for the U.S. Treasury’s principal and interest that it borrows from the Federal Reserve System. The profits the U.S. Treasury collects in all forms directly and indirectly does so through its statutes and codes because it has formed registries to register titles held in a registry. These titles having right to property and principal are used as collateral when the U.S. Treasury borrows from the Federal Reserve for payment of the U.S. Treasury’s borrowings. Therefore, the U.S. Treasury’s “…promises to pay…” are contracts and are required to be honored.

Day 1 (one) the U.S. Treasury has borrowed $1,000 from the Federal Reserve System it then receives Federal Reserve Notes in return as $1,000 Federal Reserve notes.

The U.S. Treasury borrowed $1,000 Federal Reserve notes at a rate of 7 percent simple interest for 10 years.

Therefore I = $1,000 X 0.07 X 10

I = $700.00

After receiving $1,000 Federal Reserve notes day 1 (one) at day 3,360 (after 10 years) the U.S. Treasury after paying Interest to the Federal Reserve System has $300 Federal Reserve notes (Fed notes) left when using simple interest.

Meaning Treasury account Day 1 $1,000 Fed notes in circulation

Treasury account after years 1, 2, 3, 4, 5, 6, 7, 8, 9 and 10 deduct $700 in Fed notes to pay the Federal Reserve Interest since it is the Treasury that is borrowing from the Fed.

Treasury account day 3,360 (after 10 years) $300 Fed notes left after paying in simple interest to the Federal Reserve System.

Treasury account after 10 years still has “…A PROMISE TO PAY…” on the principal on its debt “securities” issued from the Treasury to the Federal Reserve System since Day 1 because it received $1,000 in Fed notes to circulate to the population at Day 1.

Thus $1,000 minus $700 leaves only $300 Fed notes in the Treasury account.

Now the Treasury account needs to pay the principal after it has paid the interest after 10 years.
Only $300 in Fed notes are in the Treasury account to pay the Principal that it borrowed from the Federal Reserve System. The Treasury account is in the red or minus $700 in Fed notes to pay the $1,000 the Treasury owes in principal.

The property of the population and the concept of personal property with the U.S. Treasury is put into action as the John Maynard Keynes economic laboratory of the world.

The intentions are clearly on profit using the double-entry bookkeeping system. The social fabric of society and the population using Fed notes is unable to uphold its’ “…PROMISE TO PAY…” via the U.S. Treasury and by anyone and by any corporation using Fed Notes.

After the example of the U.S. Treasury above as the borrower, it is evidenced that the U.S. Treasury is borrowing “I. O. U. Nothings” see the confirmation from Mr. Exter below.

Mr. John Exter authors Vol. XII No. 6, ECONOMIC EDUCATION BULLETIN of June 1972 Published by AMERICAN INSTITUTE for ECONOMIC RESEARCH, Great Barrington, Massachusetts 01230 quote and states that

“Currencies Today Are I. O. U. Nothings”.

Because of the gravity of the situation Mr. Exter felt strongly about the lack of understanding about the current monetary system and thus his report is signed with an adjunct sincerely to denote truth. This strongly conveys the truth and the gravity of the impending situations as expressed in this Due Diligence. The Bulletin above is endorsed and signed as Sincerely, AMERICAN INSTITUTE FOR ECONOMIC RESEARCH by C. Russell Doane, Director.

See https://www.aier.org/sites/default/files/Files/Documents/Research/3266/EEB197206.pdf

See also the Overview and Who We Are sections


“Within the Treasury, the Office of Debt Management (ODM) makes all decisions related to debt issuance and the management of the United States debt portfolio”


“How The Treasury Issues Debt”


“How Quebec Province, The Country Of Canada And Israel
Along With Others Issues Debt”