#57.15: Perspective - Local Exchanges and 80% rules

Did you know that nothing has gotten done in this world for the past, since forever, without money? Money had many forms as students of money know. In England, the era of the excheckers ended with the fire that destroyed the first Houses of Parliament. The Spartans used strips of stamped leather until they were FORCED to deal in Athenian silver. And so on. The tokens may change, the accounting is where all the money actually resides, which is why we've spent so much time explaining it on this blog.

Nothing got done without someone paying someone else to do things. So in particular at the present moment, it's basic knowledge that Karl Marx and his pal Fred Engles didn't just come up with it and spin it out there freely for “the masses” to grok to and understand “the progressive way.” No, Marx was no natural genius of the type at all. Neither was Engles. Marx was a creature of British intelligence as it was back then, as was Engles. They had come to the cabal's attention through the catastrophic events of 1848, which had been a banker attempt at out and out hegemony over society, later realized in the Third Reich, the USSR, China and to some degree followed today through the EU. 

Marx had an intelligence handler, which means he paid him, who was a good old boy Scotsman, of some minor league nobility. But as anyone would know, who really knows these things, just go back to the 1950s and before that and check the names listed as the boards of directors of most British corporations. For a long time, before the recent foreign influx, the names were predominantly either Jewish or Scottish. These days one sees many more that are of Near Eastern or South Asian origin. My point is that a hungry Scotsman with proper political and financial connections back in the mid nineteenth century could always find pay in “public service” from whence most of the weaponized venom comes from. It did then and it still does.  

Fair warning to ALL academics and their dutiful and brilliant students who reflectively pass along the ideas of their professors, you have all been had! You dutifully accepted the doctrines of the elite paraded about as the answer to poverty and wantonness in this world and you have been always and forever just their willing dupes. “Useful idiots,” they call you behind your backs. Marxism is nothing but weaponized ideology intended to overthrow society and overturn the American Revolution, the Constitution and especially the Bill of Rights. BTW, that makes all Marxists potential enemy combatants.  As well, the international banker imperium decides against any other sensible nationalist moves against them. These days we have the mockingbird mainstream media that fewer pay any attention to whatsoever. Other institutions have fallen sway to THEM. Anything from the UN down into your local communities has money, THEIR money, dangling from unseen chords of influence pandering and other inner circle deceits intended for absolute control. THEY invented the term “stakeholders” a while back to decide whose interests would take prevalence in THEIR scheme of things. There is no reason to trust that any of these people have your best interests at heart. All of that was just to make sure you were among the awake.  So, let us proceed.

What do THEY have that we don't have? MONEY and organization. The ability to organize people to do things for comparatively little money is an amazing thing. But is THEIR vision for your street, your neighborhood, your village or town, your city, your county, state or nation your vision or for that matter does it really have you in mind? Or is this another age old con job of someone with the money getting to dictate all the tricks? You bet it is! That's why we need to get off all the political bandwagons; let THEM do what THEY will do. Meanwhile, we need our own money and we need to organize ourselves sensibly in order to make that happen. 

I had a few conversations over the years with some that might have shown some interest, and they often asked me to describe what a local exchange would be like. Many thought that membership / ownership in a local exchange was sort of like joining a secret society. A secret society? No, a PRIVATE society! Yes!  Different. A members/owners have paid their dues of under $3 per year and they get an account with no one's money in it but their own. There is never going to be any risk placed upon any of it for backing loans, none of that. All of everybody's money is in the accounts! The public display tokens we use are short duration checks against a cash account maintained at the local exchange.  As the number of exchanges grows, we would see many different designs among the circulating V-Checks, all verifiable by the numbers on them, through a master list kept ultimately by IVES and distributed to every local exchange. 

This may seem an old fashioned approach, but we are discussing something that is at a relatively efficient scale of technology and has proved to work everywhere it has existed; paper instruments obey the substance of Gresham's observation, that when it comes to the circulating tokens representing money; the cheaper the token, the more easily it circulates. 

The local exchange is a PRIVATE business catering to PRIVATE members / owners. One can become an A member if one is recommended by two prior A members and is otherwise eligible. The premises for a place like this would best be wherever it is convenient to have offices, but they need not be very large and perhaps, as E. C. Riegel thought, there would be branch offices scattered around. These PRIVATE offices, open to members only, would also post ads for employment and offers to rent Valuns for needful finance handled by the exchange's B member business community. 

A business community implies a bunch of people who live and work in the same area and know one another. Pretty simple. From a business standpoint, the argument runs something like this: many businesses have cost overruns and other unforeseen abundance they cannot sell. This inventory becomes an instant asset capable of redemption in Valuns. A certain percentage of sales is sought. We apply standard accounting principles, the Assets = Liabilities + Capital (from a good old 1938 classic) and begin to construct a parallel and complementary set (NOT separate from the whole of the business's books) computed in Valuns with some indications of tax liabilities in THEIR money along the way. I'm sure there would be many open source software candidates to use for all of this. If it can be run on a laptop with thumb drives and away from the internet, all the better.

The complementary monetary system proposed by this blog means moving away from the internet, moving away from technology for its own sake without considering the surveillance always implied. Some termed it an “Andy from Mayberry” solution. But I was thinking about my fellow men and women, most of average intelligence who can at least count their money when they have it. I was thinking of the millions out there who not only don't want anything to do with computers or the internet, but couldn't properly benefit from contacts in that way at all. No. We must have reason and a place or a few places, where we can come to meet each other that isn't like a bank, but is in its way, more like a club, a place we ourselves would build up and enhance as we wanted. I mentioned a long time ago, that such premises were best situated in privately owned space.  Better if the people exchanges rent from are themselves members.

We have our 80% rules. They are made this way to make certain safeguards simple to grasp. 

Our first rule regards the number of Valuns one may issue if one already has a paying job in THEIR money. Our rule is that no more than 80% of your remuneration in THEIR money can be issued as Valuns by you. If you make $100,000 per year, we only allow you to issue up to $80,000 in Valuns. Right now, with a Valun at $2.54, that's V31,496.06 per year or V2,624.67 per month. Most will be issuing far fewer than that. We all must pay taxes on our income. Would this safeguard be dropped if income taxes went away? Perhaps. It depends on what happens with THEIR money. 

OK, really new concept for all businesses paying employees in Valuns; you don't pay them out of your money. They buy their jobs from you and based on performance, you pay them back using their money. That way everybody freely labors for whoever can afford them, to be explained, and none can ever claim that they were bought by another. This does not mean that the accounting for labor as a factor in costs changes very much at all. It is just applied differently. 

We said above that an employer would have to afford the employees whether he was paying them in his own Valuns or not. Elsewhere we described the procedures and transactions whereby someone buys a job. But how is the employer's job worthiness determined? The employer is faced with the following 80% rule: 

A B member business account has three balances; Equity, Income and Escrow. Equity includes inventories as well as capital assets belonging to the business. We require that the Equity balances contain any capital asset wholly appraised in Valuns not a percentage of some holding in THEIR money. The income balance in Valuns obviously pertains to the business's revenue in Valuns. The Escrow balance pertains to recurring debt obligations including payroll. The second 80% rule is that the Escrow balance can never rise higher than 80% of the other two balances. So if Equity plus income is your 100%, your total debts outflow for the same period can't be more than 80%. Understood? 

In helping B members, we will work ourselves backward through all the businesses we set up and construct for them balances in Valuns that make sense. In no sense are any of these businesses creating Valuns. To begin with they will not have any income in Valuns. E. C. Riegel admitted that a little free credit at the beginning is enough to fire the engine and get the rest running. We will approximate the comparable values in Valuns, set up these business accounts, ask them to buy advertising from us, because we need to cover the costs of printing our V-Checks. We remind them that advertising is a tax deductible expense. 

The other 80% rules apply to financial businesses organized within each local exchange. The people with the most Valuns to issue will be the elderly and retired segments of our population. Their Issuance balance is to be considered a personal estate asset that can be inherited by another A member within the exchange or eventually to another A member in some distant exchange, or divided up among A and B members, whatever the A member decides when he joins up. 

Anyway, these elderly A members with their thousands of Valuns they may issue, can rent their money to a financial business within the exchange and earn a modest income because the financial business will probably be charging more for carrying the debt. 

Example: Stanley is an elderly A member with V46,000 who can easily rent V20,000 to ACE Distributors for 2% per year, figured as simple interest not compounded, but is paid up front as follows: 

ACE Distributors Equity balance 

-V400 to

Stanley's Income balance

Stanley's Issuance balance 

-V20,000 to

ACE Distributors Equity account 

This results in a net gain in assets to ACE of V19,600. It's actually slightly less because ACE pays the exchange one tenth of one percent for moving the V400 from one account to another. That's V .40 or forty cento / fen more. Stanley pays more too as he pays for moving the much larger amount of money to ACE; he pays V20. So at the end of the first transaction to set up this loan: 

Stanley's Issuance balance 

V46,000 – 20,000 = V26,000 -V20 = V25,980

ACE Distribution Equity balance 

We don't know what its balance was before this transaction but it had something because rent for money cannot be paid but from already existing money.

-V400 + V20,000 = V19,600 – V.40 = V19,599.60

[8/10/19: I had to add this so there would be no misunderstanding.  Stanley's Issuance balance contains potential money, not actual money.  All money is issued to buy something.  What is Stanley buying?  He's buying a legitimate passive income opportunity and he's doing it through a credit contract with ACE.  Stanley's money becomes real when it shows up in ACE's account.  You will notice that there is always a contract involved with any Valun issuance.] 

Now here's the deal. A financial business or one having a financial branch handling their business in Valuns may borrow from other members within a community served by the local exchange, but 80% of that money must be loaned back into that community. Only 20% may be sent out of the community in hopes of earning higher rents. Of course all rents must be paid up front using already existing money. No financial business gets to issue any money. We don't determine the percentages for rent because we want the free market to determine these limits and respect various risk considerations. Obviously the riskier the deal the higher the rent will be, but at least with this 80% rule, the money stays active where it was generated. This can have tremendous benefits to every local area regardless of geography or population. 

BTW, at the end of the year contract Stanley has with ACS, he is paid his V20,000 back into his Issuance balance.  ACS must pay the V20 to perform this function which further adds to their finance costs, which means that ACS will of course be charging higher rents than they paid Stanley.  That's how finance must work.  But Stanley gets a little passive income and together with half a dozen or more Stanley's ACS has increased its Equity balance, from which to make loans.

I can imagine the exchanges of the future being like private clubs, perhaps with sports, concert or museum venue attractions associated with them. These places would be PRIVATE and allow people to hold PRIVATE meetings within. We need to form bridges to those areas of society with skills that need to be utilized for the smallest public investment possible. Pay them whatever in THEIR money, but add a percentage in Valuns and let a supplementary economy take root and take off. You are reading this here on the internet, but eventually we may not have it. What then? Will we be plunged back into one of THEIR ready made barbarisms? Or do we start NOW and decide the future looks a lot brighter for ourselves and our posterity if we actually owned the money we use? 

Best 

David Burton

dpbmss@mail.com

PS: I just heard a story about a certain 501c(3) organization that had trouble paying its employees. Yes, we will have A members that work for these kinds of organizations, which cannot be B members. The 80% rule still applies, but even so, consider someone who may be paid $5 per hour for a 40 hour week. That's $200 a week before taxes. Most people in these organization, but not all, are paid using regular wage and job descriptions and are given W2 forms at the end of a tax period. We would allow an additional 80% of their wages in dollars to be paid in Valuns. Using this example that's an additional $160 a week in Valuns. Right now, with a Valun = $2.54 it works out to be V62.99 or V63. Again, an A member begins with at least V200 in their Issuance balance. The V63 is paid into their Income balance and at the end of each tax period, a 1099 is issued to cover this additional income, always reported in THEIR money of course. In many cases the combined remunerations from their employer plus what they issue in Valuns, is going to total so far under the yearly income requirements, that income taxes may not require filing and anything paid in may be subject to remittance to the employee. But we are only considering a local exchange's legal obligations for operating a complementary monetary system in the United States. Essentially though, the more people we can get as members, the better.

#57.14: Perspective - Toward a Manifesto

This stream is like the natural flow of money, from a source of issue, down particular streams where it benefits all that take nutrients from it, thence eventually being lost whenever anything is sold for less than it was purchased for, which is depreciation of assets and the death of all money.  The tokens may be a plenty or limited, but who owns them?  All the money is in accounts on books not in floating tokens.  The commodity theory of money, beloved of the loathsome speculator class, who often never work an honest day of their miserable lives, disputes this obvious reality and condemn all who rely upon it to plunder, confusion and financial oblivion. 

Here we are in 2019. This blog has over 90,000 visits. There are new posts in the works, but I thought it a good time to summarize the objectives of this blog and its proposal for a supplementary monetary system that is actually owned and operated by and for we the people.

A manifesto, a public declaration of policy and aims, is perhaps not too dissimilar to a prospectus, a printed document that advertises or describes a school, commercial enterprise, forthcoming book, etc., in order to attract or inform clients, members, buyers, or investors. The statements made on whichever document, would also indicate why such a venture is worthy of any attention whatsoever. We might begin with certain statements that we all agree to, such as the following: 

1. All the money that has ever been in use and is still being concocted as cryptocurrencies, etc. belongs to those that issued it. NONE of it actually belongs to us because we did not individually issue any of it. As far as precious metals go, their prices are controlled by the same group that owns the rest of the money. These people also own and control all the mines, mints and markets for all precious metals worldwide. 

2. Anyone who relies only on THEIR money is an economic slave to THEM. THEIR control over everyone and everything rests on debt to THEM in THEIR money. The rent of THEIR money deemed interest, is always demanded from uncreated money, thereby ensuring a perpetual scarcity of money and a loss of assets at various times to those who did not conquer, develop, invent or produce. THER “musical chairs” economics is an intended result of these practices. We regard these practices, described as usury, as theft! 

3. THEY, the owners of THEIR money, also get to do things that we also regard as fraud and theft. THEY get to loan money THEY do not have and charge rent for it from unissued (uncreated) money. THEY also demand and claim that any money in someone's account with THEM is subject to confiscation if THEIR institutions' debts require settlement. THEIR system requires deposit insurance. 

4. ALL of THEIR money can be summarized as a commodity subject to speculation. Speculators contribute NOTHING to any economy. They make money on THEIR money without work (the frank definition of capitalism) and economies of exchange in ALL THEIR money rests in the hands of those few who make these speculative adjustments. The purpose of money was to supply a standard and relatively unchanging medium of exchange to measure value in any split barter transaction. The numbers on its instruments allow one to measure the value of one thing against another almost exactly as one would use a ruler to measure inches or millimeters. Speculation allows the various distances on the ruler of value to fluctuate, so rendering any accounting value in ANY of THEIR money is like attempting to build a house using a different ruler every day. It's actually worse than that as follows:

NOTE: Intrinsic value of money or money as a holder of intrinsic value. This is probably the oldest SCAM involved with THEIR money, because speculation on precious metals goes all the way back to the beginning of their use as money a few thousand years ago, always by FORCE of arms not freely chosen! So, pay no attention to any attempts to convince you that this intrinsic value of monetary tokens is an important attribute of money from the “Austrians” or anyone else. It's all lies. THEY control ALL the prices for ALL of THEIR money and can decide to make it literally anything THEY like and you have nothing to do with any of it. Yet, precisely because we must slay two or three dragons, not just one, precious metals come into our proposal as the only means of direct exchange and valuation between our system and THEIRS. This allows us to have a means to determine what our fixed point of purchasing power is in comparison to ANY of THEIR money worldwide. Yes, this proposal implies a universal standard of measure for value which could be adopted by anyone as a complementary money to all of THEIRS.

5. Not only do we want our own money that actually belongs to us, that can't be influenced by any of THEM and doesn't allow some of THEIR frauds and thefts upon any who use THEIR money, but we want certain safeguards against the flight of our money and we want to have a way to engage in some needful capitalism, chiefly finance. We want more local control but we want a unified single ledger to prevent fraud. We also want a clear separation between the accounting of our accounts holding our money and any and all finance involving the loaning of our money.

From the last few statements, we have proposed a new international standard value unit or Valun, the name chosen by the man whose name heads this blog, E. C. Riegel. The proposed Valun came into existence on 11/2/11 at $2.16 per Valun. It was based on a bid price for an ounce of gold bullion of $2,160 divided by a thousand. A comparable number of Valuns would be purchased by an ounce of silver bullion.

Each local area, in the United States bounded by the usual limits of cities, counties, etc. would be afforded the opportunity of forming what we have called an exchange. These would not be banks. Specifically none of these proposed businesses would ever lend anyone money. All they would do is handle accounting, while other businesses, who would have to acquire the money to lend, would engage in as various kinds of finance as the market would bear. We refuse the use of usury by insisting that all rent for money would have to be paid up front out of already existing money and various forms of compounding of rent for money are eliminated and forbidden. We don't mind if you want to rent out your money for profit, but the rent will come out of money that already exists. 

We also have an 80% rule regarding finance; Anyone engaging in finance must lend 80% within the boundaries of the exchange in which it holds accounts. Of course all financial businesses within an exchange area will hold accounts in that local exchange. 

It takes some pools of liquidity to get something like this off the ground, the spark that gets the engine running. Each new A member will get an account with two hundred Valuns in it. We call this the “pass go and collect V200” rule. In addition, if one is receiving any pension, social security, etc. and might have been receiving regular payments back to Valun inception, one might have a lot more Valuns on opening an account. 

So who are among the first to recruit for our proposal? The first to get behind us are those who have often been misused and abused more than any other groups in our society, those who were supposedly hired to defend us; police, military, veterans. Who are the next group to get behind us? Their grandmothers. If we had most if not all of the local sheriffs behind us as well as their grandmothers, we would have a pretty good chance of success. The rest would follow in due course. 

It's quite obvious that character matters. It's one reason why we have the sponsorship rule: each A member is sponsored by two other A members. We are looking for original thinkers, original producers, original service providers, people who care about what they are doing and want to do it well. We're looking for people who are good at what they do and want to get paid more for it. We know that it's commonplace these days to suppose that one can just figure out ways to make money on money without work, seek monopolistic rent opportunities, hatch any number of scams to take from the general public what they mistakenly believe has belonged to them. In these scenarios, criminals and worse get to be “players” who get to buy up and profit from any number of original ventures that may or may not become fortune making home runs. We say that not all great businesses are those capable of providing an income for some absentee investor/owner. We're interested in bringing back businesses to scale everywhere, so that a family business that ran for 30 or 40 years can continue to do so. 

In considering all this, it's cruel to have to say it, but the first awareness one comes to as one awakens from THEIR imposed slumber, is that literally none of the money in use anywhere actually belongs to the people who use it every day. We're describing what it would take for us to have our own money and with that eventually more that is actually ours.

To begin with, a membership position in a supplementary monetary system is a kind of insurance against not if but when THEIR system tanks and takes most of the monetary assets along with it. What then? Are we really going to rely on THEM or might we really exercise our Constitutional rights, including our right to contract, which the whole proposal rests on, and finally say, “too late, we've seen through your frauds and thefts and we have our own money now and wont need YOURS.”

Well, of course we WILL need THEIRS. Taxes must be paid and paid in THEIR money. We'll just intend as well as we can to do with less and less of it. “Come out of her, my people” is still the message. We will also need to collect dues, yes in THEIR money, because we are not yet free of THEM, but the dues will be kept purposely low so everyone eligible can participate. 

Dues of V1 per year in THEIR money will be required of all A members. B member businesses don't pay membership dues. Instead, they buy advertising which appears on the backs of our cash instruments, the Valun V-Checks. These attractive paper instruments, our cash, will be issued in denominations of one half Valun, One Valun, Five Valuns and Ten Valuns to begin with. At present fair exchange value of the unchanging Valun at $2.54, ten Valuns would be $25.40. The half Valun at $1.27 would still be legal to circulate as its nominal value is above $1 and all V-Checks would have an expiration date six months from issue, to fulfill current law. Yes, V-Checks would be similar to travelers checks. They would all bear numbers to prevent counterfeiting and their designs would change regularly enough to discourage anyone from attempting to float bad checks. Every independent exchange would have its own set of designs so the numbers of them, despite how similar they might be in size and other characteristics, the range of designs would further mitigate against counterfeiting. 

Each A member (individual eligible natural person) would have a piece in the ownership of their local exchange and a piece in the ownership of the International Valun Exchange Society or IVES. This key component is not centralized control or a board of governors as is common among THEIR institutions. It would provide certain functions to serve all the local exchanges. IVES becomes a B member of all exchanges and it is required that IVES be established along with the first exchanges.

IVES determines what the day to day fluctuations in THEIR money amount to in ours. Right now, July 25^th, 2019, with the recent upsurge in the prices of precious metals, the Valun falls in exchange value back toward its inception of $2.16 but no lower. Would gold breach our $2,160 mark, a new inception point for the Valun is recognized by IVES and applies to all Valuns. Should gold go to $2,800 the ounce, the new inception is $2.80 and when gold falls, the Valun rises. The Valun is intended to beat both THEIR dragons over the long haul, both the one made of precious metals and the stolen fiat variety used to pay our taxes. Once a Valun inception point is chosen, it can never be lowered. The Valun achieves protection of purchasing power over ANY of THEIR money and becomes over time the more reliable measure of value. IVES also gets a record of ALL designs for V-Checks as well as the numbers that are associated with the blanks, since no V-Check becomes money without an expiration date stamped on it or into it. Any valid V-Checks that are expired can be exchanged for newer V-Checks or deposited into an account.

6. We need our own money as a supplementary source of income because we have skills that do not pay in THEIR money or THEIR means of exchange for what we are worth. Who determines that? Several things actually. Income taxes first come to mind. Can't avoid them. Therefore participation in this proposal would incur further income taxes that must of course be paid in THEIR money. It wouldn't matter whether one was participating in the trade of some of THEIR cryptocurrencies, someone else's local supplementary money, Berkshares, Ithica Hours, etc., if there is taxable income in any of them, Uncle Sam is going to want his share in his own money of course, which is why anyone involved in anything like this needs to be able to hold back as much of THEIR money as is needed to pay those taxes. Our design makes determination of income in our system very easy. In The United States, under current applicable law, each A member would get a 1099 to file along with the rest of their remittances for each tax year. We can also pretty much determine what anyone's tax liability will be based on the size of the labor contracts they enter into. Most Valun issuance will result from labor contracts.

An example: We have an A member named Dan who is a policeman. Dan's employer cannot be a B member, so Dan's contract is with his local exchange itself. Dan determines that he can put by taxes enough to cover payment over the coming year of an extra $10,000 payable in Valuns. It can be summarized any number of ways, but the usual method would be to divide the $10,000 by twelve months giving $833.33 and at the beginning of each month, Dan would issue the number of Valuns equal to $833.33 to the exchange, which would then pay Dan back his Valuns. This would be done the same payday for Dan. He issues the Valuns, he hasn't been bought, the exchange in leu of a B member business pays Dan back the Valuns he issues and those Valuns are backed by what Dan gets paid to do.

This procedure works for any public employee since their employers cannot be B members. We have another example:

Sally is an A member who works for a store called Frank's that is a local B member business. Sally has determined that she can pay the taxes for an extra $5,000 in income. In her case, Sally issues however many Valuns make $5,000 on the first day of the contract with Frank's. As part of the contract Sally has with Frank's, Frank's pays Sally back 1/12^th of the Valuns Sally issued until they are all paid back to Sally. During the interim, Frank's gets the extra Valuns on float without rent or interest of any kind.

But there's another thing that limits how many Valuns one can issue, to pay oneself for one's work, the time out of the rest of your life devoted to earning money. It's our 80% rule regarding how many Valuns a B member business may hold in escrow, where all these contracts are negotiated. The money in an escrow balance cannot exceed 80% of the combined other two balances. For an individual A member, the issuance balance plus the income balance are 100% and the escrow balance cannot rise above 80% of this number. For a B member business their equity balance plus income balance are the 100% and their escrow balance cannot exceed 80% of this number.

Now in the beginning we're going to do something like what Riegel suggested which is to have each business determine what its hypothetical equity and income balances are expected to be. As hazardous a course as this may seem, it's still the best way to proceed. We'd like to say that a business was up and running and earning a profit for at least the previous six months in order to get a close estimate.

There are three balances recorded for each account, and for B member business accounts they are Equity, Income and Escrow. Escrow balances involve recurring debt including all payroll. All Valuns issued to B businesses by A members pass into the B member's Escrow balance. 

Sally wants $5,000 more in income in Valuns. On July 25^th, 2019 that's V1,968.50 and let's say that each 25^th day forward for a year, is a payday. So Sally's next payday is August, 25^th and so on. Her contract with Frank's says that Frank's gets Sally's V1,968.50 on July 25^th which is for this contract Sally's first day of work, even if Sally had previously worked for Frank's for years. Her contract will end in a year with the possibility of renewal. From August 25^th, 2019 to July 25^th, 2020, Sally gets V164.04 deposited into her income balance and the exchange makes note of these and presents them to Sally at the end of each tax year for her verification before issuing her a 1099 for her taxes.

Notice that in both these cases, the money issued is backed by work. The extra income in Valuns is still subject to taxes in THEIR money and all involved must understand this responsibility. Our supplementary monetary system is not a tax dodge. 

The retired on pensions will have many more Valuns they can issue and may want to earn income on their Valuns. They can lend Valuns to a financial business within the local exchange and such institutions will have to pay this rent up front. 

Another example: Ken is an A member who is retired from regular business. He has V35,000 in his issuance balance. KG's, a B member, is a local outfit that sells used and reconditioned equipment and finances its sales in Valuns. Ken is willing to lend KG's V10,000 and wants V500 per year as rent. That's 5% per year in case you were wondering. He could have agreed to V300 or 3% per year. It will depend on what KG's can afford to pay Ken. No one will set rents for money, so the market for this kind of funding will determine the rents. Ken pays his V10,000 into KG's escrow balance and KG's pays Ken his V500 into his income balance. When KG's no longer wants Ken's V10,000, it is returned into his issuance balance. The terms are all described in a simple single page credit contract between Ken and KG's. The contract may or may not be renewable, the same terms and conditions are usually offered for successive years should KG's and Ken agree to it. How did Ken find out about KG's need to borrow Valuns? From an ad put up at their local exchange. 

What does anyone get for fulfilling a contract? If it's a labor contract, it indicates that the worker has completed whatever work and has been paid in his own money for all the split barter among other Valun exchange members. Fulfillment of more contracts with Valuns attached to them indicates the likely remunerations for labor in Valuns and builds a good work record for future employers. Fulfillment of more credit contracts with Valuns attached to them builds credit worthiness. Unlike similar services in THEIR system, all records concerning contract fulfillment are available upon request from the local exchange for perhaps a very nominal fee but more likely for free. But we will seek input on these points from the seriously interested. 

There are a whole range of occupations and practices that have traditionally been “not for profit” organizations and sometimes this worked to their benefit. But we see far enough ahead to see that all these arrangements hinge ultimately on the availability and general flow through society of THEIR money. We advocate for free PRIVATE enterprise and see many of these activities as profitable within a for profit framework using Valuns as the means and THEIR money to pay taxes and other expenses that must be paid in THEIR money. A complementary monetary system allows this extra financial means where THEIRS is lacking or going away. Under B membership, these groups would become self-sustaining, requiring less and less of THEIR money and promoting the use of more of our money. 

There are a number of producers that operate better when they can remain the size that maximizes profit and limits liabilities and risks. We called agricultural entrepreneurs “pocket farmers” in other places, people who with limited investments in materials to provide a limited crop. Add a few dozen with similar inclinations and one has a fresh food market that could be run almost entirely on Valuns with enough of THEIR money to pay taxes. Remember, we are about “coming out of her, my people” rather than seeking any accommodation from our known enemies.

Yes, we always capitalize THEM and we always capitalize FORCE. We have already identified THEM as a phalanx of globalists, bankers, elitists, technocrats, satanists, pedophiles, scribes and Pharisees and THEY always use FORCE and have done so successfully for thousands of years. It's amazing that something so important as money should have just been left to …. well, to its owners. Yes, all of it is THEIR money, stupid! So Cass Sunstein and others were in fact telling you nicely and politely as possible that you should all shut up, do as you're told by THEM, think as you are told by THEM, certainly pay all required of you to pay THEM in THEIR money of course. Why haven't you fully awakened to your situation? Because it's so much easier not to rock THEIR boat, which is sinking. Well, you've been led along by people with the most unsavory characters in the world. It is THEY who have beaten the drums of “progressivism” or whatever masked form of tyranny THEY have always had in THEIR minds. None of us can ever get completely off THEIR sinking ship unless and until we organize and band together to actually own our own money and the means to account for it and to enable it to spread around the world among the real owners of the wealth, we ourselves. 

To wrap this one up, wealth is not just a bunch of depreciating or abandoned stuff. To us wealth must produce an income or it isn't wealth. A working natural person earning money is doing so based on their own individual wealth; they are paid to do something within a certain pay scale that matches in some way the material contribution each worker makes to the enterprise. Labor is the first instance of all wealth. With capital tools enhancement, most businesses can produce more up to a point of diminishing returns to scale. Most businesses adapt slowly to changes in production and offerings for sale and may experience cyclical or periodic ups and downs. Such things are normal in today's economy using THEIR money. But our own money makes things a lot easier, especially for the small guy who always intends on staying small in order to operate within normal capabilities to provide the best products and services. So having an alternative money to THEIRS is intended as a way to build and enhance wealth. 

Thanks and best 

David Burton

dpbmss@mail.com

#120: A Conversation with JZ

This entry might have something to do with A Conversation or it might cover other related topics. It began with a conversation I had with someone we'll call JZ, who has decided that blockchain is nifty and the way to go and that Bitcoin in particular is destined to become the new world currency. Yes, the New World Order currency, which is just the Old World Order attempting to survive the tsunami heading its way. So I began in this way ...

Whatever it is, Bitcoin, etc. is just some more of THEIR money to take our attention off of ourselves where the true wealth resides.

Why did I say that? Because wealth, to us must provide an income or it isn't wealth, just stuff, mostly depreciating stuff at that, unless it's perhaps fine art or something in a similar category. Very little stuff actually appreciates in value, rises in price relative to everything else.

But I also reminded JZ that contrary to anything and everything else you might have heard, there is no value outside human will and effort (labor). Anything that has been done or will be done requires human effort or will to accomplish and that's where the income comes in. To those with the greatest marketable skills relative to everyone else goes most of the income. Let's pause for a moment and reflect on the many occupations that do require skills but produce nothing. There are a lot of those in a dying economy, where far too few have far too much of that key tool required to provide a basis for building and making wealth, money. No redistribution scheme using the same money will accomplish anything as history proves again and again. All of the money anyone uses is THEIRS which is why we need our own. We don't even want any more of THEIR money, we do not covet it, because THEIR money will never be suitable to us for a number of reasons that may come to light during this conversation.

So I rhetorically asked, whether I have to educate the entire world how they have been brainwashed? Yes, apparently I do as nobody else seems willing to point out the obvious.

Let's begin with the internet. Yes, you're reading this using it, but the internet belongs to THEM and not to us. Were we to be able to rescue the internet from THEM, it would still be a series of tools that promote a worldwide view of things, when the local, the regional, the state and national affairs are far more important and affect each of us individually far more. So our proposed alternative, parallel monetary system doesn't have anything to do with the internet. It isn't ours, we want our own and we don't need the internet to provide ourselves with what we need. 

I reminded JZ that all the money that we have ever used all of our lives belongs to THEM not to us. The idea that we are self-governing at all is a lie and a myth. It is all based on the bankers dialectic of either their credit or their gold. All the precious metals belong to THEM. THEY control the mines the mints and the markets.

This has nothing to do with anything political. There is no political solution to an issue that deals with free enterprise and what we want to accomplish in our own lives. This issue is about us, you and I and countless millions around the world, billions actually, who presently have no access to the internet and don't want any! I think that bears repeating; there are presently millions out there who hate computers, hate digital technology, have always felt intimidated by it and regard it as an affront to their personal aspirations. The scale turned away from the human to the machine is NOT acceptable to the vast majority and will never be accepted by most worldwide.

But these people certainly know what any paper money represents and how it works. Unfortunately, and it's just about time everyone learn, a monetary system is nothing more than an accounting machine with the tokens representing the tokens in the game of trade.

Each one of you is worth something and in order to get a new monetary system off the ground, each will be given an account with the ability to issue 200 international standard value units (Valuns). Some of you who have retired will be able to issue far more Valuns from the start because these members of society have already contributed more than those who started out and have been short-changed by the present system in any case. We would take care of part of the restoration of their wealth by recognizing their pensions, etc. right back to Valun inception on November 2, 2011. By the time this gets off the ground, enough time will have elapsed since then that some of these members will be able to issue a lot of Valuns. This is where the stores of financing potential spring from.

So, what could you do if you had the resources? What is holding us back? What has been secretly determining the basis of our lives for a long time? It's all THEIR money stupid! That's just a reminder as we're all brainwashed into thinking that the money in our accounts is really ours. It isn't and it says right on all of it to whom it belongs. Is your name Federal Reserve? Thought not.

Entreating others to get into some blockchain monstrosity that nobody wants to use doesn't change a damn thing! What is required is that we get together and get organized, away from all this technology and the internet, none of which we own. we need our own monetary system so that we need not be bothered with THEM, and that's part of the message too. “Come out of her, my people or suffer for her crimes.” 

Suit yourself, but blockchain is nothing new, can't be used by the vast majority and does not eliminate banks or bankers ELSE WHY WOULD THE SPECULATORS BE FORCING THE PRICES OF CRYPTOCURRENCIES UP AND DOWN? .Some of you people need to get some common sense, like those who sponsor Trade Genius or Noble Gold, etc. It's all THEIRS not OURS. We need our own. Nothing else will do. BTW, we have less problem with Noble Gold than Trade Genius. Were this project to get going, we'd expect to be dealing with Noble Gold and any other precious metals dealer to satisfy any of our member's demands for more Valuns based on our requirement that they be paid for in comparable value in gold or silver, the only money of THEIRS that any independent local Valun exchange would accept for our Valuns.

JZ responded:

Yes it does have to do with you not trusting certain politicians because if what you say is true, then you are saying that these politicians are only giving us the "illusion" that we are shaking off the cabal and gaining freedom from global control, which then blends in with all the people who believe these politicians are actually deep state. We don't know a fraction of the plan. Is there such a thing as free energy? Is there such a thing as not relying on an electrical grid vulnerable to attack? What was that WW wave some months ago that traveled the entire world? I choose to trust the plan even though I don't quite understand everything about it. IMHO the last thing we need are groups of people thinking they have a better plan than these politicians.

JZ still imagines that money, our money not THEIRS, has anything to do with politics. It doesn't. It has to do with us, not some government that claims to be ruing us justly or otherwise. A monetary system needs to be easily understood. The Valun is. It has to use technology that everyone knows how to use. Our proposal does that. It has to be non-political because earning a living is not a matter of one's politics and politics should have as little to do with ordinary trade among ourselves as possible.

JZ then thanked me and dismissed me. I'm used to it. So I replied:

Thank-you for not questioning my patriotism. I am still following certain politicians.

Most I have long since discarded as corrupt individuals performing roles on behalf of the real unseen rulers. So I said that I had worked for the Federal Reserve and IBM and know what I know about money and was given my assignment by a mentor, now passed on, who told me that the present monetary system was inherently evil, would not survive and that the people who run it are unspeakably evil and their deeds will be exposed. There is nothing that can be done accept to return to national economies, far more economic redundancy and far smaller units of scale. We either go that way or billions will starve. Frankly weather conditions don't look very good right now.

But here's the real truth, and I am writing it in caps so you get it. When it comes to money, IF YOU OR I DIDN'T ISSUE IT, IT AIN'T OURS! And if it ain't ours, it belongs to someone else who has STOLEN THE RIGHT TO ISSUE MONEY FROM US. Now, follow me: the 1st amendment guarantees freedom of speech, press and assembly as long as we don't advocate sedition or treason. That includes our right to contract, to organize and to print and use our own money. If we don't have that right, as most think we don't right now, then WE ARE THE ECONOMIC SLAVES OF EVERYONE WHO IS ISSUING THEIR MONEY. Wake up! I'm glad you are doing what you are doing. We need our own money back, the colonies issued their own money before the Revolution which led the British to go to war against us to replace it, which THEY did. THEY never expected to lose the American Revolution either. So THEY never gave up until the 3rd time, the Federal Reserve, and THEY still won't, because most Americans didn't know that the Constitution itself was THEIR agreement with us to have THEIR money rule over us, so THEY in Britain, could continue to rule and rob us, and most would never guess. So now, we have cryptocurrencies which use old mainframe software (blockchain isn't new) and are really controlled by the people who invented it deep within the intel / banking establishment, and we are supposed to believe that this is something for us? Sorry I'm not buying any of it because I know the truth. If politicians want to feint that way, I'm sure they know what they're doing, except for money. One in a thousand know what the real basis of money is, and it is not gold or silver.

Well THEIRS may be, but a labor contract under our proposed rules allows a member of our exchanges to issue money. Everything in the proposed system is based on simple contracts. If any contract is too complicated to understand, it's probably crooked.

JZ replies:

Sounds like you had a wise mentor, knew about the cabal and the control they had on our money supply/lives. I wish you could see what I see with this bitcoin. How else can you keep another entity from controlling our money supply unless it's something like bitcoin that "can't" be controlled? 

I used to believe that measurements of money supply meant something until I took a good hard look at depreciation of assets and put it all together. Bitcoin, etc. are all based on the commodity theory of money which says that all money itself is a commodity and that its quantity all by itself figures in price inflation. One reason Riegel stands out is that he saw right through this. If you use a commodity as your universal measure of value then as it becomes scarce, its price rises, as it becomes abundant, it's price falls. That's like trying to build a house with a ruler that changes measurement every day. THAT right there condemns ALL commodities based money to long term demise. Oh? But gold and silver are always around as people hoard it. Sure and if it becomes priceless none of it circulates. So instead we based our proposed money on something that does not change because it has already happened.

A Valun is equal to a thousandth of an ounce of gold bullion at the close of business on 11/2/11. On that date, you could have held an ounce of gold bullion in your hand for $2,160. A thousandth of that is $2.16 which is the Valun at inception. But today, 7/9/19, that same ounce of gold has fallen in price to $1,397.50 spot and our rules say that we're able to bid $1,746.88 to hold an ounce of gold. It turns out that the same unchanged unit of purchasing power is now worth $2.57 in fair trade. That's 19% above inception. We require more gold now to buy the unchanging unit of purchasing power established on 11/2/11.

JZ continues:

No cabal can ever control bitcoin! That's the beauty of it!  

I'm calling instant BS on all of this! OF COURSE Bitcoin, etc. are controlled by some cabal, they were NOT issued by any of us and are stooge stand ins for the real thing which must ultimately spring forth from us. Why is money supply less important? Because not all units of money participate in bidding for every sale, that's why. Economists like to pretend that they know something when often they either don't or are just keeping up the illusion that the present monetary system is sound, sane, fair or natural when it is almost none of these. I assure you, an application of a software technique that started the virtual use of mainframe computers back in the late 60's early 70's is only going to appeal to THEM and believe me, THEY have already figured out how THEY will control and benefit from it, because that's the nature of all commodity based money. The proposed Valun is based on a single transaction that defined a specific unit of unchanged purchasing power at inception on 11/2/11. That's why we call it an international standard value unit, because it is more like a unit of distance measurement that doesn't change, than the changing contents of a pail of water.

JZ prattles on, as if she is trying to convince me otherwise:  

Except our minds have a hard time comprehending that.

NOPE: money is not that complicated. It's a set of accounts with various tokens representing flows in or out of said accounts and that is all! Intrinsic value of the tokens? Says who? Some speculators making plenty of THEIR money on THEIR money without contributing a thing to production of goods or services. Intrinsic value of money is both a lie and a fraud practiced now for many thousands of years. It's about time we did something completely different. But JZ says,

Greenspan & the white hats knew what they wanted. They created a system that cannot fall into "anyone's" hands to be controlled. I think in the early stages [they] might have been able to take it down. But now? It's on auto pilot and nothing can stop it. Nothing...;)

I responded: I'm not about to consider Greenspan a white hat. Nor is it likely that someone dreamed up some better machine to prevent the money supply from being increased. The only purpose for blockchain would be to process transactions anonymously and without possibility of being hacked. But that's why bitcoin exists, to support activities that most of us want stopped. If blockchain networks were sending the proposed international standard value unit or Valun instead of the FAKE SCARCE COMMODITY model represented by Bitcoin etc then it would be a good telecom improvement. But we still don't need it and it doesn't belong to us. Everybody is going to have to face the fact that public corporations and banks are largely irresponsible organizations that care nothing about anybody locally and focus all their attention on the biggest deals they can possibly negotiate. I honestly believe that some politicians are attempting to keep as much of the system alive as they can through a transition that will see the too-big-to-fail organizations either broken up or dissolved entirely. You can use any basis you like, many of these big organizations are bankrupt and will never recover. Meanwhile the real economy that always matters is the local economy, the state economy, the national economy, not international trade. 

Besides all of this, I contend along with E C Riegel that any money that is not issued by a producer is illegitimate. It still works as money, but it is illegitimate. Anything illegitimate is fake and will ultimately fail. When a Valun is issued, it is always based on work. The person who worked wants the barter for their work and issues the Valuns to barter among the community of Valun traders for his needs. 

Parenthetically, another BIG source of confusion concerns settlement of barter. Whole barter is trade without money. If money is used, barter doesn't go away, money splits the barter between buyer and seller allowing for far wider ranges of exchange.

The Valun he issues circulates among Valun accounts until someone pays less for anything than it originally sold for in Valuns and in this depreciation process, Valuns are eliminated from the accounting and are destroyed, gone forever, never to return. That's what happens to all money: it is issued by someone, in our case by a central bank, is spent into the economy by the government and circulates among dollar users until someone pays less for something than it cost brand new, depreciation occurs and those dollars disappear never to return. Depreciation of assets is a natural break against inflation, but since the issuance is illegitimate and so is the spending, great diseconomies to scale always result.  The government does not deserve to be the first time spender in any economy, because no government produces anything we wouldn't better buy from a producer. 

So there's a lot of deliberate disinformation out there. Most economics is bunk. They never really deal with depreciation, their view of money as a scarce commodity only benefits speculators, which explains why cryptocurrencies bounce up and down all the time. The proposed Valun will never fall below $2.16 nor rise above $4.32 and is immune from speculation. The basis of the Valun is a transaction that has already happened that we take the present value of each day. The only people who care about money supply are money lenders.

We could have a gold backed dollar, we had that during the Great Depression and it didn't work. We could substitute a fake commodity like bitcoin and anyone off the internet would be out of luck. We need our own money that we issue and actually belongs to us. We can set up a system using off the shelf open source technology that keeps everything off the internet, which is not ours, and allows us to preserve our privacy, 4th amendment. The government only need know our taxable income so we can pay our taxes, in THEIR money of course, until the income tax is abolished as income taxes are a detriment to wealth and under the progressive tax, penalize the most productive. Getting the government out of the money business is really the only way forward to regain our freedom.

David Burton
dpbmss@mail.com