Later, on the 1934 series Federal Reserve note, we no longer find "redeemable in gold" (in 1933 they took all the gold from the people and demonetized it.) The bank-controlled government made it a crime to own gold. It was 40 years before the people could own gold and when they could it was no longer money.

Now the note reads "This note is legal tender for all debts public and private and is redeemable in lawful money at the United States Treasury or at any Federal Reserve Bank" WILL PAY TO THE BEARER ON DEMAND -- DOLLARS. Notice again, they didn't claim that the Bill was the dollars, but said -- WILL PAY TO THE BEARER ON DEMAND -- DOLLARS. The note admits on its face that it isn't lawful money, because it states it is redeemable in lawful money. It said nothing about what lawful money was. With the words promise to pay written on its face, it met the specifications for a legal note (negotiable paper).
The 1950 Series Federal Reserve note, shown below looks and states the same thing as the 1934 note except the size of the wording about legal tender and redeemable in lawful money has been reduced to just 3 lines and to an almost unreadable size, clearly no one was reading the words on the bills anymore.

Let's examine very closely the Federal Reserve notes in use today. There are major changes. The bill only says, "This note is legal tender for all debts public and private" Gone are the words "Redeemable in Lawful money" and the words "WILL PAY TO THE BEARER ON DEMAND" The Federal Reserve note is no longer a legal promissory note (negotiable instrument). The Bill has now become the Dollar. The only thing we have for a medium of exchange -- Money -- is a credit at the bank. This credit is loaned into circulation at interest. When the interest is due the total debt is always greater than the money supply. The debt obligations are greater than the supply of "money" to fulfill the obligations incurred by the people, resulting in unpayable compounding debt which constantly raises the costs of living, and shifts influence and the ownership of property from the many to a few.

In the banking system's greed and drive to protect their theft by deception -- (fractional banking) and to protect themselves from bank runs, etc., the banking system put themselves into a catch 22. As long as there was free coinage of metals or some other form of wealth (debt free) money, the interest on the bank loans, or at least part of the interest could be paid with the wealth (debt-free) money, therefore the debt would grow more slowly. It would not mathematically, be forced to grow. Now that all the wealth money has been removed from the system, there is no way to pay any of the interest, so the debt must constantly compound.

Timothy P. Schilling, Public Information Specialist, Federal Reserve Bank of Chicago, has confirmed that at the end of 1990 there was at least $26 Trillion of debt accruing interest. Yet, the total money supply is just over $5 Trillion, and it's a debt too! Money is created when loans are issued and debts incurred, money is extinguished when loans are repaid. (Congressional Research Service) Interest earned on investments is not new money. Interest earned on investments is only other loan-principal captured as profit in the process of commerce. We can't add to the money supply of $5.2 trillion without also increasing the debt. If we reduce the indebtedness by $5.2 trillion we extinguish the total money supply. In a debt-credit money system money must constantly accrue interest due if it is to exist. When money is created as a loan, it is money and it is a debt. But, the additional interest that must be repaid is not money. it is ONLY A DEBT expected to be paid in money. If not paid, it must constantly accrue more interest debt due.

In a debt-credit money system, interest cannot be paid without putting someone else deeper into debt. The resulting shortfall must be added to the price of finished goods and services. The total debt is transferred and continues to compound when a seller manages to capture his total principal plus interest debt in the market place and repay a bank loan. As the spread between prices and the money supply increases your money buys less, it loses buying power. Eventually, as prices increase far enough beyond the total money supply, you will not be able to work enough hours to buy anything. (See Chart example) You won't be able to borrow the money to purchase the item either because the amount of hours you can work (24 hours daily) will never produce enough 'value' to collateralize a loan big enough to meet the item's selling price. Yes, there are some very successful people but they are becoming fewer. Eventually they will be weeded out because they too are consumers. As prices for everyone continue to rise beyond the money supply more and more of the wealthy (top competitors) will fall on hard times. This is what's now happening worldwide. We are now constantly aware of two major questions. They are: Why is everything getting so expensive? Where will we get the money to pay the prices?
You can see the progression historically.It used to take just one worker to support a family and the families were larger. Today, one worker's hours aren't enough. Two paycheck households are the norm. Even now, two-paycheck households are having more difficulty making ends meet. Our debt-credit system makes ownership of property more and more difficult. For more and more people, a declining standard of living is the future. The solution is to slowly stop the creation of money as an unpayable, interest-bearing debt loaned into circulation. At the same time we must bring new money into circulation debt-free as a Wealth-a payment for work done (production) that benefits all (roads & bridges).