Sunday, December 8, 2013

#0 Why Are We All in Debt?

Written and presented by Tarek El Diwany, a former derivatives trader, this documentary appeared around 2010. It contains a broad outline of the problems with the present monetary order and oddly enough even shows one of E. C. Riegel's insights (Part 2) when it talks about money being represented as either electronic records or checks; that money is created and destroyed in the regular process of trade. Under present economic circumstances, it is likely that paying back debts would lead to recession for two reasons:

1) Paying off debt ultimately reduces money supply causing business slowdowns as money in circulation becomes scarce. As we've been saying all along, lending money (creating it) without also creating the money wherewith to repay ANY interest, creates an unlawful contract as well as an artificial money scarcity (the 11th marble) that always grows until the entire system collapses when someone important or big (a government, bank or corporation) defaults on a payment, setting off a chain reaction of defaults.

2) Employment is frequently based on business plans requiring profit from loaned money (Part 3). Profit is that which is required to keep a business a “going concern” plus providing a livelihood for its employees, including its owners. We shall not be concerned about those who maintain they have a right to return (yield) on their idle money (Capitalism) as we consider “absentee ownership” of any real business to be a monstrosity that should not be honoured, protected or respected in a VEN. We are making a basic and consistent distinction between free enterprise and capitalism. As part of an honest monetary reform, we want to promote free enterprise while discouraging capitalism, which we consider the other side of the same coin as socialism in all its guises (statism and elitism for the rich and connected and let “the masses” be exterminated as “useless eaters,” etc.)

You'll notice that most people do not know much about the money they use every day. We want to make the message as clear as possible:

The right to create money belongs to the individual human being and to no group or agency and is inalienable; therefore it cannot be lawfully usurped by anyone else. If anything that is lawful is usurped, the law is broken and the law's consequences result. We are in the spots we are right now simply because the wrong people are in charge of issuing our money, not us.  None of the "public" money in use today is legitimate.  The more people wake up to this reality, the sooner they can look into something that accords with their natural rights.

We understand that this right must agree with the rights of all others to do the same and therefore that it is a right, similar to freedom from trespass, that must be compassed about by the effective rights of others in a natural community of interest (a market) where the amounts of money creation allowed are enough to cover basic subsistence, again understood in a local context.

This right to create money should be added to the rights listed in the US Constitution (Bill of Rights). Thus, to the extent this power has been usurped, it represents THEFT of natural rights from every single human being on the planet, with as said earlier, natural consequences for its usurpation.

A “just monetary system” that relies on digging money out of the ground (gold and silver) with the documentary's statement that this accords with “market forces,” ignores the realities of who has the most gold and silver and where the mines are located. We've been through all this before and it always leads to war, extortion and genocide. Our history is riddled with stories of wholesale enslavement and killing of others simply because one group of people were after other people's gold (or silver) in order to possess “acceptable” money. Those wishing to create an alternative monetary system without nullifying the role of precious metals will be doomed to failure as the precious metals option has always been there and shall return at the behest of the entrenched banking and financial interests and starve and kill billions when it does reappear. Our proposal takes gold and silver as a monetary power seriously and retires it from use as money by making it the only permissible means of exchange between “public” money and International Standard Value Units (Valuns).

Tarek El Diwany may paint a rosier picture of Islamic civilization than as it really was. He may not know that Byzantium lasted for nearly a thousand years without usury and it too was a “civilization” that many usurers (and their apologists among both schools of standard economics) would prefer none knew about. There are other aspects of a civilization that affect what it will be like to live in, other than how its money is understood, or who gets to create it. Tarek also does not know that the roots of the present system trace themselves all the way back to ancient Babylon, not just back to the formation of the Bank of England, the world's first central bank.

Why Are We All in Debt Part 1
Why Are We All in Debt Part 2
Why Are We All in Debt Part 3
Why Are We All in Debt Part 4

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