In its simplest form, the need for paper money is quite simple....

Jack lives in Austin, TX and builds dining room tables. He has more of them than he needs or wants. Fred lives in Dallas, TX and builds grandfather clocks. Fred also is passing through town (Austin, TX) and wants another table to replace his broken one. Since grandfather clocks are too big and heavy to carry around to pay for things, Fred writes a note for $100 (money) against his clock business to pay for the table that he wants and gives the note to Jack so that he (Jack) can buy something else.

In this example, that $100 note represents a clock that Jack (or someone else) will want to trade for without having to carry the bulky grandfather clock around all the time. OR it can also represent the time, effort, and materials it would take for Fred to make said clock....Fred may or may not have built it yet, that's all.....

So to take the story a little further....a week later Jack is in El Paso, TX and he wants a cart to haul his dining room tables around. So Jack gives his $100 note from Fred to Phil, the owner of a cart making business in exchange for a wagon. To complete the cycle, when Phil's clock breaks, he goes to Fred's grandfather clock store in Dallas, TX and redeems his $100 note for $100 worth of clock.

This is why paper money was really invented-- to keep from having to carry grandfather clocks around all the time. Anything else is just banker's bullshit...as I will describe below....

As everyone knows...like grandfather clocks, gold is quite heavy and difficult to carry around....

The bankers' scam started centuries ago.... The men who forged the gold needed a place to put it (the gold) so that it wouldn't be stolen while they slept. So they built strongboxes (banks) to put the gold in and went to sleep. Since strongboxes were costly and difficult to make, other people wanted to “borrow” the safety of the strongbox as a central place to keep their gold. The goldsmiths would of course give owners of gold (lenders) a paper receipt (money) in exchange for the bullion.

Quickly the goldsmiths (bankers) realized that for every dollar's worth of gold they had given out a receipt for, they could give out receipts (printed money) to nine other people, and no one would be the wiser....

So then the bankers "invented" fees and interest rates. Even a paltry 8% on a dollar commands EIGHTY percent interest on said dollar when it's lent out to ten people. This was early accounting a-la Enron and a host of other illicit ventures.

Now it gets interesting.... The bankers figured out the biggest scam of all time. The realized a way to legally rob you (everyone really) of your house, your vehicles….everything you ever owned. All they had to do was to lend out
their counterfeit currency (the other nine dollars) to you and the masses of people under the guise of “buy now, pay later” until they (us, the people) were paying more interest than they could really afford, and then stop (giving credit). The ensuing credit crunch (real or artificial) would force you and other borrowers to default on their loans. Then, after bribing the politicians (ahem, campaign contributions) the bankers would go to the government to enforce their legal contracts and foreclose on all the lenders (including you) and seize all your assets. To do this would only cost a few pennies on the dollar for all your worldly goods. If any you (or anyone) refused to honor their debts, then the bankers and politicians would hide behind the policemen (enforcers) to apply the law-- at gunpoint if necessary (garnishment of wages, debtor’s prison). And all this was done with money representing objects (gold, grandfather clocks) that never really existed in the first place.

Is this a great deal for the bankers/goldsmiths, or what? Capone Himself didn’t have shit on these guys!

Back in the above (grandfather clock) example, say Fred deliberately writes more $100 notes than he can every hope to honor in grandfather clocks. This is what Congress, the Federal Reserve, and the IMF do all the time! So that they can have whatever they want, whenever they want it, they deliberately devalue the previous written currency that they've already handed out by writing new currency and handing it out to whomever they like-- without consulting the rest of us who still hold outstanding notes (clocks that haven't been built yet)....

Since politicians consider themselves above the laws that they write, there is no problem-- the policemen are on their payroll! When WE do it (write hot or "rubber" checks), they just call it a crime (counterfeiting), and put us in prison, that's all. It's amazing how fast those same politicians go back to the prisons and force those very same counterfeiters to print the enemy's currency (thus devaluing it and putting them in more dire straights) during a war.....