"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.
1st 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
2nd 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
3rd 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
4th 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
5th 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
6th 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
7th 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
8th 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
9th 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
10th 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
11th 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
12th 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
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