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To: lorne who wrote (56926)	8/2/2000 9:18:22 AM
From: Alex	Respond to of 116998

“Progenitor of the Paper Millionaires” In a prominent article on the front page of the Be section of The Wall Street Journal July 19th, 2000 describing the career of John Law, the article concludes: “John Law’s experiment, like many experiments, was a failure, even a tragedy for some. But his ideas were like smoke from a bottle: Once out, they could not be put back. He had proved that the value of money is an agreement among people, not an objective standard measurable in nuggets or ingots, a distinction that fostered future stages of wealth creation.” FACT: This is a demonstrably false statement based on the article itself. The article, while describing how Law kept what was truly a fraud going, states: “. . . [John Law] published exaggerated accounts of Louisiana’s riches, mineral resources, and people. … The reality, of course, was quite different. Much of the Mississippi valley was unconquered wilderness. But in Paris, no one knew this. The only thing the French knew with certainty was that prices of the company’s shares would never stop climbing.” So, in other words, John Law misrepresented, which is the indicia of a fraud. It is not that he “proved that there was agreement among people that money was not an objective standard”, but he deceived them; he defrauded them. In the same way, our fiat-funny-money of today circulates because of material misrepresentation and non-disclosure of key information. This, also, is the indicia of a fraud. FACT: When The Wall Street Journal claims that the “distinction fostered future stages of wealth creation,” the Journal is completely misstating the situation. Rather than wealth being created when paper money is created, wealth is being transferred. It is not the same thing. The winners are those who create the paper money and move it around, in our case the banking system and the Wall Street community, and the losers are the people who create wealth in the first place through their work, mostly ordinary working people. The creation of money out of nothing by the banking system is theft, plain and simple. fame.org