- E.C. Riegel
In some respects, we will be taking off from the basis of our paper on the destruction of money here. After reading this paper, one might have a far better concept of what aggregates of money do, whence they come and whence they disappear. We're going to discuss finance and debt too. There are instances of legitimate debt and of illegitimate debt, some of which we'll only tangentially touch on, because others do a far better job, complete with references, footnotes, etc. except to reiterate that debt in various forms is the cancer that eventually destroys the host economy.
But first we want to show you a few diagrams. These are borrowed from an article curiously entitled, “Why Real Reform Is Now Impossible” by Charles Hugh Smith. His article makes many good points, he has a book for sale and advertises the usual “hedges” against what? Against the failure of THEIR securities asset base, which includes THEIR money. What is that salvation, again? Precious metals of course, which THEY also control. The bankers' dialectic is either THEIR credit or THEIR gold (and silver). Simply lovely, isn't it?
Before we get started, we'll reiterate one of our themes; if it doesn't produce income, it aint wealth, it's just properties, stuff and things. Nevertheless, Charles Hugh Smith may still prefer the usual definition of wealth, which we shall also state for clarification: “noun: wealth: an abundance of valuable possessions or money; 'he used his wealth to bribe officials' synonyms: affluence, prosperity, riches, means, substance, fortune; More money, cash, lucre, capital, treasure, finance; assets, possessions, resources, funds; property, stock, reserves, securities, holdings; informal wherewithal, dough, moola 'a gentleman of wealth' antonyms: poverty. [Of wealth; of being wealthy] the state of being rich; material prosperity. 'some people buy boats and cars to display their wealth.' Plentiful supplies of a particular resource. 'the country's mineral wealth' “ (Google)
Notice our distinction; wealth to us is an active thing; it must be capable of providing an income measurable in money, or it is mere stuff. Now, let's take a look at some diagrams and assess what these are telling us:
First a diagram labelled “The Global Wealth Pyramid.” It says that .7% (seven tenths of 1%) own 45% of the world's wealth. Let's try and get a clearer handle on these figures.
Let's say that the world's human population is accurate at around 7.125 billion (it's more than that). .7% of that would be 49.875 million people (he has 34 million, which is close enough). That number of people own or control almost half the world's wealth. They each receive at least $1 million a year.
We'll parenthetically note that of course their wealth provides them with an income as does all true wealth. But what we're not sure of is whether this pyramid is expressing the ownership of financial wealth or literally everything, including material properties and commodities assets such as proved oil and gas reserves, fresh water aquifers or gold mines.
Then 349 million people (containing the top .7%), or 7.4% of the world's population, controls 85% of all the world's wealth and they receive between $100K and $1 million per year. We're taking it to mean that the 7.4% include the previous .7% or the figures wouldn't make sense. They already truly don't and again we're really not sure if this representation accounts for only financial assets or as we've indicated above actual material assets.
Then the pyramid shows that some 21% of the population, or 1 billion 3 million people, receive $10K and $100K per year and the remaining 3 billion 386 million people or 71% (nearly 3/4 of the human population) receive less than $10K per year.
Adding up the numbers; 71+21=92+7.4=99.4+.6=100. We shaved the extra one tenth of one percent down to make the numbers fit. We see that clearly better than 90% of the world's people don't own a thing and that therefore the top .7% (less than 1%) own most of everything. Given this huge discrepancy, they (the top 1%) naturally want most of the bottom 90% GONE from the earth that THEY own. Understood? That's their reality and their attitude as seen from their vantage point and it may seem to many of them a scary world that they seek to make more scary for those with less stuff than they have, just to keep the inevitable upheaval from actually happening and toppling them all. That would be Nature taking its course.
THe U.S. Wealth Income Pyramid shows that the top 20% of Americans receive nearly all the income from nearly all wealth. The bottom 80% must content themselves with 3% of the nation's stated income ,,, and you wonder why things are as bad as they are.
Clearly our solution has very little for people who claim all this wealth. But we have every right to ask whether this assessment of wealth is all there is, or that most of it is even valid as wealth (mere stuff which produces no return on investment).
What is their wealth really worth year by year? Well deflation is natural; the price for the same exact object, year after year falls steadily. If something gets used up or wears out, year by year it loses its value and is less expensive to buy. We explained that this is one way that money naturally dies; it simply goes away never to return! I want all who read this to make a note of this as I am about to throw virtually all common economic thinking concerning money out of the pretentious window it built for itself.
That which is new costs the most. If the money power decides it simply cannot abide deflation without admitting that their stuff isn't really worth whatever it was when new, they issue more money (all of it at interest of course) and most of it is plunged directly back into their securities markets. But what are these markets really?
They are markets for securities which are either tiny pieces of corporate ownership (stocks, etc.) or pieces of the debts of such bodies (bonds, etc.). At any time the numbers of stock shares to bonds may be as high as 1 to 100 or even more. The bond markets are huge; many times larger in terms of transactions per day than the stock exchanges; so huge they simply can't be reported. We'll explain why and their relevance too, anon.
Say what you will, these securities are really just pieces of paper representing either the equity or debt of the various huge businesses, many of which have grown by devouring some other big concerns. The process is known as mergers and acquisitions; the very evident process whereby capitalism eats its own, destroying wealth in the form of income streams in the process. Eventually capitalism produces mere economic black holes or edifices and share prices normally demonstrate this, but that can be and is manipulated on a daily basis now. After this lesson, I trust I wont hear from anyone about capitalism (which this clearly is) not eating its own, for it definitely does.
When capitalists decide to acquire a concern, it's usually to strip it of its physical or intellectual assets and either steal the talent of the acquired business or fire its employees. In most cases, if a business is truly failing, it would be best for it to go under and allow someone else to acquire the market position. Such natural entry and departure from business is the soul of free enterprise and is despised and feared by capitalists who must always beat the tune of the bankers who lent them money (at interest of course). Capitalism is not free enterprise; the two are completely opposed to one another and should never have been associated together as they have been now since at least 1815. Capitalism is always the enemy of free enterprise as the shark is to its prey.
So what of the wealth of the 1%? Much of its value is fading and by and large disintegrating as they sit on it. What happens when some mutual understanding among the 80% of us decide we've had it and refuse to accept their money or use it? Some expect the answer is to turn to precious metals, which are tangible things with some worth in and of themselves, but THEY control that “brand” of THEIR money too. Want to run to precious stones? They control all of that as well and have for centuries.
Meanwhile the measuring stick of their valuation is continually shrinking. The solution is to adopt a standard of value measurement that stays the same while all THEIR phony excuses for money shrink in their ability to measure value. What happens then when THEIR money is utterly worthless and THEY are stuck with THEIR stuff and no one will buy anything from them because they wont accept THEIR money? We need OUR Valuns and we need them NOW alongside THEIR blood soaked war backed money (all THEIR precious metals and precious stones are blood stained as well, don't kid yourself).
What is the purchasing power of the disenfranchised population of this earth? At onset, what's 92% of 7,125 billion? It's 6,555 billion. Now we said we'd allow each member a starting balance of 200 Value Units, V200. Right now (4/28/16) that amounts to $552. Now how many of that 7 billion could benefit from even that much purchasing power? Let's say we can reach 200 million people (almost the population of Brazil)? That's a start of $110.4 billion in purchasing power that most people around the world do not have and would be able to use in a Valun exchange network (VEN) a market denominated in Valuns. If money is available, markets do appear.
If we can generate our own money, why would we ever need THEIRS unless THEY FORCE us to use it? ... and then, well there are more of us than THEM and that too is Democracy as Riegel would certainly have seen it. First we admit that we do NOT live under anything but a plutocracy or an oligarchy and that we are FORCED to use their polluted blood soaked money and this in order to FORCE the rest of us to accept THEIR agenda, accept THEIR consensus, not accept the Truth, accept THEIR consensus, which is of course not OURS and so to do what THEY wish us to do, as their dutiful slaves ... and yet history is largely a record of THEIR crimes.
Second we acknowledge that exactly what it says on all THEIR money is true; it aint OURS. We did not issue it and ultimately we're going to be damned if we pay back all THEY claim we owe THEM, so THEIR system will ultimately crash. Given the charts so far, paying back the enormous debt (that's all money is, folks) to the less than 1% hardly seems feasible. Nature will ultimately take its course. The question should be, do you value civilization or are you a barbarian? I value civilization, but that doesn't mean we have to settle for the limitations of this current one.
Another issue completely trampled on by THEIR so called consensus is whether civilizations must necessarily all look the same or could be quite different and need to be? The Valun solution does not need any of the trappings of globalist empire. We value true multi-culturalism and believe that it is best developed in each separate country and region by each separate and unique culture and people on this earth, and that too is their right, not as a “one size fits all,” FORCED equality, which is proved obviously fake by the charts we've just shown you.
Now before we really get into the subject of this paper, we'd like to make a few other points. If the stock market crashes by 80% it would be at a 3600 level right now. Everyone would say that represents an 80% loss in the value of wealth, but the ownership would probably remain in the same hands. It would not affect the lives and prospects of the remaining better than 90% of the world's population. Let's proceed:
It is usual to think of all money at any one time that exists as pools of liquidity or circulating seas with various currents, etc. all expressing movement of money toward areas where profit can be made based on supply and demand. Walter Wriston's famous quote concerning capital, that it goes where it is treated the best or rewarded the most is the general understanding.
The definition of capital begins with liquid money; cash and then goes on to include anything that can be materially associated with an ongoing business enterprise; the land (usually not depreciated), buildings, tools, patents, copyrights, etc. These last two categories shall also be covered anon.
The innate time bound skills, talents, labour, etc. of actual human beings (what we deem to be innate wealth) is traditionally not counted as capital and is instead regarded as labour and is presented as recurring cost; money paid to labour, the cost of labour, etc. However the inclusion of human assets of a corporate business, as were brought into capital under “human resources,” then began to determine (as they should have anyway) the labour contributions to the business, often a huge component of the company's final product.
Therefore the valuation of any business must include the cost of the labour as the price it takes to compensate the “human resources” of that businesses capital base. The present value of all these is sometimes called the “blue book” value of the business and depending on the nature of the business, may or may not include statements concerning the value of “human resources” to the business.
But money does not flow in lakes or pools of circulation. THEIR money is created and issued and paid out to various people and then these people buy things and eventually the proceeds from 3% of the income of the entire system flows into various things which circulate some more before being exchanged for things in which the money spent on them all but disappears as the objects cannot be resold for what they are now worth. So money disappears, dies, must be resupplied or everything up the chain from here ceases to function. It's a river not a lake or pond. It has a beginning on the books of the banks of issue and is destroyed in the process of general deflation and depreciation. And of course there are structural causes for money to be destroyed as where a process or industry is literally made obsolete by another process or invention. This happens all the time and causes a reason for businesses to be built favouring far more redundancy and flexibility than the usual mass production goliaths we have seen before.
At present, money flow is from the top down (governments sell bonds and borrow money from banks and foreigners and ultimately from the Federal Reserve and then the government buys things) and the immense sums paid for things we would never buy are things none of us hope needs to be used and these things actually depreciate; they can't sell them to other governments for what they paid for them, so 50% of the budget goes into matters that lose money and for which there is no recovery for the price paid for them. I want everyone to acknowledge that this is so through their own research. It wont be too hard to draw the right conclusions from the available facts. This is the way most of THEIR money dies. It does not end up in any “pools of liquidity” because sooner or later the most sophisticated weapons or surveillance systems must be acknowledged as made of depreciating stuff and so therefore the money paid for them disappears as soon as they are delivered.
The defence industries and any that cooperated directly with the organizations encircling THEIR power centres certainly get more stuff and they buy things that the rest of us want and need and that money trickles further around society until it gets paid for things that depreciate over long periods of time like automobiles and houses and then these depreciate and all that money disappears, is gone forever.
I can just hear the precious metals loonies jumping up and down saying their metal will save the day, etc. Really? That's a commodity just like any other and if a loaf of bread cost a penny what would your chunk of gold cost? Who would even want it? We'd be back at pure barter time when for most people their lives were “nasty, brutish and short.”
Houses and most so called private properties are usually a depreciating asset unless they are recovered, redone, rehabed or remodelled; brought up to date. This is the property flipping industry, which is actually one of the hotbeds of real free enterprise left. But housing is not wealth until one sells it for more than one paid for it. Is that part clearly understood? One can and usually does plunk the winnings from one house flip directly into the next one too, so as to avoid capital gains taxes. Then having become re-invested, the entrepreneur free enterpriser can continue being a benefit to society and earning an honest income for themselves and those who work with them.
I had a mentor who told me that he assumed that his house and everything in it would have to attain an overall rise in value of 3% per year for him to claim he would be getting his money out of it at sale. He claimed that 3% was the easy estimate of inflation since most years it was actually many times that much. On this alone, he advised everyone to acquire real estate. We'll discuss that subject too in another paper.
Suffice to say, when it comes to money we are not dealing with pools of liquidity; commodities of money at any one time, chasing whatever happens to be for sale at the time, we are literally talking about a flow of money from whence it begins and into whence it dies. Therefore any and all money is a continually diminishing resource and requires replenishment in order for an economy to continue; money is actually the REQUIRED fuel of every civilized economy. Therefore why does money or should money EVER have been entrusted to bankers? Who are they that they should have ever been allowed to usurp every human being's right to issue by his/her direct fiat, their own money? That fiat belongs to US not to THEM and they lie telling us that fiat must belong to the state or to no one and that the state should be their “best credit risk” etc. Who are THEY that THEY should ever have been allowed this power? What we have instead is a stream of money from on high that is mostly lost before any of us can get any of it ... and we wonder why so many of us are out of work.
We happen to wonder, greatly, at the actual ownership of all the wealth that exists. We happen to believe that if actually most of THEIR money is spent for what THEY want, WE should have OUR money and spend it for what WE want.
Our money comes from us, not US; any corporation set up to supposedly represent us (because we're obviously way too dumb to figure these things out by ourselves). We do not accept that our natural right to issue money shall be usurped, curtailed or denied without also denying the rights of free speech, free press and free association. What we're saying in fact is that should our right to issue money be in any was prevented, it would admit what we have been saying all along; that we live under an absurdity and that the people in charge are madmen and certainly criminal ... and yet we have been parties to their crimes (any wars we have served in) and the rest of the same loony parade of modern societal and cultural degeneration proceeds.
Here's an example. If you are a criminal, tell people that someone else is evil, not themselves. That's called PROJECTION and THEY use it all the time, even to the extent of making THEIR crimes your responsibility! It wasn't THEIR fault, it's yours! Do you want your own money yet?
Now, how is it that anything big can be done? This was a question for which Riegel had an answer:
There must be no distinction as to volume or interchangeability between check valuns and currency valuns. The check issuing power and the currency issuing power must be coextensive.
These were Riegel's rough pencil strokes. How does our proposal express them? What of what it would take to fix Fukushima? We're talking trillions of dollars, except that we'd rather pay for the solution to that problem in OUR money, not THEIRS. So we campaign in every area known to man to join local IE's and begin to generate commensurate numbers of Valuns and then we pledge these by written checks or our exchange notes or V-Checks to anyone who has a workable solution to solving Fukushima.
We happen to think that so called renewable energy solutions are not only available, but were they more widely known, those who at this time own this kind of wealth will end up with precisely nothing. Hence, ALL NUCLEAR POWER PLANTS MUST BE SHUT DOWN, SEALED UP AND WATCHED FOREVER ULESS WE CAN LAUNCH THEM INTO SPACE AND NEVER SEE THEM AGAIN. If we don't think of it this way, the slow motion mass extinction event which Fukushima is, will overtake everything and before long it will get out that thousands, tens of thousands, then millions, then tens of millions will find themselves sterile and will begin dying sooner than later from radiation related causes. Now, would you like your own money?
If you want your own money, you had better expect to take it and spend it among yourselves and your communities for things that really matter; food, clothing, HOUSING, WATER. etc. Please consider all we've said here and figure out the rest for yourselves. Oh, and one more thing: you can't expect to do everything yourself; you will need to find and consolidate friendly relations with more and more people from everywhere who see things the way they are and are quietly prepared to begin thinking and doing differently.
Now, financing the big (like fixing Fukushima, because let's face it folks, THAT is the biggest disaster on the planet that needs fixing NOW!) involves selling bets on the future and using them to pay now for what needs to be paid back over long periods of time. Save the planet from global warming? No, save the planet from Fukushima and the other huge natural catastrophes caused by the “too big to fails,” who will NEVER clean up after themselves despite how much of the world's wealth they claim for themselves, because their organizations and their financial machines are just designed that way, as “limited liability” bodies that are all recognized by the state to sell THEIR shares in themselves to raise money from other capitalists, etc.
So how do you finance something big like fixing Fukushima? You raise the money in Valuns and you tell them that we only pay in OUR money. Whoever accepts the huge reward, then proves OUR money legitimate because each of us that contributed did so voluntarily and from something that issued directly from us rather than any government or bank and we bought something with it; fixing Fukushima. Since each person would be buying a tiny portion of the prize for cleaning up this catastrophe, the Valuns spent in this way would actually have to be recognized as money immediately.
Those who ended up with Valuns would be able to buy whatever they wanted from us, right? The powers that be under THEIR system would certainly expect that much now, wouldn't they? They'd demand it from us and will do so because you see the pyramids you were shown really weren't accurate now, were they? After all, if each human being has intrinsic value for issuing money, even when that is limited by constraints of the community, then the productive will still end up with most of it, and we'll make sure that they do it honestly since most of their “capitalism” shall be forbidden within the VEN! Get this well and please check the previous essays to this one; we will PROMOTE free enterprise, we will FORBID capitalism.
We have indicated the distinction to make it absolutely clear why we identified the clear natural relation of the two ideas as we did; the capitalist insists on his/her freedom to make money on their money without producing anything and in the process are accorded the right to acquire resources they may run as they like or sit on without producing anything merely until a time comes they can release some or all of their holdings at a sizable profit. They deem themselves capable at times and allowed by public laws they themselves largely caused to be enacted, to acquire other businesses, even if the owners would prefer not to sell to them; hostile takeovers.
The manipulation of stock shares is the means to these ends and it starts when a bank promises expansion by enlarging a business beyond its means of self financing (blowing bubbles and promoting expansion beyond the scale of the enterprise to remain profitable above a certain size) and causes it to raise money by “going public.”
Capitalists are sharks. Most businesspeople are truly their prey. Sharks they are and they always need more prey. Their natural feeding is on new ideas and techniques that are arrived at by freelance entrepreneurs, artisans and scientist/engineers. They LOVE patents and copyrights because these vehicles allow them to buy and sell something they didn't invent themselves! Besides they get to apply so called “intellectual property law” which allows them to sell a thing or service with the understanding that the buyer cannot actually remake and resell the item because the buyer didn't get that right in the sale; the buyer never truly owns anything, he paid for merely leasing it, etc. These are nothing short of methods of stealing for in most cases the buyer is forbidden to resell what he just bought, therefore these are all ways money usually dies.
Intellectual property law allows sellers of these things, ideas, techniques, services, etc. to retain ownership in something they sold to someone else. Since we frankly regard this “law” as dishonest, we'll likely be on the lookout for anyone that attempts pressing these ideas on us or anyone else. Indeed, their pretentious and dishonest claims should be revealed and disclosed more widely to the general public and explained as exactly what they are. You have seen all the notices on every DVD, etc. that you ever bought. Now that you own it, here are the restrictions on using it. Guess I don't really own it then. No, you don't. Or they'll use some of THEIR money in THEIR courts to make you understand that you can buy something without owning it. We're going to get into more of that too as we go along.
Someone gets a nice genuine free enterprise business going and before you know it, some corporation has bought it out, sent its production overseas and another mom and pop business bites the dust. This has been the pattern in most of the developed world since the end of World War II. Our educational institutions all tell us through their “science” of economics that it's all for the best. Cheerleaders from the progressive and corporatist sides of the political spectrum belittle mom and pop, and everything they ever stood for, and of course it's all for the best. Well is it?
Since now that you know that most of THEIR money is dead on arrival or contributes to death and enslaves everyone, that no matter how much of it there is, there's never enough to clear all the debts, so THEY have a continual income stream regardless of whatever happens, just like a cancer has on the body of its host until the host dies. There is no magic lake of money that everyone has access to and is sufficient to buy and sell at every sale and therefore determine prices. No, what a fantasy! Prices are set by speculators and sometimes chosen out of mid air market studies by people they hire to approximate reality so their “big useless plans” can move forward, everyone delaying and delaying as much as they can as they are paid by how much time they take rather than how the project is fulfilled since there is no project but to bilk someone else to pay the interest and taxes one owes. I know all about pork barrel spending and its effects on people, institutions and general public attitudes. It's a corrosive ailment which drains and tires the many as it enriches the few.
But it's how some sectors of the modern world actually managed to get started because men and women of inspired gifts are always everywhere and will use whatever is at their disposal to make happen whatever they would like to have happen. That's free enterprise and it is responsible for every real improvement and advancement we enjoy over our for-bearers.
When you finally really wake up and begin to see that most of what you've been experiencing is a vast projected scam, and you really do take a good look at the money in your wallet and everything else and recognize that none of it is yours, and you want your own money, because you will want it, at that time perhaps you'll begin to discuss among yourselves and your friends and business associates just why you want your own money and how you'll go about making that happen.
David Burton
dpbmss@mail.com
Current Hypothetical Value of a Hypothetical Value Unit
[5/9/16: Extensive comment by Dennis: How do you issue Valuns which would be acceptable by EVERYONE? What is the EXACT mechanism?
The exact mechanism is explained throughout this blog.
(Here, for sake of argument, is the exact mechanism of our corrupt and terribly flawed current debt-based monetary system: The exact mechanism that remedies this flawed system is a return to a private gold/silver backed monetary system as described in Article 1, Section 8 of the U.S. Constitution.)
The emphasized is important. Edwin Vieira, Jr.'s, Pieces of Eight, I assure everyone is the most complete documented history of the US dollar. It clearly emphasizes a unit of measure in silver that was adopted in 1792 as the United States standard dollar. Now, were one to return to a a private gold/silver backed monetary system one would automatically have to assume (and this is entirely due to actual history folks, so we have been here before) that these private gold/silver backed monetary units would have to be presumed to be run on very much the same outmoded fakery known as fractional reserve banking or more precisely fractional reserve lending and since these operations are all based on fraud, sooner or later they go bust, silver or no silver! ... and they take the transaction clearing function of most financial institutions right with them, people's savings in these units too would be wiped out!
Want to play "dollar, dollar, who has the silver dollar?" I don't and no one else does either. This is not a solution. It has always been put forth as fraud pure and simple. The “Austrians” represent these gangsters and they are hence LIARS! I admonish all of you, I wont waste my time with any of it! It's bullshit! You want either THEIR credit (what we have now) or THEIR gold (what we have already tried)? Are you kidding? Grow up!!! (We'd use full out more graphic terms here in New York!)
We can and must brush aside any that dare defend this ultimate fraud as those without an honest bone of integrity in their bodies and are hence fit only for derisive contempt for daring to sanction the issuing of what one does not have. One would most assuredly NOT wish to go into business or have anything much to do with such as these. I also remind my readers that at one time I never even saw this practice as fraud and even defended it as necessary. If I can turn my views around, so can you!
No, the problem runs far deeper than that. It literally lies behind and beyond all the other questions about money. Ultimately anything becomes a means to split barter when it is exchanged for a good or service by a human being, not a government, bank or corporation. The moment any “currency” passes in trade as tokens of an exchange, whatever that thing is has become money.
Now, if you would be an issuer of money (which we rightfully claim is YOUR fiat that has been STOLEN from you since time immemorial), that you must be willing to sell back into the market something worth the money you issued. If you spend it, you must be willing to accept it.
If you do that; sell something of equal value, the money you spent (which was backed by what it bought) is destroyed in the process of you taking back an equal amount of the same money you issued.
I'm deliberately setting these sentences apart so that you can better grasp their importance. Thereafter, you spend the money you just received for something else, but that money can no longer contribute to price inflation due to the partial fiction that somehow every monetary unit can and at all times participates in every sale, which of course is impossible, so right there renders the lie to all the “commodity as money” assholes -yeah because they certainly are, since money is not some lake of liquidity but a stream which arises from certain people and is inevitably destroyed, therefore money must continually spring forth or economies die! Is that clearly understood? Money springs forth, follows various courses until it participates in buying anything (most things) which can no longer be sold for what was paid for them. In the process money is destroyed.
All that gold, silver, copper, etc.? Those are and ever shall be merely commodities that actually impede economies and have nothing to do with anything but preserving situations for certain classes of middlemen and speculators/swindlers down through time. Our proposal eventually makes us the biggest buyer of all spare gold and silver and let us hope to eventually trample it all under foot, as was the case in Jerusalem of old in Solomon's time, because he did what the recent bankers and other speculator wildcat swindlers have not done.
Riegel had it and Kitson before him had it too, which was to base the monetary unit on a transaction at a moment in time chosen as the point of inception or figure 1 of his entire Valun system. You want that point in time to be chosen based on the highest price for the commodities in the transaction since they'd both be commodities, NOT Valuns. Our transaction involved an oz of gold bullion in your hands for $2,160 on November 2, 2011 divided by 1,000. We base all our valuations from this inception transaction. There is one other alternative which would have made the proposed Valun heavier than it is now.
What Congress failed to do in 1792 was to ascertain the means to determine exactly what that amount of silver would actually buy down through time and resolve it back to 1792, because I assure you my friends, the purchasing power of silver has been every bit as variable as money based on anything else, because it has been subject to manipulation and none of it to this very day can be said to be determined in value by anyone using it as money in a trade, because that is done by speculators in various places over whom you have no control.
So for instance, if you settle a real estate deal in gold that you bought at various times and prices and generally the price is down so you end up paying more gold coins than expected, do you feel good knowing that you have been cheated? And maybe all the time you were sitting on that gold you were renting too. You can content yourself that you didn't owe property taxes, but you were certainly paying them in your rent now, weren't you?
So is gold or silver an acceptable savings vehicle? Well, it is a commodity with some value determined by others, so you take a look at the track record of gold and it isn't all that promising. It's history over the past fifty years suffers from people who get gold fever and so for no apparent reason at all its price jumps and then over greater periods of time gold settles along some predictable range of trading (and you suckers out there imagine that this process is a free and unmanipulated free market for gold and silver). So again as with all commodities, one likes to buy when prices are right to buy, so you end up wasting time and worrying about your “investment” by watching the markets, THEIR manipulated markets.
What are you saving it for? What if I told you your chance of saving enough to buy land does not beat actually “owning” and paying over 3 1/2 times its stated value over 30 years. Yeah, because you are alive and that time is valuable too and in most places they (the states) determine how much you must produce from your property to earn tax exemptions, etc. The rest is adequately arranged on this blog for those who can and would read it.
There are a number of objections to the article on the E.C. Riegel blog,
Please state them, we're open to any challenges.
which does contain many valid observations as well:
Thank-you!
“What of what it would take to fix Fukushima? We're talking trillions of dollars, except that we'd rather pay for the solution to that problem in OUR money, not THEIRS. So we campaign in every area known to man to join local IE's and begin to generate commensurate numbers of Valuns and then we pledge these by written checks or our exchange notes or V-Checks to anyone who has a workable solution to solving Fukushima.”
Trying not to laugh here, but how in the heck is some abstract subjective Valun generated by a Tokyo taxi driver going to exchange for a sump pump manufactured in Korea by a group of subjective Korean Valun producers? Paper promises are going to ensure this? This is a system without a concrete standard, hence very doubtful it could work!
You already deal with money without a concrete standard as you say and I've just told you that your chosen concrete standard is as plastic as plastic and you still refuse to get it? The Valun is one thousandth of an ounce of gold purchased for $2,160 on November 2, 2011 that being equal to $2.16. Since then, in order to buy the same purchasing power as at inception, you now pay $2.71 (5/8/16) because an oz. of gold truly will not buy what it did on the Valun inception date. Right now that's 26% above inception. We use this standard to determine what THEIR money, all of it including gold and silver, is actually worth to us in OUR money.
But you do not cash out of Valuns, you buy something with them and more often than not what you buy is depreciating, so in Valuns as in all money there is inevitable loss of money. The “commodity as money crowd,” which includes everyone out there, are clowns and charlatans who never get this, because they have been lied to themselves and have accepted without question what they were told. I did too. But when I found Riegel, I realized he had sliced right through everyone's cursed ideas which have poisoned the minds of men down through time. Who would accept a worldwide standard money based on this assumption? If it is accepted anywhere it becomes money and if enough of it were generated, there would be someone interested in accepting it, to do what we want done, which is to fix Fukushima.
"I can just hear the precious metals loonies jumping up and down saying their metal will save the day, etc. Really? That's a commodity just like any other and if a loaf of bread cost a penny what would your chunk of gold cost? Who would even want it? We'd be back at pure barter time when for most people their lives were “nasty, brutish and short.” “
Gold and silver and copper arose as the most marketable commodities precisely as an exchange medium ...
Nope. Stop it right there! You don't think I know the whole recitation by now? Do you give a damn whether they were FORCED upon people who didn't have them, because they were? The “Austirans” LIE about this all the time. They assume it was as natural and peaceful as falling out of bed every morning that suddenly everyone decided they had to have gold backed money. Baloney. It was swindlers, merchants and tyrants and their war machine industries that decided, it was never so nice, and it determined who was free and who was a slave too, because there was never enough money based on that system either. But do you further care that precious metals coins usually bear the heads of these tyrants and potentates that insisted their subjects pay them with these? Do you care that the basis for war and war profiteering is enhanced by precious metals and that NONE of it is without a blood curse? Apparently not. We think you'd all better reconsider.
in addition to their other uses in production, and they confer fluidity in exchange systems as a result.
The last statement implies that you'd prefer trading using them. Some states now allow this. I suggest you take your gold and go there and see what it buys you. But bear in mind, you paid for that gold at some point in current dollars and that same gold may be worth a lot less now than it was then, especially if you bought during one of the gold fever spikes.
Trade using precious metals? They are barter and nothing more and their valuations change every day therefore they cannot be money, they are disqualified. Bernanke in one rare instance told the frank truth. Using precious metals as a value yardstick is like using a ruler that has different measurements every time you use it. Useless to measure anything. Money is expected to reliably measure value. If its scale of measure changes it becomes useless to measure value. All commodities are disqualified for use as money simply because they go up and down in price based on speculation on them. Bitcoin is included here.
Here is the inimitable Hugo Salinas Price on the subject.
He does a creditable job of describing the problem, except he hasn't a clue either because he mistakes the Federal Reserve's obvious fiat as the problem instead of seeing it as we do as a stolen fiat that actually belongs to us and not to them.
Look, it's really simple. If the Fed wants to issue money it makes a mark on its books and the money is issued to the government in trade for bonds. The money is created as a credit that must be paid back with interest, from nothing, by fiat. Then the government spends the money. 50% of what it spends goes into things that destroy the money because they can't be resold for anything like what the government paid for them. Now, the taxpayers are supposedly saddled with the interest on all that money that went into the defence of the elites as well as for whatever else the corporate classes tell the government they have to spend money on for their various minding and social engineering programs and to make us all feel dependent, stupid, dumb, guilty, lazy and careworn by people who should never be our immediate personal concern. So our present condition in the developed world is reverting to becoming “wretched, miserable, poor, blind and naked.” And it is all because we do not have OUR money but insist on using THEIRS and we imagine that simply through political action anything is possible!
Meanwhile, there's Fukushima, a danger to all the nations on earth. If there were IE's in South Korea and Japan and everywhere else (look for our article on IVES), and OUR offer comes to worldwide attention before too long, OUR own money, not from some government or some bank, would save the world, literally. There are ways Valuns are issued that are described in this blog. There would be enough Valuns available to pledge to buy what it takes to fix this, even if the price is gargantuan. The price for doing nothing is far too high and getting worse by the day. Putting it off makes it harder and more expensive to fix. What are “the Masters of the Universe” going to do about it? I suspect they'll do nothing. They'll act as though it didn't happen, as they always have and always will, until they can enact some hopeless tax that in any case wont work either, because what they have set up and are part of is incapable of solving its own problems in time. Perhaps it is already too late. But if not, there should be no reason for delay. We need to hear from more of you.
We need far more interest than we have received to date, far more.]
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