Friday, May 27, 2016

#0: How to Cure Poverty

We're going to relate this ancient article to this blog's proposal and current trends and events. Following the article are additional modern comments which shall also be addressed.

Source: Private property, freer trade, free markets, and free enterprise

Henry Hazlitt - - May 20, 2016

[Originally published January 27, 1964 in Newsweek. Excerpted from Business Tides: The Newsweek Era of Henry Hazlitt]

President Johnson has declared an “all-out war on human poverty.”

It is a laudable aim. It has in fact been the aim of rulers, statesmen, economists, reformers, religious leaders — of every man of goodwill — from time immemorial. It is an aim shared by all free-enterprise economists since the time of Adam Smith and by all socialists and Communists since the time of Karl Marx. The problem does not concern the end, but the means. What is the best way to abolish poverty?

Unfortunately the means Mr. Johnson recommends are dubious. He proposes more and bigger government spending programs — “to build more homes and more schools and more libraries and more hospitals than any single session of Congress in the history of our republic,” and to “budget the most Federal support in history for education, for health, for retraining the unemployed, and for helping the economically and the physically handicapped.”

What do we already know about this attempt to solve poverty?

1) We know that all this government spending allows capitalism to further “rape, pillage and burn;” loot the general public and the economy by allowing some “safety net” to the poor, whose numbers under capitalism are and will be growing. State socialism is the requirement of capitalism. Without it, the people would revolt. So the two are not competing systems at all. They are points on the same dialectic or either/or continuum created and maintained entirely by THEM using THEIR money, power and influence stemming therefrom.

We further point out that in contrast to capitalism, while free enterprise is not exactly dead, it is largely discouraged, generally difficult to find funding for in THEIR money. Free enterprise is difficult to promote, grow and continue and more and more, going into business is considered a springboard to riches, because capitalism encourages inventors / entrepreneurs, free enterprisers etc. to patent or copyright their discoveries so that they can be bought out by capitalists. Often these buy outs are not to further or develop the discovery or invention, but to keep it from public view or use to promote a favoured monopoly, run by “special people,” etc. and further ..

2) All centralized planning and “big useless plans” places the development of the facilities and infrastructure ahead of their actual need. We have seen evidence of this in developments all over the world, where facilities are built for tremendous profit to certain individual corporations or individuals, but where such facilities may even remain empty after being built, because nobody has enough of THEIR money to be able to rent them. We need not add that precisely none of this activity helped the poor.

Not by Inflation

Whether it is possible to do all this and still cut the total of Federal spending may be reserved for later consideration. But even on the face of his own budget projections this program will involve a combined deficit in the current and next fiscal year of $15 billion. This gap will probably be financed by inflation — i.e., by printing more money, by lowering the purchasing power of the dollar and so raising prices.

We understand that ANY deficit spending over tax revenues must be financed through more borrowing from the central bank which causes more money to enter the system in ways where the likelihood is great that more and more people will not be taking in as much money as the politicians spend of this government issued money. Hence there are far too many open monetary circles and these are hence “spurious notes” that were created without considering anything except the need to spend money on infrastructure that would benefit the contractors that built it above the rest of the people who would use it or pay for it.

Who were those people who benefited then and benefit still from such practises? Usually big construction concerns that are regional or national corporations who can and do build great modern works, including in some parts of the world, whole cities. So just how did this spending actually alleviate poverty? It didn't. It just made certain people richer and the rest of us have to pay for it in taxes and inflation.

This cannot help the poor. Regardless of the immediate result, the long-run result of inflation must be to distort the structure of production, and hence to slow down the rate of balanced economic growth. This cannot help the poor.

To distort the structure of production: Rising prices for common consumer goods are the result of rising expenses to remain in business; government spends money on regulation of business plus taxes to pay the money back are inevitable, plus greater control over the prices of things through commodities speculation (capitalism) driving down prices as far as possible favouring the largest producers, even after efficiencies to scale are exceeded at which point more government money in bailouts is sought else “too big to fails” would lose even more jobs after most are shipped overseas anyway.

As for inflation slowing down the rate of balanced economic growth, we would prefer considering first whether economic growth is always wanted or even welcome and from whence it is motivated if not strictly by nature. We verily have the answers; unwanted economic growth is where wealth is decreased through diminishing of income; usually through a hostile takeover made possible through the rules of capitalism and secondly the reasons why economies are forced to grow is entirely due to usury; the asking back of the uncreated eleventh marble. So called “sustainable” economies are possible, but certainly not by using anything THEY run or have devised. It begins with money that is issued directly by the people themselves, not through any government or by any bank.

For the government to borrow $15 billion now to reduce taxes $11 billion means that taxes must later be raised to a still higher level to pay off the new debt. This must discourage production and employment, and cannot help the poor.

Taxes are an expense passed on to the consumer. When a business is taxed, whatever it does has to rise in price to cover that expense. If the business can't do that and remain in business, it folds.

The economic proposal by Mr. Johnson that would do most harm of all would be to impose a still higher legal penalty for overtime even than the present stiff penalty rate of 50 percent. This could only raise costs of production, lift prices, reduce sales and output, and hence reduce employment. It could not help the poor.

Anytime a state, or the bankers behind them, have to resort to taxing the labour of its citizens, the state has automatically placed a noose around their necks that will eventually strangle them. If deficit spending causes more and more incomplete monetary circles while tremendous amounts of money is borrowed to pay for weapons systems which can never be resold for what they cost (so all that money is dead on arrival), one sees nothing ultimately but rising unpayable mountains of debt that will eventually destroy the host government the capitalists and bankers have been feeding on; their host governments as good credit risks, and the money will be devalued and devalued until it buys nothing and is discarded like toilet paper in a Weimar meltdown, as is going on now in Venezuela.

What was THEIR money based on? Government debt. To whom? To other governments and banks that bought that debt. OK, then what became of the governments or banks that bought that debt? They bought land in the country that was failing or got their stripped natural resources for cheap, not to develop, just to add to their dwindling bottom lines. Or they got to develop infrastructure that stands empty and crumbling because all the money was made and taken away and there's none for anybody locally to have enough of for them to use or to live there.

Mr. Johnson proposes to give Federal funds to “the chronically distressed areas of Appalachia,”to expand area redevelopment,” to “distribute more food to the needy through a broader stamp program.” All these are merely new forms of the age-old proposal to take from the rich and give to the poor, to take from the more productive to give to the less productive. What the reformers who back such proposals forget is that you cannot “redistribute” the fruits of production without drastically reducing production itself.

To “redistribute wealth” assumes that there is anywhere and always a limit to how much wealth there is and however it is many more people don't get anything compared with the few who seem to have and own almost everything. An almost immediate change of perception occurs concerning real wealth once this blog's proposal and analysis are applied. Once that perception change occurs, it is obvious that redistributing or confusing any existing wealth in whatever state it is in, is a ridiculous and a completely short term solution, doomed to failure.

For this “redistribution” reduces incentives at both ends of the economic scale. As the productive have more of their income taxed away from them, they have less incentive to exert themselves to earn it. As the poor get increased handouts and subsidies, they too have less incentive to improve their condition through their own efforts. The problem of curing poverty is difficult and two-sided. It is to mitigate the penalties of misfortune and failure without undermining the incentives to effort and success.

We're going to be making use of exactly these words in future papers concerning the entire subject of poverty and material success, because this all has a bearing on this blog's proposal.

Restore Incentives

The way to cure poverty is not through inflation, “share-the-wealth” schemes, and socialism, but by precisely the opposite policies — by the adoption of a system of private property, freer trade, free markets, and free enterprise. It was largely because we adopted this system more fully than any other country that we became the most productive and hence the richest nation on the face of the globe. Through this system more has been done to wipe out poverty in the last two centuries than in all previous history.

The emphasized stand out - adoption of a system of PRIVATE property including money, that would be from its issuance completely ours, not THEIRS and of course the recognition that free enterprise is the force behind all real progress in civilization and therefore free enterprise is to be considered the right to freedom of every human being; to barter for their living conditions and they have a right to receive and spend their own money too.

The way to combat the remaining pockets of poverty is to keep this system; to reduce government intervention instead of increasing it; to reduce government spending and punitive taxation — in brief, to increase the incentives to the initiative, effort, risk-taking, saving, and investment that increase employment, productivity, and real wages.

We will acknowledge and deal point by point with all of this farther along. But first there's this:

Comment by Michael;

There will always be poor people because there will always be lazy people. 

[5/30/16: At first I thought and wrote, (“There is no worthwhile comment to this.”) as a whisper. But actually there is a response to this. Laziness is regarded as a moral issue. What of the other moral issues which might not necessarily render one poor but might? Maybe these should also be mentioned:

What then of anger, of angry people, those who go about angry all the time? What of those who go about imagining that their status concerns how many verbal or intellectual fights they have won? Perhaps we're looking at selection criteria for politicians or bullies.

How about those unnecessarily proud of themselves? Narcissism comes to mind. We see plenty of that and it is even encouraged. Psychopaths, we'll meet them farther down this list, just love narcissists. They're their best targets.

Envy is the grip the mainstream system has on everyone if we give into it. Have you heard the meme that anything but neo-liberalism is considered ignorant, misinformed, not up to date, etc? Manipulating people's envy of other people has proved politically expedient for the elites down through time. It's perhaps the one element that is finally being recognized for exactly what it is; the means to manipulate people to do things according to the will of the elites.

Greed is of course one of the outstanding disease of the elites and they like spreading it so that it seems less of an issue. It begins and ends with THEIR concept of wealth. To them, wealth = stuff. Therefore any program advocating “redistribution of wealth” is viewed by them as, “hey man, that's my stuff!” There is no concern about the relationship between wealth and income. I noticed that hardly anyone was really paying attention to this disconnect back in the 80's when the first modern round of capitalist greed happened. Yeah, some got rich while many more people were simply wiped out. The essence of greed is that there is never enough. The sufferer never knows when he/she has had enough.

Gluttony, eating too much, drinking too much, etc. Look around you. You see evidences of it everywhere. It is an indication of emotional need never being met, of some latent insecurity that has gone unsolved. Perhaps there were occasions of child abuse behind it. There may have been, but we aren't jumping to any conclusions. Also, people who are gluttons tend to be dreamers who want others to join them in their parties and misery. Nothing seems to work out for them because they are in their own way all the time and over eating most of it. Fasting and raising consciousness might help many but we're already straying far off the essential purposes of this blog.

Lust, is the desire for control rather than the conviction of command because real lust is empty of anything but destructive intent. Real lust is what killers feel, it is the disease of psychopaths who are attracted to narcissists as spiders to flies. We see their games and excesses everywhere and this culture celebrates them. Many with this disease are our leaders because the system chooses to express this trait more than others.

There are really two more, Fear and Deceit. To fear beyond measure and without reason is not adequate to most of life's basic tasks. Nothing happens when people are afraid but tyranny. Deceit is the prison of emptiness, the final withdrawal. The deceitful tell lies, they care nothing for the truth, they will bend anything to their momentary advantage, there is nothing inside them, they have no inner anything except that they are living a lie that usually others around them also believe. Those successful liars we see them everywhere so it does work.

Now back to our paper ...]
But we can eliminate unnecessary unwarranted poverty with freedom, not government.

Agreed! We even go so far as to suggest that anything they (governments) attempt to do regarding the general economy is illegitimate, because it attempts to give the public something back for the money it spends into existence that the public for the most part does not even want. This would clearly not be the case were the money to spring forth from the people and not some bank.

However, continuing illegitimacy being the case, we look for the arbitrary nature of most government actions to determine the preferred winners in any economic schemes stemming from government programs, regulations or rulings. These prefigured economic winners as people can be classified as capitalists, because they are each and always so rich that they need not work at all for the rest of their lives, unless their wealth is tied up in real estate, which for some it is. But even so, they are capitalists; those who live from making money on their money without accomplishing anything productive themselves.

Ironically, and this subject must be broached, it is said that without these people nothing really big could ever be accomplished. Let us say in counter distinction to this perception that we have no idea how far human civilization could have gone without certain critical inventions being “shelved” so that the “special” monopolies could be preserved. After all, much that is their monopolies was based on huge debts that these factors of production required from the banks who want everything and more back right on schedule, whether the business succeeds or fails.

Private property, free trade, free markets, and free enterprise is the key to prosperity.

Our contribution, this blog's proposal, is based on private property and is designed to promote all the rest.

Eliminate the middleman (government bureaucracy) and allow the community to keep the wealth of their labor. 

This is a huge subject and at the heart of the matter. It relates to everything that's wrong with this society and includes the problem of homelessness in America. One cannot expect much of anything different from government, none of whose policies are really designed to help the people. However there is a way for each and every community to keep more of the income from their innate wealth. We'll use our terms as they are more precise. Our approach is to build our monetary system alongside theirs. All the rest is on this blog.

Government is only necessary for a very few basic functions. We should not allow the government to acquire much control over our markets. The markets can work themselves out far better than a centralized governing monopoly of FORCE. Of course we need regulations, but we have to have smart regulations, not over-regulation and not regulations geared toward lobbyists, special interest groups, and government bureaucracy.

Ultimately we only want regulations regarding property (to protect it from poachers, etc.), life (including health and safety matters), liberty (free enterprise) and due process (access to courts of settlement).

In order to get the correct regulations in the place and get rid of the bad regulations, we must eliminate the current atmosphere that provides incentives for over-regulation and bad regulations. We need to create an atmosphere that naturally spawns proper regulations such as campaign reform, term limits, as well as several other changes in our system [the present system not that proposed by this blog] that I could explain in detail but it would take quite some time. But the point is, embrace sensible regulated capitalism based on an open free market system, not socialism based on a centralized monopoly of force, and/or redistribution of wealth.

At this point in time, the effect of any of this on the powers that be is equivalent to a fly that went by. None of this can be done in THEIR system but certainly can and would be done in OUR system.

How regulated Capitalism got branded as Socialism & how real Socialism got sold to the people as the solution to improperly regulated Capitalism / Crony Capitalism:

Back in the days in America when child labor was accepted, no building codes were in place, OSHA was not formed yet, worker's rights weren't put into place yet, so on and so forth, there were Community organizers and good politicians that wanted to regulate the marketplace to make it a more safer and prosperous body. But the major corporate/industry leaders fought against putting these proper regulations in place and demonized it as socialism when in fact it was not socialism at all, it was just sensible regulations.

Let's cut right through this: regulated capitalism is still capitalism. Real capitalism as defined by this blog is strictly speaking any practise that makes money on money without actually working for it. Is a middle man a capitalist? No. A middle man is buying something at wholesale (more of something than anyone would ever need) and bringing that to his customers in a location likely to buy at retail what he brings there. All the transportation, knowing what his/her customers want, etc. is all his/her innate wealth. So there are honest middle men and if there weren't any, much of a good economy would be a pipe dream of perhaps some of Rand's “hate eaten mystics.”

We further define capitalism as empowered to get away with much of what it does through “limited liability” and “absentee ownership.” These are what all corporations have so that their “owners” are never liable for anything said corporation might cause to do harm to the rest of the general public. Let's stop for a moment and ask whether this is fair, just, honest or all the rest? Of course, none of it has an ounce of integrity to it, therefore all such forms of business shall be forbidden operation in OUR markets using OUR money. Well that limits a lot now doesn't it? Since as we saw from some previous essays, THEY already own most if not all of the world anyway, or so THEY imagine. So just imagine what happens when they are standing there, their world in ashes asking the rest of us for help to rebuild it and of course taking THEIR money.

Similar things still happen to this day however, we now primarily have issues of over-regulation and not intelligent regulations in place.

I've just told you that “intelligent” regulation is an obtuse subterfuge to get everyone to leap to unwarranted assumptions about what one can and can't be done with the obvious. There is no intelligent regulation of that which has no integrity as an operation. You are doing nothing but shining shit!

We also have a corrupt system that has lobbyist/corporations that pay for our politicians campaigns so that when they get elected into office they will deregulate or over regulate a particular industry to appease their lobbyists so as to allow their lobbyists to monopolize and or corner their particular Market.

That's right. So now, is it that they buy and sell politicians like fruitcakes, or that the regulations that do get passed benefit those behind the scenes, or does it really bother you that they are supposedly using YOUR money to do all of this? It's your perception that needs work as all the rest has been going on since forever. It's the money, stupid! THEIR money, ALL of it, including silver, gold and precious stones, all of it is THEIRS, not yours or mine. What have YOU? What do YOU decide to base your money on?

This has many labels including the term crony capitalism. We are witnessing crony capitalism failing not true well regulated capitalism (remember, well does not mean over-regulated, it means sensible intelligent regulations).

You cannot promise what does not exist, has never existed and will never exist. It's all “big useless plans” and until more people wake up they will assume things such as that of course they were never lied to anywhere in any classroom ever attended, can believe what their TV's project, etc. Oh, and all capitalism is essentially crony capitalism because their making money on money schemes always involve market makers and key players in any commodity or industry. Want to socialize it? We already do. It's called the plunge protection team and they spend huge amounts of so called tax payer money to keep THEIR markets afloat. What did we say about any money paid for something that goes down in price, perhaps forever? Right, that money has died, forever. Meanwhile since all of it is debt back to various banks, who created that money as marks of their ledgers, out of nothing, because THEY have stolen OUR fiat, that we are too stupid to recognize and reclaim for ourselves, because gosh darnit, we're just too dumb. If that's the case and you can't or wont get any smarter yourself, because you're too lazy or weak to think clearly, then well perhaps you should just admit you're no better than a worm or somebody's slave and of course being a slave, just who are you to demand “intelligent” regulation of anything? Better learn your place, or get your own money.

Our system is beginning to have major financial and social issues as a result and instead of people being educated about what the true fight is, which is to restore and form a well-regulated capitalistic system, people are being sold the philosophy that we must centralize the decision-making on every aspect of the market and form a Monopoly of FORCE to be administered by the federal government, which is known as authoritarianism and or socialism. The most extreme form of this kind of governing (micromanaging) is referred to as communism.

To restore and form a well-regulated capitalistic system?” There never was one. There was a time when free enterprise was allowed far more than it is now. In order to promote free enterprise we actually need less regulation and all of it local. If something is too big to operate safely anywhere locally, then it is simply too big to operate, as the price to adequately insure it against what it might do to harm others is not worth staying in business, such as ALL ATOMIC POWER PLANTS EVERYWHERE THROUGHOUT THE WORLD.

We must put sensible regulations into place; we also need campaign reform to do something about lobbyists; and very importantly we need to reject politicians that promote true socialism. There is a lot of work to be done and we need to educate people about what true socialism is vs true capitalism.

Cutting through more of this pure confounding of facts: capitalism and socialism are both isms, irritants upon society. They are evil twin sisters as they came about from and through the same people. There is nothing good about either of them. There is a socialism that is good and then there is free enterprise from which everything great stems. The so called “public” corporations and capitalism are sharks that must be correctly seen as what they are; parasites upon society that require forms of state socialism in order that the people not decide to revolt and overthrow their class of people from their stolen privileges. Such people are to be regarded as essentially criminal vermin and their money as poison. We need and want our own money and ultimately our own institutions. There is nothing of THEIRS that we want.

Because of our high taxes and over regulations in this country as well as these anti sovereignty trade deals, American corporations are taking their factories and production out of this country to places with lower taxes and lower regulations and then bringing their products back into our country free of charge with no tariffs (taxes) on these products raking in huge profits for their CEOs and top corporate leaders.

So what? It's THEIR money and THEY get to do with it what THEY want, until we have our own and can say NO to THEM. In the meantime, we advocate paying your taxes and NOT trying to do anything but working to walk away from them, out of their crumbling capitalist/socialist empire into something we devise of our own; real land ownership, clean water, air, food, etc. Work and trade among ourselves using OUR money to rebuild our homes, farms, villages, towns, cities, etc. This is a time of transition. There is nothing to go back to, it is all over. There will only be what we decide it's going to be into the future. We can start by doing everything we can to make the powers that be utterly irrelevant. Start getting familiar with this proposal and spread its message. You cannot stop them, you can do something else instead.

Some Americans are brainwashed into thinking this [globalization = capital chasing cheap labour around the world] is good because we get cheap Goods. But the truth is Americans suffer tremendously through job losses and wages. And not to mention this creates huge amounts of slave labor in other countries like China. All while growing our trade deficit exponentially. And Washington is allowing our markets to be flooded with cheap labor from third world countries.

... because when it all comes right down to it, we are living in a country where the state is signalling that we can no longer afford to live in it. Some of the immigrants are believed to have some of THEIR money to spend on the artificially inflated prices of everything that is still depreciating. The only reason the present economy still continues to operate is that enough people buy into their promises. Have THEY ever kept their promises?

Tax cuts back to the Individual VS. Stimulus Packages geared toward multi-million dollar corporations & special interest groups: When you cut taxes & put money back into the economy through the individual, they typically spend it on necessities & or goods therefore stimulating [sic] the economy. When you take tax payers' money [sic] & form stimulus packages/quantitative easing (QE), & take all that capital out of the market & redistribute it to multi-million dollar corporations & special interest groups, they tend to either horde the money or keep it for their CEOs & or Friends. And that money never really circulates back into the market as it should.

All that led to the emphasized may be true, but the conception of money as some kind of circulating lake is not correct.  We therefore admonish all our readers to reacquaint themselves with a few facts of money before ever jumping to such conclusions ever again. Here's
#80 How Money Is Destroyed and  
#84 The True Shape, Flow and Destiny of All Money.

Money is not something that is preserved, conserved, reserved, any of that. It begins from a transaction involving somebody buying something and ends up being destroyed by the things that it bought which cannot be resold to retrieve it. If you bought it for too much and can't sell it, all that money is lost forever. Money always needs a source from whence it springs forth. WHY DO PEOPLE AUTOMATICALLY ASSUME THAT IT MUST SPRING FORTH FROM A BANK OR FROM THEIR METALS? It's frankly stupid!

Despite collecting record revenues, government still runs $461 billion deficit. We don't have a tax revenue problem and we don't need to raise taxes. That's a diversion from the truth. The truth is we have a waste, abuse and fraud problem:

... and just how do you suppose you're going to stop all that? Again, it's THEIR money, not yours or mine. You and I have NO SAY in ANY matter concerning THEIR customer, the Federal government, nor in anything THEIR banks using THEIR money insist any other of THEIR governments, not you or I, must and will do. Nevertheless ...

1. Waste: We have a huge bureaucracy that we don't need. We have government agencies that are not necessary, and we spent trillions of dollars on over regulations that we don't need. Etc

 Who is going to fire them?

2. Abuse: We over stretch our military for geopolitical nefarious reasons and we misuse our safety nets (welfare) for political leverage and votes. We also create entitlements that are both unconstitutional and unsustainable. Etc.

I'd appreciate everyone dropping both “sustainable” and “unsustainable” from your vocabulary and begin recognizing this as newspeak for the bigs and the elites deciding what will be accepted or not, not you or me. I wont be repressed into believing that anything they say concerning such matters is for anyone's good but their own. Besides we have Fukushima and the Gulf of Mexico disasters (and much more) as evidence that they are hypocrites and assholes who do not deserve anything like the respect or plaudits they are used to receiving.

3. Fraud: We have people that abuse the welfare system by misusing it's designed purpose and by lying about their status so as to receive several different forms of welfare such as EBT cards, etc that they shouldn't qualify for. We also have politicians that take money from the general fund and misappropriate funds through negligence and theft. They use the money for Black Ops projects, to give themselves unnecessary raises and create bogus projects for profit and the list goes on.

The poor are not the problem. The rich and THEIR money are the problem. There are people who do not belong where they are many times because they were and are being driven out from where they were living because someone with more of THEIR money wanted something under land those people were living on and basically drove them off of it. War has many fronts and causes. It is always about money, power and resources. Religion is occasionally used but nobody fights and dies without being paid and the promise of more pay. That is indeed how THEY pay for would be enemies to fight against.

And this is a very short list and examples of the waste, abuse and fraud. Raising taxes is not only unnecessary but counterproductive and a direct deception by your federal government.

It isn't ours, it never was ours, we aren't the people who formed it, the people who wrote the piece of paper that formed it did so behind closed doors and armed guard. Why do you suppose that was done? It never came out that all you need do is replace the stars in blue in the corner of the USA flag with a British union jack and you have the flag of the East India Company, a private corporation that helped write the Constitution. All they have ever shown you was smoke and mirrors. There is nothing special about DC except it's a place where destroying people's reputations is considered sport. Waste fraud and abuse? It all begins and ends with THEIR money, and that includes ALL silver and gold because THEY own the mines and control the price at which it is traded. It is all of it THEIR money, not yours or mine.

We're finally going to edit this so you can see what he wrote and what we mean by it:

A huge part of how America has succeeded in the past so much and so in many areas such as sports, big and small business ventures, technology, innovation, revolutionary inventions, and so much more is because of our emphasis on personal freedom and liberty.

We aren't seeing enough of this because our schools have largely brow beaten us out of most of it. We are now told to rely on others who know more and have more than we do because we might fail, etc. We would rather quote people regarded as smart than try and use some smarts of our own. Every ounce of backbone has been and is being systematically removed to make us all conform to THEIR will.

We valued the capitalistic [free enterprise] entrepreneurial spirit, and we encouraged teamwork while at the same time above all else valued individualism over collectivism. And by empowering the individual to succeed on his own and keep the fruits that he bared, the overall community prospered tenfold. We must never forget what made America great. Encourage and support Capitalism [free enterprise] and resist and socialism [sic].

Now, this blog's proposal aims directly “to mitigate the penalties of misfortune and failure without undermining the incentives to effort and success.” We see only one way out of this and for want of better words, we're going to adopt these words as part of our slogan; Natural Socialism. Natural Socialism will be understood to mean where a community takes care of its own. Since all socialism is an ism, an irritant to society, we understand that eventually it will not be necessary and so shall go away. But as a means of solving poverty, this is a better solution than anything anyone else has in mind.

It DOES require organization, but does NOT require it being a state. In fact it would be best to consider what we have in mind to be a private business organization, or a universe of them at each local level, that everyone can be a member of if they observe certain rules. This is the only way to maintain order which is also part of a civilization, that its activities are not just rational but that they are orderly. Basically one cannot have a civilization without order. This applies directly to our observation that the recognition of SANITY is a universal thing, not requiring some “expert” to decide for us and that most people live in a REASONABLE EXPECTATION of continuing peace and taken together are basic human rights.

It DOES require recognition of various facts of life, liberty and money, some of which is explained in this blog. It manifestly makes each man or woman responsible for their own and compensates for the drunken stupidity of those who would have us believe that any individual can behave like a grown up baby, throw tantrums and FORCE others to live or die by their decrees because of THEIR money, etc.

We start out with an inception date for our money; Nov 2, 2011. From that month on, starts a clock. That clock ticks by the month. For every month since then that has passed, people on various government benefits programs got paid because they were deemed disabled or aged or blind or whatever it is. In the case of Americans, it will differ from place to place as we decide at each local level, we propose that since inception, all of these people who become our A members shall be entitled to a store of Valuns equal to the dollar amount of their monthly government payments. That's our Natural Socialism. These Valuns become the money force (voltage) that gets the Valun economy going. Down the line as fewer of these government programs are funded the Valun economy will grow and people will notice that nobody who uses Valuns is poor. Over time these social isms will be phased out as they wont be needed. Where do all new Valuns come from? From work. You can trade any other of THEIR money for them, through gold and silver. There is no way back. All exchanges are one way only except for legitimate taxes. We expect that most taxes will be covered by our members in their own “public” currencies.

These so called free Valuns, usually not recovered by these people selling back something into the Valun economy, will end up in the hands of the most productive as they ever would using any money. Even customary economics speaks about the dollar spent on welfare vs. the dollar spent on defence as worthy of investigation. Of course they rarely point out that the poor must spend whatever they get and can never save anything and that those extra dollars do end up in the hands of the most productive, or capitalists (who are sharks), whilst that dollar spent on defence is mostly irrevocably lost since these weapons etc. cannot be resold for anything like what the government paid for them. So in the entire military industrial complex rests the graveyard of more dollars than are spent by government for anything else, and most of the rest is also wasted and buys nothing that we really want. AND we have perpetual and rising taxes to pay for it all.

Since one can't really do anything about it, why not just leave or plan to? Why not start something else before you do leave? The first effort should be doing it orderly; start IVES, start getting people enrolled, form at least three IE's in each state before starting. Meanwhile get to work doing whatever you are best at; your innate wealth. We said that work was any and all time out of your daily life to earn money. If you work at home, begin by taking track of the time as if you were punching a clock. You will be this time. It will be YOUR clock.

As you begin looking at what you do as a business, begin selling whatever it is to your friends, think about the dollars you take in as tax money first. Pay off your house. All mortgages must be paid off. That's the very last debt you would ever let go of. As for the rest, pay off as much of your debt as you possibly can. Then when Valuns become available start using them. They will be a little different. Since they will always be heavier than dollars, you will need fewer of them. Each one will buy more.

For example we expect a dozen eggs or more likely 18 eggs to go for V1. Likely a gallon of milk would go for V1. Likely a gallon of gas would go for V1. There would be plus or minus 10% either way, but without capitalism, the expected price at every locality would serve as a Figure 1 for that commodity. Valun tokens will say things on them like the People of wherever it is you live and will say either V-Check or Exchange Note on them. We hope to make them look as good as we can, but their purpose is foremost to function as tokens of our own monetary system that is designed to surpass and supplant THEIRS when it fails.

David Burton

Current Hypothetical Value of a Hypothetical Value Unit

Tuesday, May 17, 2016

#86 Debt-based Money

Yes, “debt-based money.” We've all been hearing and seeing this phrase around lately, so let's see what it all means: a whimsical conversation between Will and Ted,

Will: What's "debt-based money" since you keep using the phrase, what do you mean by it?

Ted: When a person places a signature on a promissory note to a banking institution (AT EVERY LEVEL), that checkbook money is created out of thin air as an entry in a spreadsheet. There is no money 'borrowed' from previously saved capital.

(The emphasized will be very important so please pay attention.)

Will: OK, thank-you.

Ted: It is impossible for markets to have a purpose in alignment with the betterment of mankind as a whole, when the whole fraudulent circus is funded with fictitious debt-based money issued by a cabal of bankers who create that currency solely out of signatures on promissory notes. What an awful scam----responsible for the warfare/welfare state that infects the present world.

Much of this is eloquent but hides something more radical behind the obvious, which is why this blog bears E. C. Riegel's name, because he spotted it. It boils down to this: THEY have OUR fiat! THEY have no business creating/issuing money since governments and banks do not qualify to be in the business of bartering for things and services. All that should have been in private free enterprisers' hands and would have been, and will be again, under a monetary system that values people above anything else.

So we think OUR money should say things on it like The People of (insert your county) in the State of (insert your state) and instead of (insert your central bank) note, they should all just say Exchange Note. They are all representations of unsettled barter contracts and that is all.

Where Ted says, that checkbook money is created out of thin air as an entry in a spreadsheet, he's right of course, but that does not mean that that money was not created. THEY created it all right, for you see, THEY are gods. WE have not yet awakened to recognize that THEY have STOLEN something that belongs to each of us, the inalienable right to issue OUR own money, THEY have stolen our fiat! They PROJECT that all fiat is bad unless THEY get to do it, because we obviously would louse it up, etc.

So anyway, that's what THEY do and THEY make THEIR money from
taking in money that was never created in the first place which is literally stealing from the rest of us, so that eventually they get to have things that we made that we had to sell to them because we owed them more of THEIR money than we could generate from an increasingly dwindling supply of THEIR money, because as we've pointed out in the last few essays, money is not just created somewhere, it is also destroyed, never to return.

Indeed the improper identification of money supply as some circulating lake whose proportions need constant monitoring to prevent inflation is manifestly proved both not to work and more likely, just another SCAM to create more playgrounds in which capitalists get to play by winging their money in and out of THEIR markets to make more money on money without actually working for it. All this activity does is
diminish income as they increase “wealth,” which as we say, isn't as much, because it produces less income for fewer and fewer people. So these huge corporations are literally economic black holes.

The accurate picture of money is that it flows as a stream not a lake and it has a source, and flows as it were downhill until it encounters a marsh of anything that cannot be easily resold for anything like what purchased it, like military gear. Fairly little of it ever reaches the 90%. Most money the present system issues is destroyed immediately, especially if it buys anything new, but even where not, everything is depreciating and money disappears never to return because of it. Therefore money must be replenished, else economies die.

If this is so, and it manifestly is so, then why is this essential and valuable universal human invention, money, the means to split barter and save the world from wasted time and energy, why is this placed in the hands of bankers and not in we, ourselves? It's because we work for or are obliged to accept THEIR money, that's why. Riegel's solution, and ours is to be paid in your own money as well as in THEIRS, and then to begin to use it among ourselves and rely more on it as THEIR system fails.

Did we say what work actually is? Work is time out of your private lives. It's time you give up to do something to earn a living (an income), so that you can exchange that work for food, clothing, lodging, everything. If you earn a living, whatever it is that enables you to get paid IS your innate wealth. Adding to that wealth may include your acquisition of tools and more importantly just how to use them, technical education, etc. But to all that, In fact, you may only be expressing a fraction of your innate wealth because THEY have control of money. Let that sink in for a while.

Here's another way of putting it: we all know there's a world of abundance out there for all of us, but we don't have enough money to manifest it. All the talk about abundance and money flowing your way is nonsense if most money is flowing back to repay debt service, and for debt that was created out of
THEIR stolen fiat not yours paying back money that perhaps they actually didn't have to lend you to begin with.

The go between in the barter exchange is money. The hew and cry of humanity is there's never enough of it and prices are always rising. So everyone needs to ask themselves just how well entrusting money to bankers using their systems has worked out? Not at all well: They lend what they do not have (fractional reserve lending) and take what was never created (interest). They even pass shares of what they have taken from the uncreated to those who “invest” in their schemes (securities). How terrible is all that? Not too good for better than 90% of humanity, that's for sure.

Want something better? Why else would we bother being here if we didn't offer something a whole lot better? But there are of course a few catches. Certain things that are allowed in their markets are forbidden in ours. Certain things that are allowed to do with their money are forbidden in ours, for our own protection.

Now the second thing Ted said was there is no money 'borrowed' from previously saved capital. He's saying exactly what we just did; they lend what they do not have. The answer is sound finance (100% reserve lending), but don't bet on that ever happening in THEIR system because THEY like it just the way it is, until enough people wake up and start walking out on them, because that's what it will take. In order for that to happen, all of us will need to issue and recognize OUR money and start using it for anything and everything that doesn't require THEIR money and eventually when THEIR system fails, everything will be conducted using OUR money. As for what happens to THEM for all THEIR crimes? Nature will take its course, but we should take our courses as well.

The proposal of this blog is a monetary unit called a Value Unit or Valun, exactly what Riegel called them. Our proposed Valun began on 11/2/2011 at $2.16 and now (5/17/16) stands at $2.73. How is this figured? The initial transaction was 1 Au oz = $2,160 (in your hand delivery) / 1,000 on 11/2/2011. What is the present value of that initial transaction? Whatever that is, becomes the equivalent trading value of all Valuns. Current Hypothetical Value of a Hypothetical Value Unit

How are Valuns created? We allow two ways to issue Valuns; 1) you have a certain number you can issue for subsistence or 2) you can buy yourself a job as explained in our essays on the Self financing of labour.

In the first instance, we allow the present order to determine for us what subsistence is in THEIR money and convert that into what it would be in OUR money. If they pay by the month, so do we. We do everything in parallel with their system because sooner or later when theirs fails, we will still have ours in place. Look what's happened in Venezuela? Predictable. It could happen anywhere.

Of THEIR money, Ted says, fictitious debt-based money issued by a cabal of bankers who create that currency solely out of signatures on promissory notes.

Believe it or not, the words in front of the word “money” mean much; fictitious debt based. When someone writes into a ledger, electronic or otherwise, that you owe them some money because you borrowed it, you can't have borrowed something that didn't previously exist. But under the present order, as Ted said, When a person places a signature on a promissory note to a banking institution (AT EVERY LEVEL), he's saying that from the central bank all the way down through all THEIR banks, ALL that money is created the same way; you are looking at borrowing something that didn't exist for more of it than was created.

All of that can clearly be shown to be exactly the case and basing it on gold would be no help as THEY control how much gold is priced worldwide. In fact all you're asking for is fraud mitigation, not its elimination since the gold doesn't really circulate in such systems, the receipts for it do and does nothing to remove fractional reserve lending. So there wont be any of that in the VEN. You lend money that you have or you don't lend it at all. No one has power to lend what they do not have nor charge back from what was not created. All money asked back on any loan must have been issued somewhere else by some other means. If some think diamonds or something like that might be an answer, THEY also control precious stones. As we've said, and some dunderheads just don't get it because they believe the out and out LIE that money is actually some “Lake of Liquidity” when in fact it is an EVER DIMMINISHING RESOURCE, absolutely NO commodity can ever be money.

But above all, what's most fraudulent about the entire present system is that the people running it have no special authority or credentials or anything else to be doing what they're doing; they just do it and they have FORCE on their side to bolster their position. It's the schools they control, the entertainment that they also control, the mass media they also control, the drugs they control, the energy they control (which is among the biggest scams of all time), everything they control tends to run amok or turn to dust eventually ... and now they want to control our food. It will soon be our water and they have said so, and then there's the air we breathe. After all, they bought it all from the rest of us from money they created out of nothing, lending it into existence, lending something from nothing, and asking more back for it than was created. Lovely scam isn't it? You use THEIR product every day. It's time to be thinking about “come out of her, my people,” unless you want to fail with them.

The Valun system is a way out and should be seriously considered. Because what we want to do in our private times, our treasure time, is often to create, make, build or plant something that we will enjoy doing because we can do it as well or better than anyone else, up to a scale where it is sustainable, etc. some of us know already that handmade and skilled still mean something and would be doing more were the money there to support it.

So if all money is an expression of split barter, it is all based on debt – ALL MONEY IS DEBT – ALL MONEY IS BASED ON DEBT - because literally settling all debt would extinguish all money. The real issue should be whether that debt is real or fictitious! Our correction then; merely decrying debt-based money is not sufficient without also saying FICTITIOUS debt-based money, else one sounds like one doesn't understand money. Besides which, it's time more knew that THEIR debt was fictitious. THAT is what the 4th section of the 14th amendment after the “Civil” War was meant to accomplish. The rest was a done deal in 1913 handing THEM the monopoly over OUR fiat! (...and after this we actually expect to have ANY say over anything THEIR governments are doing; blind stupidity!)

Money is created by someone and is eventually destroyed in the various things it buys which cannot be resold. It does not flow in a pool, it is created and flows out of the system like a stream. Electricity has three measurements that are also similar in plumbing; pressure, flow and resistance.

Voltage: Pressure of money, how quickly it enters and forms a market – and that market is like a wire from the brand new through the second hand to the resale and antique or possibly as junk that can be reused for something (repurposed) until all the money ever paid for it is no more and the thing (whatever it is) is extinguished as a possible trading substance.

Amperage: flow of money, how wide is that flow, and

: resistance to money, prices above which nothing moves because people wont spend more to buy them. These are the parameters.

Now look at things this way: WE issue OUR own money. We get some to start too: V200. This amounts to the pressure that purchasing power represented as money accomplishes in a community where it is recognized. The recognition of the Valun, that's the flow. Where is your money recognized and WHAT STANDARD is it on? That's what an International Standard Value Unit accomplishes. It standardizes the flow. One knows instantly anywhere about what a Valun will buy and it will differ somewhat from place to place too as markets are not always and everywhere the same. Prices for things in Valuns would reflect what any business would need to account for in any money; labour, materials and recurring or overhead expenses.

What encourages people to use and save Valuns? The standard determines what one would have to pay in THEIR money to acquire Valuns. But there is no way back. If you are a member, this is a PRIVATE organization, and you pay your dollars, you get Valuns, but your dollars are immediately used to buy gold or silver and that belongs in the vaults of each IE to be used to pay taxes and nothing else. Your Valuns are always yours, whether on account or in some form of cash, the V-Check is most likely to succeed short term, or as personal checks. Cards and all that is of course THEIR money and leaves a trail. We value anonymity and privacy and prefer dealing with our co-partners (since that's what membership in an IE really is) using common use tokens. These will be better looking than what THEY offer us to use now too.

We should also state that we should eventually reach the point where few people are actually living on a subsistence basis and that thereafter the money issued is more and more due to productive enterprise; more people having employment, doing something to express their innate wealth. There would be far fewer “spurious notes” than the present system generates.

The money basis itself is sufficiently hard not to be beaten. If gold hits the moon, the inception base of all Valuns goes right up with it. When gold backs down, the price of a Valun goes right back up because it has not moved. Meanwhile we expect that whatever V1 buys will pretty much be the same year after year, plus or minus whatever temporarily influences the supply. As Riegel knew, any extra Valuns would end up in the pockets/accounts of the most productive, not those rewarded from behind the scenes by shady characters and organizations, who usually have done nothing but to encourage more of us to cease from being productive and pursue wasted lifestyles.

THEIR mask always presents a cynical face, because that's how THEY usually see things and us. Hard to be positive when there are no jobs and nothing to do but sit around being sorry for your existence all because you didn't reorganize yourselves and start issuing your own money to settle matters among yourselves. Pretty dumb too how people just sit around and take it. They are conditioned to accept nothing but what they have always been told. So the whole ghastly game continues, until it doesn't. Before that happens we offer our suggestions for a way out of it for everyone, forever.

David Burton

Current Hypothetical Value of a Hypothetical Value Unit

[5/18/16: Pardon, couldn't help noticing. You said in “Dueling With Idiots” that their money is real, but here you say it isn't. Please explain. Clint.

Their money is real. It all works as money should. It was created by them out of nothing because as I say, THEY are gods. But since THEY are manifestly not gods, one must begin to ask what they are doing that we should all be doing and that is to issue our own money. 

THEY'll say forever that “fiat money” is bad because THEY know better. Some of THEM will point out that every fiat money in the world has failed, which is due entirely to governments issuing them. Look at Venezuela where it's going on now; a real Weimar meltdown in real time. Brazil will be next. THEY'll be able to stage a systemic dump of all the BRICS currencies by speculating against them, driving up interest rates, bleeding them dry or preventing their progress. 

If THEIR money is all that presently exists and so far it is, because their solutions are always commodities they can speculate on, then this proposal is the only way out. We actually need our own money as an established agreement among ourselves as members of an association before it is possible to do much walking out of THEIR system. Meanwhile, consider the power and prestige of someone right now who is able to refuse to accept THEIR money. We need to begin starting IVES and getting more aware and interested before there can be any real change.]

[5/19/16: Get that. The Federal Reserve and fractional Reserve banking must be abolished along with a return to a gold and silver standard and our own US BANK not affiliated with any global system or preferably each State having their own unique banking laws. Tuck

No, we do not need or want any of that:

First of all, THEY do not have any right to your fiat.

Second, THEY have no right to force gold and silver on us as a means of exchange period! That kind of system produces slavery not freedom, THE "AUSTRIANS" ARE LIARS!  I don't care whether they make a law about it or otherwise. All of that implies that a state has some right to interfere in a contract, which they do not. And for those that still don't get it,
all precious metals is still THEIR money, not yours or mine, because we did not issue it. Gold and silver money advocates are not only flat out wrong, they are tools of the banking establishment.

Third, any idea that somehow we can or should go back to some nebulously better time in the past is not going to work, because it didn't work that well when it existed and there's something much better.  There is no way back.

Fourth, there is no guarantee that 100% reserve lending can ever be enforced by some top down regime. How well did that work in the past? How well can they do in the future? Enforcement has been important, but how tenuous is that when corruption works pretty well? It's frankly all pretty stupid ideas!

Fifth, why should some people be paid to do these things that should be done among ourselves?

no gold or silver standard, period! They do not work and only benefit bankers and kings and people with lots of precious metals, and again giving anybody but ourselves the power to issue money has always been a scam.

We chose a transaction at a particular time to base all our money on. That transaction involves gold and silver as a means of exchange from their money into ours, since we cannot hold any of their money
because it is their property not ours (intellectual property law) while the metal can be ours until they pass some law that says we can't, then we will be slaves pure and simple, but we were and are slaves as long as we must rely on any of their money because THEY HAVE NO RIGHT ABOVE US TO BE ISSUING IT!.  Our money will cost them their gold and silver. That does not mean ours is “backed” or in any way pegged to what they say THEIR metal is worth.

Our own bank? If it is a bank, it will not only have transaction clearing functions but money lending functions and all that money is lent at interest whether it's a “state” bank or a regular private bank. Usury is usury and doesn't work. It always benefits money lenders, whether they be states or a private consortium.

Anyway, why should we be propping up states with our money? Said another way, until all states use our money not THEIRS, we will never be able to TELL them that they do it our way or not at all! WANT TO HAVE CONTROL OVER YOUR STATES? THERE IS ONLY ONE WAY, WE MUST TAKE BACK OUR MONEY POWER UNTO OURSELVES!

That has NOTHING to do with any returning to the Constitution, WHICH WAS THEIR CONSPIRACY AGAINST US not something we should be bowing down to as if it were a god! States already do far too much and need far less money than they get. Once again, no state has anything to sell into the market to compensate for any money it issues. If states have nothing to sell back that requires money payment, then they must take back in taxes else there's inflation and there is anyway because of excess government spending over taxation. We do not see never ending taxation as a solution to anything but empowering states. The only way to not run a Weimar meltdown (as is happening in Venezuela right now) is for us to take back our money power and have ours once THEIRS fails.

Let's reiterate these things: our own US BANK not affiliated with any global system or preferably each State having their own unique banking laws. NO, we do not want or care any longer about any “state” solution. That's for children, not grown ups. We will not be nannied for the rest of whatever by states. Why? Because we now know that no national bank is anything but a fraud to prop up the rich and the same goes for state banks because it generates more of THEIR money not ours. Separate banking laws? Let states compete this way? All that is just more ways to hoodwink the public. NO, it's time to wake up and grow up. Read ALL of this blog. Get into your mind what this initiative means and be prepared to toss out as absolute garbage most of what academic economics teaches.]

Friday, May 13, 2016

#85 Dueling with Idiots!

An idiot may not know what they're talking about through ignorance, a moron is someone it is impossible to teach. Which are you?

Their debt [the National debt] is an illusion. It is not real. Only our time and its value is real.

No MA'AM, YOU can not affix any monetary value to YOUR time and neither can I. The market for someone's time is a matter of their talents and supply and demand. There are hours systems, but maybe I want the equivalent for 10 hours of work for every hour of my time and I can get it because of a unique skill, while you cannot. It depends on what you have to sell. Understood?

The money we pay to the interest on their illusion, is the real and it comes from our time and value of it, which is real.

No MA'AM, the money THEY issue is real and was created, the interest was NOT created, therefore paying it back ALWAYS reduces the supply of money and all the rest is irrelevant.

Section Four of the 14th Amend points out very stealthily, this to be true (that debt is an illusion).

Let's bring up section 4 of the 14th Amendment and have a look at it:

Section 4: The validity of the public debt of the United States, authorized by law, including debts incurred for payment of pensions and bounties for services in suppressing insurrection or rebellion, shall not be questioned. But neither the United States nor any state shall assume or pay any debt or obligation incurred in aid of insurrection or rebellion against the United States, or any claim for the loss or emancipation of any slave; but all such debts, obligations and claims shall be held illegal and void.

Where it points out, that when the rebellion against our original state governments stops, all of the debt and promises/obligations become null and void.

Well, we may have an agreement here, except that 

1) we do not know whether this amendment was actually ratified according to the provisions for ratifying such amendments and

2) if it was not, then there are whole categories of "public law" that would be abolished. We need an audit of the US Constitution! The 16th and 17th amendments are likewise suspect and we have a perfectly good ratified 13th amendment that we want back.

Now, we all know how stingy/cheap they (the banksters are) and would not let one red cent get away without being paid to them, if it was really owed to them. So, for them to say this about all debt/promises/obligations being off, once the original state governments are restored, should tell everyone how the debt is all an illusion. For if the debt was real, they would not put this in the contract (their 14th Amendment) of the U.S. Constitution (which is really just an international contract of commerce between all states in the Union and outside of the Union too). Their 'debt' is created from nothing and is nothing. Only the interest paid on their nothing, is real.

No MA'AM, and we're pretty much in agreement except that there is no way that anyone could be made to accept that a token of money is not real when it acts like money, purchases things and services, splitting barter, etc. like money and I'm frankly disgusted at the dishonestly of those who claim otherwise! The AMOUNT of said money THEY issue IS REAL. The interest THEY REQUIRE was never created in the first place therefore paying it back ALWAYS diminishes the supply. It's simple math.

We'll reiterate these incontestable facts:

1) Issuing money by fiat is THEIR red herring which allows THEIR dialectic of either THEIR credit or THEIR gold and silver to continue. ANYONE FOR ANY REASON WHATSOEVER that says that paper notes or swipe cards or checks are not real money is an asshole! Want to be one?  Join the clowns!  

2) The money created out of thin air is real, the interest was NEVER created and is therefore unreal, in fact paying all interest automatically diminishes the supply of money. But meanwhile no one mentions how money actually dies and therefore their misconceptions (lies their bankers told them) continue. Money therefore must be replenished. How is that done? THAT is the question this blog's proposal answers.

3) People have value, not time or things. Was my emphasis sufficient or do I have to yell it into your thick skull?  Therefore you base a legitimate money system on people who issue all money, NOT based on things or time.

4) Basing money on a transaction at a given time rather than a commodity eliminates all speculators since the issue of how much money is available for price manipulation becomes prohibitively expensive where it is borrowed under the present system.

5) In a system which separates the loaning function of money from the transaction clearing function does away with all pretensions concerning deposit insurance because it is always understood exactly who owns all the money in the system, not some bank or some government but ONLY individual human beings.

I am not a fan of Riegel. I don't agree.

I'm not asking for your agreement. The truth is the truth whether you agree or not. Either people have value or they do not. If they have value then they should issue their own money, period! Anything else is an autocracy or worse.

Only property/land owners can make their own money system to be used only upon their land[s]. The states real land owners are the ones who pay the state legislatures to manage the state's affairs. They are also the ones that agree[d] to dealing with the central bankers and its central banking system aka the Federal Reserve Banks.

No MA'AM, This is landed autocracy or aristocracy and we are NOT going back there, period! In fact, your thinking ties money directly to a state, which we in this camp despise. We despise states so much that we would rather live apart from them as the Amish have attempted to do. Our mantra is “come out of her, my people.” We shall never contest the power of states to do evil as that's what landed aristocracies have done down through time. We recognize that ALL THEIR money leads to slavery. We will ultimately not be slaves to them anymore, because they shall fail and THEIR money with them, and BEFORE they do, we had best have something to come out of them into. What's to preserve your property rights? The barrel of a gun! I might agree that only land owners would have the vote, but not the rest of it, NEVER!

This is the main part that everyone seems to leave out on learning about money. Whatever deal the state's land owners made with the Fed Reserve Bank, God only knows what that real deal is where they (Fed Reserve Bank) gets its authority to issue monies and its values/stamps/seals to be used in all the States in their Union.

Ultimately, who cares? Irrelevant!

Shays Rebellion was also about them issuing their own commodities to be used upon their lands, during the depression after the Revolutionary War. Some refer to it as the whiskey rebellion, which it was nothing of the sort. If anything it was a self defense thingy going on against the Boston Merchant Elitists at that time. Which they eventually stole their land[s] from all the Shayites, thru might and legalities [sic]. Not lawfully done, either.

I agree with this too, and who was with Washington when he went up there to Western Massachusetts (not far from me) to break that up and ensure compliance? Alexander Hamilton, that's who! Tom DiLorenzo did a great job on him. But that affair actually demonstrates the true nature of the US Constitution. It wasn't and isn't that great a document, sorry. It was drawn up behind closed doors under armed guard away from earshot; literally a conspiracy. People are either so easily led or they have better things to do than worry about someone's clandestine plans to seize all the money and income and resources for themselves, so they have done nothing.

People today, do not own property, only the color of law titles, not the original land patent/title. The only thing, IMO that people do own and has value is time. As, most do now own their own property/land. Only land owners can produce make money.

You do not own time, that belongs to the Almighty. You could be dead tonight and you have NO power over it if it is your destiny. Statements like these are easy to see through and disprove. Even were I to agree about your statements concerning land ownership, just how then do you square that with present realities? We know that land ownership is temporal, and land owners are not always synonymous with this blog's narrower definition of wealth; if it does not produce an income, it aint wealth.

What I find morally disgraceful about your outlook is your devaluation of people. Such as you are often spoiled narcissistic little brats! I think you'd best get a better grip on reality and this blog's proposal before challenging it. I've driven huge holes in all your arguments. Try and patch them if you can.

David Burton  

Current Hypothetical Value of a Hypothetical Value Unit