Wednesday, June 27, 2012

#11 On Economic Slavery – A Conversation

Referenced link:
This will be a response in the manner of a conversation with Winston Wu, who wrote a provocative piece on the Bitter Realities blog, posted on October 7, 2011 · 8:17 am and entitled ECONOMIC SLAVERY. Mr. Wu's words will appear in blue, mine will appear inside square brackets [ ].

This world is in reality a global enslavement machine that programs people to THINK that they are free in order for them to cope with their servitude, and conditions people to WANT it as well. The truth is, we are all slaves to the economic system and programmed with illusions that help us bear our enslavement. [We agree with this statement and consider this perception vital for consideration of the VEN alternative.]

The system treats us as economic resources and defines us by our economic functions (e.g. workers, tax payers, consumers, voters, etc.) rather than as human or spiritual beings. In short, we are simply a commodity to the system and groomed as such. And of course, we are programmed to want to thrive as “economic resources”, not to complain about it or be critical of it. No freethought, in other words. You are supposed to “love the system”. [We want to elaborate a little here. The word Soviet implies advisers, management, those who are schooled to know better, who will manage to rule the world and decide what is best for all based on their “educated” or “scientific” perceptions. The “new Soviet man” was and still is a slave, a willing dupe to be used as fodder in endless wars, and pawns in other large scale social experiments, while those who make money on it sit in their homes and palaces living “the good life.” We also note that these “happy workers” eventually show signs of the Stockholm syndrome where the imprisoned love their captors.]

Freedom, for the most part, is just a word, not an actual state of existence. The reason people believe that they have freedom is simply because their minds are programmed to think that they do. You see, your slave-masters need you to be satisfied with your enslavement to keep you controlled. In order to do that, they give you choices in consumerism and in selecting your occupation. You are “free” to choose your form of slavery and vote for your puppet dictators. [Yes indeed, and it is getting worse all the time. What most people do not know, because they have bought and accepted their education without much critical thought, because the common view was in fact imposed by “bait and jeer” tactics known by those who developed “public relations.” Only those who have bothered to do their own research have discovered that this goes back in some cases many hundreds of years.]

Right when you step into grade school, you lose all your freedoms as you are totally controlled and given rules to abide by. You are taught to regurgitate information and to be obedient, as you are honed and groomed to become a slave in servitude to the system. You are told it’s for your own good, and punished for disobedience. Public school is where your conditioning to become a robot begins. This video [which I have seen and recommend] explains how schools are nothing more than prisons designed to train and condition slaves:

First, you are programmed to WANT to become enslaved by being conditioned to WANT a job / career, which is essentially giving over control of your daily life to others. In doing so, you give up your freedom without knowing it cause you are told that you are “free to work”, which implies that it is YOU who wants it, not the system – a psychological sleight of hand indeed. [Yes and they have a name for it too. It is called projection; they project their views upon you so that you think they're yours.] Furthermore, you are convinced that “the purpose of your life is to work” and that’s what you were born for, thus ingraining you with the “live to work” mentality. You are also conditioned to feel empty and incomplete without it. As a result, work becomes synonymous with freedom to you. [When some suggest that the purpose of education is to socialize the child this is precisely what they mean, and to some extent we have all been subject to it and accepted it uncritically.]

If you think about it though, unless you are at the executive level, most jobs are technically positions of slavery, because you are giving over a large portion of your day in servitude to a corporate body, organization or business that is structured in a hierarchical fashion. Technically, that is slavery. There’s no way around it. But of course, the system tries to convince you that it’s not by getting you to think that YOU are the one that wants it. But even if you don’t, you have to anyway cause you need the money to pay your bills. Hence, whether you want it or not, the employment enslavement is “forced” upon you by the system. [All that being so, we want to point out that the basis of the present money system in debt exacerbates all this. Were things turned upside down, were each human being accorded the right to proclaim their own value by exercising their right to create their own interest free money, we would evolve a quite different system.]

Overall, the system tries its best to make you a “happy slave” by repackaging slavery as freedom. This is a form of spin illusion that reverses the meaning of “slavery” and “freedom”. For example, freedom in America means “the freedom to work and make money” [neither of which anyone really has, particularly the choice of which money to use] which in other words means “the freedom to choose your form of enslavement”. And being free of this enslavement is to be a “miserable unemployed person who is seeking a job”, as defined by the system. This basically means that it is a bad thing not be a slave. [Yes it is bad, unless you are one of them as they are “special” people as George Orwell took pains to tell us.]

It’s a play on words that turns truth into its opposite. [Orwell again] And it’s no different than preachers telling Christians who have submitted to the fundamentalist laws of the Bible that they have been “set free from sin”, or fascist dictators telling their populace that they’ve been “set free from chaos and disorder”, etc. So in this case, when you turn into a corporate slave, you are “set free from unemployment”. [Clever and yes indeed!]

Essentially, the system’s false logic is that slavery = being “set free” from freedom. This is nonsensical of course, but you aren’t meant to see it the way it really is. Instead you are meant to see the inverse of the way it really is. That’s the scam and brainwashing. It’s a classic form of propaganda where you divert attention from something by declaring it to be its opposite. And it has been used time and time again throughout history in all areas of life where mass control is needed. Thus it’s no wonder that Michael Ellner stated:

Just look at us. Everything is backwards. Everything is upside down. Doctors destroy health, lawyers destroy justice, universities destroy knowledge, governments destroy freedom, the major media destroy information, and religion destroys spirituality.”

[We wanted more elaboration on this:
1. Doctors destroy health precisely because being a doctor is a monopoly and their “science” excludes all who cannot prove by their methods any modalities of treatment or cure. Yet their own rates of “successful cure” especially in the treatment of cancer, are notably poor.
2. Lawyers destroy justice when they attempt to compromise the truth or act in a manner against the inalienable rights of each individual human being. Judges in most cases are just as guilty. Their profession is also a monopoly.
3. Universities destroy knowledge, and reputedly from reliable sources, some have actually destroyed valuable evidence and ancient artifacts that were “archaeologically inconvenient” as well. Their own “peer review” system imposes a natural conformity that defies any proposition considered “out of the box.” The truth of the matter is that absolutely no science gets done without financial support of those interested in "agendas" and that's been the case for a very long time. Science so called has a “feet of clay”: it is limited precisely by what it studies and frequently by the paid efforts of agents with agendas to support. Until this monopoly is broken, we could not expect anything different.
4. A government, any government is a preposterous illusion; people who create a reason for their existence and live as parasites off the real wealth and labour of others. Anything a government does beyond a very local level is assumed to limit or destroy freedom.
5. Religion destroys spirituality. Controversial I'm sure, but even an atheist would see the illogical form of belief most people use to “suck up” to whatever or whomever they regard as divine; obviously nothing or no one that would ever suffer this fundamentally insincere “sucking up” would deserve the worship as divine.]

Moreover, the system uses a barrage of methods to keep us in an internal state of fear and insecurity that causes us to crave structure and routine, due to our psychological insecurities, which enslavement to the system provides of course. Thus we are raised to want to be “tied down” to something (e.g. a job, house, marriage, single geographic location) on a long term basis. This is why most people do not seek adventure, new experiences or true freedom of expression, and only a minority do. [We would like to say that “adventure” is constrained these days by many factors all of which involve money in one way or another. A side note that very early on, some of us were conditioned to consider “adventure” in places like Disney's Adventureland; as a sort of separated precinct where only the daring, bold or fearless went to do whatever they did, not the rest of us who would just sojourn through this separated land.  We are conditioned not to be too adventurous.]
I found this and it seems quite appropriate here.
One major outlet that the system uses to keep us in this internal state is the media of course, which constantly feeds us stories of terror, tragedy and crises. Their excuse is that “bad news sells” but that is just a cover. You are never told the real reason for the rampant fear-mongering. Society also convinces you that being in a state of fear and paranoia is good for your protection. But in reality, the majority of our fears are baseless, unfounded or greatly exaggerated. (e.g. terrorists everywhere, psycho killers everywhere, swine flu scares, etc.) [Agreed!]

Another major method the system uses is the other people around us, who are trained to keep us in line and in a state of conformity. This is effective because given a choice between the truth vs. conformity to the group, most will choose the latter even if it means parroting a lie they know to be untrue. And of course, our internal state of fear and weakness make it much more likely that we will conform as well. Thus, each of these controls are designed to reinforce each other. {More people need to become aware of “bait and jeer” techniques. The jeer must be identified as such and further disrespect of the sincerity of a jeered point of view should then be met by more personal and natural responses. If you want to wake up and wake someone else up, you certainly do not continue allowing the dream to continue uncontested.]

Conformity is the fallacious belief that the views of the majority must always be right and the minority or dissenters always wrong. [Yes, and since we're all being driven over a cliff and most are going that way, the few who see the danger will have a better chance of actual survival. You can follow the crowd in its “political correctness” to your death and the death of billions of human beings, but you will still not be right.] Therefore, it assumes one should adopt the beliefs of the majority in order to be “right”. It is a mindless characteristic that most adopt and are conditioned to live by. However, many of the greatest thinkers, writers and intellectuals of the world have seen through the madness of such a belief.

Additionally, society is set up with all sorts of stress, anxiety and worry to keep you in a constant state of “survival mode”, which reinforces your fear state. And of course, money itself, which enslaves the world for obvious reasons and is totally artificial, is the lifeblood of the global enslavement system. There is no question that we are all slaves to money. But as conspiracy lecturer Alex Collier asks in his lectures, “Why do I have to ‘pay’ to be in a world I was born into?” [Indeed! You should have the right to call into existence the money you need to take care of your needs and that is an INALIENABLE right that belongs to no one else, no government, business or organization.]

David Icke, a popular conspiracy researcher and author, came to the same conclusion. In his book “Human Race Get Off Your Knees: The Lion Sleeps No More” he writes “the truth – that the world is a global enslavement machine and reality suppressor”. [Icke is controversial and certainly not original, and I have not read his book, but I'm pretty sure that once he were to find out about E. C. Riegel and our VEN proposal in process here, that he would be in substantial agreement.]

Though there are variations, essentially most people only have two choices – either become a robot… or a bum. Not very inspiring. To find alternatives requires innovation and thinking outside the box, but most cannot cause the system doesn’t teach you to think for yourself. [Teaching people to think for themselves; we're giving it another try.]

Most people believe what they are told, and they are not told that the world is an enslavement system. Instead they are told that they were born to work, which is a virtue, and that if they study hard and work hard, they will make a lot of money and have a good life. But in reality, they end up slaving away their whole lives for money with some “pie in the sky” dream in their heads with little or no time to enjoy any “good life”. They never live fully or experience any true freedom or discover themselves. Instead they live in fear, worry and pressure their whole lives just to keep up an illusory facade under the programming of the system. In the end, it falls flat and they wonder what went wrong after they’ve lost most of their precious life years serving the system. By the time they realize it, it’s too late. Such is the sad scam the system puts on you. [Which might actually have been just fine except that the system as presently conceived is flawed and will eventually have a great fall. When it does, they assume they will be able to jump into control and suppress the rest of us; the illusion of freedom will fall and real slavery shall begin. They imagine that one or more kinds of guilt, shame, getting us to accept the blame, etc. will be used against us as well. Our response should be the same as to the “bait and jeer” technique; we identify the source and seek natural and personal responses appropriate to oppose the attempt to impose any false guilt upon us.]

[To understand what Fuller said here, it is necessary to determine for oneself just how owning oneself and one's own money contributes to individual freedom. We absolutely and categorically reject the Malthusian-Darwinian-Marxist theory that ANY individual human needs to justify his or her existence to anyone. This is a fundamental rejection with all that it implies!]

Now I am not trying to be negative here. The system is what it is. And no amount of white washing or word plays will change the core nature of it. [Agreed.]

Employment in reality is a form of binding enslavement in which you give up your life and freedom over to others. But you are made to WANT and NEED it. You are made to WANT a job that ties you to one geographic location and puts your schedule under control of a managerial entity, [a Soviet] which no sane awakened person would want. But you are programmed to define all that as “freedom”.

An awakened person realizes the folly of all this, sees that what everyone wants (like the will of a hive mind) makes no sense, and realizes that all of this is the total antithesis of what it means to be free. But an unawakened person believes the illusion and wants what they are programmed to want. To them, if society says so and everyone else is doing it, it must be good, normal and natural. Only the awakened person realizes it’s all a con full of lies, mind control, illusion, voluntary slavery and the giving up of one’s life and freedom. [Yes.]

True freedom means that you can do whatever you want (for the most part at least) as long as you don’t harm others, without the control and interference of others. But the commitment of employment and marriage take that away. There is no doubt about that. But we are NOT conditioned to want true freedom. Instead, we are conditioned to WANT enslavement by giving up control of our life, time and daily schedule to others. Yet we are TOLD that we have freedom, when in reality we do NOT have true freedom. It’s a total lie that makes no sense and contradicts reality. [It contradicts itself: freedom does not exist except for certain “special” people who can decide to do whatever fool thing they want including run and ruin the lives of others (millions, billions) who have been lured into their nets, chief among them being debt slavery, with fabulous promises that can never be kept.]

Think about it. Most people who are enslaved by employment and bound by social control do NOT have true freedom because for the most part, since they CANNOT do whatever they want everyday without control and interference from others. In childhood, their life is controlled by their school system in the day and their parents at night. Then in adulthood, their work life is controlled by their bosses, managers and HRM [Human resources, doesn't that sound exactly like they are treating us as things?], while their social life is controlled by popular culture, mass media, ideological divisions, fear and anger, etc. Yet they BELIEVE that they have freedom. Why? Because they are TOLD that they do! They are told that since no one named Adolf Hitler runs their government, that they can go to the voting booth, and that they have 20 flavors of bagels to choose from, etc. that they have freedom, even though their lives are controlled by others and they cannot do whatever they want everyday! It’s an insane hypocrisy and bizarro world. Yet most don’t see it cause the system programs their minds not to see it but to see the opposite by redefining everything and turning people into “happy slaves” who do not want true freedom.

Now if you agree with all this and want to know what you can do about it, my advice is this: Try to become self-employed [a Class A VEN member by definition]. Or at least find ways to cut your expenses so that you can work part-time and at least have half the day to be truly free. [Reclaim your time and use it for your own purposes.] This may sound hard, but if you remember that “Where there’s a will, there’s a way” you can find a way. Or you can join one of those self-sustaining eco-villages around the world [the real ones will become foci for an IE in a VEN], if you’re into that sort of thing. If you can’t do any of these things, at least be employed in something that you love, so that it does not feel like slavery.

[This too is a fundamental of the VEN; understand the relationship and one is already waking up.]

Always remember, the quotes of the greatest thinkers, writers and intellectuals of the world;

The individual has always had to struggle to keep from being overwhelmed by the tribe. If you try it, you will be lonely often, and sometimes frightened. But no price is too high to pay for the privilege of owning yourself.” – Frederich Nietzsche

[Well Nietzsche too certainly had his problems and it's not clear to me that he was ever “free” of those he actually tried to ingratiate himself to; the power elite as he spoke to them. We maintain that we all own ourselves but have been literally sold from birth, against our will or knowledge which is fraud, to prop up the existing debt-money system. We reject the fundamental frauds and assert that each of us should locally and personally get to know and work with each other in a peer to peer manner around the world and where whatever “management” is required is generated and developed from among ourselves -bottom up, not imposed upon us from above by any supposed “betters.”]

It takes far less effort to find and move to the society that has what you want than it does to try to reconstruct an existing society to match your standards.” – Harry Browne, (How I Found Freedom in an Unfree World ) 

[People naturally want individual freedom and are attracted to it and are repelled by mass compulsion and flee from it, accept in cases like North Korea perhaps, where they are scared to death and delighted to serve simultaneously. We also note that this regime is supported by outside financing of some sort, as the country is not self sustaining.]

Insanity in individuals is something rare – but in groups, parties, nations and epochs, it is the rule.” – Frederich Nietzsche [... a remark concerning and applicable to any mass movement. What one should be asking whenever they hear of a “tea party” or “occupy” movement is to determine who or whom might be supporting it with money.]

During times of universal deceit, telling the truth becomes a revolutionary act.” – George Orwell

Ninety-nine percent of the people in the world are fools, and the rest of us are in great danger of contagion.” – Thornton Wilder

Whenever people agree with me I always feel I must be wrong.” — Oscar Wilde [I've not felt this in a long time, but my convictions change with hard evidence, which must really be “harder” than most people's, as to be obvious.]

Men have been taught that it is a virtue to agree with others. But the creator is the man who disagrees. Men have been taught that it is a virtue to swim with the current. But the creator is the man who goes against the current. Men have been taught that it is a virtue to stand together. But the creator is the man who stands alone.” – Ayn Rand [We remind everyone here that a Rothschild paid her to write Atlas Shrugged and that single work identifies her with the internationalist / globalist elite who would like nothing better than to “shrug” off the rest of us. She was a known misanthrope. However that doesn't mean that her statement is untrue.]

Honesty is such a lonely word. Everyone is so untrue…” – Billy Joel, in his hit song “Honesty”

The sick individual finds himself at home with all other similarly sick individuals. The whole culture is geared to this kind of pathology. The result is that the average individual does not experience the separateness and isolation the fully schizophrenic person feels. He feels at ease among those who suffer from the same deformation; in fact, it is the fully sane person who feels isolated in the insane society — and he may suffer so much from the incapacity to communicate that it is he who may become psychotic.” – Eric Fromm (The Anatomy of Human Destructiveness) [Another book I haven't read, but if the subject were merely the general alienation of the individual human being, it starts early and can be attributed to many things with obvious justification, chief among them being the denial of basic human needs at an early age. The present society and zeitgeist does not satisfy the vast majority of individual humans though most are still convinced that it is “the best of all possible worlds” and so never resist.]

Further contributions to this discussion are encouraged, shall be weighed and edited with regard to applicability to this subject.

David Burton


Monday, June 11, 2012

#9 Why Proposed Constitutional Amendments Will Not Work and Other Matters. Attn: Bill Still and Rep. Dennis Kucinich.

A strong case might be made against the Constitutionality of the Government's practice of "borrow-creating" on the ground that the Constitution makers could not have had this in mind when they wrote the word "borrow" into the Constitution. The practice of commercial bank borrow-creating had not come into use in their time. Their complete unconsciousness of this modern method is borne out by the debates in the Constitutional Convention. More fundamental, however, is the fact that neither constitution nor legislation can qualify a government to be a money issuer. As stated, money issuing power springs only from natural law, and this law disqualifies governments. Had the Constitution makers undertaken to invest Government with the money-issuing power, it would have had the same enabling power as if they had declared that it should have power to regulate the movement of the planets.” 

E. C. Riegel
Flight From Inflation
Chapter 4 Legal Counterfeit

This paper comes as a direct response to an unidentified blogger who calls himself “video rebel” and posted a piece entitled, “Two Proposed Amendments To The US Constitution: 28th Make Government Debt Illegal And 29th: No Fractional Reserve Banking.” Posted on June 9, 2012. You can read what he says hereBut I'm also writing in response to Bill Still (whose work and research I admire), Rep. Dennis Kucinich (whose genuine interest in the welfare of the people he serves is duly noted) and others who actually believe that if we just went back to following the Constitution, everything would turn out OK.

Well it would not turn out OK because the framers very frankly didn't know what they were doing with regard to money, finance and banking. We have the advantage and opportunity afforded us by history in these matters. We have the ability to dissect the present system and discover its flaws. We propose a different remedy and it is certain that we are going to need a vision of something that will make the transition to wherever it is the world economy will be going easier.  We need to get to work building it as if we were building life-rafts, because the present financial system is like the Titanic and it has already hit the iceberg and will be going down and there is nothing that can possibly be done to save it.

At the moment we should get some things straight from the very beginning (and yes I am hopefully speaking to those like Mr. Still and Rep. Kucinich, who perhaps still think just giving it all back to the Treasury solves anything. They are encouraged to get in touch with me as we need to help each other out as best we can).

POINT 1. The INALIENABLE right of each human being to create (to call into existence) their own money and to use it in all trades where money is normally used as a means of exchange shall never be infringed. This right to create money shall belong ONLY to individual human beings and to no group of human beings no matter how so constituted. It follows therefrom that:

A. All governments are excluded from and forbidden forever the right to create money, because they have nothing to sell that anyone wants to buy and therefore live as parasites on the rest of society. Debate this all you want, it's the honest truth. Everything a government needs to live on is ultimately taken from society by FORCE. (We will have further occasion to treat of these issues as the work of Frédéric Bastiat (1801-1850) is currently under review. Those wishing to contribute monographs on this general topic are invited to do so.)

B. All groupings of human beings are likewise excluded from and forbidden the right to create money because they derive their worth in human labour that in this system will be self-financing and therefore available to any group. (This is a subject covered in some detail by E. C. Riegel, but I am sure there are antecedents of the same idea to be found elsewhere. Those who wish to submit a monograph on this subject are invited to do so.)

C. All groupings or organizations wishing to take part in the Value Exchange Network (VEN) would have to satisfy certain basic requirements that would be established by local Independent Exchanges (IE's) in accordance with some simple ground rules. I'm leaving this topic as it is for the moment as this too deserves a separate discussion. (Those wishing to make contributions concerning this topic are encouraged to submit monographs).

D. It means an automatic end to all “legal tender” laws as invalid and intended to grant a monopoly, which is not acceptable under common law.

POINT 2. The understanding that very frankly and honestly no money is ever backed by anything other than what it buys. This is a core E. C. Riegel concept. We stick to the basics: money is a means to split barter for real goods, services and labour and nothing else. It creates its own value and its own supply when the only ones allowed to create money are individual human beings. That said:

A. Let's be clear from the outset that while E. C. Riegel understood that very frankly those without money needed it and if they were the only ones allowed to create it (whom he called “red inkers”) that one would have a far more equitable system. But he didn't suggest that the amount of money be either excessive nor endless. These matters would be part of each community's IE and would be based on factors related to the subject of mutual banking, with some notable exceptions granted to certain individuals based on genuine need or former contracts. I want to leave this at that for now too.  This whole area is going to take many papers to sort out.  (Those wishing to contribute monographs on this subject are welcome to submit them.)

POINT 3. The current practices of usury and compound interest are forbidden forever as they universally and ultimately create claims without creating the money to cover the claims. This results in an inevitable scarcity of money (no matter how much is created by the usual means) and an inevitable concentration of power and property into the hands of the few who control and benefit from that monetary control. The mathematical absurdities created and the likewise fallacious and fanciful notions that idle split-barter money is owed anything by the rest of society are thrown out completely and forthwith. It therefore follows that:

A. No money on account in any IE would earn any interest whatsoever. Since we do not accept the idea that idle money needs reward, it shall not be so rewarded.

B. The only source of funding for any IE would be through transaction fees, which E. C. Riegel envisioned could be as low as one tenth of one percent or .01 %.

C. This opens up financing to a potentially far greater number of people because although interest and compounding are disallowed, there are simple methods of finance which benefit those who wish to become financiers in an honest and credible system.

D. Each IE would have the primary responsibility of certifying all financial transactions as valid under rules that will be strictly adhered to so as to catch anyone breaking this fundamental and incontestable point. We will not have gained anything by adopting an alternative system, if we do not decide here and now to slay these monsters and forbid them forever.

POINT 4. No IE will ever operate under the fractional reserve banking model and will not need to. Each member's account will be inviolate; no IE or anyone else can borrow / use / leverage / hypothecate or in any way entangle anyone else's money for any reason whatsoever. This means that:

A. Deposit insurance is not necessary.

B. No IE will ever be operating in the finance business. They are only ever concerned with exchange.

C. The financial business will always be separate and operate independently of the IE, however all their transactions will require the review and acceptance of an IE in order to be valid transactions.

POINT 5. The monetary unit shall be known as the Value Unit [Both the use of the name Riegel for a unit of money and the Riegel Monetary and Exchange System are patented trademarks belonging to Laurence Gilbert, hence we cannot use them]  The Value Unit will be a decimal system with each Riegel divisible into 100 cends. Further we suggest the following:

A. The Value Unit will appear in all current forms in which money is represented; paper notes to be known as Exchange Notes, coins for the fractional units of cends, plastic cards, checks, data entries on data processing equipment, etc.

A.1 As regards Exchange Notes, we suggest these be in appearance similar to current bank notes with the following stipulations to avoid counterfeiting: each note would have a universal (reverse) side depicting the world and the name of the issuing international organization entrusted with the task of designing and circulating Value Units. The opposite side would be one submitted by each local IE for its own use. There would be so many local IE designs that it would never be worthwhile to counterfeit them. They would all trade at par with each other anywhere in the world without any need for exchange rates.

A.2 Coins should ideally be designed for size and weight with vending machines in mind, as in the proposed Value Unit system, each of these coins would represent more value than similar coins do now.

B. The prices for things in Value Units shall find their own level based on natural forces of supply and demand. But what most people really want to know is something else entirely, therefore the following:

POINT 6. Exchanges for Value Units with other money will never be direct because no IE will want to hold any dollars, euros, yen, etc. because they are all debt instruments of other private businesses. Above all, every IE will ultimately be private in the sense that it will choose its own members and set rules whereby honest business is to be conducted. Besides all of this, no IE would ever want to be involved in the business of any of these banks and financial institutions.  There will arise, under rules governing such activities, financial businesses which will settle debts and gain title to property for the purposes of resale. All this business would be conducted by a separate order of institutions anyway. This means that:

A. An intermediary trading commodity is required between Value Units and all other money and it was suggested that it be gold. We would want a monetary unit that is fixed in time and value; to a standard weight in gold on a particular date. We need not concern ourselves with the specific date, as there is nothing to be gained in the long run by considering this, the long run being at least 20 years. [11/18/13: We no longer think this is correct, though it was sort of accepted by Riegel.  What we wanted was a point in time that reflected the highest possible valuation for that on which the Value Unit is initialized.  The date chosen for the blog's experiment, 11/2/11, proved to be among the highest points in gold's recent price in dollars.  Over the time since inception, the Valun has gained against all contenders for value measurement, which is exactly the position we want to keep the Valun.  Should the price of gold ever reach or exceed Valun's inception price, the inception price may be raised, never lowered, by a properly constituted International Value Exchange Society (IVES) which is to function as the sevant organization of all the IE's within the VEN.]  

B. The same considerations would apply to silver, and under the same conditions; a fixed price for silver on a specific date being equivalent to so many Value Units.

C. The same considerations may or may not be extended to other metals.

D. We understand that in an VEN, there will be those who are “red inkers” while there will be others who will want to buy their way in. The method for doing this is the exchange of gold or silver bullion.

Now, I'll let the cat out of the bag:

Since it matters not what the initial value of Riegels be in terms of gold, and since the date does not matter either [11/18/13: Yes it does as our 2 year experiment proves.], and since no one has volunteered anything to the contrary so far [11/18/13: Actually, they have, but for a variety of reasons, their suggestions are not nearly as good as the proposed one.], it is my suggestion that the Riegel's initial price in exchange for dollars be accepted as already established on 2 November 2011 at an initial price of $2,160 the oz. of gold bullion = 1,000 Value Units (I have my reasons for choosing these numbers which reflect an acceptable trade above spot paper gold prices). This makes each Value Unit worth, at inception, approximately $2.16. Doing the math from there, we have seen a fall in the price of gold in dollars since then. What does this mean? It means that hypothetically all dollars have lost purchasing power against the Value Unit since its inception and that it will cost you more dollars today than it would have at inception to buy one.  (What this means is that for each and every currency that can or would trade in gold and silver bullion, that a comparable set of figures expresses the exchange rates for them as it does for dollars in exchange for Value Units.)

Does this mean that if gold rises in dollars that it will take fewer dollars to buy Value Units? Assuredly it does. But in fair trade in Value Units, an oz. of gold bullion would still fetch 1,000 Value Units (Silver would fetch whatever its initial price in Value Units turned out to be). As long as the price of gold and silver remain below their initial prices, this feature would tend to draw more exchange into the VEN orbit and the gold and silver with it. For the “hard money” people out there, yes, the Value Unit would be “backed by gold” (or silver) if one bought one that way.  Remember we only consider money as backed by what it buys, therefore if you would buy a Value Unit with some other money, it must be paid for in gold or silver since no IE within the VEN wants to hold any of these currencies.  This in fact becomes our fence against them.

[Note 12 June 2012: : At inception $1.00 would have traded for VU .46 or 46 cends; slightly less than half a Value Unit. $100 would have bought VU 46.30 Forty-six Valuns and 30 cends. On 12 June 2012, $1.00 would have traded for VU .44 cends; $100 for VU 43.52 Forty-three Valuns and 52 cends. Over the intervening period, the most favourable exchange for dollars was 7 November 2011, within a week of inception, when the spot price of gold reached $1,794.55 and $1.00 would have purchased VU .48 cends, $100 = VU 48.08 Valuns. The lowest point so far was 28 December 2011 when the spot price for gold fell to $1,553.75, $1.00 would have traded for VU .42,  $100 for VU 41.63. The lower gold trades in dollars the fewer Value Units your dollars buy, which is as it should be. As gold rises above the inception spot price of $1,728.00, each dollar buys more Value Units. Since we do not believe that the powers that be can sustain a gold price very much above the inception price, we do not anticipate that the Value Unit will be easily placed in a disadvantageous position as regards shifts in trade and further we expect greater stability of prices over the long run, 20 years or more, as measured in Valuns than in any other form of money.

Note 14 June 2012 :  At inception, silver bullion traded at $42.24 the oz. This neat number, handy to remember, is the result of the ending spot price plus 25%. We already determined that a Valun represented $2.16 at inception, therefore 1 oz of silver would have purchased VU 19.55 and this exchange would fluctuate with rises and falls in the price of silver. Since inception, prices for silver have gone up and down and are now down with respect to inception, so as of today – 14 June 2012 – an ounce of silver would purchase VU 16.64. The same manipulated market forces influence silver as influence gold, but they do not exactly rise and fall in price together. The same factors favour Valuns when silver is below $42.24 as for gold below $2.160 per oz.

Note 06/15/12: ALL THESE FIGURES ARE APPROXIMATIONS AS NO VALUN OFFICIALLY EXISTS. The right of ANYTHING out there to call itself a Value Unit or Valun and be accepted under ANY meaningful terms of trade at the present time is not only a violation of the spirit and mutual trust that this suggestion is seriously intended, any appearance at this point in time of ANYTHING calling itself a Value Unit or Valun is completely bogus, and must be bogus because none of these suggestions has ever passed a suitable consensus, without which no meaningful business can ever take place. We also note that these “values” are greater than would normally be necessary as the premiums for trading volumes of gold and silver bullion will need to be higher to represent actual liquidity; their ability to change hands physically. ]

What we want to avoid is having the VEN swamped by whatever happens to gold and silver markets as measured in dollars, euros, yen, pounds sterling, etc. These markets are all manipulated.  But we do not see a future for any of these currencies anyway and when all is said and done, gold, silver and everything else will float in price naturally to where they belong relative to everything else; what E. C. Riegel called “Price Relativity”.

In closing, we recommend that the only valid considerations concerning the US Constitution, or any other similar body of law for that matter as concerns money, banking and finance, would be to admit, as E. C. Riegel famously has done, that the “founding fathers” were misinformed and made mistakes when drawing up the covenant which it seems future generations were somehow or in any case not willing to preserve in its original simplicity or intent. The only way forward is not backward but forward. How many times does it take for someone to suffer the same mistakes before one gets it right?

As regards public debt, public finance so called, taxes and other matters related to governments, the bases for an VEN at this point lead to a “pay unto Caesar the things that are Caesar's” conclusion, implying right away that these affairs of necessity be carried out in dollars, euros, yen, sterling, etc. and not for the time being to be conducted in Value Units, which implies that of course this would require sales of gold and silver by the VEN to raise the currencies required to cover these expenses. Much as regards governance that is currently taken for granted would then be noticed far more readily by the people.

David Burton