#113.7 The Proposal - How It Works - Part 7

The basis for all the proposed money in our parallel market, hence, our parallel economy, is this single transaction.

Current news concerning alternative currencies has indicated certain distinct directions for this blog's proposal. The question relates to our dealing with other monetary systems, while they last. Remember, we wouldn't have to be advocating an alternative monetary order if all that's out there were really ours. We can't rely on THEM for anything except to pay THEM our taxes in THEIR money. Therefore (by direct extension) it is proposed that at a minimum, each local independent exchange would have an account in some regular bank for the purpose of paying taxes and for the time being, paying any other expense that must be paid in THEIR money. 

But as for dues – one Valun each year from each A member - we accept those as income to each local exchange, that might better be secured in precious metals, because we cannot be doing business with our enemies by having too much of THEIR money tied up in one of THEIR businesses. 

We recognize that precious metals are the two oldest brands of THEIR money, but they are besides actual tangible objects valued for their metal content as it is determined by and for THEM and they are easily traded back into THEIR money for paying taxes. So we would start by suggesting that each independent exchange do what it will inevitably need to do eventually anyway; start some kind of account with a preferably local precious metals dealer.

So each independent exchange would be organized to have:
1. A regular business bank account with which to pay taxes in THEIR money.
2. An account with a local precious metals dealer where annual dues are exchanged for precious metals. (All exchanges of money other than dues would likewise be traded for precious metals) : Each exchange would need a vault. 

At this time (2/4/18) gold and silver are trading at a ratio of 79.96 to 1. That means for every nearly eighty ounces of silver, one has one ounce of gold. What buyers for each local independent Valun exchange would be doing is stacking precious metals to pay for its own needs and ultimately if necessary to be sold into the bank account to pay taxes. 

We are building a sinking fund to provide for setting up and maintaining an exchange, a local for profit business. We would rather be holding that fund in precious metals than any of THEIR stolen fiat currencies. We recognize that what we would be holding our dues in is in either of THEIR “buy and hold” commodity money tokens. But, as the saying goes, though paper may fly, metals are forever. They aren't actually, as electrolysis is capable of corroding any metal.

If everything were to fall back to whole barter, we will still have our precious metals with which to barter, and then one would be surprised to learn how little gold and silver would really buy. Some people wouldn't even take them. When everything falls back to whole barter, everything is worse and disintegrates rapidly because money, performing it's function to split barter, also allows improved usage of labor and energy.

We cannot do without money. Besides being insurance against THEIRS inevitably failing, our proposal is specifically aimed at preventing a fall back to whole barter, since to fall back that far is to doom most to lives that are “nasty, brutish and short.” Think the times of the 3^rd through 6^th centuries. 

These precious metals reserves, the buffer between our system and THEIRS, are the joint property of each local independent exchange and cannot be considered as separable assets among the owners of said exchange.

For ease of analysis, we're going to use a base unit of 10,000 A members. 

At this point in time (2/6/18), a Valun is $2.65, so each A member would pay the dues of 1 Valun and the proceeds of all that would be used to buy precious metals. 10,000 A members generate dues of around $26,500 which today might buy almost 16 oz. of gold or 1,271 ounces of silver. 

The treasurer of each exchange would work with the metals dealer to maximize the retained value for exchange with the local public currency for preserving purchasing power in the local currency for paying any expected taxes on the income of the exchange which would primarily be through transaction fees and the sales of advertising that would go on the reverse sides of the circulating cash in our system, the V-Check.

But again, this is a sinking fund in THEIR money (in this case precious metals) that is used to set up the exchange. None of this is our money!

For each of these units of 10,000 A members, we might require:

20,000 ½ Valun V-Checks 
20,000 1 Valun V-Checks 
10,000 2 Valun V-Checks
5,000 5 Valun V-Checks and
1,000 10 Valun V-Checks

to be printed every six months. We may need even more depending on how each community develops. Before we got started, we'd have to ask our members what they want; how often they'd be likely to spend cash, use a personal check (yes, we will have those too), etc. There will be printing costs to be covered from the sinking fund; sell the metals you need and buy the print jobs with local money. Likewise, each exchange takes in local money from selling the advertising to B member businesses which appear on the reverse sides of these V-Checks. These are sources of income to the local exchange. 

We see that through THEIR credit/debit cards, THEY (usual suspects) collect around 2% per transaction. Our costs would be 0.01% per transaction; one tenth of one percent. At present (2/6/18), 2% of a Valun would be slightly more than a nickel. One tenth of one percent of a Valun would be $0.00265 or about a quarter of a penny. The more transaction volume occurs, the more income the exchange makes, always in Valuns.

You would have three sources of income to the exchange;

Membership dues in local money
Advertising revenue in local money
Transaction fees in Valuns

Taxes on the Valuns each exchange makes must be paid in local money. So this is where the sinking fund comes in. Who has first (senior) claim on anyone's supposed money? (We're talking about THEIR money in THEIR institutions with your name on it) Creditors do, beginning with the state under which one lives. All taxes will be paid and eventually the states will thank us for it. THEY have the FORCE, you don't.

Exchanges will also exchange local money for Valuns, a one way exchange as this is not a money laundry and we're promoting our own parallel economy to be there when THEIRS fails. There wont be any exchange fees for this, but there certainly will be limits to the amounts we'd be willing to accept in exchange, to be established completely under the local terms of law. Law is FORCE. THEY have it and you don't. There are laws against structuring exchange out of any of THEIR money that may be in effect. That's why we need lawyers to sort those details out. All local “public” money we accept will be traded immediately for precious metals.

At present $1 = V .3573 or slightly more than a third of a Valun. $100 gets you V35.73 stated as thirty-five Valuns seventy-three cend (send, fen, our penny). $1,000 = V357.30 and $10,000 = V3,573.00 and I can't imagine those levels of exchange, except perhaps to establish a financial business within the trading community (Valun exchange network or ven). All businesses B members understand that it is our intention to establish trading in Valuns and that there is no way back into THEIR money from ours. This is not just some other “buy and hold” investment or money laundry. Once up and running, we are willing to defend something that is actually ours, that we each have ownership in, where the money in our accounts is issued by us and backed by our work and our will (Fiat). What's a Valun worth? It's worth what we say it is worth based on very simple rules, again all under contract. Today it would be worth $2.65 and no exchange would take anything less. All THEIR stolen fiat currency would be exchanged for precious metals and those would belong to the exchange for purchasing needed staples and paying taxes.

There is a fellow out there, David Morgan  (yeah some of you might want his services), who made a few statements the other day regarding competing monetary systems. He lumped them conveniently into two categories; commodity based and contract based. He said he preferred commodities basis, without even considering that any and all commodities are subject to speculation, the making of money on money without work (capitalism) by a few speculators. Supposedly all this speculation contributes to the stability of prices which is an outright lie and has little to no bearing on how actual prices for anything are actually established in any market.

Establishing prices using a commodity is measuring one commodity with another, like measuring with an infinitely elastic ruler, where today's inch or mile is likely to get shorter tomorrow. No, David. Contract basis is infinitely superior to commodity basis as for instance in order to preserve purchasing power you select a nice chunk of purchasing power that has already happened and you just take the present value of that chunk of purchasing power determined by THEIR speculators. At inception the proposed international standard value unit or Valun began at $2.16 but to purchase that same unit of purchasing power today you need more gold, so today (2/8/18) it takes $2.65.

Everything our members do will be associated with sets of very simple contracts, usually one page. Recall that many of our members may be illiterate, so everything has to be kept very simple. The money basis will be a transaction that has already happened between the local currency and gold that can never fall lower than the inception exchange rate because were that to happen, the authority vested in the proposed International Valun Exchange Society or IVES, would raise that transaction (can never lower it), and the result would be that every single last Valun would become heavier against the local currency. The potential tops for any Valun are what the initial chunk of purchasing power would be worth if gold became worthless. Right now, that's $4.32 so this is not some get rich quick, sky is the limit, speculate on some “buy and hold” digital commodity posturing as money. Long term, our money will be the one to be holding and will retain its value over all others including gold and silver, which are still THEIR money, not ours, because we have nothing to do with determining its value, THEY do. THEY also control the majority of the mines, mints and all the speculation on them, we don't. It's not likely we ever will. We don't even really want or need any gold or silver per se. We have better things to do, like make things, grow things, provide services, do things, raise families and enjoy our lives.

We want to encourage local commerce and build local networks of supply to reliable local customers paying in a reliable currency where prices will tend to fall into predictable price points and where cost accounting can be more accurate over far longer periods of time. Rather than seeking over inefficiencies to scale which are subject to sharp changes in demand and of course are intended as monopolies, we prefer greater economic redundancies and more competition, respect for efficiencies to scale, different ways of approximating the real costs and advantages of competing techniques, etc.

If people say they want diversity, then we prefer a diversity that each diverse tribe and society decides for themselves, not one dictated to them from on high by some supreme “scientific” authority with no real local stake in anything. Again, the solutions are not political, they are economic; having to do with the flow of money and where the flow of money can be encouraged, there will be more opportunities to extend and develop each member's innate wealth. Don't expect to realize anything with THEIR money, which is shrinking in value with every passing day.

If you intend on being a long lasting local business using Valuns, it makes sense that you would want to enroll as many of your friends and neighbors as possible into the effort. Begin to see things in a different way; we all live in societies where we are at the mercy of money that isn't ours for the things we want and need to do most. All that money belongs to somebody else over whom you have no control whatsoever. Whether politics; all that babbling, name calling and destroying of people's reputation for sport, accomplished much of anything, more and more people are seeking to move back and away from all that and figure out what to do to make their own lives better and it all boils down to not enough money.

We offer a proposed system that starts every member with V200 or about $530 comparable purchasing power. Again, 10,000 A members with V200 each represents $5,300,000 of purchasing power.

We also offer to resurrect any and all pensions up to 100% of their value in local money in Valuns and to do that going back all the way to Valun inception in the month of November, 2011. All of that, David, and others, is under proposed contract and has nothing to do with commodities or stores of any kind. The value in money, David is where E. C. Riegel observed it to be, in what it buys. You show me a pile of metal coins and say that's value? I'll show you half a dozen people and consider their time and skills and tell you that that's where real value is.

So it really is up to you. Do you really want your kids, grandkids, etc. to have to live under the present monetary disorder or would you prefer something better? You can't expect anything good from THEM. So you'll have to organize and do it yourself. Give me twelve good people, one of them being a lawyer and I'll join them as a thirteenth and we'll set up IVES and then get busy setting up local exchanges and getting this engine of economic freedom off the ground.

David Burton
dpbmss@mail.com

[2/8/18: Yes, I was reminded of a program years ago on Republic Broadcasting, where certain people were addressing the American Open CurrencyStandard and in a disparaging way, owing to knowing what we know about money; that it is issued and that it is destroyed! If that's the case, then it matters not at all if money is a commodity, but rather that it diminishes without being continuously supplied. And who does that in all our systems? THEY do. Either THEIR credit or THEIR gold and THEY'd prefer THEIR credit and soon it will be THEIR cryptocurrencies.

A group of gold and silver traders would serve as the needed buffer and basis for equivalent exchange between THEIR world, which we require to meet THEIR taxes, but to put our stick in the ground and say to everyone that in exchange for our units of exchange, we will not accept anything less than what we demand in gold or silver, thank-you. Else, we simply can't hold THEIR money because 1) it is diminishing in purchasing power guaranteed and 2) other than as taxes on what we already make on our own money, holding it becomes way too expensive.

The matter of control over exchange and settlement in precious metals is absolutely key to this proposal. We firmly stick to the idea of paper instruments as circulating money too.  We WILL (FIAT) have our cash back!  Many will contend that this is outdated technology. We'd reply that the sitting back and letting someone else take care of it attitude has gotten us where we are today.

This whole proposed system could be run on a loosely communicating network of laptop computers with adequate printing equipment to make paper backup copies of everything we do. This is to be a PRIVATE business, a society where you are asked to join, where you meet the requirements and then proceed to issue your own money based on contracts. We reacquaint you with your responsibilities for handling something as lethal as a firearm and as important. We expected back in 2011 that probably the Valun network would become the largest customers of the precious metals dealers. We recommend that all precious metals dealers should review this blog and its proposal. Events are making like this more important than ever.]