Thursday, September 8, 2016

#57.3: Perspective – Precise Definition of Terms to Focus Attention and Improve Results

Voltaire was concerned that anyone presenting an argument first determine what they mean by the words they use. This is so much the case with money and financial subjects that tremendous lies and deceits can be covered up if most people can be convinced that fraudulent uses for common terms are permissible. Since to us they are NOT permissible we counter any and all usual claims to “financial education” as expectedly biased in favour of either the Keynesian or “Austrian” viewpoints, the two banker predefined and directed ends of the same dialectic; either THEIR credit or THEIR gold.

We see absolutely no point giving anything to any of them. Our ultimate purpose is to walk away from them, to leave their rigged and corrupt financial machine behind, to relinquish slavery to THEM for freedom for US, to discard deceit and irresponsibility for the necessity to assume our own responsibility and further to set up our own institutions and to administer and protect them ourselves and furthermore we have every right to organize and to do so!

Our institutions will be private (since to do what we propose through “public” auspices has been tried and failed for lack of HONOUR on the part of those placed in charge and STUPIDITY on our part for accepting it for so long). Every single everyman or everywoman member that uses our proposed institutions' services will be an owner. Ultimately we intend to renounce THEIR system, to walk out of it and away from it, to personally and socially shun any who were responsible for its crimes as affiliates of any of its more hated organizations, etc. etc.

The message was, “come out of her, my people” etc. it was not to remain and compromise with the peddlers of poison and death as well as of deceit and fraud. It's THEIR money, stupid! 

We aren't just making this post to cover matters neglected before this. We have been redefining terms to suit the purposes of this blog's proposal from the very beginning. To explain what we mean, we have usually specified a precise definition rather than allowing a broader one which is capable of elastic definition. Terms like wealth, income, work, labour and contract have precise meanings to us. It's equivalent to sharpening one's sword. Is buying into anything that doesn't promise a living income a very good deal? Sharper, cleaner terms and definitions usually enable better results.

Parenthetically, we get elastic definition and elastic value measurement from those with elastic ideas; those with little or no respect for facts, truth, honest measurement or honest justice (we have plenty of dishonest justice being practiced just at the moment). The elastics may even believe that any final truth can never be known and probably suppose that some idealistic philosopher gave them the permission to accept that everything and anything was relative, therefore there would be no way to ever pin them down, etc. Most of these ultimately also have to admit that they believe in nothing quite as firmly as might makes right, the imposition of FORCE upon the weak by the strong, etc. Darwin, etc. are usually brought in to justify their bullying, jeering and violence.

These elastics, be they people or ideas, have little or no integrity; you can't rely on them. Elastics who go with the flow, who don't care, who really do not care, are therefore willing to pass along lies they haven't bothered to investigate for themselves, such as that all wars are caused by religion (a DELIBERATE distraction and projection), when that historic assessment is actually a flat out lie. It's not to say religion isn't often to blame for other things, but wars take money and that has been the province of bankers for … well, since forever.

To underline my point here, since as “gold bugs” claim, gold has been and is deemed capable of functioning as money, then all wars down through history were literally about gold and silver too. All precious metals therefore is “blood money” as clearly also is silver, since Jesus was crucified for a price of 30 pieces of silver. We repeat: all precious metals has blood on it.

To suggest that war has any other cause but to enrich certain people who are either potentates or powers behind their thrones, is not to know history. The history of money and banking and the military industrial complex is all wrapped up in war, slavery, drugs, weapons, secrets, etc.

But the rest of us, the vast majority, want to produce things, make things, do things, provide for ourselves and our families, our children and grandchildren, our communities, our cultures, our nations. We know what SANITY is right away by recognizing its opposite without being told by some “expert” what the difference is. Likewise we like to go about our lives and businesses with the REASONABLE EXPECTATION of living under conditions of continuing peace. So who is it that stands against us?

We already know and lines are already being drawn. Who are you that work for them? Why work for them, other than for THEIR money? Why do you do it? Don't you care? Go back and consider what I've said before this. If you are doing the wrong thing, working for the wrong people for whatever reason, your first priority should be to get out of that situation before it takes your life. Or perhaps you are far enough down the road that you really don't care. Whatever the case, it's always finally up to you.

We spent a lot of time defining usury as only applicable to loans of money and that in every case the interest had to come form money that was not previously created/issued. The audio/visual should be a hissing sound of money being sucked out of the money supply by the financiers/capitalists. Now contrast this with a system that allows money lending, but demands that all the costs be paid up front from already existing money. You also remove forever any idea that it is possible to loan what you do not have and indebtedness is fundamentally reduced.

We likewise spent a lot of time describing wealth as ONLY that capable of providing an income. Therefore all sorts of things are not in fact wealth, although they are stuff, presumably assets, if they can be sold for what they originally cost (original purchase price), if not more (appreciation), rather than more likely falling in value (depreciation) and losing money, literally never to return. A community living in an area providing “a living” to live there, is hence properly a commonwealth, as a few US states have chosen to characterize themselves.
Money, literally “one eye,” is nothing more than a means to split barter. We recognize that all trade is ultimately barter, which means that no trade is settled with money alone, it has to be settled with labour or things. This is one of the great errors in accounting and understanding to this very day and can almost certainly be considered a possible means for general public deception. We have the “gold bug” mentality out there, which doesn't understand that gold and silver are things to be bartered with, not money. Furthermore we contend that other people, not you or I, determine whatever that piece of silver or gold will likely purchase: whoever or whatever that is becomes your third party to any transaction involving metals. If you do not control the purchasing power of the money, then it is not yours. It makes NO DIFFERENCE if you think your gold or silver should afford you to buy more or not, YOU DO NOT CONTROL IT, so therefore it is not yours.

While I'm at it, we have heard that there are attempts overseas to set up some “gold backed” currency, maybe even eventually resulting in paper instruments called “gold trade notes.” Now before going on, these are just going to be pieces of paper with more promises on them. Will they be rarer than all others and therefore some other purposely scarce commodity? No one trading using them will see any gold as gold does not circulate, unless it's barter. What would our proposed instruments say on them? They'd say,

bearer herewith tenders [whatever number of] international standard Value Units.

This would be on a V-Check (the same would appear on a longer running token we've called an Exchange Note when they become possible), an anonymous instrument among us – OUR cash - that transfers Value Units (Valuns), OUR money, between accounts, where all the money really resides anyway: Our instruments proclaim they are what is being passed around in trade; they are not promises to pay anything more than what they claim to be.

Money, as these instruments are widely recognized, their outward appearance in notes and coins, are pieces in an accounting machine; mere tokens. THEY REQUIRE NO INTRINSIC VALUE (I yelled that in case some “gold bugs” are deaf) and in fact (as E. C. Riegel said himself) monetary tokens should have as little value as possible; mere pieces of paper would do. Anytime commodities are presumed in any trade, THEY INFLUENCE THE TERMS OF THE BARTER (Also intentionally yelled at “gold bugs” so they'd put 2 and 2 together) and to whatever extent they influence the price of a trade, they are not money but commodities engaged in barter. I hope all of this is properly understood by everyone reading this, because if it is not, there are all kinds of ways of getting fooled, tricked, deceived, swindled … as well as lied to and cheated, that arise there from.

The “gold bug” advocates of what they call “sound” money, etc. all based on their misconceptions concerning money and commodities in settling final prices in trade, say they want this new “gold backed” trading currency to be based on a much higher price for an oz of gold in US dollars. Supposedly tons of gold are being bought by various central banks wherewith to base issuance of some contrived new currency that's “backed” by gold, etc. All this is supposedly done to keep trade going.

But this solution still requires trust. In the United States and other parts of the world for various lengths of time when our governments were least oppressive, we used to think we had sufficient trust. But we were deceived and have always been deceived, because at least in part, even the deceivers are deceived.

We probably know and could easily guess that producers in Asia have been stolen from by merchants selling things west along the old silk road or otherwise for going on centuries. People in the west did not know that people in Asia had been ripped off. They still don't. Some of the people in Asia don't know they're getting ripped off either, but many of their oldest families among them know. The people in the middle, the merchants, of course don't particularly want any of that widely known. But this is the 21st century.

In any case, what of these gold reserves being supposedly stacked up in various places? How do we know, or should we even care, that these money issuers have what they claim? Since only paper will circulate, not gold, you see, it's still a matter of trust.
Whose money is really more honest? We say ours is based on a piece of purchasing power that had a TIME attached to it. We determined what that was with reference to their oldest brand of money, gold and any other of their brands of money capable of pricing gold. We just take the contemporary data, plug it in and it gives us today's fair trade equivalent. Today, with the recent bump up in precious metals, the proposed Valun is $2.63 (on 9/6/16). But prices in Valuns themselves have probably not moved much if at all. The daily Valun price tells us what THEIR money is worth to US. So right now their gold and other money buy slightly more against the Valun than they did a week ago. That was all through changes in THEIR money.

However, we quite honestly clench our mental teeth and present our mental fists to all of this “money backing” as frank bullshit! Intrinsic value was always a DELIBERATE misdirection intending to deceive, because the real issue was always whose fiat is it to issue money in the first place. Sorry Bill Still and others, we no longer believe and trust in any government or state to secure for us much of anything “in the public interest.” The system is noticeably wobbly now, it's crimes visible to more people every single day. Their latest STOLEN FIAT money will fail and be replaced with a “gold backed” one and none of us ever gets to even see the gold, so it may all be just as imaginary.
It doesn't matter. NONE of this money, “gold backed” or whatever is OUR money. It never was and never shall be and the usual people who have charge of the present mad machine have no special authority to do what they are doing, except for their own benefit. The present system is a con game. Building something like it, bitcoin, that isn't it, is still it. Our proposal is different from all the rest. 
Unlike any of THEIR money, any money in your account or accounts within a Valun system is yours. Either you issued it or you earned it. Since it doesn't belong to your local exchange or any financier, there is no need for any deposit insurance.

If you want to be involved with a financier you would buy either Credit contracts from them or perhaps we would allow limited partnership sales of these companies, much like stock, except there would be no exchange and you would be forbidden to sell ANY of these to anyone outside the VEN. They would in most cases be capable of receiving distributions in Valuns but nothing would be written in stone (electronically or on paper either) concerning any promises of return. We do not want to set loose some of the same forces within OUR system that always destroys wealth rather than promoting it.

In order to be a lender in the VEN, all Valuns lent must have been issued somewhere else as no financier gets the right to issue any money. Other members would usually loan the financier their money by buying debt instruments. A 100% reserve requirement means that when most of the money is lent out it will be absent from the accounts of the financier until it is due to be paid back. No Credit contract will ever be allowed to be pulled ahead of the dates specified. If the financial business can't pay its bills, it folds and other actions are taken to liquidate assets, settle debts, determine losses, etc. and life goes on. The Valun and its transaction clearing remains unaffected.

The usual terms for borrowing money in the proposed system will be to come up with the cost to borrow the money ahead of time, like a down payment on a house or vehicle or any other large capital object. If something is intended to be paid off within a year, it's a bill and will usually be divided into a number of monthly payments within a year. Larger loans are identified as a note for all those that extend out to seven years (2 to 7 years). Loans beyond 7 years would be a bond and include all loans involving real estate and extend out to 49 years, though they really usually wont extend out that long, unless we are taken seriously concerning our offer to finance the clean up of some huge man made or natural disaster. All these are classed as Credit contracts within the VEN and one increases one's reputation by completing them and since your credit contract reputation is yours, you will always be able to see it free of charge. There will probably be a market in these credit contracts, but we'll be watching such activity to make sure nothing contrary to the rules goes on.

You know the word economy contains the letters for the word money plus the two letters co, or together, co-money. An economy requires money. The reason people are out of work is money, not enough of it. The reason economies fail for too much money (a Weimar meltdown) as in Venezuela is ENTIRELY the result of stolen fiat – literally a flood of unbacked counterfeit money. What did we say backed OUR money? That's right, our work largely backs it. We could go far afield here and down several convenient rabbit holes, but we wont. It's not necessary. It matters WHERE money is issued as well as WHERE it eventually dies.

For instance, Riegel describes the net operating expenses required for a business based on multiples of the salaries of all employees including management, plus whatever is required to cover materials, supply or inventory, plus basic expenses (overhead). Taxes are usually part of overhead and passed on to the consumer and under a Valun system, taxes will always have to be taken in the “public” currencies required to service them. Taken together by the month, by the quarter (3 months), by the half (6 months) and by the year, one forms the basis for determining the possible wealth of the enterprise.

Since wealth must produce income, the valuation is always going to seek to determine the percentage of actual income after inventory and expenses. To determine what any business is worth in these terms, compute the known estimates in dollars, euros, pounds, yen, etc. and determine what the comparable values would be in proposed Valuns. Once determined, the prices in Valuns should change very little. You already have this to some extent in that proposed Valuns are at this point each equivalent to $2.64 (9/7/16). This is an exercise that we would encourage to be done NOW everywhere, particularly when the business is family owned and operated.

The transition is not far off in the developed world. It can't be withstood forever in Europe or America for very much longer. The proposal offers the only realistic solution out there that does not rely on or fundamentally require an internet to work:

We based the proposed Value Unit (Valun) on 1 oz Au BU (gold bullion) = $2,160 = V1,000 @ November 2, 2011. That piece of purchasing power that was $2.16 back then takes $2.64 to approximate today. We do not even have to have any gold or silver to start. That is THEIR money, not OURS since THEY control the value thereof in THEIR rigged markets.

In OUR markets 1 oz Au BU is going to be V1,000 or thereabout and 1 oz Ag BU (Silver bullion) is probably going to give you an initial V20 (V19.55) and might be higher or lower than that because that's what happens in any bimetalic system where the coins are supposed to circulate; one metal (gold) becomes the fixed point and the other (silver) gyrates up and down. This is but one more “sound” proof that basing a monetary unit on the daily prices of quantities of precious metals is like having a ruler that changes its measurements daily. You don't want that. You want to know that a Valun (V1) will buy a gallon of gas or 18 eggs or a gallon of milk or whatever, not just today but for a good five or ten years down the line and that the prices for things are going to reflect actual supplies and demands in each local area as more people adapt Valuns over manipulated commodity currencies.

David Burton 

Current Hypothetical Value of a Hypothetical Value Unit

[9/1/16: Q: What's your current advisory for capital allocation?
A: I'm not in that business anymore though I always watch THEIR markets. I'd basically go back to what one of my mentors advised; expect inflation of at least 3% per year and you may see instances of depreciation that are even greater. ALL THEIR money will depreciate in inflation and there is debt attached to it.

Another distinction between our proposal and THEIRS; none of OUR money is ever borrowed into existence. OUR money would be issued and would not have to be paid back to anyone. It originates from US by OUR right of fiat. If you don't get it, read the rest of this blog. In our proposal we also get the first right to spend OUR money on what WE want. And furthermore, we know that money must be replenished or economies die, so therefore we will no longer be economically strangled or have our assets manipulated for the sake of idle capitalists making money on money without actually working for it (taking ANY time out of their lives to earn money). When we want to do more, we will do more and we will PAY OURSELVES through our Labour Contracts to bring more money into existence. When we work for it (how 90% of it will get issued), it is “backed” by our labour, by our work, that time out of our lives where we barter for our existence by use of money. As for the rest, the present system has been rigged, and is crooked and has STOLEN from humanity since forever so WE owe THEM … We'll let nature take its course. For the present and until we can get everyone up off their feet, we will allow the poor to issue OUR money up to limits established in each community. 

As for your present assets in whatever currency, they should be real, useful to you (capable of enhancing whatever your innate wealth might be) and you just might want a few things that may come in handy in the future; things you can barter with.]

[9/11/16: Just in case it wasn't clear before this, any comments I receive which are Anonymous will no longer be considered worthy of comment.]

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