The Truth in Money Book

		Foreword This isn't an ordinary book on money. First, it is short. Second, it is printed in large type. Third, it is written in dialogue style. Why? Because you need to know how the Federal Reserve money system works and how another economic collapse can be prevented. This book is designed to tell what you need to know without wasting your time. The premise of this book is that the money system is too important to your financial well-being and your political freedom to be buried in small type and minute historical detail. The fundamentals of the system are actually quite simple. What causes confusion is the language generally used to explain how banks create money. We have cut through this confusion in order to present the fundamentals of money creation clearly and concisely. The confusion that besets the language of economics creates the impression that only experts can understand the money system. After all, how can you argue with someone who calls money "monetary aggregates" and taxes "revenue enhancements"? This language barrier shuts down free and open debate of new solutions to the deficit problem, the government's multi-trillion dollar debt, high interest rates, the high cost of housing, food shortages, homelessness, rising prices, the loss of manufacturing jobs, the farm crisis and scores of other related problems. These chronic difficulties are bound to take root in the economy when the principles of money creation are misunderstood - particularly by elected officials. This book explains these principles in their inherent simplicity and opens the way for discussion and, ultimately, monetary reform. The organization of this book The first two chapters of this fourth edition explain how money is created by the Federal Reserve and commercial banks. In these chapters we tell how debt is more than fact of life in finance: it is the very foundation of a flawed money system. Chapters three and four outline the Treasury Credit Money System which is designed to keep the supply of money in balance with the demand for it - a radical departure from the Federal Reserve's well-documented habit of cutting off the supply just when demand is greatest. Why a fourth edition? This is the fourth edition of The Truth in Money Book. Its contents and structure are basically the same as in previous editions. It is the rapid growth of debt since the publication of the third edition that made this new edition necessary: over the last four years the Federal debt has grown by almost $1.7 trillion and the total private sector debt has, on a conservative estimate, increased by $6 trillion. The projections in the earlier editions were on target. While we may be pleased with the accuracy of our projections, debt growth of this magnitude is a dangerous sign of chronic instability within the money system. The spiral of debt growth must be broken - soon. The scientific solution presented in the Treasury Credit Money System is more urgently needed now than it was four years ago or in 1980 when the first edition was published. The ideas in this book may sound radical and, occasionally, may contradict the teachings of conventional economics. We did not set out to be deliberately controversial. We simply found that common sense and logic frequently contradict the premises of conventional economics. Being controversial, therefore, become a strength, not a weakness. The scientific approach to the subject of money which we advocate is long overdue. The Truth in Money Book will give you new insights to help you with your own finances. It will also give you renewed confidence that the economic problems, which stand in the way of the country's progress, can be solved without the chaos of hyperinflation or the calamity of a depression. Finally, we hope that this book proves to you that, as the truth of money is understood, the problems of money are solved. Ted Thoren Dick Warner About the authors Theodore R. Thoren and Richard F. Warner bring to study of the money system a unique combination of mathematical and analytical skills. Mr. Thoren holds degrees in both mechanical and aeronautical engineering from the University of Michigan. He received his Masters Degree in mechanical engineering from the University of Iowa where he was an assistant professor. He is a member of Tau Beta Pi scholastic honor society and Sigma Xi for scientific research. He joined Thompson Products (later TRW) where he became Director of Research and Development. From 1959 to 1968 he was Vice President of Engineering and Research for the Aero-Space division of Borg Warner Corporation where he was active in developing pump systems for NASA�s unmanned space program. In 1973 he received the Distinguished Service Award of the Cleveland Technical Societies Council. Mr. Warner, a Mechanical Engineer, was a graduate of Case Institute of Technology. He was a member of Tau Beta Pi and Theta Tau engineering honor societies. He joined The Cleveland Pneumatics Tool Company (now a division of Pneumo Corporation) and became chief engineer of its Actuator Division. Mr. Warner was the founder and owner of a company which serves education with specially designed graphic products for teachers and students. Mr. Warner passed on in 1998. Early in the 1970s both men independently became convinced that the continuing economic problems of our nation were the result of fundamental flaws in the design of the money system. Their mutual interests eventually brought them together in writing The Truth In Money Book.