Tuesday, May 17, 2016

#86 Debt-based Money

Yes, “debt-based money.” We've all been hearing and seeing this phrase around lately, so let's see what it all means: a whimsical conversation between Will and Ted,

Will: What's "debt-based money" since you keep using the phrase, what do you mean by it?

Ted: When a person places a signature on a promissory note to a banking institution (AT EVERY LEVEL), that checkbook money is created out of thin air as an entry in a spreadsheet. There is no money 'borrowed' from previously saved capital.

(The emphasized will be very important so please pay attention.)

Will: OK, thank-you.

Ted: It is impossible for markets to have a purpose in alignment with the betterment of mankind as a whole, when the whole fraudulent circus is funded with fictitious debt-based money issued by a cabal of bankers who create that currency solely out of signatures on promissory notes. What an awful scam----responsible for the warfare/welfare state that infects the present world.

Much of this is eloquent but hides something more radical behind the obvious, which is why this blog bears E. C. Riegel's name, because he spotted it. It boils down to this: THEY have OUR fiat! THEY have no business creating/issuing money since governments and banks do not qualify to be in the business of bartering for things and services. All that should have been in private free enterprisers' hands and would have been, and will be again, under a monetary system that values people above anything else.

So we think OUR money should say things on it like The People of (insert your county) in the State of (insert your state) and instead of (insert your central bank) note, they should all just say Exchange Note. They are all representations of unsettled barter contracts and that is all.

Where Ted says, that checkbook money is created out of thin air as an entry in a spreadsheet, he's right of course, but that does not mean that that money was not created. THEY created it all right, for you see, THEY are gods. WE have not yet awakened to recognize that THEY have STOLEN something that belongs to each of us, the inalienable right to issue OUR own money, THEY have stolen our fiat! They PROJECT that all fiat is bad unless THEY get to do it, because we obviously would louse it up, etc.

So anyway, that's what THEY do and THEY make THEIR money from
taking in money that was never created in the first place which is literally stealing from the rest of us, so that eventually they get to have things that we made that we had to sell to them because we owed them more of THEIR money than we could generate from an increasingly dwindling supply of THEIR money, because as we've pointed out in the last few essays, money is not just created somewhere, it is also destroyed, never to return.

Indeed the improper identification of money supply as some circulating lake whose proportions need constant monitoring to prevent inflation is manifestly proved both not to work and more likely, just another SCAM to create more playgrounds in which capitalists get to play by winging their money in and out of THEIR markets to make more money on money without actually working for it. All this activity does is
diminish income as they increase “wealth,” which as we say, isn't as much, because it produces less income for fewer and fewer people. So these huge corporations are literally economic black holes.

The accurate picture of money is that it flows as a stream not a lake and it has a source, and flows as it were downhill until it encounters a marsh of anything that cannot be easily resold for anything like what purchased it, like military gear. Fairly little of it ever reaches the 90%. Most money the present system issues is destroyed immediately, especially if it buys anything new, but even where not, everything is depreciating and money disappears never to return because of it. Therefore money must be replenished, else economies die.

If this is so, and it manifestly is so, then why is this essential and valuable universal human invention, money, the means to split barter and save the world from wasted time and energy, why is this placed in the hands of bankers and not in we, ourselves? It's because we work for or are obliged to accept THEIR money, that's why. Riegel's solution, and ours is to be paid in your own money as well as in THEIRS, and then to begin to use it among ourselves and rely more on it as THEIR system fails.

Did we say what work actually is? Work is time out of your private lives. It's time you give up to do something to earn a living (an income), so that you can exchange that work for food, clothing, lodging, everything. If you earn a living, whatever it is that enables you to get paid IS your innate wealth. Adding to that wealth may include your acquisition of tools and more importantly just how to use them, technical education, etc. But to all that, In fact, you may only be expressing a fraction of your innate wealth because THEY have control of money. Let that sink in for a while.

Here's another way of putting it: we all know there's a world of abundance out there for all of us, but we don't have enough money to manifest it. All the talk about abundance and money flowing your way is nonsense if most money is flowing back to repay debt service, and for debt that was created out of
THEIR stolen fiat not yours paying back money that perhaps they actually didn't have to lend you to begin with.

The go between in the barter exchange is money. The hew and cry of humanity is there's never enough of it and prices are always rising. So everyone needs to ask themselves just how well entrusting money to bankers using their systems has worked out? Not at all well: They lend what they do not have (fractional reserve lending) and take what was never created (interest). They even pass shares of what they have taken from the uncreated to those who “invest” in their schemes (securities). How terrible is all that? Not too good for better than 90% of humanity, that's for sure.

Want something better? Why else would we bother being here if we didn't offer something a whole lot better? But there are of course a few catches. Certain things that are allowed in their markets are forbidden in ours. Certain things that are allowed to do with their money are forbidden in ours, for our own protection.

Now the second thing Ted said was there is no money 'borrowed' from previously saved capital. He's saying exactly what we just did; they lend what they do not have. The answer is sound finance (100% reserve lending), but don't bet on that ever happening in THEIR system because THEY like it just the way it is, until enough people wake up and start walking out on them, because that's what it will take. In order for that to happen, all of us will need to issue and recognize OUR money and start using it for anything and everything that doesn't require THEIR money and eventually when THEIR system fails, everything will be conducted using OUR money. As for what happens to THEM for all THEIR crimes? Nature will take its course, but we should take our courses as well.

The proposal of this blog is a monetary unit called a Value Unit or Valun, exactly what Riegel called them. Our proposed Valun began on 11/2/2011 at $2.16 and now (5/17/16) stands at $2.73. How is this figured? The initial transaction was 1 Au oz = $2,160 (in your hand delivery) / 1,000 on 11/2/2011. What is the present value of that initial transaction? Whatever that is, becomes the equivalent trading value of all Valuns. Current Hypothetical Value of a Hypothetical Value Unit

How are Valuns created? We allow two ways to issue Valuns; 1) you have a certain number you can issue for subsistence or 2) you can buy yourself a job as explained in our essays on the Self financing of labour.

In the first instance, we allow the present order to determine for us what subsistence is in THEIR money and convert that into what it would be in OUR money. If they pay by the month, so do we. We do everything in parallel with their system because sooner or later when theirs fails, we will still have ours in place. Look what's happened in Venezuela? Predictable. It could happen anywhere.

Of THEIR money, Ted says, fictitious debt-based money issued by a cabal of bankers who create that currency solely out of signatures on promissory notes.

Believe it or not, the words in front of the word “money” mean much; fictitious debt based. When someone writes into a ledger, electronic or otherwise, that you owe them some money because you borrowed it, you can't have borrowed something that didn't previously exist. But under the present order, as Ted said, When a person places a signature on a promissory note to a banking institution (AT EVERY LEVEL), he's saying that from the central bank all the way down through all THEIR banks, ALL that money is created the same way; you are looking at borrowing something that didn't exist for more of it than was created.

All of that can clearly be shown to be exactly the case and basing it on gold would be no help as THEY control how much gold is priced worldwide. In fact all you're asking for is fraud mitigation, not its elimination since the gold doesn't really circulate in such systems, the receipts for it do and does nothing to remove fractional reserve lending. So there wont be any of that in the VEN. You lend money that you have or you don't lend it at all. No one has power to lend what they do not have nor charge back from what was not created. All money asked back on any loan must have been issued somewhere else by some other means. If some think diamonds or something like that might be an answer, THEY also control precious stones. As we've said, and some dunderheads just don't get it because they believe the out and out LIE that money is actually some “Lake of Liquidity” when in fact it is an EVER DIMMINISHING RESOURCE, absolutely NO commodity can ever be money.

But above all, what's most fraudulent about the entire present system is that the people running it have no special authority or credentials or anything else to be doing what they're doing; they just do it and they have FORCE on their side to bolster their position. It's the schools they control, the entertainment that they also control, the mass media they also control, the drugs they control, the energy they control (which is among the biggest scams of all time), everything they control tends to run amok or turn to dust eventually ... and now they want to control our food. It will soon be our water and they have said so, and then there's the air we breathe. After all, they bought it all from the rest of us from money they created out of nothing, lending it into existence, lending something from nothing, and asking more back for it than was created. Lovely scam isn't it? You use THEIR product every day. It's time to be thinking about “come out of her, my people,” unless you want to fail with them.

The Valun system is a way out and should be seriously considered. Because what we want to do in our private times, our treasure time, is often to create, make, build or plant something that we will enjoy doing because we can do it as well or better than anyone else, up to a scale where it is sustainable, etc. some of us know already that handmade and skilled still mean something and would be doing more were the money there to support it.

So if all money is an expression of split barter, it is all based on debt – ALL MONEY IS DEBT – ALL MONEY IS BASED ON DEBT - because literally settling all debt would extinguish all money. The real issue should be whether that debt is real or fictitious! Our correction then; merely decrying debt-based money is not sufficient without also saying FICTITIOUS debt-based money, else one sounds like one doesn't understand money. Besides which, it's time more knew that THEIR debt was fictitious. THAT is what the 4th section of the 14th amendment after the “Civil” War was meant to accomplish. The rest was a done deal in 1913 handing THEM the monopoly over OUR fiat! (...and after this we actually expect to have ANY say over anything THEIR governments are doing; blind stupidity!)

Money is created by someone and is eventually destroyed in the various things it buys which cannot be resold. It does not flow in a pool, it is created and flows out of the system like a stream. Electricity has three measurements that are also similar in plumbing; pressure, flow and resistance.

Voltage: Pressure of money, how quickly it enters and forms a market – and that market is like a wire from the brand new through the second hand to the resale and antique or possibly as junk that can be reused for something (repurposed) until all the money ever paid for it is no more and the thing (whatever it is) is extinguished as a possible trading substance.

Amperage: flow of money, how wide is that flow, and

: resistance to money, prices above which nothing moves because people wont spend more to buy them. These are the parameters.

Now look at things this way: WE issue OUR own money. We get some to start too: V200. This amounts to the pressure that purchasing power represented as money accomplishes in a community where it is recognized. The recognition of the Valun, that's the flow. Where is your money recognized and WHAT STANDARD is it on? That's what an International Standard Value Unit accomplishes. It standardizes the flow. One knows instantly anywhere about what a Valun will buy and it will differ somewhat from place to place too as markets are not always and everywhere the same. Prices for things in Valuns would reflect what any business would need to account for in any money; labour, materials and recurring or overhead expenses.

What encourages people to use and save Valuns? The standard determines what one would have to pay in THEIR money to acquire Valuns. But there is no way back. If you are a member, this is a PRIVATE organization, and you pay your dollars, you get Valuns, but your dollars are immediately used to buy gold or silver and that belongs in the vaults of each IE to be used to pay taxes and nothing else. Your Valuns are always yours, whether on account or in some form of cash, the V-Check is most likely to succeed short term, or as personal checks. Cards and all that is of course THEIR money and leaves a trail. We value anonymity and privacy and prefer dealing with our co-partners (since that's what membership in an IE really is) using common use tokens. These will be better looking than what THEY offer us to use now too.

We should also state that we should eventually reach the point where few people are actually living on a subsistence basis and that thereafter the money issued is more and more due to productive enterprise; more people having employment, doing something to express their innate wealth. There would be far fewer “spurious notes” than the present system generates.

The money basis itself is sufficiently hard not to be beaten. If gold hits the moon, the inception base of all Valuns goes right up with it. When gold backs down, the price of a Valun goes right back up because it has not moved. Meanwhile we expect that whatever V1 buys will pretty much be the same year after year, plus or minus whatever temporarily influences the supply. As Riegel knew, any extra Valuns would end up in the pockets/accounts of the most productive, not those rewarded from behind the scenes by shady characters and organizations, who usually have done nothing but to encourage more of us to cease from being productive and pursue wasted lifestyles.

THEIR mask always presents a cynical face, because that's how THEY usually see things and us. Hard to be positive when there are no jobs and nothing to do but sit around being sorry for your existence all because you didn't reorganize yourselves and start issuing your own money to settle matters among yourselves. Pretty dumb too how people just sit around and take it. They are conditioned to accept nothing but what they have always been told. So the whole ghastly game continues, until it doesn't. Before that happens we offer our suggestions for a way out of it for everyone, forever.

David Burton

Current Hypothetical Value of a Hypothetical Value Unit

[5/18/16: Pardon, couldn't help noticing. You said in “Dueling With Idiots” that their money is real, but here you say it isn't. Please explain. Clint.

Their money is real. It all works as money should. It was created by them out of nothing because as I say, THEY are gods. But since THEY are manifestly not gods, one must begin to ask what they are doing that we should all be doing and that is to issue our own money. 

THEY'll say forever that “fiat money” is bad because THEY know better. Some of THEM will point out that every fiat money in the world has failed, which is due entirely to governments issuing them. Look at Venezuela where it's going on now; a real Weimar meltdown in real time. Brazil will be next. THEY'll be able to stage a systemic dump of all the BRICS currencies by speculating against them, driving up interest rates, bleeding them dry or preventing their progress. 

If THEIR money is all that presently exists and so far it is, because their solutions are always commodities they can speculate on, then this proposal is the only way out. We actually need our own money as an established agreement among ourselves as members of an association before it is possible to do much walking out of THEIR system. Meanwhile, consider the power and prestige of someone right now who is able to refuse to accept THEIR money. We need to begin starting IVES and getting more aware and interested before there can be any real change.]

[5/19/16: Get that. The Federal Reserve and fractional Reserve banking must be abolished along with a return to a gold and silver standard and our own US BANK not affiliated with any global system or preferably each State having their own unique banking laws. Tuck

No, we do not need or want any of that:

First of all, THEY do not have any right to your fiat.

Second, THEY have no right to force gold and silver on us as a means of exchange period! That kind of system produces slavery not freedom, THE "AUSTRIANS" ARE LIARS!  I don't care whether they make a law about it or otherwise. All of that implies that a state has some right to interfere in a contract, which they do not. And for those that still don't get it,
all precious metals is still THEIR money, not yours or mine, because we did not issue it. Gold and silver money advocates are not only flat out wrong, they are tools of the banking establishment.

Third, any idea that somehow we can or should go back to some nebulously better time in the past is not going to work, because it didn't work that well when it existed and there's something much better.  There is no way back.

Fourth, there is no guarantee that 100% reserve lending can ever be enforced by some top down regime. How well did that work in the past? How well can they do in the future? Enforcement has been important, but how tenuous is that when corruption works pretty well? It's frankly all pretty stupid ideas!

Fifth, why should some people be paid to do these things that should be done among ourselves?

no gold or silver standard, period! They do not work and only benefit bankers and kings and people with lots of precious metals, and again giving anybody but ourselves the power to issue money has always been a scam.

We chose a transaction at a particular time to base all our money on. That transaction involves gold and silver as a means of exchange from their money into ours, since we cannot hold any of their money
because it is their property not ours (intellectual property law) while the metal can be ours until they pass some law that says we can't, then we will be slaves pure and simple, but we were and are slaves as long as we must rely on any of their money because THEY HAVE NO RIGHT ABOVE US TO BE ISSUING IT!.  Our money will cost them their gold and silver. That does not mean ours is “backed” or in any way pegged to what they say THEIR metal is worth.

Our own bank? If it is a bank, it will not only have transaction clearing functions but money lending functions and all that money is lent at interest whether it's a “state” bank or a regular private bank. Usury is usury and doesn't work. It always benefits money lenders, whether they be states or a private consortium.

Anyway, why should we be propping up states with our money? Said another way, until all states use our money not THEIRS, we will never be able to TELL them that they do it our way or not at all! WANT TO HAVE CONTROL OVER YOUR STATES? THERE IS ONLY ONE WAY, WE MUST TAKE BACK OUR MONEY POWER UNTO OURSELVES!

That has NOTHING to do with any returning to the Constitution, WHICH WAS THEIR CONSPIRACY AGAINST US not something we should be bowing down to as if it were a god! States already do far too much and need far less money than they get. Once again, no state has anything to sell into the market to compensate for any money it issues. If states have nothing to sell back that requires money payment, then they must take back in taxes else there's inflation and there is anyway because of excess government spending over taxation. We do not see never ending taxation as a solution to anything but empowering states. The only way to not run a Weimar meltdown (as is happening in Venezuela right now) is for us to take back our money power and have ours once THEIRS fails.

Let's reiterate these things: our own US BANK not affiliated with any global system or preferably each State having their own unique banking laws. NO, we do not want or care any longer about any “state” solution. That's for children, not grown ups. We will not be nannied for the rest of whatever by states. Why? Because we now know that no national bank is anything but a fraud to prop up the rich and the same goes for state banks because it generates more of THEIR money not ours. Separate banking laws? Let states compete this way? All that is just more ways to hoodwink the public. NO, it's time to wake up and grow up. Read ALL of this blog. Get into your mind what this initiative means and be prepared to toss out as absolute garbage most of what academic economics teaches.]

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