#116.3: A Message to The People - Seven Years of the Valun

"GOLD: It Is The Premier Currency" Alan Geenspan

The seventh anniversary of our little experiment has just passed. The proposed international standard value unit or Valun, began at a fair trade value of $2.16 and right at the moment, the Valun is at $2.74 [12/25/18] which simply means that the present value of the initial piece of purchasing power has retained its value and added 27% since inception. The proposed Valun is perfectly capable of retaining its purchasing power because it was designed to do so: never varying between an inception value of $2.16 and a theoretical impossible top of $4.32.

But why did we decide to post this recent statement by former Federal Reserve chairman, Alan Greenspan? It came through a channel calling itself Rethinking the Dollar. We're positing it here to remind those who are not on board with our basis for the proposed value unit that nothing but gold will do.

Yes, certainly gold is still THEIR money, as indeed is silver, platinum, etc. but in an exchange for any of our money, nothing but gold (or silver) will do. Why? For the simple reason that we want no one to suppose that our tokens, the V-Checks or eventually longer running Exchange Notes, are valueless. If anyone wants to buy one of ours into existence, they will have to provide the cash to buy the equivalent gold (or silver) in exchange.

We will not have to be bothered by all those who will claim that because our solution involves the individual's FIAT (will), that our money isn't worth anything. We will determine, based on the design of the Valun, what we will accept in exchange for one in any of THEIR money, period!

We have explained that in order for us to have our own money, that we must monetize the will of our members. Work, as we have neatly defined it, for our discussions on this blog, is the extension of every individual's will. We signify the arrangements of labor in a barter with simple one page contracts, often between individual A members and the exchange itself, acting on behalf of organizations that cannot join our exchange.

We have been asked whether people who work for organizations that cannot be legitimate B embers of our exchanges, can still be A members. Of course they can. If a public sector employee can afford the extra value added to their income in Valuns and pay taxes on it in THEIR money, and satisfy the other requirements of A membership; eligibility, dues, sponsors, then a simple one page membership contract between said public employee and said local exchange signifies the actions of the WILL of all concerned; of the A member to issue their own money and of the exchange in its duty to recognize the right of said A member, within the bounds of the rules, which will be purposely kept as simple as possible so that all may comprehend them. Under the present proposal, these A members are able to issue Valuns to the value of 80% of the remuneration they already get paid in THEIR money.

We don't need to call this a “sovereign” will at all, because all that label attempts to accomplish is to get back to what we say freedom is, not having to ask anyone's permission; a “sovereign” is above the law, is capable of living in defiance of natural law; life, liberty and property and to do no harm. Most people actually understand and act on these natural laws all the time, except for criminals who are among THEY who consider anyone fair game for anything from a simple con job to cold blooded murder for the right price.

Will Durant began his epic work suggesting that civilization; organized lawful and peaceable cooperation among people living together, was fleeting at best over our long history on earth. Barbarism was far more prevalent over far longer periods of time. Have we then actually risen very high above our ancestors? Part of the answer rests with how we think of money or what we think we know about money, always THEIR money, because as yet we have no money of our own.

Someone recently said that technology providing comfort at the expense of enjoyment, is not valuable. We chuckled, because the statement has tivialized the exact nature of the subject. Were we to be bold and blunt about it, we'd say that THEY have cheated THEIR way into everything and everywhere and deliberately financed and promoted technology for the ultimate intention of our enslavement, while we ourselves were, yes trained, yes educated, but likely as not we would just as well prefer to live under the actual code of natural law as under any of THEIR subtle and not so subtle tyrannies; getting us to accept “civil rights” instead of sticking with our natural rights. That's right, we were all conned, especially those who were expecting more, perhaps some redress of past grievances, etc.

We have seen a new one that's just been coined; environmentalist terrorism. What wont THEY think up next? THEY'VE been at our extermination in one war after another for a very long time now, haven't THEY (the usual suspects)?

Anyway, we assume those who speak of attainment of some “sovereign” will, usually mean they would prefer to have no government at all. Well, I've got news for you; every organization, whether public or private, relies on some rules and some command structure. Why? In the state's case, as we've consistently said, its business is to administer the laws, due process, all that stuff, including the enFORCEment of said law.

Remember folks, THEY have FORCE and we do not. Therefore we offer A membership to any and all regularly employed police officers, sheriffs, military people, etc. because we especially want those people to know that we stand with them and that their lives and sacrifices matter to us and that when it comes down to us vs. THEM, we have their backs. Understood?

We can never hope to arrive at a livable civilization without each of us adhering to a simple set of natural laws. We observe that natural law is what one usually observes where people live in the REASONABLE EXPECTATION of continuing peace; their lives, liberties and properties are respected and protected. But until further notice, most of us understand that states have the use of FORCE and we do not. We know what we need to do for ourselves and it behooves us all to remember what the “sovereign” will is today and how best to live with it, knowing that it always exceeds its functions and especially when following THEIR dictates, operates for THEM and THEIR “special interests” and not for us.

So then, when an A member is accepted and enrolled in one of our local exchanges, as part of each membership contract, an amount in Valuns is placed in each member's issuance balance. The usual amount is proposed to be V200 (two hundred Valuns). Those potential Valuns do not become money until they are spent for goods or services in exchange. You agree as part of your membership contract to be willing to accept and save Valuns in trade, to respect the effort and to attract new membership. This is intended to be a volunteerist, private and locally based and run system.

Seven years of the proposed Valun has another message for the future: all those who have deserved compensation or have been defrauded by THEIR system, will be able to become A members of one of our proposed Valun exchanges with an opening issuance balance that could result in substantial financial resources in a Valun based economy moving forward.

We value seniority for leadership as the mature and the experienced WILL such individuals possess, naturally has more value than the immature and inexperienced WILL does, especially when it comes to direction, command and leadership. Therefore, anyone with a record of payments from any state pension (Social Security) or from some other earned source, since the month of Valun inception, November, 2011, will be entitled to the number of Valuns in their issuance balance equal to the total value in Valuns of all THEIR money received by the member, extending all the way back to the month of Valun inception.

We can tabulate this in any number of ways, but increasingly it will be something like the following example:

Joe, who turned 65 in 2010, is a new A member and has been receiving retirement benefits since Valun inception and receives $1,500 a month as of this month (Dec. 2018). Joe probably received less since Valun inception on November 2, 2011. This is likely in a real case, because we have COLA's (cost of living allowances to cope with the natural tendency of THEIR money to lose its purchasing power, to inflate) and other things impacting monthly payments. Nevertheless we can use this example to come up with an issuance balance that fits Joes's situation.

It's now December, 2018. That's 85 months since Valun inception; November, 2011. The easy way: We could just use Joe's present pension payment of $1,500 and multiply that by 85 months and come up with Joe's issuance balance. Or we could determine what the opening exchange values for Valuns were over all those past 85 months and compute the number of Valuns from the current $1,500 per month. The harder way: Or we could determine from better documentation what Joe's payments actually were since November, 2011. Should an A member be receiving more than one pension, those combined figures are applied to the computation of an A member's issuance balance. Whatever method we decide should be universally applied to all A members.

Computing Joe's issuance balance using the first and easiest method produces: $1,500 x 85 months = $127,500 and today (December, 25, 2018) a Valun would be worth $2.74 so that's V46,532.85. Joe's membership contract would specify that his issuance balance is V46,532.85. Joe's membership contract instructs his local exchange to increase his issuance balance by the number of Valuns equal to the $1,500 Joe receives from here on.

Joe's issuance balance is our organization's recognition of his will expressed in Valuns. His issuance balance may increase in this way for the rest of his life or until he resigns from the exchange by canceling his membership contract. What would happen to Joe's Valuns in his issuance balance should either occur? They'd be transferred to the issuance balance of whomever among the other A members Joe wills his assets to, as part of his original membership contract. If Joe's cousin June is named, then upon either Joe's decease or Joe's leaving the exchange, canceling his membership contract, June gets his issuance Valuns.

Would there be any taxes as a result of a transfer of Valuns of this sort? This would be for local research to discover. If so, the heirs of those like Joe might have to have some of THEIR money to pay THEM taxes, depending on the laws regarding inheritance and estate taxes. These matters cannot and would not be handled by any local Valun exchange.

What we have outlined here is how we return value where it belongs within our communities; by monetizing our members. In future, there may not be any reliable means to determine what constitutes a valuation of an A member's will based on comparable compensations in THEIR money. There may not be any pension funding out into the future. How an entirely new and honest economic system may develop means to provide for retiring seniors that will involve increases to an issuance balance, remains to be seen. However or whatever, long term, we cannot rely on any of THEIR solutions using THEIR constantly inflating money.

So in any area, by county or whatever suitable political area, take a look at your local demographics. Take a look at the population 18 years of age and older. That will be your A membership base. Then take a look at the senior population; those at 65 or older. Those will be members who get the ability to issue more Valuns from the outset. The stronger this base is, the greater the possibilities for setting up needful and economic (promoting the flow of money) finance. Finance, you would recall, is how someone is able to buy something they can't afford at the time of purchase.

Finance businesses within each exchange will be borrowing Valuns from those who have the most to issue; pensioners like Joe. These finance businesses will be B members of each exchange. They will pay the rent for Valuns they borrow from other members up front from already existing Valuns. We intend to defeat usury. No finance business may lend money they do not have. There is no fractional reserve lending allowed. Lenders are not permitted to lend more than 20% of the money they borrow within an exchange to members outside that exchange. This 80% rule keeps financial assets within productive exchanges and helps preserve capital where it is created.

Let's suppose that a company called OFC (Our Finance Company) is a B member of Joe's exchange. They want to borrow some money paying a rent of 3% and expect to bid for loans at 5%. Joe and plenty in his community like him, have plenty of Valuns to lend. Let's say OFC wants to borrow V10,000 and pays Joe 3% or V300. Where does that money go? Into Joe's income balance. Let's look at the transactions:

V10,000 from Joe's issuance balance -> OFC's income balance
V300 from OFC's income balance -> Joe's income balance

We also have to pay the exchange for the transfers:

One tenth of one percent is the transaction fee. The cost to move V10,000 is V10 and the cost to more V300 is V.30 (thirty cend, cento or fen)

V10 from Joe's issuance balance -> Local exchange
V.3 from OFC's income balance -> Local exchange

Joe's issuance balance now stands at V36,522.85

The transactions would reveal that for a year Joe gets a remuneration of slightly under 3% (V290), after paying the transaction fee, for the use of his money. The agreement between OFC and Joe is in a simple one page credit contract. If the contract was for longer, say three years, then Joe would expect to see the payment of his V300 per year rent at the times listed on his very simple credit contract with the finance company. He only has to pay the transaction fee once per contract, so it would make sense for Joe to consider lending his money for a longer time period.

If Joe is lending his money at a guaranteed 3% for three years, his issuance balance is down V10,000 until OFC returns his money and Joe gets V300 per year deposited into his income balance. Yes, should there be any applicable income taxes, Joe would be required to pay in THEIR money, the equivalent income earned in Valuns. Joe would eventually see a 1099 reflecting his gains.

Joe, having a nice issuance balance from which to work, might wisely decide to split his investments among many finance companies that would specialize in various kinds of needful and economic finance. What is Joe doing? He's making money on his money whether he continues to work or not. Joe is hence a capitalist and of the kind we want to promote and see everywhere. His issuance balance in this way becomes his wealth.

A large issuance balance also allows one to hire people to do things for you too. Since we have another 80% rule, the amount one can get in pay for working for or with someone else is limited by their combined issuance and income balances to 80% of the combined total. Since everyone has an escrow balance, were one to have a simple labor contract, one method of determination as to pay would be made by figuring out the most one could pay for another's services.

Let's get back to Joe's example. He has an issuance balance of V46,532.85. Let's say his income balance is usually quite low, something like V200 per month. But we're beginning at the beginning and Joe's income balance lacks sufficient history. So we adopt an idea from E. C. Riegel; we start with giving Joe a six month start; V200 for six months. So, only for purposes of computing Joe's maximum ability to pay someone else, that brings his income balance to V1,200. So Joe's combined income and issuance balances are V46,532.85 + V1,200 = V47,732.85

Note that Joe's actual income balance is not affected one way or another. We are determining, based on the 80% rule, just how much, the maximum, Joe is capable of paying for another's services. Also note that whoever works for Joe is going to lend Joe the money to pay themselves anyway, so Joe's money is not affected.

Now, 80% of V47,732.85 = V38,186.28. So the most Joe could pay someone to work for him for a year would be V38,186.28 which is [12/25/18] equivalent to $104,630.40 and this would be paid out of Joe's escrow account from money supplied by Joe's employee, not Joe.

Let's say for the sake of this example that Joe decides to hire someone, another A member, we'll call Carol to take care of him and that this is a situation where the pay will be once a month for a one year contract, renewable on the same terms, or subject to renewal upon completion. Joe's exchange allows him to engage in a labor contract with Carol for the entire V38,186.28 which is to be paid to Carol in 12 installments listed on the labor contract or V3,182.19 per month. Carol has agreed to handle her own taxes in THEIR money on her extra income in Valuns. Yes, we're suggesting that Carol and Joe have another parallel agreement whereby Joe pays the amount of Carol's extra taxes in THEIR money.

How would Joe's issuance Valuns to pay Carol get into Joe's escrow balance? Well guess what? They don't. Under our labor contracts, the employee issues the Valuns and pays for the job, including all transaction fees, so in this case Carol issues all the Valuns up front to Joe. They show up in Joe's escrow balance and are paid from there back to Carol until her contract ends.

The labor contract lists all the transactions, identified, dated and included in Carol's labor contract with Joe, since she is in fact under our rules the initiator of the contract:

V38,186.28 from Carol's issuance balance -> Joe's escrow balance
V38.19 from Carol's issuance balance -> Joe's escrow balance *
Joe's escrow balance is V38,224.46
Carol's issuance balance is V-38,224.46

* Carol has just bought her job with Joe including the transaction fee for V38,224.46 and placed this amount in Joe's escrow balance. Between the time Joe pays Carol, he may use the Valuns in his escrow balance as long as they are back when Carol needs to be paid. This is called “float” and Joe or any B member business gets this completely interest free. Carol's issuance balance is V-38,224.46. The exchange fees are paid to Joe's escrow balance and paid back to the exchange as Carol gets paid by Joe. A series of transactions also increases Carol's issuance balance back to zero Valuns or where it was before the contract began; Carol may have not spent her initial V200 issuance balance. For this example, we are supposing that Carol began her contract with Joe with an issuance balance of zero.  All exchanges will recognize that under labor contracts, the transaction fees required are paid by the employee and the employer pays those back to the exchange as the employee is paid.

1^st month
V3,182.19 from Joe's escrow balance -> Carol's income balance.
V3.18 from Joe's escrow balance -> Local exchange
V3,185.37 -> Carol's issuance balance **
Joe's escrow balance is V35,039.09
Carol's issuance balance is-35,039.09

2^nd month
V3,182.19 from Joe's escrow balance -> Carol's income balance.
V3.18 from Joe's escrow balance -> Local exchange
V3,185.37 -> Carol's issuance balance
Joe's escrow balance is V31,853.72
Carol's issuance balance is V-31,853.72

3^rd month
V3,182.19 from Joe's escrow balance -> Carol's income balance.
V3.18 from Joe's escrow balance -> Local exchange
V3,185.37 -> Carol's issuance balance
Joe's escrow balance is V28,668.35
Carol's issuance balance is V-28,668.35

4^th month
V3,182.19 from Joe's escrow balance -> Carol's income balance.
V3.18 from Joe's escrow balance -> Local exchange
V3,185.37 -> Carol's issuance balance
Joe's escrow balance is V25,482.98
Carol's issuance balance is V-25,482.98

5^th month
V3,182.19 from Joe's escrow balance -> Carol's income balance.
V3.18 from Joe's escrow balance -> Local exchange
V3,185.37 -> Carol's issuance balance
Joe's escrow balance is V22,297.60
Carol's issuance balance is V-22,297.60

6^th month
V3,182.19 from Joe's escrow balance -> Carol's income balance.
V31.81 from Joe's escrow balance -> Local exchange
V3,185.37 -> Carol's issuance balance
Joe's escrow balance is V19,112.23
Carol's issuance balance is V-19,112.23

7^th month
V3,182.19 from Joe's escrow balance -> Carol's income balance.
V3.18 from Joe's escrow balance -> Local exchange
V3,185.37 -> Carol's issuance balance
Joe's escrow balance is V15,926.86
Carol's issuance balance is V-15,926.86

8^th month
V3,182.19 from Joe's escrow balance -> Carol's income balance.
V3.18 from Joe's escrow balance -> Local exchange
V3,185.37 -> Carol's issuance balance
Joe's escrow balance is V12,741.49
Carol's issuance balance is V-12,741.49

9^th month
V3,182.19 from Joe's escrow balance -> Carol's income balance.
V3.18 from Joe's escrow balance -> Local exchange
V3,185.37 -> Carol's issuance balance
Joe's escrow balance is V9,556.12
Carol's issuance balance is V-9,556.12

10^th month
V3,182.19 from Joe's escrow balance -> Carol's income balance.
V3.18 from Joe's escrow balance -> Local exchange
V3,185.37 -> Carol's issuance balance
Joe's escrow balance is V6,370.74
Carol's issuance balance is V-6,370.74

11^th month
V3,182.19 from Joe's escrow balance -> Carol's income balance.
V3.18 from Joe's escrow balance -> Local exchange
V3,185.37 -> Carol's issuance balance
Joe's escrow balance is V3,185.37
Carol's issuance balance is V-3185.37

12^th month
V3,182.19 from Joe's escrow balance -> Carol's income balance.
V3.18 from Joe's escrow balance -> Local exchange
V3,185.37 -> Carol's issuance balance
Joe's escrow balance is V0.00
Carol's issuance balance is V0.00

** Some will wonder from whence the Valuns come from to account for clearing Carol's issuance balance. Well, all contracts will be numbered and the total amount of issuance required for all labor contracts will have special accounts that will be opened the day of the first transaction required by each contract, identified with the contract and the total Valuns issued by the initiator of the contract, Carol, would be entered into this contract account. The accompanying account would be closed at the end of each contract.  Closed, but not destroyed.  Contracts and keeping one's word matter to us.  Each member builds a natural credit worthiness by completing these contracts.

In some instances, a balancing transaction may be required and that too would be included in the labor contract. This transaction would make sure that all balances and fees are canceled out to the nearest one hundredth of a Valun; cend, cento, fen in the proposed Valun system, always to the good of the initiator of the contract, who would be the employee, not the employer, since in this case new Valuns are in the process of being issued by those offering their labor to the market for labor; the way most new Valuns will enter the system, as simple means of splitting barter of labor for goods and services.

Now, it might be argued that Joe could simply pay Carol on an as needed basis and with Valuns directly out of his issuance balance. He could do this with a personal check or in V-Checks, our proposed cash. But Joe's issuance balance is something that derives directly from Joe's will and may not necessarily be so easily replenished. Joe could end up using up his issuance balance, and perhaps rather quickly, and then not be in a position to afford someone like Carol after a year of simply paying her V3,182.19 a month for a year. Right now that number of Valuns would be equal to $8,719.20 which would be after all equal to a salary of $104,630.40 before taxes.

So a labor contract is a way to allow Carol the right to buy herself a job and pay herself with money she issued to Joe for the express purpose of paying her for her work. (Work, the time out of the rest of your life that you spend earning money to split barter for you to buy things you really need or want.)

A labor contract accomplishes something else of considerable importance; as we've said consistently throughout this blog, the proposed parallel monetary system is neither a tax dodge nor a money laundry. All labor contracts while figured in Valuns, compute the taxable income in whatever of THEIR money is required. Under present law in the United States, that means that the A member initiating the labor contract, Carol, will get a 1099 at the end of the tax year and Carol will have to settle her taxes with THEM in THEIR money for the extra value she earned in Valuns.

Our example stated an extreme case, Carol would bid her time, etc. for all of Joe's qualifying issuance and income Valuns. What's to say Carol wouldn't want twice as much or three times as much? What places a break on Carol's right to issue Valuns? Her limit rests on two matters; 1) taxes and 2) Joe's capacity to pay Carol should he have to complete the contract; a theoretical impossibility anyway. Our 80% rule defining the most one can bid for a job prevents labor costs (hence Valun issuance) from reaching the unimaginable heights often attained in THEIR systems.

So what if Carol deceases four months into her contract with Joe? Obviously the rest of the contract is canceled. What if Joe fires Carol after the third month? Same thing happens, the rest of the contract is canceled. Contracts are often not capable of being completed. But both Joe and Carol would be given credit for completing this contract and any completed contracts signals likely completion of other contracts to those who would offer them in the future.

The examples we've presented here give some idea of how the proposed system would put into the hands of everyday people one of the most powerful and important inventions known to mankind; the right and ability under certain specific rules, to issue their own money and begin to trade, build and develop wealth and economies in parallel to THEIRS so that they can eventually renounce THEM and THEIR blood soaked system and its money, because there's nothing that can or will be done that can save THEM, THEIR systems or THEIR money, and we will not be run over, run out, discounted, displaced or thwarted, simply because we don't have enough of THEIRS. Understood?

Best,
David Burton
dpbmss@mail.com

0: AIM Citizens demand the end of the Federal Reserve

AIM Citizens demand the end of the Federal Reserve

We'll give Douglas Gabriel his due for getting about 90% of it. The remaining 10% is Riegel's contribution, and he stood on shoulders of giants, as nothing is new under the sun. He gets what THEIR money is and skirts actually saying who the core elements of THEY are, but no matter. He get's most of it.

His basic concept of what usury is and why it is evil is lacking the mathematical certainty of saying simply that taking interest on loans of money for the purpose of renting of money is always from money that was never issued, therefore guaranteeing that all THEIR money can never satisfy all THEIR debts in it. This is one reason for promoting the proposed Valun described in this blog.

Another reason is that the “Canaanites” systems are inherently dishonest and most importantly as Douglas Gabriel pointed out, the connection between money and will. What did we describe as directly related to will in our proposal? That in terms of money, fiat and will are the same thing and therefore all money must be fiat or it's commodities masquerading as money, and all THEIR fiat money is bogus since it was not issued by any of us as individual natural persons, but by “temples” whose rules, rulers and gods are not our own. All THEIR fiat money is STOLEN fiat from us. Support the recognition of the Valun: OUR money once and for all

Gabriel's biggest failure is perhaps not being aware of our observation that a monetary system is nothing but a machine of human invention. THEY, the collective enemies of mankind, have STOLEN OUR FIAT regarding this critical human invention we call money. THEY are not entitled to monopolize it, but THEY do. The reason this persists is because it was predicted to do so … until it fails, as it has done numerous times over the last few thousand years and certainly will again.

So we need a monetary machine that expresses our WILL / FIAT in the issuance of our money, designed to be honest and to disallow many practices allowed in THEIRS. Since the core of the monetary machine is accounting, we could have our own system with off the shelf software and common hardware, and the places where the accounting was done would be local. We would be applying certain 80% rules too, such as that 80% of the financial business conducted from funds in a specific area must be applied within that area only. We will no longer stand for various practices that rob localities for the greater enrichment of other localities.

Most people who are awake and aware understand the fundamental problems in today's monetary disorder and seek to build equity wealth and capital in a money that is not one of THEIRS. Gabriel was certainly well informed to second our contention that block-chain cryptocurrencies are certainly not your money and since that is true they are someone else's money that is subject to THEIR speculation schemes.

We point out that the $2.16 of 11/2/2011 by our measurement is now worth $2.77 [12/7/18] and that no matter what happens to THEIR money, in exchange for our proposal, a Valun will never fall below $2.16 and never rise above $4.32 unless the initial transaction at inception were raised as would only happen when gold rises above $2,160 an ounce, to have in our possession. So it wont ever get that close to that high unless gold becomes so abundant that it is practically worthless.

So the Valun cannot be broken by any of THEIR money. We correct the rest by disallowing certain practices entirely. You can't loan money you don't have. You can't charge interest from money that doesn't exist. You can't farm capital out of a local area to fund some scheme elsewhere. Local people, whose money ours would be, would be in charge of their destinies, not THEM.

Land was mentioned and a land registry for every piece of land on earth is part of the monetary machine. We will have one based on Valuns in every area in which we operate. Trades in land using Valuns imply different rules of title being observed.

A tenant is anyone living on or in a property as a renter, who may be paying rent in hope of eventually securing title to the land or property in question. By far the biggest scam, one only faintly hinted at by Gabriel, is that no one who is engaged in paying off a mortgage thinks that their property isn't theirs and that once they pay the mortgage off they may come to discover that they cannot receive actual legal title to the property they believe they paid for because someone else had preferential access to obtain that property from whoever the tenant might be, BY FORCE OR OTHERWISE, at any price THEY decide, not the renter. People in California and elsewhere, please take special notice of all of this.

The point we make to Thomas and Betsy and crowd is this: yes, we know what THEIR money is and from whence it comes, but money is an essential human invention that we must rescue from THEIR eventual destruction and demise. We recognize that nothing of THEIRS can be changed in any way that would not do as Gabriel has indicated, moneyed rat lines et al, but we are considerably annoyed that people bring up the same ideas all the time:

1) Moving the power of the printing press from the Federal Reserve to the US Treasury accomplishes nothing and guarantees taxation forever. Besides which, it's not in the Constitution. In fact the government has no constitutional power to print any debt instruments, which are precisely what all our paper money are, which is why they are literally owned by the Federal Reserve and not the government.

2) The IRS exists solely to guarantee that the interest payments, from money that was never issued, are paid back first, ahead of any principal owed, else (and get this) the bankers would have no money, because though they can lend it out of nothing (stolen fiat) they cannot have or spend any themselves until those taxes flow back into them! ONLY THE MONEY THAT IS ISSUED AND TAXED BACK IS BACKED MONEY.

3) But there is all that money the government spends that is not taxed back. Is that how inflation gets going? In part, but the other element that allows the government to borrow tremendous amounts of money and hence generate fabulous sums for bankers, are expenditures on the military, which are where a lot of fresh money goes to die because nothing that is bought can be sold for what it cost the government to procure it. It's probably just as well because if all that money were set loose through THEIR speculation galleries, stock exchanges, etc. inflation would be far worse than it already is.

4) And finally Gabriel has some of getting paid for doing nothing right. Capitalism is literally that itch with capital to make more on it without work, making money on one's money assumes one has money sufficient that one need not work, therefore only certain people who have more money can ever be capitalists and they must assume they can lose as well as win since as Gabriel says, the game is rigged. So we need our monetary system that disallows limited liability, that disallows preferences by any other means than records of completed contracts, that above all recognizes that our money issues from us, from our individual will and therefore that it is ours, not THEIRS, etc. Thus capitalism, finance which serves an essential service, must be held to some very straightforward rules that will make the playing better and more honest.

The rest is throughout this blog. It's the only thing that any informed person would recognize as what must be done. Our message has been consistent; “come out of HER my people, lest you be associated with HER crimes.” We must rescue a machine that our enemies have no fundamental right to monopolize but by the use of FORCE. We must recognize that our rightful will / fiat has been stolen by THEM (collective enemies of mankind) since before any of us were born. Some things you recognize when you are old enough to see them. Best.

Oh, and as for this blog's official position on the Federal Reserve or its fate? We accept that THEIR money and institutions are THEIRS and we also accept that there is no political solution. We simply don't care. We accept further that at present, THEY can, have and will again utilize governments to FORCE THEIR will (including and especially the use of THEIR stolen fiat money) on us.

Awake and aware people everywhere know that at present the world is under a beast tyranny we have identified as Mystery Babylon, which we maintain came into being at the Congress of Vienna in 1815. It's powers are purposely hidden from public view under layers of secrecy and the higher up in THEIR system one goes, the more incredible the obfuscations become. Babylon is associated with confusion. Babbling may be pleasant when it comes from a brook, but we are referencing the often inane and asinine antics of grown men and women posing as world leaders and have every right to wonder how and why homes, jobs and futures are in process of destruction everywhere, all must serve tribute to some center that draws more and never returns anything.

We are all adrift on an economic Titanic and it has already struck the iceberg. The reason awakened people the world over seek to do business using something other than THEIR money is that they are aware of our situation. Hence the Valun, hence the network of exchanges that must be organized, such is the effort required by each who reads this to help bring it about.

We have always advised everyone to stay out of the stock, bond and futures markets, that they are all rigged, that any excess money not spent to acquire absolute necessities, might best be used to settle old debt and acquire some precious metals, always bullion, not numismatics. Everything boils down to a perceived market for everything and most markets that are made are also rigged by those with the means to rig them. We have never experienced what valuations in money that is not subject to the usual factors influencing inflation would do to markets made by us using our money. We would expect far more stable prices over far longer periods of time.

We would expect that eventually, and in some cases it may take only a few years, inflation in THEIR money will show the difference in prices over time between Valuns and all of THEIRS. Should the price of gold crash, it would mean a strong dollar, but an even stronger Valun as it still matters what the present value of our original transaction in TIME amounts to and a Valun could go as high as $4.32 equivalent purchasing power. Should the price of gold soar, the dollar might be finished, but the Valun would have new initial transaction points set, always higher, never lower, than the previous one, and each time the exchange value of the Valun goes up. There is no way to beat the Valun. 

It is up to us to drive war and poverty from the face of the earth by walking out and away from THEM however and wherever possible until THEIR beast empire system finally fails. At that point, we will have our money and wont need any more of THEIRS. Understood?

Survival and revival of civilization is what this proposal is all about. From the local grass roots on up not as it has always been, from the top on down. Under our system, everyone has value, under THEIRS, THEY may decide that some are of great value while others are of no value. Understood? This proposal is about future survival. 

We also think these might be of interest to our readers:

California Firestorm Revelations from Robert Otey
 
and

SES Plan to Destroy America REVEALED

[12/9/18: Q Would you care to elaborate on what the proposal intends concerning a Valun based property registry? Would this be the business of each exchange? Who would be likely to administer this service?

A: The proposal includes a geographical arrangement based on present national and sub-national borders down to the county or similar area in other countries. Each of these would be specifically identified using the proposed IVES system. Within each of these a land registry would be devised by a business involved with dealing in real estate, not the exchange. So, we would presume that this service, a Valun based land title service, would be a B member business operating within the exchange; each exchange would have the opportunity to have a land registry associated with it. This service business would offer its services to its members within the same exchange, or to others who may not reside within the boundaries of the exchange, but may nevertheless desire to deal in Valuns. We thoroughly expect that with certain rules enforced to eliminate both usury (the taking of money from that which was never created) and compounding of interest (usury on steroids), our financing within the proposed Valun exchange network of ven, would be more attractive.

However, we will require certain things before we would accept any land or real estate deals within our proposed ven. Some of them include that all previous liens on the property must be cleared. This obviously includes any mortgages, 2nds, private deeds, notes, etc. All taxes on the property must be paid. Eventually we will want an assessment that certain things are as stated about any property and presented in Valuns. The assessment, plus whatever proposed credit contract, would be presented to the exchange to be circulated to find a funding source. There may be many offering certain rates, terms, etc. competing for the lowest price.

The terms for the debt instruments, standard Valun denominated credit contracts, will resemble names we are used to. A bill is a debt to be settled within a year. A note is a debt out to seven years. A bond is usually out to ten years, but we will allow certain kinds of debt to extend out to forty-nine years, should qualified financing for this length of debt exist.

All rental fees for money lent must be paid up front from existing money. What percentage of the principal a lender may require within the ven is determined by each market in each area served by each exchange.] 

#0: Catherine Austin Fitts - Government Taking Massive Amounts of Money Dark

Catherine Austin Fitts - Government Taking Massive Amounts of Money Dark

This is a significant conversation.  Notice the things she says about gold.  Notice that she says that gold isn't really wealth because it has no income (she calls it negative cash flow).  There is no reason why Catherine would not agree with everything we have pointed out on this blog.  Notice what she says about community currencies as being capable of building wealth.  Notice again what she says about the role of gold, still THEIR money, as regards any future community currencies.  This is why we chose gold as the basis for our initial transaction basis for our proposed international standard value unit or Valun.

There is no substitute for precious metals as a means of exchange for ANY of THEIR money for ours, period!  Do you want your money to succeed or is this just some silly game?  Those who have held aloof because we mention gold, silver, etc. are left behinds to begin with and if THEY have THEIR way, we're all perpetual debt slaves through the governments which THEY have long corrupted.  So, say, as THEY will, that our money isn't worth anything, and we will say, try buying any of it without silver or gold!  WE not THEY determine the exchange rate because the initial transaction basis for our money, does not change, while gold, silver, dollars, euros, yen, rubles, yuan, yen, etc. will change because they are all commodities based and subject to speculation, none of which we control.

So, the present value of a transaction on 11/2/2011 that was $2.16 is currently $2.79 [11/23/18] and should the price of gold rise above inception, a new inception is chosen higher, never lower than the previous one, and all Valuns assume the same exchange rate thereafter.

If gold rises above $2,160 per ounce to hold, not spot, then the new inception point is announced through IVES (the proposed International Valun Exchange Society) and all Valuns assume that exchange with THEIR money.  For example, let's suppose that the price of gold goes to $3,000 an ounce.  The new inception becomes $3 = V1 and then when the price of gold falls, as it usually will, the Valun just gets heavier against dollars and gold because it takes more to buy the present value of the initial transaction.

We're saying that the Valun will be worth holding as well as worth spending, else we would have just gone with one of THEIR commodities money models and been back in the same dire places we are now with all THEIR money.  Also, since this proposal is neither a tax dodge, nor a money laundry, there is no exchange back into any of THEIR money.  All our money will pass out of existence through depreciation of assets as it does with all money.  Those not getting this important fact can consider themselves economics dunces.

Now of course, someone within the Valun community may be willing to sell you some gold or silver for your Valuns and those can be cashed back into THEIR money, but the chances to earn any extra purchasing power this was are strenuous and limited.  At Valun inception back at 11/2/2011, an ounce of gold would have cost 1,000 Valuns, but right now that same ounce of gold will only be offered for around V706.60 because that's all gold is worth to us on 11/24/2018.  An ounce of silver gets around V6.36, not its original V19.56.  It's still THEIR money, whereas the Valun has not moved.

What is anything really worth?  It changes from day to day.  But we would appreciate using a standard of reference for our money that does not change.  With other serious flaws in THEIR system which this proposal has deliberately chosen to correct, we feel secure in presenting to the general public the only serious way out from under THEM.  Understood?

#61.4: What We Know Now - Nuts & Bolts of Money

Yes, the subject is money; THEIRS and ours.

Money is the one subject that gives most people the most trouble. Yet, money is a simple subject. Objectively, it's a basic human invention, a devised machine to save time and energy. Rather than speak as THEIR economists do, we need to get simple, so that simple people, of which there are many, can still understand. Because if they do, it will help them.

Should you not consider yourself among the simple, perhaps you would entertain proving it by getting yourself fully acquainted with the contents of this blog and consider a course of reading outlined here. That way we can all be on the same page, etc.

We will also try for a little more lighthearted and perhaps even cheery tone as we discuss some things about THEIR money and ours. Yes, the subject is money, our money, and THEIRS. THEIRS includes “national” or “supranational” currencies (like the euro or the west African franc or the US or any other dollars), precious metals and cryptocurrencies, all of which we have identified as THEIR money, not yours or mine. Ours would be all money that we as individual natural persons issue. If we didn't issue it, it isn't ours and to the extent this is true, and we have nothing to use but THEIRS, we are THEIR slaves.

Some preliminaries: 

Freedom is not having to ask anyone's permission. 

Liberty means that someone has given you permission. 

Usury is the rent of money taken out of money that doesn't exist. 

Work is the time out of your life you spend to earn money. 

Wealth is anything capable of providing an income. (Therefore profit is necessary and without it economies die, living standards fall rapidly and civilization itself becomes … unsustainable.) 

Income is the natural product of wealth. 

Capitalism is making money on money without work. 

Socialism (always state socialism) is giving back to those whose wealth was stolen or destroyed by the capitalists, a consolation prize for not winning in THEIR game. Our solution we call “natural socialism” where a community of people that know each other arrange to take care of those who are less fortunate among them.

A contract is an agreement you might have with someone else. Most people think of contracts as between themselves and one of THEIR institutions that are FORCED on us. That's a matter not covered in this blog. But the basis for our proposed monetary system are contracts, which we are all entitled to engage in under natural law and this natural right is recognized by the American Bill of Rights (first ten amendments to the US Constitution, without which that contract does not stand and would never have been ratified). We have already written much concerning contacts, as did E. C. Riegel. We would have to say that if a contact is not simple enough for the people engaged in it to understand, then there is probably something wrong with the contract. 

Free Enterprise (the title of one of E. C. Riegel's works was Private Enterprise Money) is the natural right of all natural people to exercise for personal profit and enrichment, what nature or “nature's God” has given them. This is what we call innate wealth (time or products one has or produces that are worth paying for). 

Barter and trade are to us synonymous terms. Barter never goes away whether money is used or not. Whole barter is a trade without using money. Split barter is a trade using money. 

Transactions are records (accounts) of all barter. We assume money is used and accounted for, but we know of accounting instances involving whole barter agreements as well. 

Accounts are collections of money transactions by date.

A ledger (n) is the complete set of accounts; “the books.” Our proposal includes a ledger that is comprised of all the accounts anywhere in any exchange of our system stretched across the world. THEIR systems employ many ledgers allowing many kinds of fraud. 

A journal or journal entry is the accounting required to represent a transaction in a ledger.  There may be several journals for any transaction.  

Money is a necessary and game changing human invention, like the wheel, the discovery and control of fire, the uses of resources, mining, metallurgy, agriculture, husbandry, etc. a basic human tool to improve our lives and build our wealth.

Wealth to us is not just stuff. All genuine wealth to us must provide an income or it isn't wealth. There are plenty of ruined or abandoned properties to prove this point correct. This is part of the education most of you never got and need to know, because what you know will affect any future decisions you decide to take in your life. So money, what is it and what does it do? 

Money is a measure of value in a trade. As we on this blog would see it, in line with E. C. Riegel's observations, money is compared to a measuring rod which measures value in any transaction, be that in time for time, time for produce, produce for time, produce for produce, or any combination of these, determined in the units of this measurement, over a definite span of time.

Hence, a unit of money is a unit of measurement of value. It would be best if that measurement did not change very much if at all. So our money will remain stable while THEIRS fluctuates within a predictable range in exchange for ours. We have tracked this now for seven years. 

All money is an instance of debt, all of it, including precious metals used as money. For most people, having money is to satisfy real needs; housing, food, transportation, etc. Any money one acquires therefore represents unfinished barter transactions. You acquired the money in exchange for something, but as long as you hold that money without spending it, it represents a potential call on available product or time for sale in that money. Debt is cleared when money exchanged for goods clears the barter. But how does money disappear? We'll get to that. 

Debt can last as long as contracts allow it to last, In our proposal from a moment out to forty-nine years. If you exchange a half Valun V-Check for something for sale for a half Valun, then the debt that the V-check represents is cleared by that transaction; the V-Check participates in satisfying that trade. Contracts involving debt include the notes of THEIRS we carry around as cash and include such things as bills, notes and bonds. In our proposal, the fiftieth year would be a year of settlement, a real jubilee year. We will simply not allow old debt to last past that time.

If we begin with Valun inception in 2011, despite whether we have a functioning Valun exchange network active or not, then the jubilee year would be 2061. 

Money is the means for nearly unlimited trade. Not unlimited in what it may buy, but potentially limitless regarding goods and services commonly purchased. Money is easily mankind's most vital invention. It cannot be dispensed with! Without it, you'd be subject to whole barter, which is clumsy to say the least, and with it, living standards would plunge back to times when life for most was “nasty, brutish and short.”

Those who value civilization and its conveniences, minus its rascals and THEIR rackets, understand the crucial role of money, even if they disagree about the solution to a substitute for THEIR money. Such matters are not really our concern and neither should they be yours. We cannot do anything about THEM or THEIR money and institutions, THEIR instrumentalities, etc. These include whether one is best served stacking precious metals or investing in cryptocurrencies.

But among the two, our clear preference of these is precious metals, because when the lights, computers, internet, etc. are all off and not coming back on, at least you have something to barter with. Gold and silver were the original and oldest of THEIR brands of money and were the first attempts at pure split barter. In those early times, the Middle Ages and before, money was not just these gold and silver coins, but always included the accounting. This occurred, of course, close to where the powerful lived; those who controlled or were able to mobilize whatever FORCE was required to rule others. There has always been a direct connection between the money issuing power and the military industrial complex, going back thousands of years. This connection was not and is not changed by adhering to a monetary system where only precious metals are used. Any proposal for an alternative to THEIR money must BREAK this connection at its roots by monetizing its members, the people, rather than giving in to the idea that money must issue from some government or some bank as open ended (infinite debt) STOLEN fiat credit.

Stolen fiat, from who? Stolen fiat from YOU, since before you were born. So it isn't yours; the money you've worked for, for so many years is not yours. It was not issued by you. We need money that we issue, that circulates as well as THEIRS, so that when THEIRS fails, we will have something to fall back on so we wont need THEIRS as ultimately this is a lifeboat system proposed to eventually be the only money that survives.

We are saying in effect that we will not be quietly driven back into lives that were “nasty, brutish and short” because we have none of THEIR money. We will be acquainted with what the proposed V-Checks would be worth in dollars and by comparison with any other currencies in the world. At the top and to the right of the top of this blog, we post the current equivalent purchasing power of the proposed international standard value unit or Valun.

We listen daily to what economists say concerning THEIR system. Most who comment regularly on subjects related to money, must of course be dealing expressly and exclusively with events represented by THEIR money and its customs and institutions. What can any of THEM know to comment on concerning our money, or its probable economics, with the same degree of certainty or uncertainty in which they cover THEIRS? We think THEY cannot.

Furthermore, even considering precious metals and cryptocurrencies, matters of money laundering and tax evasion can bring many … what shall we call them? … those scared of the “national” currencies to consider “investing” in something else? What? Do they understand that what all of this “public” stolen fiat money has in common is sinking purchasing power, especially over the long haul? These kinds do know, of course. So good. E. C. Riegel was interested in this phenomenon we call price inflation a long time ago. Much earlier, Arthur Kitson understood some of the same realities Riegel did later.

Our proposed money, running in parallel with THEIRS, provides us a means to build equity and capital in another currency that is designed to preserve purchasing poser over time no matter what happens to any of THEIR money.

There is nothing else remotely like this proposal. So forget about dispensing with money and hoping to have your needs met by whole barter out into the future just because you refuse to accept the legitimacy of any of THEIRS. Money is a tremendously important efficiency tool. The problem is WHOSE money has everyone been using?

Contrary to the widespread ignorant and obtuse (er … stupid) viewpoint that money is one thing and barter another, transactions with all money settle terms of barter. Barter never goes away. Yes, I will keep repeating a few things so the simple can understand, learn and avoid future scams. Money solves the whole barter problem by splitting all buying and selling transactions between buyers and sellers (money splits whole barter).

By the way, all trades involving precious metals are barter posing as money rather than what we understand as money. Gold and silver are floating values just as any commodity having a market and those markets are affected by things as simple as location. The best place to see and deal in diamonds are … certain streets in the major cities. What we've said concerning precious metals is also true of cryptocurrencies since all of them fall into “buy and hold” commodities speculation models, so when conducting trade in any of these, one is bartering for a commodity whose values may change dramatically, in order to eventually complete the barter by spending some of that commodity money on things or services you really want.

Notice that barter begins by having something to offer others; something someone else would pay you for; time or produce or some combination of both; work. We've already said that labor is the basis of value. We each earn money through work. Work is the time out of the rest of our lives devoted to earning money. Yes, we repeat some ideas often so that they sink in, because most people were never given sensible explanations about very much of anything in the real world; so much for “free” or “public” education! It has always been only as good as the “powers that be” wanted for their subject populations and nothing much more. Too damn bad if you assume I'm just being cynical. 

Money is not just the tokens used. All money is accounted for on accounts, which take some physical form; figuratively and actually “the books” - figures on paper, nowadays they are recorded on some digital device. In ancient times, clay tablets were used, some which we still have to the present day.

Money (as everyone experiences it as cash, coins, checks, cards, etc.) is the visible manifestation of the accounting machine representing it. Yes, we call what we intend here a machine, simple as that. That's what a monetary system is; a machine. We call the full set of accounts of all branches of a monetary system a ledger. The heart of the money is literally accounted for over time in a ledger. It can take any convenient form, but it must be ultimately available in printed form and able to be backed up and corrected.

But we are speaking only of our own proposal here; ours is a single ledger around the world. THEIR monetary system allows multiple ledgers, so a single person might masquerade as a dozen people anywhere around the world. Such is the case with THEIR money, systems, customs and institutions.

The birth of money: 

All modern money we know of that is “public” money, THEIRS of course, begins as a loan from a central bank to a government and that government spends money into an economy. For the United States, 50% of all that money goes into military expenditures. By comparison, portions of public outlay for Social Security and Medicare are always proportionately far less. Increasingly, the interest on this debt becomes an ever greater part of each government's yearly expenditures … until it becomes unpayable and THEIR system crashes and often the governments with them.

This money introduced through government spending “trickles down” to the rest of us in one form or another. In order to keep basic goods and services flowing, adequate money must be added to the system or the economy dies. Why is this so? Because money itself dies! Yes folks, all money dies. When any unit of money dies, It ceases to exist, never to return. It falls off of the accounts! But, how does this happen?

The death of Money:

Depreciation of assets is the death of all money. When you buy something, anything for a particular price (let's say $10) and then sell it for less (let's say $5), the difference ($5) amounts to money that has left the money supply and is gone forever. Now imagine how this actually happens as used goods pass from first owners on down the line. All along as prices diminish, more money is lost, gone forever.

I have responded to many out there who inform me that they find things for cheap and sell them for many times what they paid for them, so this isn't exactly so. Yes, but just because some things might seem to appreciate, all that indicates is that some values are still useful even if they become rare. All really good fine art is supposedly in this category of “investment” as it tends to appreciate long after it was created. But usually, depreciation is the case and things tend to lose value over time and as they do so, money disappears.

If for example, money is spent to build something that can never be sold for what it cost to make (most military gear), all that money is effectively lost. Those who contributed time and material to make military equipment are compensated in THEIR money, paid from the government, who borrowed it from the central bank, at interest; more money must be paid back than was borrowed, and the extra rent money has to come from money that doesn't even exist! So the extra money to pay these debts must be contended for among all who use it. There is never enough to cover all THEIR debts.

The second and third hand markets for any capital good, from a heavy tool to some elaborate piece of equipment, tell the story writ large of the death of money, never to return. We have seen plenty of videos of abandoned mansions, castles, factories, hotels, amusement parks, etc. to prove this correct. Derelict properties of all kinds and descriptions are evidence of the death of money.

We are able to spot graveyards of value where money has died never to return. There are countless numbers of various hard assets that literally have no buyers and have lost perhaps better than 90% of the money originally spent to construct them.

So new money must come from somewhere. From where? THEIR money can be grouped into three different forms; precious metals, paper notes and cryptocurrencies.

YES, ALL cryptocurrencies fall into the “buy and hold” commodities speculation schemes and YES, all of these are THEIR money and you are subject to THEM as you use it; to gain or lose purchasing power at THEIR whim. Same with precious metals; THEY own the mines, run the mints and control the markets. No precious metals tokens are your money either.

All THEIR “national” or “public” currency money begins as more government debt. How can the government pay its debt? It can't. Governments are not in business to sell anybody anything. That's one very good reason why communism is a stupid and failed idea; anyone who still believes in it, is either a fool, an idiot (you can still learn), or a sociopath (all real hard core commies are psychotics). A government would have to tax back every unit of money it spent and within a short time too, in order to “back” the money; money spent = taxes collected, because the government has nothing worth selling that anyone really wants to buy. Governments are THEIR perpetual “best credit risk” debt slaves.

This setup must automatically cause price inflation, because backed and unbacked notes float around together and affect prices based on THEIR market speculation schemes, more ways for speculators and other “special” people to make money on money without actually producing any good or service. What did we call that? That's right; it's capitalism, an itch with capital, one has to make money on money without work, taking the risk that this will happen, when in some cases it doesn't and these people lose money. How? I just told you, the assets they bought can't be sold for what was originally paid for them. If “securities” assets are FORCED to be sold for anything less than they were bought for, the difference amounts to money that is gone forever. Depreciation is actually the brakes on the inflationary process, otherwise prices would rise even faster than they do.

Under such conditions, those producing some good or service actually make money to split their barter for goods produced or time spent. We identify this as free enterprise. Capitalism produces nothing and we identify making money on money without work as capitalism. The two concepts are distinct and separate and are not to be confused on this blog as they are usually treated as interchangeable terms by most people, through THEIR direct manipulation of the facts to convince the general public that the two ideas are the same.

We have said something to the effect that government's purpose is to enforce the laws. It's purpose does not naturally or necessarily extend to having the right of first purchase or first indebtedness to any bank. But that's the way it is and fits how THEY see it. The chief purpose for government as THEY see it is to:  

1) pay the interest on the debt (always mathematically from money that was never created / issued) and

2) to perpetuate the central bank as final arbiters of all national (and international) credit

We hope the simple have followed us this far.

Now the rest is going to be a little more difficult for some because for our proposal we have built in some nice features that require some accounting infrastructure.

Our proposed alternative and complementary monetary system / accounting machine, financial lifeboat, would consist of a network of local exchanges, where all local accounts on the worldwide ven (Valun exchange network) ledger are managed; transactions cleared, contracts made, etc.

As we've described earlier, each A member is capable of issuing money in what we call Value Units, aka Valuns. Each A member has one account that is actually three account balances; issuance, income and escrow and each B member business account has an account that is actually three account balances; equity, income and escrow.  

B member businesses buy advertising which appears on the back sides of our proposed cash instruments, the V-Checks, which are six month duration open checks on the cash accounts of each local exchange. When they expire, each V-Check can be exchanged for newer V-Checks or deposited into any of our member accounts.

None of the money in any exchange is automatically subject to any fractional reserve lending, because no exchange is in the money lending business and all money in all accounts belongs to its members. There is no need to have any deposit insurance, as all of the money in all our accounts would be uncontested; all the money belongs to the members, not to the exchanges.

Now here's something different.

Our proposal allows any of our working A members to earn our money while earning THEIRS, as long as taxes are paid on the extra value earned, taxes which must be paid in THEIR money of course.

Where does this money that you earn, that isn't THEIRS, come from? YOU ISSUE IT! You are paid in your own money as you work. You backed it with the time you spent working.

One of our 80% rules places the upper limit on how much of our money may be earned in this way. We allow up to 80% of the remuneration in THEIR money represented in our money.

Right now, on 9/24/18 a proposed Valun is $2.82, so if one contracted to issue 80% of a yearly salary of $100,000 it would be (100,000/2.82 = V35,460.99 * 0.80) or V28,368.79. Or right now $80,000 = V28,368.79 (80,000/2.82 = 28368.79 QED).  That would be V2,364.07 per month (equivalent purchasing power of $6,666.68 per month)

Similar equivalents on down the line would be as follows: yearly salaries in USD, max allowed Valun issuance following the 80% rule.

$75,000 : $60,000 / 2.82 = V21,276.60 : V1,773.05 per month 
     (equivalent purchasing power of $5,000.00 per month)

$50,000 : $40,000 / 2.82 = V14,184.40 : V1,182.03 per month  
     (equivalent purchasing power of $3,333.32 per month)

$25,000 : $20,000 / 2.82 = V7,092.20 : V591.02 per month  
     (equivalent purchasing power of $1,666.68 per month)

But what if you are a craftsman and your contracts figure in remunerations and taxes in THEIR money as well as payment in ours? Consider our discussions here:

#78 Self Financing of Labour & Cost Accounting 

#79 Self Financing of Labour & The Skilled Artisan 

As an A member, we each have three account balances associated with our member id, whatever we decide that is to be. All A member ids are unique. If you move your A member account to another exchange, you take your A member id with you.

If we want to transfer money from our account to another account, with another member id, we would pay a transfer fee. This is how the exchanges make money in Valuns. They make money in “national” currencies through sales of advertising and arranging adequate printing programs, so that there are sufficient V-Check blanks, which will all change from time to time to defeat any potential counterfeiting attempts.

The fee E. C. Riegel suggested for transaction fees would be one tenth of one percent. That's 0.1% or 0.001 or in Valun terms, V0.01 = USD 0.0282 or about three cents. So on (9/22/18), V0.01 moves V10 ($28.20 on 9/22/18) or less between accounts. That's the least one would pay to transfer V10 or less.

So it takes V0.10 to move V100, V1.00 to move V1,000.00, etc.

Each exchange gets paid in Valuns and sells advertising to get whatever “public” currencies are required to pay taxes and print V-Check blanks. Each local exchange has their own set. These ad invoices are paid into each exchange's ad account in one of THEIR banks, until required to pay any taxes or other expenses that must be paid in THEIR money … until only ours remains. All exchanges are B members in their own accounts so fees in Valuns are paid into the exchange's B member income account and are hence subject to taxes payable in “national” currencies; pay unto Caesar that which is Caesar's.

There is another way Valuns may enter the system and by which each exchange earns money, THEIR money. It's when an A member (only A members are allowed to do this) decides to tender some of THEIR money for some of ours: an A member comes into an exchange with some of THEIR money and wants to buy some of ours.

Let's say Jack, an A member, comes into an exchange and decides to buy $1,000 cash worth of Valuns. The officer at the exchange determines, by looking at the latest exchange rates from IVES, that V1 = $2.82, therefore 1,000/2.82 = 354.61 or V354.61 (stated as three hundred fifty four Valuns and 61 cend, cento, fen). The exchange takes the $1,000 cash and buys gold or silver bullion with it (no numismatic coins, thank-you very much) and credits Jack's account. Jack may automatically want some of our money in V-Checks. But if he merely deposits it, into which balance do the new Valuns go? Into Jack's issuance balance!

Why? We're presuming two things:  

1) all cash in “national” currencies tendered as exchange for Valuns must be “after tax” money and

2) since no exchange can hold any of THEIR money on account except precious metals, this money must purchase gold or silver, which assets belong to the exchange, not the member that purchased the Valuns.

Does an A member incur a charge from the exchange for making such a transaction? No! A member is trading cash in some of THEIR “national” currencies for Valuns.

We already said that there is a charge to move Valuns between member accounts. But this is a deposit into an account for which there is no charge.

Likewise, should the member want those Valuns in our cash, the V-Checks, the member get's his V-Checks without further transaction fees because the transaction involves a member account and the exchange's cash account from which all V-Checks are drawn and through which no fees are ever charged. We want people to use our V-Checks.

B Members:

We accept that the legal structures of most businesses are sufficient to determine who is acceptable as a B member and who is not; sole proprietors, partnerships, family businesses, even general and limited partnerships are allowed.

But ANY business operated as a “public” stock company is ineligible to join ANY Valun exchange, because such institutions defy our rules; no business that is not owned and actually run by its owners is ever allowed to become a B member.

ANY business listed on ANY stock exchange immediately disqualifies it from membership. Such businesses are “absentee owned” by their shareholders and this disqualifies them as responsible businesses; they rely on “limited liability” for their activities, etc. Most of these organizations are also not living according to the diminishing returns to scale rule and are hence inefficient and prone to failure sooner or later. We just found out that since 1934, no “public” corporation needs to keep a good set of books according to generally accepted accounting principles (GAAP) if they can get a reprieve from the government for purposes of “national security.” So that means that no potential “investor” out there can ever even know whether what they are invested in, is in any kind of sound accounting or financial condition. So we want none of this nonsense going forward.

We will begin to notice that businesses spring forth to serve some definite needs and that usually any “build them and they will come” businesses must be preceded by some real longstanding need for certain kinds of goods or services in the local communities in which they operate.

Most Valuns will be issued through labor contracts involving jobs. When pricing out a job in Valuns, one considers one's ability to hire another member. All labor contracts in Valuns require that the employer have sufficient capitalization to support the claims on its escrow balance, from which all regularly scheduled payments are paid. All escrow balances per month have to fall under 80% of the company's total equity and income balances.

Of the three B member balances, the equity (ownership) balance is most important, as that is where the company's fixed asset base is accounted for. If a business is willing to account for fixed assets (land, machinery, equipment, buildings, etc.) in Valuns, that figure goes into the equity balance, and is expected to have reductions made to it according to the local rules for depreciation of assets, as these affect taxes, not to be determined by any exchange, but according to what is allowed by local taxing authorities.

The Depreciation Allowance Contract:

A special kind of contract will take care of this called a Depreciation Allowance Contract or DAC. A DAC is between the B member business and the exchange, which states that a particular number of years has been determined for any asset (or bundle of assets) to depreciate, except for land which is never depreciated.  

This is another single sheet of paper contract that is in effect for the number of years specified on it or until the B member business perhaps folds, as can always happen. A DAC results in a number of predetermined in time transactions against the equity balance, which reduces it.

Where do the Valuns go that are removed in this way from B member equities balances? They go away, never to return. There is never anywhere they may be used, reissued or circulated. Each exchange will have a dummy account for such purposes, because all real double entry bookkeeping systems, and ours will certainly be one, must have two accounts to balance.  At the end of each DAC, another entry to the books cancels the amount in the dummy account against the accumulated reductions from the B member equity balance.

Let's continue with B members. B members are usually organizations made up of A members, but may contain members, who for whatever reason, can't be A members. Most B members would be presumed to be organized as “going concern” for profit businesses, interested in maintaining their positions and assuming whatever growth up to the limits of their capacity; the gradual diminishing returns to scale will allow, until one actually reaches the point where the business is so large that inefficiencies to scale are revealed.

Again, wealth to us must provide an income or it isn't wealth, therefore in monetary terms, which determine the barter the organization engages in with the rest of the Valun exchange membership, locally or elsewhere, income represented in a B member's income balance, over expenses largely paid out of the escrow balance, determines profitability.

The equity balance represents what the organization would be worth in Valuns if it were an asset to be sold to another member, whether that be an A or B member. Usually those wholly owned material assets that the organization sells along with the business, are given comparable value in Valuns and accumulated and accounted for in this balance.

B members may overlay existing businesses that would run a percentage of their business in Valuns. They may be made up of freelance artists in some kind of shared partnership. But said organization would not be admissible if they are owned by absentee owners; have publicly traded shares.

What if the owners are known particular natural persons living at some distance from said organization? They may not be accorded A membership in the local exchange where the B membership is located; some of the known owners fail our domicile rule, but still count as known and responsible owners. What the B membership contract asserts is that these people are known natural persons and have agreed to the contract between them and the local Valun exchange, whether they can be A members of that exchange or not.

A members that work in “public” institutions are earning Valuns, which they issue themselves to dummy accounts representing these institutions, because these institutions cannot be B members. As they get paid in local “public” currencies, they get paid back their Valuns.

Some A members, perhaps as much as 50% to begin with, will be those who qualify for our promise to invest them with an issuance balance equal in Valuns to the total value of their pensions from the inception of the Valun on 11/2/11. These balances could be the equivalent of millions of dollars of potential purchasing power in any community.

The reason they cannot be taxed as income, is that they represent the Valun community's monetization of the will of these A members as a recognition of what they have already contributed to society in their lives. So the issuance balance in an A member account represents the will of that individual. It becomes an asset that can be willed to another A member upon said member's decease, as is part of the A member's membership contract.

So if an A member comes in with some of THEIR money, which we must turn into precious metals at whatever prices the exchange requires, the resulting Valuns first appear in that member's issuance balance. Once there, the A member could:

1) Get some of it as V-Checks.

2) Deposit some of it into another's account using a personal check.

3) Move some of it into the escrow account to pay upcoming regularly paid bills scheduled by credit contracts.

Of these transactions, which incurs a transaction fee and what is it? The correct answer is 2, because the transaction involves moving money from one account to another. The transaction fee is always going to be one tenth of one percent of the Valuns transferred.  Getting V-Checks never results in a fee and transferring some Valuns from issuance or income into escrow never results in a fee because the transfer is made within the member's account.

Personal checks will allow Valuns down to the cend (cento, fen) and will incur a transaction fee of one tenth of one percent of the transfer. Personal checks for A members may be drawn on either the issuance or income balances and yes there will be business checks too for B members and they may be drawn on either the equity or income balances.

In a forthcoming piece, we will discuss the pools of liquidity that some of the foregoing described as we consider 3 locations and their relative demographics. Perhaps after this analysis, people from other areas will see what we're getting at with this proposal more quickly.

David Burton

dpbmss@mail.com