|The basis for all the proposed money in our parallel market, hence, our parallel economy, is this single transaction.|
This paper is going to cover a variety of topics related to this blog's proposal.
Aren't you suggesting just the same thing as a guaranteed income [THEIR proposed Universal Basic Income] if you allow any money to be issued without work? Isn't your “natural socialism” about the same as a proposed minimum monthly stipend? How is it different and why have it?
Yes, we will address this, the resurrection of any and all pensions to 100% of their value in OUR money back to Valun inception Nov. 2, 2011. We need it to establish a firm footing for independent finance within the private market established within the proposed Valun exchange network (ven) of all operating exchanges nationwide and worldwide. To the question;
1) Aren't you aware that we live in a world where people make money on their money all the time for doing nothing? (This is capitalism as opposed to free/private enterprise, which this blog advocates) How do you know that they came by their original money by honorable means? You don't. How do you know they paid any and all taxes on it? You don't. How do relatively poor people enter “public service” and end up millionaires or billionaires? We know and frankly don't really care.
Yes, as a matter of fact, as we have said all along, socialism is what defines a failing economy. It is the crumbs given out by capitalists through THEIR fronts, the governments, to compensate for THEIR looting of an economy.
So how does all current fiat money enter a system? As a debt to a central bank that the government takes out as a loan at interest as the bank's best credit risk customer. The bank's liability is an asset to them; they have a claim on the economy for said amount of whatever goods or services the economy can provide for the money lent, from nothing or not, it actually doesn't matter. That's the way the present system works, for the benefit of the bankers, and the preferred government contractors; the arch grifters of society, not those working people paid for time out of their lives to do service for others or who have produced or grown anything of value. The rest of the money floating around was borrowed into existence from banking sources down the line from the central banks, all lent at interest that must be paid from a supply of money that doesn't include it; literally the demand back of uncreated / unissued money. Since THEIR money supply does not include this money, someone will not be paying back their debt and shall economically fail as a result. We call that the inevitable “musical chairs” effect of any and all genuine usury driven societies.
What's the difference between a bank issuing money and you or I doing it? Here's one of the differences; there is no interest to pay to anyone.
2) When we issue it, we make the choice of what to buy, usually employment, when THEY (usual suspects) do it, the state has first buy and certain sectors of the economy are benefited disproportionately compared to others; anything having to do with war making or profiteering on the backs of the already downtrodden.
3) Reliance on loaned money and payment of interest from money that was never issued insures that all money will be tight and scarce no matter how much is issued in this way. Bubbles are literally required else economies die, but bankers are lured into the biggest deals involving the least risk. The little people mean nothing to them, increasingly dealing with car and home loans is becoming onerous to those who would rather gain the sure thing in the equities markets as long as interest rates are low or near zero or even negative, where you pay someone for holding your money, which is actually THEIR money in an account with your name on it.
A Valun system would run in parallel with the existing system, each hour worked would produce eventually several Valuns per hour and there's no interest to pay to anybody. Furthermore the more industrious people are, the better they do; this system promotes productive activity. Since THEIR money is required only to pay THEM taxes on the profits of our money, strange but true until it isn't, then our reliance on THEIR money is thereby reduced.
What's the glue that holds it (THEIR system) together, that engenders lower risk than elsewhere for THEIR money? Patents and copyrights, intellectual property. The stolen ideas and techniques of others for the benefit of those who make money on money without actually working. Any idea placed into THEIR patent and copyright system is ripe to be bought by speculatively interested capitalists.
So no wonder there's a limited economy with THEIR money. THEY are getting exactly what THEY intended, keeping everyone on a shorter and shorter leash through imposed scarcity of money except among the 1%. Notice the general war on cash and we just found out that one thing that's possible in cryptocurrencies is the tracking back from point of sale to the producer of a wide range of products. All sorts of things suggest themselves as that quality issues are all related to efficiency of scale being exceeded, poor -corrupt or overpaid- management, etc. Hence, knowing this kind of information from blockchain technology automatically disqualifies all cryptocurrencies from consideration as cash because none of these sales is anonymous.
The current economy is normally in a deflationary scenario despite inflation caused by money being cashed out and returning to home markets, where it ends up in the equities markets until interest rates rise and then they'll flood into the debt markets, which are anywhere from ten to a hundred times larger than the equities markets. Having decent debt markets is fine. It has always been debt to whom and in what money that has mattered as pertinent questions. It also matters as in a Valun system, that all rent of money is from money that already exists, not as under usury.
Q: what happens to any money that is lost in a stock sale? A: It is gone, perhaps forever, never to return, because stocks have and can become worthless and the currencies that measured them along with them and none of that has anything at all to do with anything you or I do. That's how all money dies, through depreciation, the inability to cash out of something for what one paid for it. Things lose value and money dies with them. So are you beginning to understand a little bit more the significance of this proposal?
If everyone of our A members is capable of issuing money, all of it to a standard adopted by us all, the proposed Valun, then we buy with it whatever we want most and eventually everything else with it, including the land, as we intend our money system to last, since it corrects the frauds of the present system and besides it would really be our property, not THEIRS. What does having a strong claim on the 2nd Amendment demand? That you accept a right to protect what is actually yours. Understood?
4) We accept as usual and normal for some people to have a claim to a living from others around them, chiefly members of the same family. Families to communities. Communities to nations. The proposed Valun system strengthens it all. This is where we ram straight through all existing schools of economics. We see it from the standpoint of the little people in this world, not from that of the high and the mighty. If the invention we call money is to last and benefit us, we, the people, NOT “the masses,” then we must resolve to join together in a certain way to make it so. Women and children were supposed to depend on what could be brought in by a breadwinner. This is the root of natural socialism. Anything else is frankly a state tyranny and hence illegitimate as socialism and is not allowed within the proposed association.
Maybe we should make this point straight too. We have in cultures extending back at least 4,000 years the idea of a family holding, a pile of money that is intended to serve the emergency needs of family members that is collected from family members only out of the proceeds of exceptional business or trading activity; increase over and above normal income. We'd organize these as B member holding companies and the accounts would have an increasing pile in their Retained Earnings balance as family members would make their contributions, all of which would have to be from money on which taxes had already been paid. All the principal benefactors of the family would be members of a B membership company. Of course a family member might have responsibility for the holding company and desire to place funds into credit contracts with other entrepreneur finance businesses within the developing Valun system; people who financed furniture, parts, recycled anything, cars, etc. and thereby over time increase the holding company's assets. We will allow certain avenues to make money on money without work as long as they obey the rules. Distributions from the company to family members would be made when a recognized need arises requiring financial aid. Yes, this was and is the rightful tithe.
The organization of exchanges is going to begin conceptually with existing political demarcations. In the US, that would be the county level. Under the proposed IVES identification system, the United States is 3-23. In the United States, a county is a political and geographic subdivision of a state. Of the 50 U.S. states, 48 states are divided into a total of 3,007 counties. The number of counties per state ranges from the three counties in Delaware to the 254 counties in Texas. We will give examples from the US.
After the first 3 numbers identifying continents and countries, there are four numbers that identify the states and the counties. Here's how that further breaks down:
IVES# State #of counties
00 DC02 Pennsylvania 67
01 Delaware 3
01 Delaware 3
03 New Jersey 2104 Georgia 159
05 Connecticut 806 Massachusetts 14
07 Maryland 2408 South Carolina 46
09 New Hampshire 1010 Virginia 134
11 New York 6212 North Carolina 100
13 Rhode Island 514 Vermont 14
15 Kentucky 12016 Tennessee 95
17 Ohio 8818 Louisiana 64
19 Indiana 9220 Mississippi 82
21 Illinois 10222 Alabama 67
23 Maine 1624 Missouri 115
25 Arkansas 7526 Michigan 83
27 Florida 6728 Texas 254
29 Iowa 9930 Wisconsin 72
31 California 5832 Minnesota 87
33 Oregon 3634 Kansas 105
35 West Virginia 5536 Nevada 17
37 Nebraska 9338 Colorado 64
39 North Dakota 5340 South Dakota 66
41 Montana 5642 Washington 39
43 Idaho 4444 Wyoming 23
45 Utah 2946 Oklahoma 77
47 New Mexico 3348 Arizona 15
49 Alaska 2750 Hawaii 5
Now after that, we're going to assign exchange numbers to counties as they organize themselves and we want three counties in each state to organize together. For states having more than 99 counties, hexadecimal notation is used. The following are given as mere examples:
1) The state of Delaware has only 3 counties so the IVES numbers for these exchanges would be 3230101, 3230102 and 3230103. The state of Delaware could organize all at once.
2) The state of Texas has the most counties at 254, therefore the exchanges in that state will run from 01 to FE hex.
The state of Georgia would run from 01 to 9F hex.
The state of Missouri would run from 01 to 73 hex.
The state of N. Carolina would run from 01 to 67 hex.
Not all of these numbers may be used, because some counties will have so few residents that they can't form a local exchange, while other places might have many exchanges operating in the same county, because that county has lots of people living in it. If the number of exchanges rises above 99, switching to hexadecimal gives us 255 identifications within 2 places, but what if there are more than 255 exchanges within a single state? What we do then is to concatenate the state number with the county number and convert the entire decimal figure to hexadecimal notation. This gives us a total of 65,535 discreet identifiers in 4 places which should be sufficient.
For instance, Texas is likely to need more discreet identifiers than anyone else even though Loving County, Texas has only 67 residents and is unlikely ever to form an exchange and there are six other counties there with under a thousand people living in them. On the other hand, California has Los Angeles County with over 9 million residents and is likely to form as many exchanges as in the rest of the state.
For California, IVES identifier 32331, if every county there has an exchange they would fit within 3233101 and 3233158 numbering just fine. But as soon as more than 99 exchanges happen in the state, the numbering system for them all switches to hexadecimal where 31 is concatenated to the number of the exchange, let's say 100 and the hexadecimal equivalent of 31100 is 797C in hex, so Hawaii at 50, were it to have 100 exchanges would be 50100 to C3B4 in hex, 50256 would be C450 and 50512 would be C550 Etc. There's plenty of space to identify lots of places. IVES of course would know all of them and provide handy Ask IVES apps for local exchanges to use in validating V-Checks from other exchanges.
In addition to these numbers, each exchange will assign cash accounts for each of the denominations of proposed V-Checks initially from the Half Valun, through the Ten Valun. We would really like to stimulate cash (anonymous) exchanges and the trust of our personal checks as well, as the will and honor of our people is better known. THAT my friends is upon what one bases one's trust of any money system.
We would eventually like to see the following full set of V-Checks: V1/2, V1, V2, V5, V10, V20, V50, V100 and V500. Who exactly runs the cryptocurrencies? Does anyone really know? These cash account numbers would be known to the exchange officers and IVES only and would not appear on any V-Check or be known to anyone else.
The printed paper V-Check is the outward representation of the Valuns on these accounts. They got there when the member requested cash from their account and the Valuns were transferred from the member account to one or more of these cash accounts and nothing is charged to the member for doing this. The process can be done immediately upon request by a counter clerk at any exchange or Valun counter. It's similar to buying traveler's checks but hopefully easier.
All transactions are tabulated and verified within hours on the same day, certainly all those occurring within the exchange. We did it that way in the old days and survived long before the internet appeared. We have finally come squarely back to understanding the imperative use of paper ballots only. The dullest pencil is always sharper than the … how did that go again? You see. We will need lots of paper and ink, not digits and what did someone call cryptocurrencies the other day? Oh yes, “thin air.” What have we been saying all along? That money is accounting and the tokens were just instances of the accounting.
So what then of pallets of cash, makes no difference from whence, that are flown here and there in big airplanes? Each one of them was printed and yes, accounted for by their issuing institutions. Do you suppose for an instant that THEY are unfamiliar with verifying every last one of those pieces of paper as valid money? Of course THEY are. That even goes for bogus plates with THEIR list of possible serial numbers too. Do you see where I'm going with this?
You have perhaps been misinformed all your life that money had nothing important to do with accounting and was merely the external objects of trade, whether they be disks of precious metals or nicely printed pieces of paper. No, my friend, the accounting is everything. It's not too difficult for the literate person to understand and as I've said before, everyone in the world knows what banknotes look like and even the illiterate know how to use them, so why dispense with them? So that some people who demand to make money on their money without actually contributing anything can have their slice of the action of others making random and routine decisions about where to spend their money, which isn't even theirs? You see where this goes. Cryptocurrencies can perhaps mask who the buyer and seller are, but if all the transactions can be traced, then what is that? More snooping in on transactions? You see where this goes too. And lately, not much to our surprise, we hear that some wallets have been raided of their coin. Trying to set up a monetary system on the internet is like setting one up in the middle of a superhighway. A good place to get run over not to settle business.
V-Checks will be printed as numbered blanks to be stamped with an expiration date by the clerk at exchange or counter. On each V-Check, running along the bottom of the obverse side will be a series of eight numbers or letters defining the registry of each one in the series. On the upper right hand corner of each obverse side of a V-check will be a space where the expiration date goes. It will be stamped either with a permanent ink stamp or with one of those which punches a date in holes through the paper. For instance a V-Check from New Jersey would have 3-23-0318 241A532D on it. Because we want to help the clerks do their job fast, it would probably look more like this:
The obverse side would also indicate how many Valuns and say something like Bearer hereby tenders said number of international standard Value Units. The reverse side would indicate the number of Valuns and feature an ad for a local business. In fact, we've given consideration to offering ads that look similar to those sometimes found on church bulletins.
The obverse sides identify the exchange and would feature some scene or landmark from the area of the exchange, an identification of the exchange and of course the IVES symbol.
We started this discussion answering a comment by someone claiming to be a libertarian / free market / capitalist who values precious metals, self reliance and preparedness. What of those in society who cannot earn a living? Some of them might be related to you. Sure, some have their problems. What would a Valun system do for them? What would doing for them do for you? Do you understand how being part of something like this in your own neighborhood would certainly build more self reliance and preparedness among all involved? You can't go it alone. In fact, anyone thinking so is deliberately playing right into THEIR game. Yes, “come out of her, my people” is the message. But out of her into what? Not into being alone and oblivion.
Community will perhaps be forced upon us by natural circumstances as the earth is definitely changing by the day; we need each other to survive and eventually to thrive no matter where we are or what we decide to be doing. This proposal offers a direct way out for each and every one who embraces it, but it will require all of us to get together to make it a reality.
What could happen. The initial transaction that established the proposed Valun could easily be eclipsed. What do we do then? The Valun must always trade at a premium to any and all of THEIR money and we do that by establishing a transaction between gold and dollars on 11/2/11. That's $2.16 per Valun and take a new initial value, a bigger chunk of purchasing power, with each successive rise in the price of gold. If our price to hold an oz of gold is $3,200 then all Valuns in the system rise to $3.20 and then if the price of gold falls, the Valun continues to rise relative to dollars so it takes more gold to purchase the same piece of purchasing power. And THAT ladies and gentlemen is how you preserve purchasing power in a monetary unit no matter how many of them are out and about at any one time.
The rascals of economics will surely tell you that one cannot have too much money circulating about as it raises prices. How can it be that all these spare monetary units would be bidding on more than one product at a time? Since all the money does not participate in each and every sale, the argument is dismissed, thrown down, excised, discarded, shoved off the stage, etc.
What causes inflation then? Exactly what Riegel said caused it, too many unbacked pieces of purchasing power, literally bogus claims on the economy that didn't originate in a transaction to split an honest barter. Riegel didn't mean backed by gold or anything like that either. He had this in mind: the government spends $10 but only gets $2 back in taxes. That's $8 unbacked to $2 backed. Now, next go round the government can spend that backed $2 again along with perhaps $6 more of borrowed money. That's now $12 unbacked to still $2 backed and $2 taxed back. The backed money canceled out the unbacked money but it's never enough. Too much and speculation on commodities happens and economies to scale are breached everywhere and before you know it, you have today's ghastly messes around the world. You see where this leads? Everything goes up in price. Oh and by the way those who really own the money begin demanding that the government adopt all kinds of THEIR policies and the government can't do anything about it because all and everyone is bought and sold with THEIR money. And you still think this blog's proposal isn't that important?
Get back to me when you know that it is. You'll need to help set up IVES and each county represented will have to begin with 13 people who meet the criteria and one of them had best be a lawyer.
Be seeing you.