Thursday, July 18, 2013

#46 22 Quotes That Lay Out the Elite's Agenda – A Conversation

Source: many places now, these quotes are "going viral" as they say these days.

This blog does not advocate political activism as a means to achieve change. Our message is “come out of her, my people” lest you become associated with her crimes. In what follows, it makes no sense for any of these people to claim that they never said these things, or for anyone else to come forward acknowledging that yes, they said these things but meant something else. These people said these things and they shall stand and fall by what they said. We admonish all our readers that real human beings fill government and corporate jobs that help move forward the inhuman agenda of the elites. These people are paid in their money, they are slaves of the elites contributing to the DEATH of the world. These quotes, which are circling the globe through many other internet sources, are therefore restated here as a matter of record.

1. “In the next century, nations as we know it will be obsolete; all states will recognize a single, global authority. National sovereignty wasn’t such a great idea after all.” Strobe Talbot, President Clinton’s Deputy Secretary of State, as quoted in Time, July 20th, l992.

Notice the arrogance, the supreme confidence with which these statements are made. All states will recognize a single global authority. NO, we will not! Your authority is NOT the truth, therefore your authorities are without legitimacy. Those who support such lying authorities shall stand naked before the eyes of an awakened public as the messengers of the brazen proclamations of brutality and FORCE that they represent. Nations exist before there is any state to represent them and will behave in their own self interest. Notice that Talbot was a product of Yale.

2. “The American people will never knowingly adopt Socialism. But under the name of “liberalism” they will adopt every fragment of the Socialist program, until one day America will be a Socialist nation, without knowing how it happened.” Norman Thomas, for many years U.S. Socialist Presidential candidate.

Therefore, they use deceit and play us for fools, and as everyone knows, one can perhaps be a fool only so long before one is no longer so foolish. Of course some are foolish all their lives, as for example those who jumped aboard the New World Order bandwagon, because they assumed it represented the winning team. Others joined this or that “cause” for similar reasons. Well friends, we live in a socialist world, which is one reason that it will sooner or later fail, as it has failed already

Notice that Thomas came from a family of Presbyterian ministers (though I sincerely doubt they had any real affinity with the Church of Scotland and its association with the aspirations of free people). My father, who had a lot to do with forming my outlook, regarded four kinds of people as especially prone to fraud, laziness and every other conceivable human character flaw imaginable; politicians, lawyers, actors and clergymen, and he regarded the clergy as a group, as the worst among them and actors as usually the best of a bad lot, for at least an actor knows he's only being paid to play a fake role, whereas the others believe their roles are special, when they frankly are not. I wonder how closely Rand's “hate eaten mystic” fits the case of Norman Thomas?

3. “Today the path of total dictatorship in the United States can be laid by strictly legal means, unseen and unheard by the Congress, the President, or the people. Outwardly we have a Constitutional government. We have operating within our government and political system, another body representing another form of government – a bureaucratic elite.” Senator William Jenner, 1954

Jenner was a Republican from Indiana, from whence E. C. Riegel had come. Jenner was educated there as well, including a law degree. He was later associated with the much maligned Senator Joseph McCarthy.  In 1954, the year after Riegel died, Jenner said this, from which the original quote derives:

Today the path to total dictatorship in the U.S. can be laid by strictly legal means, unseen and unheard by Congress, the President, or the people... We have a well-organized political-action group in this country, determined to destroy our Constitution and establish a one-party state... The important point to remember about this group is not its ideology but its organization. It is a dynamic, aggressive, elite corps, forcing its way through every opening, to make a breach for a collectivist one-party state. It operates secretly, silently, continuously to transform our Government without suspecting that change is under way... If I seem to be extremist, the reason is that this revolutionary clique cannot be understood, unless we accept the fact that they are extremist. It is difficult for people governed by reasonableness and morality to imagine the existence of a movement which ignores reasonableness and boasts of its determination to destroy; which ignores morality, and boasts of its cleverness in outwitting its opponents by abandoning all scruples. This ruthless power-seeking elite is a disease of our century... This group ... is answerable neither to the President, the Congress, nor the courts. It is practically irremovable.

I trust it is now far easier for most of us to see precisely and exactly what Jenner was referencing; a power that is answerable to no one, representing a “ruthless power-seeking elite” that is not a lawful group in any way, shape or form. Wake up people. These people are ARCH CRIMINALS! Oh, and if such are “practically irremovable,” just what does that imply?

4. “We are grateful to the Washington Post, The New York Times, Time Magazine and other great publications whose directors have attended our meetings and respected their promises of discretion for almost forty years. It would have been impossible for us to develop our plan for the world if we had been subjected to the lights of publicity during those years. But, the world is now more sophisticated and prepared to march towards a world government. The supranational sovereignty of an intellectual elite and world bankers is surely preferable to the national auto-determination practised in past centuries.” David Rockefeller, Baden-Baden, Germany 1991

Who is this guy that anyone should follow him? Take his money from him and he's a nobody. Notice that the leaders of the American press are complicit in this man's mad schemes and crimes therefore why waste another dime on any of their publications? As for the intellectual elite and world bankers, have we had just about enough of them yet?

5. “The real truth of the matter is, as you and I know, that a financial element in the larger centers has owned the Government ever since the days of Andrew Jackson.” A letter written by FDR to Colonel House, November 21st, l933

Notice people, some unelected somebody “owns” your government, just as we have been saying all along. So this may be true or at least so the elites believe. Then in what sense since then, have ANY of our governments been truly of, for and by the people? The honest among you should be feeling a great disconnect from everything you were taught in schools, or in college (yeah, I went to college). You were fed a load of outright lies based on a mad idealism by a small group of people who have laboured relentlessly for many generations to gain control over all the world! It's time to wake up, get yourself re-educated to know the facts of history and understand and identify (remember, by the law of identity, everything that can be defined is objectively real) the people who were intimately involved with sabotaging just about everything in order to serve their goal of world domination.

6. “The depression was the calculated ‘shearing’ of the public by the World Money powers, triggered by the planned sudden shortage of supply of call money in the New York money market….The One World Government leaders and their ever close bankers have now acquired full control of the money and credit machinery of the U.S. via the creation of the privately owned Federal Reserve Bank.” Curtis Dall, FDR’s son-in-law as quoted in his book, My Exploited Father-in-Law

No doubt many of the Roosevelts would like to let their famous ancestors off the hook for many things they did, or more correctly were forced to do. We should be asking ourselves why so many were subject to the “carrot and stick” of BRIBE money from the Money Power, who have only sought the suppression of the independent human spirit under the yoke of their tyrannies. The Roosevelts, etc. accepted their roles, believing that the money they were bribed with would secure some special place of safety from which they would escape being subjected to the general misery that would befall the rest of the population. But, don't be so sure though that their crimes will go undetected. Again, “come out of her, my people,” is the appropriate response.  

7. “The New Deal is plainly an attempt to achieve a working socialism and avert a social collapse in America; it is extraordinarily parallel to the successive ‘policies’ and ‘Plans’ of the Russian experiment. Americans shirk the word ‘socialism’, but what else can one call it?H.G. Wells The New World Order 1939

Indeed. Just try and start any new business, just try and keep one going. The often maddeningly stupid state bureaucracies are there to prevent any competition to the corporations, who have a monopoly on everything and the bankers are right behind them pulling their strings. Abandoning the “public” currencies is to benefit the small operator, not the huge multinational conglomerate. While we're at it, let's take a look at these words:

Multinational means that these organizations regard no nation as their home, therefore they have no particular concern or respect for any particular nation or people. Conglomerate means that these organizations aren't devoted to doing any specific thing. They are potentially involved with managing anything. Claiming that managing anything and everything is modern, “scientific”, all the rest, as has been known for at least 40 years now, is hubris of the first order. Those who joined the modern management mayhem that has been taught in virtually all business schools ever since, choose to be ignorant of the dangers of limited liability and absentee ownership, as well as the very clear admonishment that the larger any enterprise grows the more inefficient and unprofitable it becomes. But the selfish and bullying types that are naturally attracted to managing these organizations, prefer to run blithely along with the certain knowledge that no matter what happens, some government here or there will be forced to bail them out at the expense of the people, either right now or during the lives of their children and grandchildren.

8. “Ultimately, our objective is to welcome the Soviet Union back into the world order. Perhaps the world order of the future will truly be a family of nations.” President George Bush Texas A&M University 1989

Ultimately their objective was to force a transition in both Russia and America to relieve certain European elites from worrying about eventual competition from either nation. Bush certainly knows this. Doubtless among the real ruling powers in London and New York, the plan had been to secure the Soviet Union (and all of Eastern Europe with it) as one huge gulag and turn America into another gulag on this side of the globe. Again, it was Russian nationalism that rose to the surface and it will be American nationalism (more difficult perhaps) that will emerge as inevitable to frustrate the plans of the globalists. This will be a nationalism motivated by the natural self interest of each group rather than used as a platform from which to launch wars of aggression, which we now all know are bought and paid for through loans from bankers who live and grow rich while other people die.

9. “Under Socialism you would not be allowed to be poor. You would be FORCIBLY fed, clothed, lodged, taught, and employed whether you liked it or not. If it were discovered that you had not the character and industry enough to be worth all this trouble, you might possibly be executed in a kindly manner. . . .” Fabian Socialist Bernard Shaw in his Intelligent Woman’s Guide to Socialism and Capitalism, 1928.

Notice the high-handedness. Shaw was an egotistical scoundrel, as are all the elitists, whose business it is ultimately to tell everyone else how to run their lives and if they don't like it ... “you might be executed in a kindly manner,” as if that's really possible. Again, throughout our extensive commentary on this blog, the idea that these people regard “the masses” as expendable should resonate strongly. If you feel small, unimportant, impotent, etc. it was largely your schooling that helped form that self image. Go take a look in the mirror. You are not unimportant and to the degree that anyone makes you believe that you are indicates what they have made you feel about yourself.  Don't take any of their advice, their pills, etc. as these are just the means to put you off and shorten your life.

10. “We are moving toward a new world order, the world of communism. We shall never turn off that road.” Mikhail Gorbachev 1987

Gorbachev clearly believed in what he was about, regardless of what it meant for Russia or the other dozen or so nations inside the former USSR. There is no reason to believe that absent a full recantation and repentance (turning completely away from socialism and all forms of statism), that Gorbachev is anything other than what he always was. It should become even more clear just what the rest of the elite are too.  

11. “National Socialism will use its own revolution for establishing of a new world order.” Adolph Hitler during World War II

Yeah, just for the record, Hitler was after the same thing too. 

12. “I am a most unhappy man. I have unwittingly ruined my country. A great industrial nation is controlled by its system of credit. Our system of credit is concentrated. The growth of the nation, therefore, and all our activities are in the hands of a few men. We have come to be one of the worst ruled, one of the most completely controlled and dominated governments in the civilized world. No longer a government by free opinion, no longer a government by conviction and the vote of the majority, but a government by the opinion and duress of a small group of dominant men.” President Woodrow Wilson 1916

These people are still around, or their latest generation. So who are they, where do they live, where do they travel and what may they do next? It is of growing importance for some to know these things. Let Nature take its course. Just because one outcome has occurred does not mean it was the only way things could have developed. Why do we need to hydro-frac using dangerous and poisonous chemicals, for natural gas when someone can turn salt water into energy?  Why do we need all these transmission lines, pipelines, etc.  Why couldn't each place supply its own energy as needed?  The easy answer is that all these solutions involve a decentralization an individualism, etc, that would defy the elite's abilities to control it. Yes, things could have and might still be done quite differently from how things have been done in order to suit the goals of certain people's special agendas. Obviously there were self-serving agendas behind how everything has developed. It is therefore our purpose to be about something else, something that was and is NOT part of their agenda.

13. “It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning.” – Henry Ford

No, Henry. People would need more than to know about how the failing system works, they need to know of one that would work entirely differently, one that would frustrate those who would do what the present elite has done.

14. “The drive of the Rockefellers and their allies is to create a one-world government combining super capitalism and Communism under the same tent, all under their control…. Do I mean conspiracy? Yes I do. I am convinced there is such a plot, international in scope, generations old in planning, and incredibly evil in intent.” – Congressman Larry P. McDonald, 1976, killed in the Korean Airlines 747 that was shot down by the Soviets

Yeah and many before him knew the same. So what's with being called a “conspiracy theorist?” It's a JEER. Behind every authentic jeer is the threat to do violence that will be imposed by FORCE on those who do not agree. Their laughs or their crooked smiles usually give them away. All jeers should be called out right away. Never let the person doing the jeering get away with believing their intention was not what it was; the intimidation of all those who are not “on the bus” regarding their programme with the not so difficult to hide intention to do violence to those who refuse to go along.

15. “Some even believe we (the Rockefeller family) are part of a secret cabal working against the best interests of the United States, characterizing my family and me as ‘internationalists’ and of conspiring with others around the world to build a more integrated global political and economic structure – one world, if you will. If that’s the charge, I stand guilty, and I am proud of it.” – David Rockefeller, Memoirs, page 405

He admits to the conspiracy, he admits being part of it. He admits that he and his family have long been traitors to the freedom of every single human being. But he can admit things now that seem beyond reversal because he believes his side will win. Who stands against him? “Who can stand against the beast?” The rest of the human population can and will. There will be a “tipping point” beyond which these people know that their time is up. So, if Rockefeller wins, we lose and we DIE and that goes for our children and grandchildren just as well. By the way, anyone who works for a Rockefeller will eventually lose too as they don't care for any but themselves. Do you think for one second that any of these people do anything for the good of humanity? Of course not. To them, most of us should already be dead.  

16. “It is the system of nationalist individualism that has to go….We are living in the end of the sovereign states….In the great struggle to evoke a Westernized World Socialism, contemporary governments may vanish …. Countless people … will hate the new world order …. and will die protesting against it.” – H.G. Wells, in his book, “The New World Order”, 1940

Are you getting it yet? By the way, just to make the point clear, the word “struggle” is one of their buzzwords. Their “struggle” has NOTHING to do with the good of the average person, it is totally for the erection of a clear totalitarian dominance over the rest of humanity who they always refer to as “the masses” as if we were nothing but bothersome insects to them.

17. “To achieve world government, it is necessary to remove from the minds of men their individualism, loyalty to family traditions, national patriotism, and religious dogmas.” – Brock Adams, Director UN Health Organization

They have been pretty successful, but not completely. Just because you run a successful bandwagon does not say anything about whether your agenda is based on truth, liberty or justice, which frankly can have no effective meaning for a ststist idealist like Adams. 

18. “We need a program of psychosurgery for political control of our society. The purpose is physical control of the mind. Everyone who deviates from the given norm can be surgically mutilated. The individual may think that the most important reality is his own existence, but this is only his personal point of view. . . Man does not have the right to develop his own mind. . . . We must electronically control the brain. Someday armies and generals will be controlled by electronic stimulation of the brain.” Dr. Jose M.R. Delgado [deceased], Director of Neuropsychiatry, Yale University Medical School, Congressional Record, No. 26, Vol. 118, February 24, 1974.

Note the Yale connection again. Question, what gives these people their incredible egotism? Money and power. If they had neither, such notions of FORCIBLY controlling others wouldn't perhaps enter their heads. We challenge this whole agenda and we consider these people to be madmen and criminals.  If you are in their service, you are already associated with their crimes. There will be those out there who would say that of course Dr. Delgado was not a murderer and would never have intended on killing anyone. Oh, but he'd clearly thought about it, on a mass scale too. Just look at the world around us and tell yourself if you can that people like Delgado aren't everywhere in charge. The farther up the chain of hierarchical command, the pyramid with the evil eye above it on every $1 bill, the worse it gets too.

19. “One of the least understood strategies of the world revolution now moving rapidly toward its goal is the use of mind control as a major means of obtaining the consent of the people who will be subjects of the New World Order.” From The National Educator, K.M. Heaton

We are aware of it, more people are becoming aware every day. What everyone needs to understand though is that nobody does anything without being paid, and they control the money. If you ever want freedom for yourself, your children, your grandchildren, your nations, your people, etc. then the money issue must be dealt with. Perhaps you believe that it doesn't matter, that they will win and then Nature will cause them to lose (because their plans are built on lies, deceits, frauds, etc.) and in any case you'd just be happy going along for the ride regardless of how many billions of people get hurt or killed. At least, so you believe, you wont be one of them. There are a lot of those out there, “neither hot nor cold,” who are in for a rude awakening. “Come out of her,” lest you be associated with her crimes!

20. “We are on the verge of a global transformation. All we need is the right major crisis and the nations will accept the New World Order.”– David Rockefeller

Fact: we know they are in the business of instigating trouble. Fact: we know that they intend to take over the world and to impose their tyranny over us all, which means death for most of us. When the time of crisis comes, what will people do? Will the people go along with these same scoundrels or will they see that justice is done? 

21. “No one will enter the New World Order unless he or she will make a pledge to worship Lucifer. No one will enter the New Age unless he will take a Luciferian Initiation.” David Spangler, Director of Planetary Initiative, United Nations

What the United Nations involved with occultism? Lucifer? The fallen angel? The false accuser? Get this, we're supposed to follow and worship (to bow down and serve) someone we can't be absolutely sure exists and has a reputation for snitching on us for things we didn't even do? (The elitists already try this, blaming THEIR pollution, THEIR mismanagement, THEIR crimes, on the rest of us.)  What's the big deal about following this Luciferian fraud?  A real philosophical materialist ... like Ayn Rand perhaps ... would certainly not fall for any of this crap.  But more will than wont, because the elitists understand the weaknesses of human nature. The boiling frog had time to jump out of the pot before he was boiled, but didn't. We need thousands of Edward Snowdens, thousands of Bradley Mannings. These are the true heroes of our day and age becasue EXPOSURE OF THEIR CRIMES is certain to bring them down sooner.  Shine the light of truth on any darkness and the crooks scramble for cover.  So who are the bothersome insects now?

22. “Today, America would be outraged if U.N. troops entered Los Angeles to restore order. Tomorrow they will be grateful! This is especially true if they were told that there were an outside threat from beyond, whether real or promulgated, that threatened our very existence. It is then that all peoples of the world will plead to deliver them from this evil. The one thing every man fears is the unknown. When presented with this scenario, individual rights will be willingly relinquished for the guarantee of their well-being granted to them by the World Government.” Dr. Henry Kissinger, Bilderberger Conference, Evians, France, 1991

Another arch criminal mind contemplating mischief. There's already too many foreign troops engaged in restoring order in other parts of the world. It's what happens immediately after the same troops produce a condition of disorder. If you aren't used to seeing things quite this way, all you have to do is put yourself into the mind of a criminal and you'll know exactly how these people think, because they are all criminals, every single last one of them!

These quotes offer quite a glimpse into what everyone knows by now but many still refuse to fully accept. There are people in this world with a lust for power and dominion over others and they intend on mounting a repressive campaign that will make all previous tyrannies seem like birthday parties by comparison. Will the people of this earth wake up in time and set about thwarting all their “big useless plans” before they bring about total annihilation?

The first question is what is the basis of their power that would render them powerless without it. That's right, it's the money! Imagine a world where they don't have any and everyone else has enough so that they don't need them anymore. That might make for a peaceful solution. But it will take concerted effort and there is no guarantee that anything gone wrong this far can be resolved peaceably, for it is absolutely inevitable that once it is recognized that a tiny fraction of humanity claim ownership over the most of the world's resources, that their claims will be resisted. We can't imagine that this will end well for everyone. Meanwhile we have the time to work toward the emergence of a better money system that will bring about a far better world.

David Burton

Saturday, July 13, 2013

#1 The E. C. Riegel Blog Introduction

[22 March, 2014: Do not read this blog if you rely on a rigid belief system to give your life a false sense of security and meaning. The information presented in this blog is potentially life changing, even world changing, but must be read with an open mind. Unless you are willing to put everything you think you know temporarily on hold, and open up to the possibility that you may have been systematically deceived and lied to your entire life, this blog is not for you. Bonnie BC, Canada

#103: An Updated Summary of the Proposal

All posts on this blog are available through the INDEX.

This blog concerns the design, formation and construction of an alternative monetary system which uses an independent unit of exchange as its money. Many of the concepts involved derive from the work of E. C. Riegel who is the inspiration behind our efforts. But this site is not a memorial to him. instead building on Riegel's insights, to construct a more up to date form of his system. Riegel's extant works are posted, beginning with these entry links, on this website as follows:


Of particular importance is the brief piece

#D The Basic Law of Contracts - E. C. Riegel

The rest of the numbered pages are grouped roughly as follows:

Any #0 are for general information / news as it may pertain to the subjects under discussion on this blog, but there are some of these among the numbered pages as well so in some instances there are overlaps.

Any numbered entries under "Papers" provide resources and information related more to the ains and intentions of this blog. Within these are some standout digressions to aid the reader in developing a more rigorous and rational approach to basic thinking skills to enable cognisance of many of the obvious frauds around us; think clearly to avoid being fooled, etc. The following are the entry links in this category of posts:

#13.1 Peace Revolution Podcasts 1 thru 10 and Introduction
#14.1 School Sucks Project Podcasts 0 thru 20 & Introduction
#15.1 Bill Still's Reports 1 thru 20
#18.1 Gleanings from the John Galt Speech - Part 1
#19.1 The Austrian School, agreements and divergences – Part 1

Of specific reference to the proposed Valun Exchange Network (VEN) and its network of Independent Exchanges (IE's) as well as the proposed international standard Value Unit (Valun), the following entry points are most helpful:

#2: The Price of Gold in Value Units 
#9: Why Proposed Constitutional Amendments Will Not Work
#20.1 A Preliminary Standard for Value Unit Exchange Notes and Coins
#21 Value Unit Exchange Accounts
#25.1 A Scientific Solution of the Money Question - A. Kitson
#27 Markets; Red, Black and Grey
#29 Starting At The Beginning
#31 Some Characteristics of the VEN
#33 Complementary Money ... for now
#39 Monetary System Engineering and Just Why Cash is King
#43 Idealism and Other Terms
#44 Two Essays Concerning Property & Value Units
#45 Some Questions & Answers
#54 This Blog's Valun Proposal
#55 Honest Money
#56 VEN Money Flows
#57 Perspective
#64 The Calculation of a Valun
#66 On Value and the Creation / Issuance of Money
#67 A Statement On Fiat Money
#68 On the Invention of Money & Other Matters
#69 Self Issued Credit
#70 It's The Money, Stupid!
#71 Why We Should Fear a Cashless World
#74 Why Free Enterprise is the Backing
#75 Durability Issues
#77 Probable Courses of Valun Usage

#78 Self Financing of Labour & Cost Accounting

#79 Self Financing of Labour & The Skilled Artisan

We'll add to this list as more appear.

#45 Some Questions & Answers

Source: Rethinking our Centralized Monetary System, the case for a system of local currencies, by Lewis D. Solomon ©1996

Q: Why do we need paper money (or money represented as scrips and slugs) rather than just precious metals coins ?

A: Gold and silver (and copper) are commodities whose prices are determined by brokers who operate in far away cities. These brokers have (or claim to have) more gold and silver than anyone else, therefore they “make” the market for gold and silver (and copper) worldwide.

Any monetary system based solely on precious metals is determined by the values arbitrarily chosen by these brokers. Therefore any advocacy of such a system implies an advocacy of the power represented by these brokers, which is the same as that of the bankers; they are the deliberate preselected sides of their monetary dialectic.

The same people control the banks, the markets and the mines. You are cautioned not to think outside their box, therefore accepting their authority (just because they say so), rather than accepting the only authority for anything; the truth. There is no truth in their banking model or the risks they always take with credit to make money on money, uses of leverage, etc. The truth can be known and determined by rational means and will remain the ultimate authority. States, banks and people may come and go, the truth is eternal.

B: Paper notes and coins are objects people easily recognize and know how to use and they require no extra learning. People are NOT used to hoisting around bags of precious metals coins, nor for that matter are most very interested in dealing in a strictly on line currency like bitcoin. Most people have wallets or pocket books and understand how to use notes and coins. Most people also know about checking accounts and how to write checks. People are getting used to swipe cards too, seemingly unaware or rather unconcerned, that every transaction using them is not guaranteed privacy. Of course, people are being conditioned all the time to accept and expect less privacy. It's part of their background agenda to maintain political and economic control.

C: Other forms of money, like checks, will be accepted within the VEN (our own design) as representing money too. A check is certainly easier than depositing a sack of silver or gold coins with a seller for his goods or services. You can also send one through the mails (public or private) to a distant seller as payment. Silver and gold don't fly.

If you think that swipe cards represent money in the 21st century, that checks did so in the 20th, that notes and coins did so in the 18th and 19th, you'd have to go all the way back to the 16th century to see a society that ran on nothing but precious metals coins. And that was the century with the 100% inflation in less than 100 years that no “gold bug” ever dares discuss, as it demolishes their whole concept of stable value based in precious metals. The cause of the inflation? The importation of gold and silver from the New World into Europe. Simple as that. Where did all that gold and silver go? To the bankers, spent by the various monarchs on wars, the usual story, over and over and over again.

D: The next form of money may be an embedded chip. Those without one are forbidden to buy or sell. Think it can't go that far? Take a look at the news (Nigeria is considering it). If you were a slave to the present system, and unless you're among those at the top you are, if you were just as much a slave without using swipe cards, and since you use their cash you are, would you be any less a slave under precious metals? Try getting anyone to pay you for your labour in precious metals for openers. Perhaps they would have in the 16th century, but it would be unusual to see anything like this happening now without a total breakdown in civilization itself, a return to times where life was “nasty, brutish and short.” We are trying to offer the public a realistic alternative from either “chipping” or barbarism. We believe that our proposal is currently the only realistic alternative to be put forward to date.

Q: Why do you advocate veterans and grandmothers with pensions starting fake accounts in your fake money?

A: Because this new machine will require some fuel (potential money) to get it running and we advocate EVERYONE with any kind of pension to begin doing this with other members of their local communities. As for our money being fake, let's take a look at your JEER. First off, the money you hold in your bank accounts, that does not have a physical form, is considered “fake” by every “gold bug” out there. They even consider your government issued “scrips and slugs” fake. They only care for gold and silver and consider these the ultimate measure of value, against which all else is to be assessed for sale.

So it gets down to just “for what” the buyer would be willing to part with their gold and silver. For since these have intrinsic value, they are less likely to be bartered away, unless the buyer is under stress to pay having no other means. Now this may indeed come about, as currencies enter their Weimar meltdowns, but in any case your “public” money is fake!

Ah, but of course people will take your money in exchange, so it works as money, whereas right now mine does not. But someone invented those pieces of paper with those pictures of dead presidents or crowned heads on them for use as money and they were FORCED on people to use by governments. They represent your slavery to them, not to the governments, for they are enslaved as well; oh no, you are slaves to the creditors of the governments and of everyone else in the system. You think gold and silver are different, but the same people have control of the values of those too. Everything about your money is therefore just as arbitrary and “fake” as you claim mine is.

The only difference is, and as it turns out it's a big difference, people are forced and enslaved by the money they use, whereas they can use mine (which would really be their own since they would be issuing it) for free!

Didn't someone say that “you would know the truth and it would make you free?” Yet you hear the phrase all the time that “freedom isn't free,” with the implication imparted that freedom must be struggled for, worked for, died for, etc. Such a phrase wouldn't have a grain of truth to it if there weren't in fact people out there whose mission in life was and is world domination. The idea behind such phrases as “freedom is not free” on the common popular mind is to suggest that someone out there has in mind taking your freedoms away, and they are out there and they do intend taking your freedoms away so they can do you harm. But meanwhile you are hoodwinked into using their forms, their institutions and their money, which enslaves you to their system and their ideas, which includes what they think of you and more importantly what you think of yourself. So, you still think all this is not important?

Q: Oh, but there's so much wrong with that, real money has to represent something of real value, like gold or silver.

A: Really? And how much did that ounce of gold buy last year that it doesn't buy this year? If you expect to use it as money, it has to circulate as money (and it doesn't and it will not unless there is nothing else) and considering what the brokers have done to the prices of these metals, last year's gold would have bought more than this year's, simple as that. You gold bugs out there have a wobbly table to work from, simply because you refuse to see the obvious; that someone else controls the price of your gold and silver and copper too, not you.

Q: But mere paper, you can print as much of it as you want.

A: As a matter of fact we can't. (For one thing we can't afford it, after all we'd have to pay a fortune in their money, to print ours) But even if we could, it would destroy the machine we're attempting to build to replace the old one. As for the present “public” money, most of it isn't even in physical form, it's in electronic records on computers. We attribute inflation in ANY public currency directly and entirely to government spending of unbacked money that they could not back with gold or silver in any case and could not back with taxes adequate to recapture as much as they spend. We brand anyone currently unaware of the direct relationship between a money being “fiat” and “government issued” to be profoundly ignorant of the facts. All fiat money systems fail BECAUSE they are all government issued and for NO OTHER REASON.

If you forced governments back on the gold standard, as they have done in the past under conditions of severe economic depression, you would still have unbacked money, because the government is not a seller of anything anyone willingly wants to buy. 

Public” paper money (and their coins) is what everyone agrees to say it represents in the marketplace (usually limited to only a few countries) for exchange of goods and services large and small. Legal tender laws exist to FORCE people into using their “public” money.

Gold and silver (and copper) are what a few dealers in far away cities say they represent in the market (worldwide) for exchange of these commodities, and in so doing determine the exchange rates among all the other “public” currencies. It can be demonstrated by facts, that a favourable relationship existed for many of the last 20 months between the Japanese yen and euro in trade for gold and silver. In certain situations it would have paid to exchange dollars or renminbi or rubles for yen or euros to buy gold and silver as you'd have gotten a slightly better deal. The more you bought, the better would have been your savings too, since cash is king.

Who buys the most gold? Central banks. We can perhaps see a connection between the need of the banking cabal to keep the Bank of Japan and the ECB flush with gold before the general crash that came about from May onward, which we see as a last ditch attempt to keep the paper stock market up (the bond market, at least three times larger, has already fallen). Ultimately when the mainsprings on the machine finally break, the currencies may swing wildly up or down, gold and silver may do the same. Of course our proposed Value Unit remains where we put it back at 2 November, 2011.

Where the gold bugs see a Weimar meltdown around every corner, it's far more certain that we face deflation perhaps followed by hyperinflation as all the debt is monetized back into the market. When a monetary system fails it behaves wildly at first before it expires, taking any measure of value it may have represented with it. All that's left after the game is over is the gold and silver and whoever has any of it gets to buy up the rest of anything at prices they determine, and then the whole process of huff and puff banking gets going again. Which is why we need a NEW machine, not just a patch up of an old one and why we need to start getting it set up right now while the old machine is still up and running.

The proposed international standard Value Unit has remained just where it was initialized on 2 November, 2011 and measures value, retaining its ability to do so as easily predicted by E. C. Riegel, whereas even silver and gold have fallen in market value, however computed or contrived. The practical result is that the scale of value measurement represented by each of these variants on money has shrunk by up to 30% in some cases, from those of the Value Unit.

Q: But isn't inflation related to how much money is in circulation? Couldn't someone just crank up the printing press and crank out as much of your money as they wanted?

A: Inflation is the result of having more money in circulation than there are products or services available for sale. Inflation usually produces a business boom as it starts, but all the building for business doesn't mean that business will be forthcoming, especially when the consumers are loaned up and are using all the “public” money they can to pay off their debts. After paying off past debts, most are reluctant to assume more debt. These days, the economy is dominated by the corporations and government. Ordinary people do not see much opportunity to earn money from their labour as independent operators, as the markets for that are increasingly licensed, thus pushing entry costs beyond reach of any who would most like to enter the workforce. Small businesses, which used to provide most of the jobs, are being squeezed out.

When it is realized that all this building to do business did not result in more business, there is a bust and the former boom becomes a bubble that has burst. The bankers sit pretty, because win or lose, whatever the government does, by spending more money into circulation daily -to the tune of $40,000 a second, their account books just show current dollars whether they were last year's dollar or today's dollar, which have different purchasing power.

Now we know that there has been a lot of “quantitative easing” going on, but why has inflation remained lower than we believe it should be? (It is actually much higher already than they say it is) Very simple. All this extra money is NOT strictly speaking in circulation. All this money is being syphoned into things the “too big to fails” want paid for. Were it to land in the typical family budget through universal raises in wages, then we'd begin to see the inflation really take off.

You see, it isn't just the government spending money on projects that nobody wants that matters, like some multi-million dollar complex built in some foreign country where we don't belong, that they know will be torn down anyway, it's the holding back of that money or depositing it to the Federal Reserve, etc. to earn interest. This money is not in circulation in any local marketplace, therefore it doesn't contribute to noticeable price inflation, though it could be preventing price deflation, which is the inevitable result of lack of money in circulation. Inflation and deflation are like high and low blood pressure. Eventually either will kill an economy.

Q: So what's to guarantee that your money would circulate?

A: There are no guarantees. But for the record, we have set up something by which all other values could be measured in all matters associated with money and trade. It is exactly the same as establishing an international standard for any other measurement. A Value Unit is not a commodity, nor does it represent any outside measurement based on the price of any commodity at any level or in any market. Once recognized and established, it works exactly as Fahrenheit's thermometer.

But whether it circulates depends on the will of the people. It seems to me that when you offer Value Units for trade for only silver or gold, that sooner or later more wealth accrues in the direction of those using them. But that will depend on the market that is “made” by those capable and willing of providing the finance capital in these same Value Units for real estate and other large capital projects. The more of this activity that gets organized, the more likely it is that this money will circulate. Finance and circulation are directly related issues. It's astounding how many researchers in this field do not understand this.

Q: What comes first?

A: Getting people paid in Value Units comes first: the simple labour contract as proposed is a terrific vehicle for making this happen. After enough time has passed and people have sufficient funds in the new currency and haven't spent them all, they begin to think of ways to make more of them, to extend their yardstick to measure larger and more expensive items. That's where finance begins.

Q: If you're going to issue a paper money, it has to be done by the US Treasury (or whatever comparable government agency in your country).

A: Was that a question? Look on your money as it is. It bears the signatures of the Secretary of the Treasury and the Comptroller of the Currency. That weird Latin phrase on the back of a $1 bill speaks of a New World Order, and that my friends is on the reverse side of the so called great seal of the United States. So, let's say you decide to jettison the Federal Reserve and give the currency issue directly back to Congress. They still do not have any Constitutional authority to issue any paper money, a practise Lincoln began. Lincoln, a lawyer, broke the law, but otherwise there wouldn't have been a “civil” war and things wouldn't have proceeded as they did.

All the organic US Constitution says the government is allowed to do is coin other people's precious metals for use as money. Edwin Vieira Jr. did a superb job establishing that, from a Constitutional law standpoint, a real dollar would be 371.25 grains of silver. That turns out to be 0.7734375 of a troy ounce. Right now, on writing this, spot price for silver is $19.79 and our bid would be $24.74. Today's Bid Price (TBP) = $24.74 and the weight of a Constitutional dollar being less than a troy ounce makes that comparably $19.13. Today's Value Unit Exchange Price (TVEP) is $2.76 (gold and silver have risen in price a little) so that means your Constitutional dollar would fetch 6.93 Value Units on 11 July, 2013. Yes, that's less than the value expressed (measured) by three pieces of our paper (only two if there's a VU 2 note as seems more and more likely).

So anyway, point being, those who ask that the government get into the business of issuing its own paper money directly without interest are asking the government to break the law (the original organic Constitution) and would further subject us to the effects of unbelievably wasteful and preposterous government spending; the idea would of itself do nothing about the problem of inflation.

Q: But I would have to carry around two kinds of cash, it would be annoying.

A: Really? You probably carry around right now various cards that can't be used just anywhere, that are only good at certain places or in certain circumstances. Back in the not so distant past, before the euro, most Europeans carried around money from various nations in their wallets so they'd be able to use them and get around the continent and do business. Some of us remember those days. Nowadays they use cards and if the currency changes, the card company does the exchange and charges those fees to you as well. For every convenience there lies the potential for enslavement. Nevertheless, we are hopeful that some form of swipe card may be developed for the Value Unit. It will seem inevitable that “public” money will come to represent money that is used to “pay unto Caesar that which is Caesar's” while Value Units will be used for everything else.

Q: But don't you have the problem of how to figure and settle taxes? 

A: As a matter of fact, technically we don't, but taxes shall be settled on our terms not theirs. First of all we accept as a given that ANY government anywhere is going to want to tax (to take by FORCE) a portion of our labour, our capital gains, etc. for governments and their minions are “the useless eaters,” not us. Taxing authorities use FORCE to gain what may not even be recoverable and so when they can't lay their hands on cash in their own money, they try and confiscate real property and assets. It will only be a matter of time before the people who work for these universally hated taxing organizations (which are merely appendages of the central banks looking for their 11th marble of uncreated interest) either wake up to their true role as operators against the people and leave working for these universally hated organizations, or they will inevitably become the targets of reprisals if and when civil unrest turns violent. You are receiving your warnings daily, “come out of her, my people” lest you share in her crimes!

We have given people the opportunity to “come out of her, my people” by informing them that the truth will not be silenced forever, that enough people know for a certainty that this and for that matter every other government has been commandeered into serving the long term interests of the banking cabal against the people of every country on earth. These same powers have built the framework for a worldwide governance without gaining any popular consent (the United Nations, World Bank, IMF and all the NGO's are a dictatorship and furthermore, just who are these people who demand that we listen to them, that we do as they say, etc.? What basis in truth rests their authority? It's all based on FORCE not reason.).

Were a measure put before the public asking whether your nation should secede from the United Nations, it would pass by a commanding margin as everyone automatically assumes that the UN, World Bank, IMF, etc. are foreign to the local people and their desires and decisions.

But the question was taxes: Income earned through Value Units is computed back into dollars for the particular tax year and the dollars raised to pay the taxes must come from the only available source to raise dollars (etc.) and to pay taxes; the gold and silver in the accounts of each independent exchange. All the IE member does, after computing his tax, is to advise his local IE that he owes a certain dollar amount to some taxing authority, and the member gives the exchange officer charged with the responsibility for such matters, a withdrawal for tax purposes notice, that allows the comparable amount of Value Units to be retired (to be destroyed) and for comparable gold or silver the IE holds to be sold for dollars (or whatever) with which to pay the taxes. The member usually gets a check from the gold/silver retailer/dealer associated with the IE. Now whether the member takes those dollars (etc.) of “public” money and pays their taxes with it is their responsibility, not that of the VEN or any of its IE's.

Q: Do you see any problems with other laws set up to prevent competition with the national “public” money?

A: Yes, we do. Of course we have the “legal tender” laws, which grants a monopoly to the purveyors of “public” money. These stand against common law as well as the organic Constitution. They are restrictions on the right of contract, which is related to the right to private property, which are inalienable rights. The preponderance of opinion among the peace, liberty and preparedness activists is that these statutes must be challenged and repealed in due course.

But if Federal regulations weren't bad enough, every state has its own set of restrictions on complementary currencies, some more liberal than others. For instance, it grieves me to have to report to any of my readers in Virgina and Arkansas, that due to their states' stringent guidelines, it is unlikely that we would be able to get an IE off the ground in either of these states. These are matters of politics in each state such that if you believe that the Federal governments are corrupt, and they are, then you can just as well assume the state governments are just as corrupt in most instances. Even local governments are prone to corruption, especially these days under the auspices of the United Nations and its Agenda 21. But this is just one more instance of their meddling in things which governments should never have been given power to decide.

In matters of complementary currencies, it turns out in most states that a complementary currency may be issued as paper notes as long as none of them intend to represent values of a current dollar or less. Let's examine what this implies by reference to a quote by F. A. Hayek when describing how an alternative money would gain acceptance:

“an issuer would clearly also have to provide fractional coins, and the availability of convenient fractional coins in that currency might well be an important factor in making it popular. It would also be the habitual use of one sort of fractional coins (especially in slot machines [sic], fares, tips, etc.) which would secure the predominance of one currency in the retail trade of one locality.”

So it turns out that our proposal would pass through far fewer obstacles if we just issued notes, the smallest of which would never fall in value lower than $2.16, rather than a complementary coinage that is prohibited by Federal law and not so far contested, going back to an 1864 Act (during Lincoln's administration). This Act should be repealed, or ousted as unconstitutional, except for those instances in Article 1 Section 8 where the founders IN ERROR AND IGNORANCE gave the powers to coin money to Congress, where it does not belong. They also failed to head Thomas Jefferson's warnings against allowing the Federal government to borrow money, which by the way was the entire reason for the US Constitution to begin with. The Bill of Rights was attached to make the whole package easier to gain ratification.

We'd also like to point out that while commemorative coins in silver and gold with values above $1 are permitted, others circulating or contemplated, made of copper which may trade for under $1 may not be legal. In particular we'll call your attention to this one.

As long as they do not carry the word “dollar” (or some other known “public” currency name) or intend to imitate or compete with “public” money for purposes of fraud; trying to pay taxes with a replica of a dollar rather than an “authorized” dollar, a commemorative coin may be sold for anything more than $1 and even if used in terms of barter, is considered legal. But a 1 oz. copper medallion where the imprint is a copy of another well known American coin, sold for under $1 intended for use in trade, may have all sorts of problems associated with it. To avoid any possible conflict with existing coinage laws, most retailers would be advised not to sell these coins for anything less than $1 and should probably offer them for sale for well over a dollar.

Q: And what by the way would a 1 oz copper coin really be worth?

A: The 1 oz coin is in troy ounces and the spot prices for copper are by the pound (lb), which is 14.583 troy ounces. So if the current price is $3.1522 [12 June, 2013] per lb, each bid price is 25% higher or $3.94 per lb, or each troy oz of copper is 1/12th of that, so $0.33. Now, if you buy one of these medallions at $1, you are paying a 200% premium over bid for a copper medallion that cannot carry any less value in a complementary monetary system than $1 without breaking some law.

Q: So you don't recommend buying them?

A: I do not. It makes far more sense to find someone with genuine pre-1964 American silver coins and buying them for their equivalent quantities at spot, if they'll make you such a deal.

Q: Isn't that like buying old money with new money?

A: That's exactly what it is, and furthermore my father warned me that it would come to this. I'm wondering how many other men of the so called “Greatest generation” told their sons something similar? I expect that many in fact did so. There was the feeling back then, that being able to trade real silver between people was somehow more honourable. However that may be, we regard this regard for real silver and gold tokens of exchange as a superstition. People feel emotionally about a lot of things that don't deserve the energy or effort. Money should really be one of those things people feel relatively nothing about.

Q: So, if the first step is to get more people paid in your money, what's the next step?

A: Getting people to see that the Value Unit does not move against everything it prices for sale at any given time and therefore getting more businesses to use them. The more businesses that use them would discover right away that they have a far more stable means of measuring value than by using any of the inflation prone “public” currencies. Matters of market manipulation and speculation are reduced to what a local consumer base would pay for any item. There may be differences between regions for various kinds of production, but there are anyway under the present system. As indicated in an earlier paper, if speculators want to start a futures market using Value Units, they would have to do so outside the VEN, as we consider their business model nothing short of gambling for profit (making money on money, operating a game of chance) and would not offer them membership. They would have to acquire sufficient Valun cash to operate and since leverage and other gimmicks are part of their game, their abilities to actually produce valid Valuns would make their businesses prohibitively expensive; it would no longer be worth anyone's time or effort to try and concoct schemes to defraud other people of their property based on “fool's paradise” promises of a return based on no effort.

Q: So do you anticipate a “return to Mayberry” scenario playing out in America and elsewhere?

A: I believe to some extent it's inevitable. Furthermore, just taking the United Nations' Agenda 21 as an example, doing exactly the opposite of everything they propose is probably going to save the world. Their choice leads to war and genocide. If the governments get into mass killing of their populations, it's democide. For the average person, it matters to them to acquire basic skills, learning how to hunt, grow food, build and maintain things, etc. These are worthwhile pursuits. People who had in mind getting an education to work for either government or some corporation may be jumping aboard a sinking ship. The future is not to them. Beginning to think in more local terms, of how to provide for yourselves among those who are near-by more than those who one does not know, somewhere around the world, is how to procede. Getting familiar with the real estate around you and how it is used and who owns it, etc. is also a key responsibility someone with the interest must assume. A future paper will focus on refinancing real estate within the VEN. The concepts are simple, it's the details that must be worked through.

The goal of a true monetary system is its success, that it brings about the prosperity of all that use it, as a voluntary and private decision, not sanctioned by some state FORCE. We are describing the building and operation of a machine, a proposal for the ultimate replacement of an aged and corrupt machine. We have to have the hearts of statesmen but the minds of engineers. After all, this is the 21st century.

David Burton

Monday, July 8, 2013

#44 Two Essays Concerning Property & Value Units

The British East India Company (a corporation) flag
and the modern American flag.
Prologue: On Independence

We just celebrated the 237th year of the grand American Republic known to the world as the United States of America, a people drawn from every nation on earth, ruled as it has been for quite a long while, by a group of people who work hard at trying to pretend that they are drawn from the people and rule of and for the people, etc. ... when as a matter of fact, they do not.

Of particular note are the flags of the British East India Company and the modern American flag. Over here, they used the song God Save the Queen, changed the words, retitled it America and taught it to children in school. Considering how similar these flags are, we were told that the 13 stripes represented the 13 original colonies. No doubt. And what did they represent on the original flag? Yes, exactly. So how “independent” are we?

The following essays are presented in the sincere hope that we discover the means to attaining our true independence.

1.  Rights, Property and Value 

This discussion sets the groundwork for the institution of local Independent Exchanges (IE's) so that everyone understands in and of what their membership in an IE consists.

A “right” is something that is inherent in a particular human being (Black's Law Dictionary) and is distinguished from a “privilege” which is something granted to a particular human being, a class of human beings or a company of human beings organized to perform certain functions and moreover, as an advantage over others. Recall here please our explicit definition of selfishness; to deliberately take advantage of someone else for one's own benefit, especially if they are weaker or poorer than yourself. Privilege by definition is selfish.

Someone grants a privilege to another, based on what? Based on their power to grant that privilege, usually backed up by some FORCE of law; the surety of non-compliance results in punishment from those who granted the privilege. If someone gives you a privilege, they can also take it away. The privilege comes with strings attached. Remember this form well, as it is directly applicable to the patent industry sustaining the fraud that the seller has some control over that which he sold to the buyer. This is the pretence that one has a right over what was sold to another, has a claim on what has become another's property. We remind you all that such conditions apply to ALL forms of common “public” money in existence, bound up with “legal tender” laws, etc. None of it is yours. It is all someone else's property that you rent to use. Let that thought sink in for a while and you'll begin to understand the significance of our proposal.

In contrast to privilege, inalienable human rights are life, liberty and property (this is the crux of the whole matter and shall be the subject of future posts) and these cannot be taken away and cannot even be sold or offered for sale to another human being by FORCE; they are inalienable.

All true rights derive from private property which is all that is said to belong to a particular human being. Of course those behind the Communist Manifesto certainly don't think so. Private property is ultimately of a personal matter. Note how the courts have mutilated the law by allowing corporations the same rights as human persons? Personal, private property extends in many directions. The 4th Amendment of the US Constitution enumerates these somewhat as “persons, houses, papers, and effects.” By “person” here was NEVER implied to include corporations, nor was it to include slaves as “secure in one's persons” might imply that one's slaves could be taken away and sold, etc.

We note in particular that everyone has inalienable rights plus rights which can be limited by the rights of others or infringed by the tyrannical acts of others, groups (including governments) or private companies with licenses to do what would otherwise not be granted except through the tyranny of government edict, that is, obtained strictly by FORCE. 

Every right carries with it particular responsibilities. Privileges usually carry no inherent responsibilities, but require adherence to specific rules set forth in the enabling acts of the government granting the privilege. In fact a wide classification of groups operate under rules which grant them protection from individuals whose rights or property was infringed or damaged by their actions. 

The only limitation on your individual rights are the rights of others. Some these days claim they have a right to healthcare, or more correctly a right to receive healthcare without paying for it in something of exchange. A right to healthcare does not equal a right to immortality or freedom from getting sick. If you are not willing to do your job for free, why assume others are going to do theirs for free? 

A right to your property does not entitle you to another's property no matter how badly you need it. There is no inherent right to another's property.

Rights and privileges are opposites. Governments are allowed to do things, granted to them as privileges, which could theoretically be revoked by those who support the government (voters and taxpayers). Any government which does not observe the rights of individual human beings, as previously defined, are tyrannies, since they are assuming they have rights that are not inherent in themselves, as they are made up of individual human beings. Likewise any policy that aims at despoiling someone's property to give it to someone else, for any reason whatsoever, is tyrannical.

Licenses from governments are either 1) the result of grants from the people for said government to be granting privileges to some and not to others (an advantage over those without licenses) or 2) they are tyrannical decrees by one individual or group of individuals for the purposes of exercising power over other individuals.

You have a right as an individual human being to be able to provide for your subsistence, as long as you are where you are supposed to be, and in that case to create the money to obtain it. It is within the purview and purpose of this blog to demonstrate how a monetary system that respects life, liberty and property, would look and how it would operate, exactly like the machine we say it is.

Michael Rivero and others describe the money they'd like to see as a “public utility” issued free of central bank interest. Actually we consider money to be a measure of value, that isn't even supposed to hold any intrinsic value relative to what it represents, as the more commodity value is contained in the “tokens of exchange,” the more any trade (barter) is influenced by the commodity content in the exchange. It may even be reliably said that one would expect to obtain something “for less money” if they pay for it in the “hard cash” of precious metals. But as I've said, as the price of precious metals rises, as we all know that it will over the next five to ten years, the less likely someone will want to part with these coins as they will gradually assume the status of priceless objects, while everything else as a measure of value disintegrates back to 4th century levels, where there is much bitterness and gnashing of teeth, etc.

Rivero, Still and others, favour giving back to the Treasury department, where they claim the Constitution vested it, the authority for printing and minting the nation's money as a “public utility” without interest. Printing money, by the way, they are actually forbidden by the Constitution to do, since this is equivalent to the government issue of bills of credit, “dollar bills,” which they have been doing anyway for now something over 150 years! All they can do is coin someone else's gold (or silver) for use as money.

Just what are these statists assuming about who gets to use this new “public money” to buy something? Oh, they expect the government to spend it into existence, you know, for the roads, schools, hospitals, jails, etc. and thence from all this activity, the rest of the economy is supposed to benefit, as the sellers of resources and labour to the government receive money in something like a grand swap. And then taxes, which are assumed to be much lower in such a scheme, would be sucked back into the government so that inflation, deliberately caused by government spending, would be reduced. You know what folks? Such a system is completely absurd!

We stoutly hold against ANY government issue of money, as proved by history. So, why keep doing something that's been tried over and over and over again and has never worked? It's stupid! NO government, at any time, should EVER be tasked with providing ANY money to ANY public as a “public utility” or whatever. What, like a public urinal? It that what you people mean? That's what you'll get. That's what you've got.

No, we offer something quite different based on a set of rational arguments from common sense. Money is created in the act of buying, and its right of creation is an inalienable right of a human being only. It is a personal and private utility not a public one, sorry. It is cancelled when it is accepted back in trade by the original buyer creating a monetary circle of exchange. Money performs an accounting function in trade and nothing else. It operates best when it is a fixed point of reference for everything else. This is what E. C. Riegel advocated. This is why this blog bears his name. We believe he deserves credit for the concept of a “universal monetary language” based on this fixed measure of value.

E. C Riegel saw clearly that inflation and government spending were inextricably linked. He understood the “Weimar meltdown” of hyperinflation, knew that it was usually inevitable in all cases of the demise of government issued fiat currency, whether that currency is loaned at interest or not. He would have liked the bankers to take him up on his ideas, but ... poor Riegel ... they were exactly the wrong people to have approached. We know much better now.

The modern banking establishment is the background enemy of humanity as has been sufficiently demonstrated by their complicity in countless wars. Nevertheless, it would be utter folly to openly contest them and Riegel would have placed under his ban on political activism any attempt to coerce the powers that be into whatever may be our ethical considerations. They are beyond any thought of any of this.

Riegel's message was to set up a working monetary machine (well, that's what it is), while the present one was still in operation. To date, bitcoin has succeeded perhaps better than any comparable alternative currency, but it still has problems, including that its price is subject to speculation. You have no way of knowing what the price of a bitcoin represents and it may fluctuate wildly. It behaves exactly as would a commodity under speculation. While we appreciate the (relative) anonymity of the bitcoin system, it has been hacked and there is no guarantee of privacy, as there would have to exist in a private organization.

We consider the proposed Value Unit to be an international standard measure of value that all recognized Independent Exchanges (IE's) would accept as money. This is exactly like a country deciding to adopt the metric system for other kinds of measurement.

Each IE is started when three people get together for the purpose, in a geographical area that can encompass at least 40,000 people. We would prefer these be persons of independent means and even some with property that would give each IE some permanence (Roger Hayes had the same idea for Lawful Bank branches. Our article on The Lawful Bank is here).

Memberships in an IE are either as A members (individual human beings) or B members (businesses formed by A members). There would be of course businesses that are running in the regular economy, while they would be encouraged to run in ours as well. We will never adversely affect or increase the paperwork overhead of any participating business. All we'll need are executable labour contracts. While all companies and employees are earning dollars (euros, yen, etc.) they are all earning Value Units through auxiliary labour contracts. The employers get the float up front until their employees are paid. They must all be IE members, all they do is fill out something that can be said on one page, sign it and assign it as active at the local IE. The IE does the work of debiting and crediting the accounts until the contract is extended or terminated. The employee gets a rating (5 star will do) from the employer and credit for completing contracts spanning time intervals. Most labour contracts will be capable of extension by the employer, though some may be for limited periods.

Some may be “craftsman's contracts” where someone is charged to make or produce something and the cost of materials and equipment is figured into the job. Usually fifty percent is paid up front and the rest at completion. We would want a limited time span for such contracts that would penalize the craftsman for being late. An example looks like this:

Smith wants Jones to build him a shed. They have worked out the details for the job and determined that 300 Value Units would just about do it. The time allowed is 90 days or three months. Smith starts Jones off by paying him 150 Value Units and the clock is ticking. Jones has to get it together and produce the shed per Smith's original directives, on time, or ... Jones get's a certain percentage of his 150 remaining Value Units deducted from his pay. That's the way it is folks. That's the kind of thing we want to encourage. How many projects are left half done, etc.? It's time we finished our projects.

The kinds of businesses that easily qualify are all single proprietorship forms, family owned businesses usually organized as partnerships, general partnerships where each partner shares the profits and losses equivalent to their contribution. Here's where we may take a cue from Roger Hayes and apply the fractional reserve model as he did, upside down, but applied to finance companies only (or perhaps to land purchases only). I doubt we'd countenance more than a five to one ratio however. 

What we're describing here is where say some 20 individuals who are A members of a local IE decide to form a company for the purpose of financing local real estate in Value Units. Let's call this company Excelsior Land Loan Association (ELLA). Perhaps for every Value Unit they deposited, ELLA would loan out five. Loans can be bills, which are for a year or less, notes out to seven years, or bonds out to forty-nine. Most loans for real estate are organized as a set of notes. 

Here's the problem. The people who put up the money aren't going to see any return on their investment for a while, for let's say seven years. That's the length of a note. They can be cashed out in seven years and will receive more than they put in, unless people just simply cannot pay off their loans in which case ELLA folds, the people who invested in it lose their money and either the deadbeats get to keep their property as squatters or the community gets the local Sheriff to run them off. So you see why it is vitally important to split finance from regular transaction clearing functions. Obviously, we'd prefer not to see any of this happen.

All credit contracts must pass through an IE and must be recognized as lawful under our rules. The rules are simple: Only money that has already been created can ever be lent. That kind of eliminates the use of fractional reserve lending now doesn't it? You can charge a rent for your money that most likely is to be paid up front, since we don't allow compounding, or assessed as part of a monthly payment schedule using simple interest only and every last fen (cend or cento) to be repaid must come from money that the buyer has created or earned; all loans are self extinguishing, absorbing all value left in the total sum of payments into whatever item(s) or service(s) it was that was purchased.

A members can and perhaps do run accounts in the red (overdraft), they begin as E. C. Riegel called “red inkers,” while B members must never allow this to happen or they are technically bankrupt. It is thus well that B members have a nice cushion of cash in their accounts to prevent overdrafts from happening. A members have a flag in their account, a field that totals up the number of Value Units they have created as distinguished from Value Units the member deposits into his/her account from other sources. Value Units that are deposited from elsewhere, labour contracts, etc. counteract the number of Value Units created. Eventually the A member is creating no new money, but is earning money from others in exchange and becomes a “black operator.” From then on, an A member may succeed so well that they may never create any more new money in the system ever. This forms a natural curb on inflation.

2.  The Value of Gold (and Silver) and Politics 

“The king [Solomon] made silver and gold as common in Jerusalem as stones, and cedar as plentiful as sycamore-fig trees in the foothills.” - 2 Chronicles 1:15 (NIV)

Now, ladies and gentlemen, what exactly is implied by making silver and gold as common as stones? Cedar, which repels insects, has a nice fragrance and finishes well, was and is rare. What does it mean to make such things plentiful? In both cases the precious metals or fine products are lowered in value; they become as common as stones, because they become less scarce. The natural attraction for both precious metals and good products is a free market based on wealth (that capable of providing income) and possessions (private property), probably on a scale as had not been known up to that time. Apparently Solomon's kingdom was busily going abroad and opening up opportunities for trade. We want to make the point that where trade is free and uninhibited, production will tend to become so as well, and as a result the standard of living will increase and populations will tend to become more stable. These connections have been recognized for a long time, though public policies are frequently deliberately at odds with them, because these public regulations are a mask covering preferences for special interests ... and nefarious agendas.

Right now, there are those out there with their Agenda (the United Nations, the various NGO's and especially the individuals who fund them), which intend massive population reduction, so they aren't particularly concerned about the welfare of the average person. They certainly don't care about raising the standard of living of the average human being either. Ironically, most of these people consider themselves Humanists. Nope, their real agendas for humanity stand exposed more and more every day. Their respect for anyone's human rights and sovereignty ring hollow. Increasingly these people will end up seen as the arch criminals they have always been. They care more for some useless “endangered species” than for the food basket of the United States, which is Central California and are about to destroy what took many generations to build there. Why? Because these people hate the small operator everywhere, who represent competition to their total corporatist control. Globalist suggestions are everywhere the same, to support monopolies on natural resources, increasingly over food and water. There are measures being adopted that imply deliberately turning productive land back to nature and relocating the majority of the population into cities; concentration camps. Most of all, they want to impose by FORCE, their corporatist oligarchy (rule by the few).

Opposed to them, we have those who support anarchy (rule by none), who insist, and we frankly agree, that anarchy is not the same as either social or national chaos. As can be imagined, there are as many kinds of anarchist as there are people, yet few of them advocate a lawless society and insist that questions of rational behaviour and conduct are recognized immediately by most people; we know what it is to be sane and we know how to spot its opposite. We need no expert to demonstrate the differences to us, they are obvious. Anarchists usually assert that most people would be far better off without any government.

Then there are the Libertarians of various stripes. Though we may agree with them on most things, we part company with them concerning both corporations and unlawful immigration. Both instances are ethical equivalents in that they falsely equate liberty with privilege and bullying. Just because some are poor and desperate and are willing to work for less than the people who are native to a country, doesn't mean that their illegal presence does not constitute bullying. Yes, the poor have gotten used to bullying everyone else. We have the solution to that. Nevertheless, there is no liberty granted to bullies; everyone knows how to recognize one, they always try and get away with doing something to someone else, whether that's accomplished in a passive or aggressive manner makes no difference. Many bullies these days work for governments, as bullies have a natural magnetic affinity for FORCE.

There are the nationalists out there too. Where these people frequently go wrong is that they favour a strong autocratic central government (a national socialism) to “lead the nation to glory,” etc. What if we could just separate ourselves from the “would be” militarists of all sorts and accept the realities of race, creed, custom, culture, language and nationality? Moreover, why couldn't we provide everyone, no matter who they are or where they live, with their own means to participate in trade, first among themselves, then building their own communities and finally building strong and HAPPY nations? Obviously there are those out there who have different agendas and DO NOT want to see this kind of a future happen.

Then in the “Western democracies,” we have the various political parties supposedly representing capital (defined as idle money that gets rewarded for remaining as cash) and labour (frequently organized into closed shop unions), ranging from those close to the viewpoint of the nationalists or libertarians to those favouring the command economy approaches whether they be socialist lite or hard line communist. We watch the mutual follies of all of these, but we caution against political action of any kind, as being ultimately useless; a waste of your time, resources and energy.

Our purpose nevertheless, was to point out that none of the presently constituted political parties has any interest in promoting abundance to the people, which is the engine of practical development everywhere in the world. So it DOES matter just how Solomon made silver and gold as common as stones.

E. C. Riegel remarked that everyone knew the prices of gold and silver but weren't sure what they were really worth. Both of course are commodities that were imposed on populations for use as money in antiquity (it was never the free choice of markets as the Austrians and their followers continue to LIE to the gullible public), which is why they nearly always featured the head of some ruler on coins. Gold and silver do not represent liberty as is FALSELY claimed by the Austrian economists, they represent the old order of oligarchy and slavery; those who have the gold make the rules, and believe me you or I are not ever going to have enough precious metals to displace the far away brokers from deciding what their prices will be.

Who are these oligarchs? Formerly they were the royals, nowadays they are the bankers and corporatists. In any case, they are not you or me or of the people.

The prices for silver and gold are set by brokers in London, New York and elsewhere and there are futures markets, where people get to sell contracts for delivery of precious metals, that are not even honoured on date of delivery, but are paid off in the local “cash,” all of which is as we've said, not the property of those who possess it, but of those who issue it by rights established under intellectual copyright law.

But wait a minute, I had a “contract” to deliver gold or silver at a specific time for a specific price. I don't want your cash. Too bad, buddy. You play in a market controlled by those who have the most of that commodity and they decide who to deliver to and that doesn't mean you. So that means these contracts are all false? It means that yours are, that's all. Sorry pal, just take the cash and run along.

So in order to get any physical gold or silver in your possession, you are going to have to pay more than what is called “spot price;” what the brokers say the prices of gold and silver are. We call the price the gold and silver dealers post, the asking price, or sometimes just “ask.” The highest price we expect to pay is the bid price, or just “bid.” There may be situations where the bid is higher than the ask, in which case there is opportunity to buy. In cases where the ask becomes higher than the bid, the supply is supposed to be lower than demand and supposedly encourages more of said commodity back into the market for sale at the new higher prices.

Construction of the International Standard Value Unit

If it isn't simple, most people will just walk away.

We said that there was a bid price for gold that crossed $2,160 per ounce on 2 November 2011. The official close placed that bid price almost $11 higher. We decided to start our experiment by initializing a stack of 1,000 Value Units at this price, using it as our figure 1. After this point, the value of a Value Unit has nothing to do with the prices of either silver or gold. Here are the closing spot prices for gold on that day in all the other common currencies. 

At inception (2-November-2011) the “spot price” for 1 oz of gold bullion, establishing the basis for the international standard Value Unit (Figure 1) was as follows for these currencies:

EUR Euro
USD US Dollar
GBP British Pound
CNY Chinese Yuan Renminbi
JPY Japanese Yen
RUB Russian Ruble

But, our stack of Value Units is based on the bid price.  The bid price in any currency is 25% higher.  This policy proposes that when the time comes, we would offer to buy silver and gold up to 25% above spot price. We express the difference between the Spot and the Bid as the Spread.

EUR Euro
USD US Dollar
GBP British Pound
CNY Chinese Yuan Renminbi

JPY Japanese Yen
RUB Russian Ruble

We now have a set of values expressed in these currencies for the inception value of 1,000 international standard Value Units and for each Value Unit: 

1,000 Value Units
1 Value Unit
EUR Euro
USD US Dollar
GBP British Pound
CNY Chinese Yuan Renminbi
JPY Japanese Yen
RUB Russian Ruble

We have designed this monetary unit to trade for fair value in terms of its initial values, such that they never fall below these initial values.

Initial Bid Price (IBP) = $2,172.61 (or 1,573.75, etc.)
Initial VU Exchange Price (IVEP) = IBP / 1,000
IVEP = $2.17 (or €1.57, etc.)

The basis for comparison is gold and silver bullion, as their prices are dictated by those who control their markets.

Today's bid price (TBP) = Today's spot price (TSP) + 25%
TBP = TSP + (TSP x .25)

Today's VU exchange price (TVEP) = ( (TBP x 1,000) / (IBP x 1,000) ) X 1,000
TVEP = (TBP / IBP ) x 1,000

TSP = $1,236.61
TBP = $1,545.76
IBP = $2,172.61

TVEP = ( 1545.76 / 2172.61 ) X 1,000
TVEP = 711.47605874961451894265422694363
TVEP = 711.48 rounding off all the rest

So based on a spot price of $1,236.61 an ounce of gold buys 711.48 Value Units. An oz of silver has a separate spot price but all the calculations are the same except that the initial spot and bid prices for silver are used. Each metal buys in at its own exchange rates determined by initial and daily spot and bid prices. There is never any attempt made to FORCE a relationship between the metals that does not exist, yes another idealism unmasked; just because you'd like to assume a 20 to 1 ratio between silver and gold doesn't mean you always get one and furthermore setting arbitrary ratios invariably affects markets in unforeseen ways  

We have shown you how to figure out how many Value Units each currency will buy based on an ounce of gold bullion. But recall at inception, you would have been able to buy 1,000 Value Units, so why does an ounce of gold buy fewer today? The simple answer is that the price of gold has fallen, so in order to buy the same number of Value Units, you'd need more gold. How much more? 30% more today under this example. So in order to buy more gold, the dollar, euro, etc. equivalent for a Value Unit goes up accordingly; your "public" money, which isn't even yours, buys less of our money, which would really be yours, than it did at inception.

Now what if the prices of precious metals had gone vertical? In that case, what we would have done, perhaps, is raise the initial value level to a sustainable price to acquire bullion assuming even at stratospheric prices, these things would change hands at all. Of course when that happens it will be too late to get anything off the ground as all currencies would be entering Weimar meltdown scenarios and would lose their ability to measure anything of value, their units of measure becoming far too small.

By comparison, the new initial bid price, whether it be established for one currency or for all, would tend to make the Value Unit a harder standard of value measure against everything else.

In order to find out how much of each currency is required to buy a Value Unit, you need to know the initial and present bid prices (since the Value Unit in each currency is based on multiples or divisions of these). But you also need to know the amount of present currency in each Value Unit representing the fluctuation prices of gold or silver bullion, more as the bid prices exceed initial values and less as they fall against the initial values. We will call this the gold currency price or GCP. It's always simply the TBP divided by 1,000.

Recall we have
IBP = $2,172.61 IVEP = $2.17
TBP = $1,545.76 GCP = $1.55
Now with GCP, we have
TVEP = ( (GCP-IVEP)-IVEP ) x -1
TVEP = ( (1.55 – 2.17) – 2.17 ) -1
TVEP = ( -.62 – 2.17 ) x -1
TVEP = ( -2.79 ) x -1
TVEP = 2.79

Today's VU exchange price (TVEP) = ?
TVEP = $2.79

Performance of the Value Unit

It has been 20 months since inception. Over that period of time, largely due to the fall off in prices of gold and silver, the Value Unit has beat all currencies and silver and gold, at bullion prices and maintained its purchasing power.  Too bad it's only on paper, but we learned quite a few things from our experiment so far..

The Dollar
i Valun at inception
The dollar began at VU inception with an IVEP of $2.16 and now has an TVEP of $2.79 representing a 29% loss in purchasing power against the VU.  At inception a VU would have cost $2.17, now it costs $2.79 [8 July, 2013]. 

The Euro
1 Valun at inception
The euro began with an IVEP of 1.57 but as of 2 July, 2013 had a TVEP of 1.94 representing a 24% loss in purchasing power against the VU.  On inception 1.58 would have bought you a Value Unit, as of 2 July, 2013, the price is now 1.94 or more.

The Pound Sterling
1 Valun at inception
The British pound began with an IVEP of £1.36 but as of 2 July, 2013 had a TVEP of £1.69 representing a 24% loss in purchasing power against the VU.  What began at £1.36 has gone up to £1.69.

The Yen
1 Valun at inception
The Japanese yen began with an IVEP of ¥170 but as of 2 July, 2013 had a TVEP of ¥182 representing an 8% loss in purchasing power against the VU.  Though the Yen certainly did better than any of the others seen here, eventually even the rigged market in their favour for many months came apart.  The VU that cost ¥170 now costs ¥182 or even more.

The Ruble
1 Valun at inception
We included the Ruble in our sample out of respect and thanks for all our readers in Russia.  The Russian ruble began with an IVEP of P66.41 but as of 2 July, 2013 had a TVEP of P80.99 representing a 22% loss in purchasing power against the VU.

The Yuan Renminbi
1 Valun at inception
The Chinese yuan began with an IVEP of ¥13.81 but as of 2 July, 2013 had a TVEP of ¥17.98 representing a 30% loss in purchasing power against the VU.  The renminbi has been sort of "pegged" on the US dollar with similar results. A VU costing ¥13.81 costs in excess of ¥17.98 today.

Gold and Silver
Valuns for 1 gram of gold at inception
1 oz of gold at Value Unit inception, at the IBP of $2,172.61 bought 1,000 Value Units and 1 oz of silver at its IBP of $42.24 bought 19.44 Value Units. Today an oz of gold buys only 739.42 Value Units and 1 oz of silver only 10.98. Notice this is in dollars. You'll get different amounts and corresponding percentages in different currencies. In any case, none of the current prices for gold or silver are as high as they were at Value Unit inception, therefore in hard asset purchasing power terms, both gold and silver at bullion prices have lost purchasing power against the Value Unit.  At inception one of Paul Drockton's 1 gram gold cards would have bought VU 32.15 whereas today one would only buy VU 19.25 !

Again, the Value Unit has not changed, but everything else, including that which is supposed to measure value in the marketplace, has lost that ability compared with that of the proposed international standard Value Unit.  Why am I not surprised ?

David Burton