Monday, April 18, 2016

#80 How Money Is Destroyed

Now we come to one of the least covered subjects in all schools of economics. The subject of money issue is altogether given far too much attention. At this point, we know of money's creation and we remind everyone that no money is legitimate that does not begin as being offered by a human being (not some phony entity) as a token in trade for a good or service. In so doing, the person accepting the token is part of the split-barter function of money and is able to trade that token for something that he needs. Nothing whatever except what the person buys with that money “backs” that money and if you believe otherwise you're a happy idiot dupe of the present order of things! Anything more attributed to money by anyone is pure bunk! And where pure bunk lies, exist benefits for none but all speculators and capitalists (those making money upon money without working for it), who I remind my readers happen to be the real parasites on society, not the poor. We should also have firmly established as fact that state socialism is the necessary invention of the capitalists, else the vast majority of the people would quickly rise and overthrow the capitalist order. They are parts of the same social dialectic of divide and conquer and remain in power at all costs.

The TIME out of our lives that we give over to the profession or production of any goods or services is time out of our own lives. Our private lives are our treasure -or might be. For this time out of our lives, and remember we need so much time out of our days for sleep and rest, we trade for THEIR money. With THEIR money in possession, we purchase what we need, try to save some, pay our taxes, etc. 

We again want to draw to everyone's attention that from the very beginning, E. C. Riegel had no quarrel with taxes. He might have even felt that most people, especially the rich, should pay more taxes. He particularly noted that were the circuit perfect; that every dollar the government issued was taxed back, that inflation would be scant. However, Riegel was naive and taken in by the powers that be and probably actually believed he could help them out of their dilemma. We know better now. We are not statists, nor are we anarchists. We don't care about politics, unless they're local. We believe that most know and understand SANITY when they encounter it in normal daily life and only wish to live in the REASONABLE EXPECTATION of continuing peace, not only for themselves, but for everyone they happen to meet. It follows from the foregoing that those who are insane or have no expectation of continuing peace might be impressed into this state of life by the present monetary order as there is obviously a direct connection between ALL THEIR present money and ALL military industrial developments, as we will briefly explain farther on.

We have also noted that Riegel's basis involved the real cost of labour not that imposed on business by the present money and banking models, all THEIRS, not ours. In OUR interest, we demand more money for our time out of our lives. This is possible, but not without accepting the responsibility of our own money. For the time being, we accept some of THEIRS, enough to pay our taxes, and begin organizing our own markets (VEN) and use our own money (Valuns). Obviously our numbers would have to be enough to provide basic necessities.

So how does money disappear? I guess we need to know this else we wont know where money goes so that we can see clearly where more of it is required. So let's begin:

Depreciation: You've probably heard it said that half the money spent for any new car is lost the moment it leaves the lot. Very few things appreciate. Some appreciation is fraudulent too. We'll give you our take on all that as well. The vast majority of things depreciate. Year in and year out, they lose their value in the market for things as priced in any money. Some things wear out, some things are replaced by better technology, some things become art even if they were not deliberately created as art.

Appreciation of junk as art is fake and most people know that it is. So why is it accepted? Because the rich in THEIR money like to boast that only they who have riches can buy junk and call it art. The rest of us who kind of know better, would probably prefer our Vermeer and Constable or the work of anyone who had a modern take on the same artistic mannerisms. But time has its strange turns. Right now there are vast sums of money spent on things that are made of antique industrial junk.

Depreciation is usually associated with a schedule, as each year passes a certain percentage decrease in value is put down on the books of any business accounting for capital equipment, etc. Only land itself is never depreciated. Does that mean that land does not lose its value? No, of course not, but it is always figured differently; essentially from amounts at the change of ownership. The concept of course is known as the “write off” as when someone “writes off” their capital goods for tax purposes.

From a money standpoint, each year that passes, whatever capital object might be purchased, it takes less money to purchase. The owner is actually losing money by holding an object from which he can make no income. So, here's a feature of wealth; today the income stream may be good, and repay the cost of the capital equipment, etc. that support it, but next year that income stream might be much lower, etc. It doesn't matter if that object is a broom or a blast furnace, if they are not used to earn more income from their use, then the money spent for them was not recaptured and whatever the difference amounts to, a loss in actual money that can not be reclaimed occurs. One place money goes to die is in anything that goes unused for too long.

The biggest place money goes to die is in war materials and weapons which of course most hope never to see used. This goes for all the money spent in this regard too, so that includes all people engaged in anything military at this time. So why are they made? Why are these people literally bought and paid for in their uniforms and weaponry, etc.? Do they protect anyone but those who have no concern for SANITY and anyone's right to a REASONABLE EXPECTATION of continuing peace? 

As most who know a thing or two know, these weapons systems used to be very profitable as they were sold to puppet dictators around the world. It was felt, and really it worked, that if you put a certain amount of military hardware around the world, plus plenty of uniformed people to support and use it, that most people would be scared to do anything but let the powers that be do their thing. That doesn't exactly exonerate anyone. We didn't know any other way but cowardice and later false guilt as that was what THEIR schools and colleges had to teach us. It is NOT this blog's intention to get involved in any way in any of their ... atrocities. Suffice it to say that these purchases by governments everywhere cause huge amounts of THEIR money to die, but also provide a means of political control for THEM not us and anyway whatever it is or was, we don't really care. Our answer is as always the same; “come out of her, my people.”

So 50% of anything any government spends is in whatever it takes to protect the state, not the people. The state is the perpetual debt slave of a central bank or it's a pariah and a “terrorist” state. So all war is about money and control of markets, people, materials, etc. If you ever hear some twerp try and tell you that wars are fought for religion, call him an idiot and perhaps leave his company, for such are ignorant of the facts. But really and again, we don't care. We're discussing how money dies here.

Remember, for every year that passes, what was once new and fetched whatever price it had when new, the value in that asset drops and sometimes pretty far for the first year, and all that money has as good as disappeared, never to return.

Now, how to reverse this? You can repurpose some things and give them new value. At any time, the used market is three to ten times the new market, if not more.

Wasted effort: To the extent that any money is paid for it, anything that one spends a lot of money and time doing that doesn't represent a net return in money amounts to losing money by simple time advantage. There are a few unemployed doctors, might be more unemployed lawyers, and again we are discounting anything else that we fall naturally prey to. Anyone with a physical disadvantage is in a tough spot where competition is intense, as in a big city. But what about someone who spends a lot rehabing a house in a neighbourhood that people are running from? Is he ever likely to get the money out that he spent?

Present circumstances everywhere are causing people of all ages, even those too old and poor to retire, to reinvent themselves and as they are able, continue to try their hand at trade in objects that perhaps have some retained value left. We naturally view all this as natural ground for developing Valun Exchange Networks.

So as money finds as many natural avenues of destruction, the need for more money must issue from whence it ultimately goes; the people themselves, as individuals human beings, not corporations or states as that's when the few of any kind have significant advantage over the many. Look around you. Anything that could be done that wasn't done is largely due to not enough money available to provide payment for doing it. This is one of our core arguments for promoting our own money.

Can there be innovation without capitalism? Since new money is a necessity, not just for ourselves but for any new innovations, how is it to be raised? From each one of us. We trust that there will be plenty of new money as more people get involved with a Valun network. All that money will be real, not borrowed. It would participate in whatever future profits occur and would be pledged for the time it was lent, not capriciously pulled in and out of a fake securities market rigged for the benefit of special interests and to fool the public as well as being a nuisance to business. Most businesses run well when the people who most know what they're doing are left to run them. For the rest, there's natural competition. And of course there are limits to size of every organization and technology on the planet and those who ignore this imperil the whole.

I also trust that by now you have some doubt about all the wonderful claims of the so called “Austrians” and you should. As far as real honest ordinary everyday money goes, they “know nothing, John Snow” and anyone following them is doomed to error. Hear that all you pontificating “backed” money advocates? The common people never wanted your gold or your silver. We just wanted to live our lives and live them constructively and we will too after all this present diseased order has run its course.

Perhaps our homesteads are not for sale and we wish to hold them for ourselves, our children, our grandchildren, etc. an idea that runs completely counter to the globalists, but nonetheless, we want them spit spot clean, kept up and would offer anyone who could the opportunity to earn their own money by doing so. Those who could would if money were available, not THEIR money, with all its baggage, but our own money that could be spent anywhere in the world since there would be a world standard, the International Standard Value Unit or Valun that would be the same all over the world.

Do you want your own money yet? First step, start IVES. We'll have some meetings locally perhaps as early as this fall, and soon after that, we'll need to start IVES. It wont be a “board of governors.” It will be the handmaiden of all our IEs and determine (it can be done on a single spreadsheet) the daily exchanges for the Valun. Then we'll know what all THEIR money is actually worth to us.

David Burton

Current Hypothetical Value of a Hypothetical Value Unit

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