Yes, I know, I used one of those dreaded words, the “masses,” the words THEY use for us. But most people out there are completely unaware of where they actually are in the scheme of things.
This was from Dennis and covered so many subjects, that I decided to use it to make some vital points:
The current debt is bogus----no financial consideration was offered by the so-called lenders who created the currency ex nihilo only when some party (sucker or serf) signed a promissory note to a member of the banking cartel.
The debt he's talking about is the Federal “public” debt. The government exchanges bonds (debt instruments) for the money issued through government spending. The government, not you or I, thus decides to buy what THEY want, not what you or I want, and they get to do it “on our dime,” as they say, because we are not only on the hook for the principal spent, we must pay back from uncreated money, an interest rate to the bankers.
The central bankers are the ultimate power in today's world power system – Mystery Babylon, the mystery being that they are not perceived to be the actual power - and all wars are based on the struggle at the top to remain in power. The central bank for the US government (as it's “best credit risk” customer, therefore its perpetual debt slave), the Federal Reserve, created that money out of nothing, by fiat, out of nothing, ex nihilo, and as Dennis doesn't perhaps get yet, that their fiat to issue money was STOLEN from all of us. This blog contends that the fiat to issue money belongs to us, as a natural right covered in our right of contract to do anything with each other under the oldest known natural law. Subverting contract law automatically proves you live under a tyranny which defies nature and propels society and all life itself toward death and should by all rights be overthrown, exactly as Thomas Paine (not Tom Jefferson) wrote in the Declaration of Independence.
But that is beyond the purposes of this blog and we specifically DO NOT advocate violence. In fact, we actively encourage all members of the military and law enforcement, as well as their families, and their grandmothers, to be among the first to join us in establishing our independent exchanges. Our intent has always been to propose an alternative to THEIR monetary system, a place to go to before and after THEIR system implodes.
The idea, as proposed by some, of giving people an unearned stipend to each citizen as a guaranteed income, is one of the worst ideas imaginable. What you subsidize you get more of! And such action subsidizes indolence.
Before stating the contrary obvious to Dennis and others, I simply point out that right now all money spent under the US defense budget is a far larger waste of money than providing “the lower orders” some subsistence purchasing power. But that aside, this statement would be acceptable if there really was a natural economy in operation. But there isn't one anymore, because all the money is in fewer and fewer hands and as they trade it back and forth and the government continues to spend, spend, spend, its completely unbacked money, well then prices steadily rise.
The economy has been destroyed through all the consequences of capitalism; outsourcing, etc. What Dennis complains about here is socialism, usually of the state sponsored variety and the reason state socialism MUST be allowed is that without it, there would be a huge social revolution against the looters, the capitalists, those who make money on money without work.
Somehow Dennis doesn't get that not only the poor don't work, but the rich don't work either. We're not talking about those with a few million or those with a few hundred thousand in total assets, oh no, I'm talking about billionaires who can buy whole countries. These are the rich I'm identifying as rich. Meanwhile in order for the rich to get more riches the people in the middle must be looted of what little they still have, especially the lower order millionaires, and they ARE being looted too. Without them, there really is no economy and no future. So what does Dennis propose to solve this situation?
What is needed is a return to commodity money, the money which emerged naturally as the most marketable object of exchange in all the great river basin civilizations throughout history----namely gold, silver, and (formerly) copper. And very importantly, allow prices then to adjust freely to available supplies of silver and gold, and above all, quit allowing the banking class to create currency as debt, the most egregious example of an unconstitutional fraud that can be found in our land and, by extension, now throughout the world.
Very well, let's parse this: First of all, Dennis, seriously pal, commodity money is what we have now. The money itself is a commodity, bitcoin is a commodity, most people's idea of money is as a commodity. It's in our language too; how much money does one have, etc. Some even theorize that one must match one commodity used as money with everything else that's produced as commodities and all this must be subject to rigorous planning bureaus, else one would have inflation.
Also, and this is important Dennis, your ideas about silver, gold, and copper and history itself in these matters, come from economist fraudsters, the so called “Austrians,” who want you to ignore all of REAL history concerning these metals. Their acceptance was not natural at all, it was FORCED on people and the heads of the rulers were stamped on all the usual coins, you paid those back to him as taxes and used what you could earn as money for everything else. These were times when life for the most part was “nasty, brutish and short.”
Precious metals are just some other commodity. If more comes to market or not is based on whatever uses the metals have and all three of these have very good specific industrial and artistic uses. People's habitual looking backward is not going to help solve anything, Dennis. The past was “nasty, brutish and short” for most people and we see no reason whatsoever to go back there. Plus, those who have the most of these metals when used as money inevitably become the masters and those without become the slaves. Dennis, seriously, at the bottom of the Great Depression of the 1930's, we had a gold standard and 35% unemployed and there was still the inevitable inflation, even with natural depreciation, which continued right through 1971 when we left that standard.
The biggest lie the “Austrians” tell the world is that precious metals were accepted naturally by people in trade. In fact Dennis, these metals were FORCED on people at sword point, and later gunpoint. The “Austrians” are flat out liars and I will continue to say so until their “economics” is thoroughly discredited. Read The Babylonian Woe by David Astle and then get back to me.
The so called “market” for all of these metals is THEIRS, Dennis. They control the mines too. There is no point at all in trying to imagine a situation where a supposed free market exists, where principles would work to the advantages of the average person in the street. It's idealistic dreaming. This is another delusion perpetrated by the “Austrians” for their own purposes, since THEY ALWAYS EXTOL USURY, Dennis! In fact, Dennis, the entire basis of the so called “Austrian” alternative is to continue the control of the money lenders, period!!! But I assume that Dennis doesn't really yet know this. Dennis says further,
You can still have the convenience of paper money and checks, but those instruments must always be redeemable 100% in silver or gold grams. You can still have credit cards, but swiping a card becomes the actual transfer of gold or silver ownership for a prescribed term and lent at interest by a segment of the population who is fully cognizant of the true loan contract and its terms of interest, the latter not being set arbitrarily but in unhampered capital markets.
Wait a minute, Dennis. There are no unhampered capital markets. The idea of trying to create one is preposterous, EXPENSIVE and completely unworkable. The people you listen to want to keep their public audience dreaming of something and feeling angry about something they can't do anything about. It will never happen, because as you have failed to see, even the precious metals are THEIR money, under THEIR absolute control, period. They determine what it is worth in all the rest of THEIR brands of money. Unless the money you use is actually yours, if you did not issue it, then it is not yours, then you have no control whatsoever over anything that you use it to buy. Our proposal is far simpler, cheap and we let them determine just what their money is worth compared to ours which does not change as it is based on the present value of a transaction at a specific point in TIME rather than any quantity of any commodity.
Step out of THEIR world and take a look at it differently: we said that at inception 11/2/11 one ounce of gold would be worth 1,000 Valuns, and today, even with the price of gold way down from inception, no one knowing what a Valun is truly worth would part with less than V1,000 for an ounce of gold, though in THEIR world to us, gold's real value is down by 23% or so. We accomplished this within our own market in Valuns, NOT THEIR markets in THEIR precious metals and it costs us nothing to do so.
It is also very possible and maybe even more desirable to use the Islamic model of capital formation in which no loans are given but money is transferred against a stake in the profits of the enterprise.
This relates to finance and as we have shown, there are ways to get free of usury. We'll have more to say about alternative finance in future papers.
Dennis and everyone else needs to scrap everything they think they know about money and start over in their thinking. What we need is a standard all right and since Dennis and everyone else that has sent in comments tells me, they want that standard to involve gold and silver. So we did that. Instead of a commodity as money, we determine a piece of purchasing power at a particular time as the basis for all our money. Instead of a commodity, we call this a transaction basis.
This idea is not new. It was rediscovered by economists who did not support the present money and banking system, but were critics of it; both Arthur Kitson and E. C. Riegel agreed about this. The transaction basis of money was also probably known and used by Solomon as well, yes the Biblical Solomon. It was said under his rule that gold and silver were so cheap that people trampled these under foot. I recall as a kid dropping a silver dime or quarter and nobody thought anything of it, we walked on them. We do not live in those times now and we have supplied enough resources on this blog to determine the reasons and causes, but that is not our purpose.
By the way Dennis, none of the money in our proposed system is borrowed from anybody, so it doesn't need to be paid back to anybody. It circulates until it is used to buy something that depreciates and in that process goes out of existence as THAT is the correct and vital way to perceive money, not as some stagnant lake of some finite commodity but as a stream that must continually be replenished else economies die. So it DOES matter just who gets to issue money, now doesn't it?
As it is now human life is valued pretty low, such that some consider it worth senselessly killing billions off the face of the earth and all just to remain in power. It all has to do with the chosen basis of the money we use. If we issue our money, and yes we do have a standard for it that does not change, then each new human being that is working, producing, contributing, participating in our proposed system will be not only the source of wealth, but more wealth will build up naturally and solve the many terrible problems that beset us. We'll need to as their system is the Titanic and it has already hit the iceberg. So Dennis, this proposal is not just some whim of mine, it really does matter and deserves consideration and widespread action to bring it about.
Note that their money establishes our exchanges with all of their money. But we do not need any reserves of any precious metals at all. By far the most of the money we issue will be backed directly by our labour though the poor among us will have limited issue. THAT is the only source of so called free money in our proposal. But the amounts we will allow will permit launching pads for real businesses to grow back from the ground of local human need where it belongs, not from on high by some mighty dinosaur state or bank. As for “cash.” The proposed V-Check transfers Valuns from one account to another by means of an exchange wide account. Dennis and others, while economics, POLITICAL-economics more correctly designated is surely mostly absolute bunk, accounting is essential as all monetary systems center on a ledger that used to be in some big book and now is of course on a computer. The technology has made a worldwide monetary system operating locally under a worldwide standard a real possibility for a really small cost.
As for this blog: we are about to embark on another series we're calling The Road to Prosperity. It will be presented on two of my websites simultaneously.
Current Hypothetical Value of a Hypothetical Value Unit