This man still has a following
despite his record of being spectacularly wrong about Y2K. We'll
excuse him for that, I suppose. Other matters concerning him will
not be mentioned either. We're instead focusing on what his article
says and our responses to it for any clarification of our proposal.
Since he tends to quote the Bible, we may do so as well. As usual,
North's words are in blue, my remarks in
Gary North -
April 16, 2016
What is fiat
money? It comes from "fiat," which means a formal
authorization or proposition or a decree. Synonyms are these: edict,
order, command, commandment, injunction, proclamation, mandate,
dictum, diktat. It is an arbitrary order. The phrase "fiat lux"
comes from Genesis 1:2: "Let there be light."
It is similar to “Let us make man
in our image, after our likeness,” etc. (Gen. 1:26) Fiat has
exactly the same sense when applied to this blog's assumption
concerning each individual human being's inalienable right to
issue money. This means that this right cannot be taken by anyone
else whether that be a state or some other organized body. We
acknowledge this right as implicit and derived from each human
being's innate wealth which must produce income; the natural
right to subsistence as a basis to attain the livelihood one is
The individual right to issue money is not
without bearing on other members of any community, therefore the
right is limited. We said that under our proposal, the actual amount
of money that would be issued in this way would be considerably less
than any modern state spends into any economy; local market. North
Fiat money is
the money issued by a self-proclaimed divine state. It rests on the
premise of divine right: no higher appeal. It is the court of final
appeal. In short, it is divine.
Since no state is deathless, this is
a presumption without basis. But we'd frankly state it another way;
states usurp the natural rights of all their people by claiming in
any way, shape or form, that they have any right to issue fiat money.
The natural fiat that belongs to each one of us has been stolen long
ago by states and banks. None of their “money” EVEN SILVER AND
GOLD is legitimate. Our proposal intends to rectify this usurpation.
A free market
money system is an operational system to which people can appeal to
because it is not statist money. People use gold coins or silver
coins to buy what they want. Or they use legal claims to such coins.
The state is not in the "money business.
said a lot here so let's break it down:
1) there is no
absolutely free market unless it's the black market and that is a
market where all claims are settled by whatever means and there are
no credit hangovers extending months or years beyond the point of
2) The use of gold or silver coins is barter and the
commodities value is determined by forces beyond the control of
anyone using them as money so this market is NOT a free market money
system as he implies.
3) Legal claims to any such coins is
spurious and cannot be enforced with any regularity, therefore these
kinds of monetary systems (which all used fractional reserve lending)
4) Banks are in “the money business” and have
made states into their perpetual debt slaves since the first central
bank, The Bank of England, was established.
nation-state ever allows this [a free market money system]. Every
nation-state wants to be the highest court of appeal, especially in
monetary affairs. Every nation-state claims legal sovereignty over
The reasons for this are not too
difficult to see; the state is burdened by the complaints of its
subjects who demand some redress for whatever inept or corrupt
business practises may have resulted in loss to themselves or their
businesses. The general consensus has always been to give up certain
rights or reprisal to the state so that civic unrest is kept to the
minimum. The reasons states have generally been “the highest court
of appeal” is that there are disputes that people want states to
settle for them. Since money is usually part and parcel of any of
these complaints, people generally accept that the state must somehow
issue the money without considering the consequences.
gold standard in which civil government is the defining agency is a
pseudo-gold standard. It is a counterfeit. When you think
"government-guaranteed gold standard," think "counterfeit."
As E. C. Riegel said, anything the
state issues that is not taken back in taxes is counterfeit. Since
we have stretched Riegel's assumptions to their logical extension,
the issuance of money belongs directly with individual people rather
than organizations or states, we'd now claim that ANY illegitimate
money is counterfeit and only serves the interests of those who issue
it; banks and to a lesser degree, governments.
Take some of
your money out of your wallet and look at it. It says that it's a
Federal Reserve Note which is a short term debt instrument. North
gets into some of this further along. The mention of some state, for
instance, The United States of America, indicates who owes the
Federal Reserve what? To pay the money back with interest. Notice
here that the issue was from a bank, out of nothing which is fiat and
there's nothing wrong with that as a concept, it's simply that the
right of issue has been stolen rather than allowed to the people
themselves. Also and most importantly, the money to pay the interest
was never created so it must be obtained by any means from a limited
supply. This is in fact stealing on the basis of the money itself
and limits its supply no matter how much is ever created in this way.
We hold that ALL usury as described this way is theft and we propose
doing away with it in our proposal.
In times of
great crisis, money dies. The things that money could buy in normal
times are not available at any price close to that which prevailed in
He's talking about shortages brought
about by 1) real factors of supply and demand or 2) the money has
lost its purchasing power. We said that the music stops when either
of the following is true; either one will no longer take some money
in trade or one lacks the right money to buy things.
most famous example was the famine in Egypt under Joseph's
administration. We read that the money failed (Gen. 47:15). But there
was another case.
And there was
a great famine in Samaria: and, behold, they besieged it, until an
ass's head was sold for fourscore pieces of silver, and the fourth
part of a cab of doves' dung for five pieces of silver (II Kings
are prices of the underlying social conditions that Elisha prophesied
the end of a siege by forecasting a dramatic fall in prices: "Then
Elisha said. Hear ye the word of the LORD; Thus saith the LORD,
Tomorrow about this time shall a measure of tine flour be sold for a
shekel, and two measures of barley for a shekel, in the gate of
Samaria" (II Ki. 7:1). Before it ended, silver did not count for
much. Or put differently, they had to count out a lot of silver to
buy anything worth owning. What was worth owning was food.
Notice they were still using
precious metals as a commodity with which to price other commodities.
We've said that the value of any commodity participates in the trade
and to the extent this is true the commodity is not money. Even so,
when food is scarce and people are starving, silver loses its value
compared to even the most meagre food.
reveals normal times. When prices today are close to what they were
yesterday, we can be confident that society tomorrow will be pretty
much what it is today unless something totally unforeseen happens.
Rarely does it happen.
Oh, I don't know. Most recall how
only a few years back gasoline was selling for twice what it is now.
There are always unforeseen events which do impact prices one way or
are indicators of broad social trends. Gold reached its highest
price, denominated in U.S. dollars, the week before Gettysburg. On
July 3. 1863, Lee's army was defeated. On July 4, Vicksburg fell to
Grant's forces. The dollar price of gold fell the following business
day and did not reach these heights for a century. The world believed
that the Union would win the war, no matter what the South's
politicians and generals said in public.
Notice he assumes a free market for
precious metals which doesn't exist and in fact has never existed
since there are always speculators in far away cities (just as there
were in ancient Babylon) who determine what the bottom most prices
for them will be. Speculators never make any money unless prices
change either up or down. It is never in the best interests of
speculators to see steady prices for anything. This is why we intend
on promoting a system and an organization behind it that will not
allow speculative games.
What was the
South's leadership to say? "Well, that does it. It's all over
but the shouting. The North's shouting. We might as well surrender
now. Why continue this bloodbath? The Yankee dollar is up. Gold is
down. Gold says we're beaten. We might as well face it." Had any
politician said this, he would not have served out his term. Yet this
was exactly what the South's leaders should have said. They continued
the bloodbath, yet the outcome was what the price of gold had
The facts are, and North should know
this too, that the Southern cause was used as a plaything in
international empire games between the French and British, with a
divide and conquer opportunist attitude fuelled and promoted by the
same factors that controlled gold and silver as well as all the other
state money except for Lincoln's greenbacks. They killed Lincoln for
this and a short time later demanded legislation that made the
greenbacks obsolete. Some out there like Bill Still continually push
for the government to go back to Lincoln's solution. Still
apparently shares this idea with Napoleon who wanted to do the same
thing. Government issued money, even without paying interest on it,
is still illegitimate and there is no way that the original
Constitution would have ever allowed the government to issue paper
notes, despite what Still and others may think.
All of this is
to say that the price of gold, back in the days when governments tied
their currencies to it, was a better indicator of social conditions
than the speeches of politicians.
Maybe, but what I'm saying is that
the price of gold was as much a matter of speculators' activities
(usually on behalf of banks and foreign governments) and had little
to nothing to do with what any politician might have said.
Politicians are all rendered liars and fakers by the very system
itself which promotes such erroneous behaviour.
matter what politicians want people to believe, if they preach good
times while the price of gold is rising, the public would be wise to
discount the politicians words. Free men make evaluations of the
state of the world, and the price of gold reflects their judgement.
So do interest rates. They can be wrong in their forecasts, but their
forecasts are best reflected in these two market prices.
Here's something else that most
people who claim that silver and gold are decent indicators forget;
most of the gold is NOT circulating at all, and in fact most of the
gold isn't even known where it is. It is hidden, stored away, those
“pools of liquidity” that sometimes one hears about. Recall that
North presumes such a thing as a genuine free market exists when it
never has existed and will not exist as long as certain operations
(commodity speculation and stolen fiat) persist.
THE FOCUS OF
gold be the focus of attention, the ultimate indicator? One reason is
because it usually has been. When gold is not widely used as
currency, silver has served the same function. These two precious
metals are the most familiar indicators of underlying economic
trends. People have learned after millennia that the purchasing power
of gold and silver also reveals a great deal about social stability.
When the price of either or both keeps rising, the world is alerted
to a nation's underlying crisis. When the prices of basic commodities
rise faster than the price of gold and silver, that society is
We say that gold is the logical
focus of attention because it is THEIR (the banking oligarchy's) oldest
“brand” of their fake money. If anyone ever devises a “gold
backed” system against a “government fiat” system, people are
talked into believing that it's safer in terms of holding purchasing
power, even though fractional reserve lending is still applied. As
we've explained before, THEY control the price of THEIR money, all
brands of it, through commodity speculation. So there is no real
difference. Most people are fooled into thinking that such systems
are “gold backed” when they are not.
Mises [.. not even his real name and frankly who gives a rat's
ass about him, since he was a liar and deceiver as were the rest of
them?] defined money as the most marketable
If that's all he could manage, he's NO help
whatsoever since no commodity can ever be money. Frankly, the so
called libertarians are a bunch of clowns pretending they have real
solutions when all they manage is the other end of the banker's
dialectic; either their credit or their gold. We are NOT going back
For most of the
last century, beginning in the early months of World War I, gold was
legally severed from currencies. National fiat currencies have served
as money. Also, bank deposits serving in lieu of paper money have
become money. These deposits have multiplied. Today, economists are
not sure exactly what constitutes money or how to measure it.
That's because they are all “commodity as money”
There are numerous competing
measures. Gold and silver rarely serve as money.
At least here, he's being honest.
So we'll ask him again, if one has some commodity pricing all other
commodities, what happens, as happened during the 16th
century, to all other prices when the amount of gold circulating
through society expands? In Europe, prices rose 100% during that
century all due to imports of gold from the New World. Gold bugs
hate being reminded of this, but too damn bad.
Mises' definition remains accurate: money is the most marketable
Accurate? He's referring to times so
desperate that civilization has ceased to exist, so therefore his
sense of it is that we must all retreat back there, to times where
the average human life was “nasty, brutish and short.”
can buy what you want: (1) immediately, (2) without offering a
discount, and (3) without advertising. In this sense, money is said
to be liquid. It is the supreme measure of liquidity.
this for liquidity; just cancel all the naturally unlawful debt.
Eliminate all law that supports it too.
a national border, gold and silver are no longer as liquid as what a
solvent national government calls money. We must pay a commission to
buy a gold coin or a silver coin. In this sense, gold and silver are
not money. They are not the most marketable commodities.
This raises an
interesting question: ls our era an anomaly? Are we living in a
monetary new world order? Is this situation likely to persist? Or
will we see a return of gold and silver as the most marketable
As I already said, want to return to a
time when life was “nasty, brutish and short?” That's what
If men are at
long last trustworthy, if politicians tell the truth, if central
bankers can be trusted not to inflate whenever there is a recession,
and if things continue to operate smoothly, then the modern world
will have escaped the unsentimental constraints of gold. Gold will
not again become money, except as an accounting device for settling
international payments among central banks.
Good for them, until the world wakes
up to their longest running scam.
raises another question: Why do central banks stubbornly refuse to
abandon the "barbarous relic," as John Maynard Keynes
derisively called it? If gold is not good for us little people to use
as money, why is it good for central bankers to use in order to
settle their accounts? If gold is just another commodity, why don't
central banks sell all of it that is stored in their vaults and
invest the money in U.S. Treasury bills or some other nation's
interest-paying debt? What do they know that the public doesn't know,
and gold-hating economists don't know?
I'm not a “gold
hating economist,” but I'll be damned if I allow the idea of one
commodity pricing all others as legitimate money to go unchallenged.
I don't give a rats ass whether the practise extends back in time
either. Some things are best to grow up from, not just individually
but as a worldwide society.
There is an
answer: central bankers do not trust other central bankers. They do
not trust the reliability of civil governments. They know that when
push comes to shove in the business cycle, other central bankers will
crank up the printing presses. When this happens, they all want to be
in gold. So should the rest of us. To keep their credit worthiness in
a crisis, they have to own gold. So do the rest of us.
about it this way Gary; all people who see the world this way KNOW
that they are cheating everyone else, no matter what brand of THEIR
money is offered. Also most of them are wanderers who never like to
put down roots anywhere. Getting me yet? These kinds of people may
need a few pieces of gold to sucker the rest of us into allowing them
to live with us. Are you getting it yet? Of course they never trust
each other because they KNOW they are all crooks! Is that explicit
enough for you? There is little honour among thieves.
WE ARE NOT
If I knew what
is going to happen tomorrow, next week, and next year, I could plan
my life to minimize the use of cash. I could put my money into a
savings account and earn interest. Why keep cash when you don't need
it? The better your forecasting skills, the less you need it.
Gary, you really need to read the
rest of this blog. Be sure you read it all before getting back to
me. I do not suffer fools lightly. Cash gives people a degree of
anonymity in their exchanges, and it serves as the price point below
which nothing trades. We'd like to see more cash not less and our
solution promotes this as far as possible under current public law.
One final point though; if it is stealing for interest to be charged,
it is also stealing to pay anything to idle money, ever. If you
don't get that point or the obvious difference between capitalism and
free enterprise, you've missed much. You enjoy reading your Bible?
Ever understood why the Lord forbade usury? It's stealing. It's
mathematically inadmissible to ask back that which was never created.
One can do that with virtually any other commodity because Nature
provides or God does, but NOT with money including silver or gold,
because as should be better known, THEY control it all from the mines
to the hoarding of it. I wont even bother with the oft mentioned
retort that it was fine within the Israelite community but they could
charge interest to steal from others. I happen to doubt that the
Almighty would have ever implied such a thing.
we have money substitutes [No, we have money, it's just
illegitimate money. We wont fall for the “precious metals are the
only true money” baloney]. We can deposit
money in a bank or a money-market fund [a commodity
speculator's creation naturally follows from what they have made of
money]. We can also write a check, or use a
credit card, at any time to buy what we want. We can do this because
of the remarkable fiction known as fractional reserve banking
[fiction, my ass, it's FRAUD!].
We lend the bank money short-term -- withdrawal allowed at any time
-- yet the bank loans it out for months or years. The bank is in the
condition of being "borrowed short and lent long." As long
as deposits come close to equaling withdrawals, this wonderful
condition can go on without problems. It is a profitable system most
of the time [and what “profit” they
“earn” is all stealing because no good or service was ever
created in the process. I place quotes around the words or terms
that are deliberately misleading]. We
stop carrying much cash. We carry plastic cards instead. It is safer.
It is easier. And it leaves us convenient records for our
computerized personal finance programs (and also the income tax
collector's finance programs).
But then comes
some unforeseen development. You are in some small town, your car has
broken down, and Bubba the car repairman deals only in cash. Bubba,
you see, has figured out the system: the tax collector's computer
doesn't trace what a credit card company or check doesn't register.
[Please note here that Bubba is being blamed as a tax cheat for
preferring cash which leaves no records when it is permissible for
the rich to tax dodge by creating all sorts of Not for Profit
Foundations and Trusts, etc. See how the present order rigs things?
Most of the people making more than $500K/yr are probably not paying
enough taxes and I guarantee you that anyone making $1 million/yr or
more is dodging taxes. We haven't even mentioned all the “state
sponsored” corporations who dodge taxes, all of which ultimately
cheat the public.] Bubba looks dumb, but Bubba
is really pretty clever. Meanwhile, your car is not running. You ask:
"How much will it cost to get this fixed?" Bubba, being
pretty smart, answers: "How much cash have you got?" You
tell him. He starts laughing. He shouts back toward the garage: "Hey,
Sam, get a load of this!" All of a sudden, you would like some
extra cash, since your alternatives are limited and your forecasting
skills have been shown to be not all that you had imagined.
Now during the following few
paragraphs, those of you who have this blog's proposal in mind may
see what we're going to notice:
Let us pursue
this. What if, because of some unforeseen event, such as a meltdown
of the stock market, a lot of people start thinking like Bubba? They
think to themselves: "My bank may go bankrupt in this mess.
Bankrupt, after all, comes from 'bank' and 'ruptured.' I'm getting
nervous. I don't know what's coming. You never know these days. I
think I would like to have cash. I think I'll go down to my bank and
get cash." All of a sudden, deposits do not equal withdrawals.
People who lent the bank short-term money want it back today. How is
the bank going to get the cash?
It can sell
off assets. So, asset prices start falling. The rush for cash means
that interest rates start rising. Borrowers start panicking.
Employers start firing. Fired people, filled with a new level of
uncertainty, go down to the bank and demand cash. Cash is a
substitute for knowledge about the future. When people are really
scared about their economic futures, they want cash.
Now recall the things we brought to
the surface in this article. Note also that no account within any
of our IE's will be THEIR money, in fact, no Valuns will belong to
anyone but you or some business you are directly associated with.
There will no longer be any need whatsoever for deposit insurance
which admits the fraud it attempts to protect you from. Most
alternative money ends up in drawers at home rather than circulating
around a community because the proponents have got one or more things
wrong; they directly base the complementary money on some existing
money and may include the spurious ideas of the academic economists,
especially paying interest on idle money or charging interest on
loans (the mother of all usury and fractional reserve practises),
both of which are stealing. Again, if you don't happen to think so
or agree, we'd rather not even know you. But notice what North is
In such a
downward spiral of fear, uncertainty, and the rush for cash, the
central bank will print up currency and deliver it to the banks.
There is no other way to stop the panic and keep it from becoming a
depression in which payments slow down, businesses cannot collect
their money, and the economy collapses. This is called a break
in the payments system. It does not happen often, but when it
does, the result is an economic crisis of monumental proportions.
The likelihood of this ever
happening within a Valun exchange network or VEN (our acronym for a
market that uses nothing but Valuns in trade), is limited by many
factors, ultimately the availability of community credit to devise
projects that cannot be warranted as productive of community wealth;
that capable of providing an income. All of our officers would be
aware of these kinds of big bogus projects and as we said, without
the approval of the local IE from whence all transactions must be
identified on all our contracts, nothing will run forward. We
will no longer tolerate and this will spread, some nameless,
faceless, organizations of mysterious power and THEIR money to
dominate our lives.
A BREAK IN THE
There is no
economic event more terrifying than this one. This takes place when
a society with a high division of labor, which relies on a
predictable system of payments, ceases to trust the system of
payments. People start looking for other, safer ways to buy and
sell. They move from one monetary unit to another
THEIR money, so THEY win whichever way “the masses” choose to
run]. In the meantime,
prior forecasts are shown to have been wrong [...
on purpose too, because "the masses" trusted THEIR figures rather than
using their own heads]. Businesses fail, stock markets crash,
and banks close their doors. As people abandon one form of money --
checks, for example -- in their quest for another form of money --
cash, for example -- those individuals who had previously relied on
sales to people who write checks find themselves hard-pressed to find
buyers for their products. Their buyers no longer write checks.
Notice he uses checks and cash as
just two forms of money while the basic denomination remains the
same. Here's the basis of the problem: IT IS NOT YOUR MONEY. NONE
of it is, including the old or new gold and silver coins with the
various heads of tyrants on them, none of it is YOUR money. If you
don't want to see this happen, you would be looking for other ways to
trust the system of payments. Why offshore or outsource your
thinking on these matters?
Just start selling for cash. Problem: How do you send cash to your
suppliers? In the mail? How can you prove that you sent it? You have
to go to your bank. Your bank will wire the money to your supplier's
bank. But your bank is closed. The demand for cash has wiped it out.
Maybe your supplier's bank is also closed. So, how do you get
shipments of goods so that you can sell them? You probably don't. You
go out of business.
So, we will notice that North is
describing what is happening right now in Venezuela or other places.
Now, let us
consider technology. Your local bank has your money stored in its
computer. Well, of course, it really does not store money in a
computer. Or does it? Are those blips really money? [What was
our hard core definition? Does anyone remember? Money to be
legitimate must have been exchanged for a good or service in lieu of
barter, by a single human being, not a corporation, government or
bank. Is it understood where this is going already?] They
are [in THEIR money] for as long as you
can write a check, or use a credit card, that can subtract from that
He's technically correct, and we
eventually hope to use some technology beyond paper records, but Mark
Twain's maxim is still correct; “The dullest pencil is
better than the sharpest memory.” We also noted how popular
physical tokens representing money (cash) are and we intend on
bringing that representation of money back as well; first as V-Checks
and eventually as longer running Exchange Notes). Meanwhile back to
North's description of a “system of payments” meltdown:
But if the
check no longer works, or the credit card no longer works, or the
bank's ATM cash machine no longer works, your computer entries cease
to function as money. If the banking systems computer system does not
allow additions and subtractions from those digital entries we call
money, most people no longer have any money.
THEIR system remember, not yours or
mine. We had and have nothing to do with any of it, which is one
reason most of us despise money or any conversations referencing it.
Something about it we almost automatically recognize as foreign in the
sense of not belonging, not ours in fact.
How can you
get out of digital money? In other words, what other form of can you
buy with it? Today, you can buy gold and silver coins, real estate in
the country, and bulk food. But if all money except cash today is
digital money, then only fiat money serves as money. You get your
choice: digits or paper.
Actually, you get your choice; THEIR
credit (in its various forms) or THEIR gold (and silver) since they
decide what the exchange rates are between weights of those metals
and the rest of THEIR money. NONE of it, is ultimately yours or
mine. Also note that he mentions fiat (always associated with a
state or bank) that we identify as direct usurpation of our right to
issue our own money by OUR fiat! That natural fiat in fact Mr.
North has been stolen from us and is every bit as important as the
freedom of speech, press or assembly and in fact none of that is
worth a shit without the power to issue our own money! This right is
inalienable; it cannot rightfully and meaningfully be taken from any
human being without direct repercussions. Look around you.
Everything that is wrong in this world is due in FACT to the
monopolization of money issue by bankers using governments as their
perpetual debt slaves.
To get out of a lot of digital money
and into paper money is difficult. Basically, most people cannot move
into non-digital money from their pension funds. They can buy only
non-money items. Gold and silver coins are non-money items.
They are highly salable, but they are not money. They require
a network of specialized dealers to create a market for them.
Thank-you, Mr. North! You may have
been terribly mistaken in other regards, but you can count yourself
among the few who have actually realized somewhat that money is not a
commodity or represented by any commodity. Our solution strides
right across this and sets all academic economics against the wall;
we state that the proposed Valun is what it takes today to equal a
piece of a transaction that took place on 11/2/11. That was a
thousandth of the transaction 1 oz gold = $2,160. So at inception, 1
Valun (V1) = $2.16. Today to purchase the same purchasing power
the number of institutions that do not rely at all on digital money.
It is a very short list. Now think of institutions that are likely
to survive a transition from digital money to gold and silver coins
what he's assuming? If it gets that bad, you know you have returned
to times where life is “nasty, brutish and short” and
“civilization” has all but ceased to exist],
but without fractional reserves. There will not be many of
This is a relevant perspective from which to see
economies outside the proposed VEN; they are in the process of
disintegration due to the compounding of the effects of capitalism
(making money on money without working for it), a stupendous economic
black hole absorbing more wealth than it produces and state socialism
(the opposite side of their prearranged dialectic) which must be kept
up else “the masses” would revolt. But ultimately, we say that
if business is not done through our far better transaction clearing
model, that most businesses will fail.
governments of this world survive because they get those under their
jurisdiction to send them digital money. This means that they rely on
the banking system. The alliance between central governments and
central banks has been operating since the establishment of the
privately owned Bank of England in 1694. That model spread throughout
the world in the twentieth century. Today, it is the basis of the
international order. If the banking system collapses in a sea of bad
debt or hyperinflation, the humanists' New World Order collapses with
We assume all that but consider the
bankers the ultimate source of blame because it is they who FORCED states
into compliance (through elaborate and at this time well known and documented schemes
of blackmail, intimidation, projection, etc.) and their monopolies of
the means of social control; the press and the schools.
The NWO must
defend the banks. This is why hyperinflation is a threat to it; it
undermines banks [It depends of just where and in whose nation
hyperinflation is allowed to run its course. It destroys savings and
society and renders most to levels of barbarism under which fewer
people can live well]. But so is a collapse of
bad debt. What's a central planning agency to do? In short, what's a
central bank to do? Exactly what politicians do: delay
making a decision. [Delay
is the chief weapon of those in control. They can literally afford
to wait out their adversaries. But what happens when all THEIR money
is finally and fatally EXPOSED as the FRAUD and usurpation of our
liberties that it is?] Meanwhile, hold
press conferences in gibberish. The all-time model is Alan Greenspan.
THE FALL OF
With this in
mind, it is time to review some ancient history: the fall of
Jerusalem in A.D. 70. It is worth noting that the time frame was one
hour. In fact, it took many months for the city to fall. John
prophesied regarding this event:
merchants of the earth shall weep and mourn over her; for no man
buyeth their merchandise any more: The merchandise of gold, and
silver, and precious stones, and of pearls, and line
linen, and purple, and silk. and scarlet, and all thine wood, and all
manner vessels of ivory, and all manner vessels of most precious
wood, and of brass, and iron, and marble, And cinnamon, and odours,
and ointments, and frankincense, and wine, and oil, and fine flour,
and wheat, and beasts, and sheep, and horses, and chariots, and
slaves, and souls of men. And the fruits that thy soul lusted
after are departed from thee, and all things which were dainty and
goodly are departed from thee, and thou shalt find them no more at
all. The merchants of these things, which were made rich by her,
shall stand afar off for the fear of her torment, weeping and
wailing, And saying, Alas, alas, that great city, that was clothed in
fine linen, and purple, and scarlet, and decked with gold, and
precious stones, and pearls! For in one hour so great riches is come
to nought. And every shipmaster, and all the company in ships, and
sailors, and as many as trade by sea, stood afar off. And cried when
they saw the smoke of her burning, saying, What city is like unto
this great city! And they cast dust on their heads, and cried,
weeping and wailing, saying, Alas, alas, that great city, wherein
were made rich all that had ships in the sea by reason of her
costliness! for in one hour is she made desolate (Rev. 18:11-19).
described here can be applied to any city in which the means of
payment breaks down. Why would merchants bring goods into a city if
those dwelling in it cannot pay? It is the prospect of payment
that keeps every delivery system operating. It is this
prospect that puts a newspaper on a front lawn, electrical power in a
line, water in a pipe, takes used water out of a receptacle and down
a pipe, and so on. In short, if the means of payment should ever
break down, there will be fewer and fewer deliveries until those
inside the city can begin to produce something of value for which
they can obtain the new money.
Understood? We're saying that
eventually the same must occur.
productivity of a person who lives in a high division of labor
economy is dependent on the existence of a universal means of
payment. The value of his productivity collapses overnight -- "in
one hour" -- if the traditional means of payment is not replaced
immediately by a new means of payment.
This is why
there must be continuity from fiat money to money based on precious
metals if we are ever to bring national governments under control --
control of the masses, who buy and sell.
paragraph does not follow from the previous one at all! THEIR
systems are losing confidence every day and we hope THEY lose all
confidence, the sooner the better. It would put an end to most of
their extremely dangerous “mad science” schemes for one thing.
When we chose the basis for our proposal it was gold for exactly this
reason. You want to buy any of OUR money? You pay for it in GOLD
buster! Or silver. But this isn't because we care more about these
manifestations of money. We don't. We see past the baloney.
They're just some metal to us. It is because THEY value it as a
means to control US that we are interested in gold. Right now, THEIR
gold buys fewer of OUR Valuns than it did at inception. That's all
we ever need to know. It establishes what any of the rest of THEIR
money is worth to us. Per design, their “markets” can go on as
they like while the Valun remains stable. Our prices and price
structure ultimately establish what will be traded, in real goods and
services. We allow financing that must be 100% reserve. We do
not allow you to lend what you do not have. For the rest, it's
about buying something for its cash value at point of sale and
arranging for “terms” in which the buyer (who needed the object
or service when he needed it) to pay for that good or service over
time on terms acceptable to him/her and the lender. If the lender
goes under, the entire system is NOT imperilled. Nor the value
expressed in the money changed. Now, notice what North says here
about any possible “gold standard:”
This must not
be another government scheme to fleece the public with a golden
fleece. [It was the BANKS, not governments that decided it
before] It must not be another
government-guaranteed gold standard. We have seen how reliable such
pseudo-gold standards are. They lure people to hand over their gold
to a local bank. Then the local bank joins a central bank. Then the
government authorizes the central bank to keep the gold. That
happened in 1914. Most Europeans never got their gold back.
For a gold
coin standard to be reliable, it must be the product of voluntary
exchange. It must not be just another fiat currency. It must not be
"spoken into existence" by a national government: "Let
there be monetary liberty!" Civil governments have never
declared monetary liberty. They hate monetary liberty. Monetary
liberty is a restraint on civil government. That is why we need
STOP: None of this is ever going to work so why
bother advocating it? Because North and others are desperate? No
one is desperate. They either have enough of THEIR money or they
don't. Capitalism and socialism working in tandem, are delivering
the world into THEIR hands. The result shall be THEIR ultimate
destruction, because ALL OF IT including all that silver and all that
gold, are THEIR money and since neither gold nor silver are gifted
with flight, they shall not move very much at all. Therefore they
shall NOT circulate freely. We've already said many times that the
“intrinsic wealth” concept of money is utterly bogus. Money is
ONLY a means to split barter and therefore the cheaper one can make
the medium of exchange the better. Hence, ANY idea that monetary
reform requires a return to tokens made of gold or silver is rendered
puerile to say the least.
There was been
a worldwide break in the payments system in 1914: from gold coins to
fiat money. To restore monetary liberty, there must be a vast
monetary reform that is the product of human action, not human
And therefore, what Mr. North, do
you require for “human action” without any design? Sounds as
usual like a disaster.
comes with a monetary reform plan engineered by a national government
is operating under a delusion: the doctrine of the nation-state's
legal sovereignty over money. Ignore him . . . or her (e.g., Ellen
We agree here, but for different reasons:
governments have become the prisoners of the banks. They are less
responsible, but obviously the present order separates and selects
the worst possible characters to serve in government. Those of us
with any hearts or brains want nothing to do with governments and
less to do with banks and most of us do not care for either gold or
silver in any form and never really have. We furthermore resent the
idea that anyone can take a rare substance which nobody has and claim
there can be any monetary liberty by advocating its use as money!
Period! End of story! If you disagree, you're an idiot a “useful
idiot” of the present disorder using FORCE as the only thing
“backing” the use of so called “public” money. As we've
seen, “public” anything usually becomes no one's responsibility,
like public restrooms. He says in conclusion concerning gold and
We'll accept nothing but silver
and gold bullion in exchange for OUR money, but because THEY
determine what the exchange rate shall be rather than us, we'll
expect to charge them more gold or silver for our money as the price
of gold (and or silver) falls below our inception transaction; V1 =
1/1000 of 1Au = $2,160 (not spot but “in your hand” actual
rates). If they decide that gold is worth more than $2,160 (not spot
but “in your hands”) then we'll just raise the inception
transaction (never lower it) and therefore the Valun will retain its
purchasing power above any and all of THEIR blood soaked money
(including all gold and silver).
We remain open a response
from Mr. North or any of his friends, but we admonish them to fully
understand this blog's proposal first. It's NOT monetary reform as
there is no such thing possible.
Hypothetical Value of a Hypothetical Value Unit