#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