#87 Precious Metals Prices & Proposed Valuns

I was recently asked to respond to how a proposed Valun would be affected by the idea from Jim Willie that the price of gold and silver might be set by the Chinese in their markets and that in such cases they'd price gold at $3,000 / oz and silver at $50 an ounce.

Gold at $3,000 spot exceeds the inception price of gold. But we'd want our bid price which would be 25% above spot or $3,750 which would under our rules provide a new inception point for all Valuns. Each Valun would begin at the new inception at $3.75 and if the gold price keeps going up, so does the Valun. What happens if gold in dollars is priceless? Then the dollar is worthless, simple as that. It will have become worthless as money long before that happens.

Similar figures would occur for silver. At $50 an ounce spot we get a bid price at $62.50 and divided by 3.75 = 16.67 Valuns per oz of silver at inception. I trust all of you see how that is done.

The proposal is not based on commodities or commodities markets because we allow THEM to determine all that while it lasts. We accept that precious metals are still THEIR money. We have a proposal based on an INCEPTION TRANSACTION instead of any commodity which THEY determine the value thereof in THEIR money, all of which THEY treat as commodities, so that THEIR speculators can continue their con games robbing the rest of the general public through THEIR massive speculation schemes. All of that business is capitalism NOT free enterprise. In fact to prove the point, it's exceedingly difficult for the average man or woman to set themselves up as any kind of market maker or stock jobber or any other capitalist. Why? Because you aren't rich, that's why. It's that obvious.

The proposed inception transaction is $2,160 = 1 oz of gold on Nov 2, 2011. That made each Valun = $2.16 at inception. In order to purchase the same purchasing power you'd have to pay the difference in gold or silver prices. That means that since inception the proposed Valun's fair trade has risen. Right now at 6/1/16 it's back up to $2.81.

Now, what happens when gold is set to $3,000 an oz.? First of all, will it stay there or rise to as high as $6,000/oz of $10,000/oz.? We presume that would the price of gold ever get that high, that the dollar would be finished by then. What would we do? We'd choose a higher transaction level involving gold and perhaps some other national currency, whichever becomes the strongest. Riegel would certainly have agreed as he was certain at his time that the US dollar had become the legitimate strongest currency and his Valun would have been based on a dollar at its lowest point in the inflation cycle or he would have chosen another currency.

In any case, ours would always be based on gold and if there was any gold backed currency around, it would be based on their highest point in transaction trading activity at a point showing the highest price for gold. Again if that price becomes priceless in that money, that money will have become worthless, etc. We acknowledge that gold and silver are commodities worth some thing, but as Riegel maintained, we're never exactly sure what that value is. Therefore we choose a transaction to base our money rather than any commodity of it which we regard as frankly beside the point, as we regard with contempt and some venom the notion that money retains its value by being made deliberately scarce by some cabal of bankers.

The reason the proposed Valun will preserve its purchasing power is that it is designed to do so. Any lingering sentiment that puts forth the worthless and contemptible idea that money is some sort of lake of potential liquidity that can affect any and all prices as a commodity pricing all other commodities is frankly a mistaken view of money.

Rather it can be proved that money arises from someone buying something whether a government or a human being, and that money is all borrowed from a bank earning money on it in the form of taxes (that's right they go to the bankers first) and that as money travels around it eventually buys things which can no longer be resold for what they were bought for and in that process money actually dies. In the natural depreciation process more and more money dies and requires replenishment which under the present order produces more debt from usury extracting that eleventh marble (the actual cancer) until the host economy finally dies for lack of money since it has all died out of the system. Then of course the money itself buys less and less until it in turn dies. What do those holding a lot of it end up with? Would gold save them? If it really becomes priceless, maybe. But the rest of us produce food and what would we want for our food in THEIR gold? You see what happens? This is a merry-go-round.

This explains by the way exactly why the Monsanto GMO project was of banker origin; they want to control the food supply for “the masses.” They assume they will survive on something else despite their products ruining the natural environment. They don't care and have never really cared. Nature will ultimately take its course. But meanwhile, we should pursue, “come out of her, my people” and take back our own fiat and issue our own money and begin using it among ourselves.

Should the proposed inception need to be raised, it will never be lowered by design, it would involve the new transaction at a higher level, always based on gold and some other of THEIR money and always tied to a date in TIME. From then on, fair trade determines the present value of that initial transaction. If the initial price of a Valun rises from $2.16 to $3.75 if gold goes to $3,000/oz then tell me which is better to want to earn, save or use in trade, dollars or Valuns? Lots of people will begin to see things our way if that happens.

David Burton

dpbmss@mail.com

Current Hypothetical Value of a Hypothetical Value Unit 

[6/2/16: OK then if gold reaches $10,000 an oz. what the Chinese say they may base their new gold backed money on, what would the Valun be in dollars? Clint

It's acceptable bid price is $12,500 assuming we could even get our hands on any gold at that price, and hence V1 = $12.50 at inception, whatever date is chosen. That would be very heavy money with prices very much lower than any of us would be used to. V-checks might even be issued for example as V1, V1/2, V1/4, V1/8 with the V1/8 being $1.56.]