Saturday, December 3, 2016

#0: Jim Sinclair-Financial Pressure Cooker Bomb Cooking Now

Now friends, we have perhaps the best analysis of the present system we have yet heard.  This man clearly knows how the present system works and why it is dead.  Sinclair says it is broken and without repair.  Notice his take on gold.  It IS the oldest monetary store of value, it IS worth something, people HAVE used it in trade forever.  But it is still barter, not money which is split barter.  We have advocated split barter as far more efficient as long as we own it, we issue it and any of it that is added by trade MUST be paid for in gold (and silver).  We deliberately chose GOLD as the basis of our money based on a transaction at a particular point in TIME.  Other economic matters will follow.  The reason automation as Sinclair mentions it is allowed to continue even when the production runs cannot be sold, is that instead of businesses going under and being replaced by others, who might or might not pick up the inventory and decide to resell it, depends on what it is, they are acquired and merged into bigger and bigger institutions which defy Nature which deems that there really is a diminishing returns to scale law which has been consistently defied.  Well, one cannot defy Nature forever.  Capitalism and its evil twin sister socialism, are about to die and perhaps the state will assume far smaller characteristics.  What to do?  Sinclair is right, go back to something ancient, but that doesn't mean THEIR institutions or for that matter THEIR agencies of influence will survive.  We must do everything ourselves.  The proposal needs serious consideration.

[12/21/16 Additional remarks: 
I have a great deal of respect for this man's judgment of the present monetary disorder. He mentions that notorious bugaboo, the intrinsic value of money and talks a lot about gold. If you can buy it and get your hands on any of it physically, then presumably the money you used to buy it was adequate to purchase -to own- its relative value. Will you sell it for what you bought it for? That shouldn't concern you. You buy gold (and silver) to provide an insurance against the loss in purchasing power of the other money you use.

Sure, gold has been used as money. But Gresham's law has made the whole business of trade open to the cheapest means of arranging exchange. That leaves the intrinsic value of the tokens we use as money always an open question. We said that whatever you buy with your money has backed it and besides that money requires no backing, but that is still backing, so we get into a discussion concerning backing.

Money arises in the act of buying something. The issuer is required to take back the equivalent of what is issued and that closes the monetary circle and from thence that money is also backed. But what of the intrinsic value question and why is it so important to economists (those who accept the apologetic applied to THEIR system, not ours)? It's because of trust of THEIR money and THEIR speculation. You may be lucky enough to get paid in gold coins, more likely silver. You don't want to carry aroudn with you all the coins you have so you do what? You leave them at home. Some burglar gets in and steals your gold. Then what? The next time, if there is one, you decide to take your gold to … the goldsmith (who later becomes a bank) and you deposit it there and the goldsmith gives you a piece of paper. Your gold backs that paper. But meanwhile the goldsmith is practicing fractional reserve lending and using those pieces of paper as the debt instruments so now your piece of paper might be worth 1/10th what you think it is. Well, the goldsmith (banker) still presumably has to produce your gold (or something equal to it) when you return with your receipt but … yeah, read the proposal and we can and will do a lot betrter with something different.

Sinclair and everybody knows that THEIR (globalists, bankers, elites) stolen fiat currencies are ALL considered quantities of commodities that are themselves wagered upon by speculators. One can't do that with a Valun as it is proposed to be much more like a standard weight or measure that is not even subject to internal market speculation. Besides considering who issues Valuns and how they are usually used, speculation becomes almost prohibitively expensive.

A piece of purchasing power that is fixed in TIME will not move. On 11/2/11 one could have held in one's hand an ounce of gold for $2,160. Divide that dollar amount by 1,000 and that's your Valun at its initial value; $2.16. Now it's 12/21/16. What is the present value of that transaction divided by a thousand? It turns out to be $2.91 or 35% more in dollars than at inception. They can be earned into existence or they can be allowed within constraints by the community but if you wish to buy any with any other money, we only take gold and it's on our terms, not THEIRS. They raise the price of gold? We raise the inception transaction to meet it, it never goes down. If they crash the price of gold, our Valun becomes even stronger. THEY wont be able to beat it.

Other remarks that are required: Sinclair describes what is the ultimate end of capitalism, since it is predatory in nature and defies natural law in terms of efficiencies to scale. Capitalism devours its own until the biggest dies of starvation. It all leads straight back to usury and the expected return on “invested” assets (yield, etc.); making money on money without work. There are some honest ways of doing this, but they are not organized on the scales we have been used to. These are all dinosaurs which shall die. And we in our proposed Valun exchange network (VEN) or our private market in our private money will be the only real market there is. We wont allow “public” stock corporations and governments as members either. We don't want predators, we want producers and consumers, inventors and innovators, those who sense and know the rends that are moving ever away from centralization and globalism and back where they belong, to each local community which must grapple with its own needs and requirements.

Where will the pools of capital liquidity spring forth? Sinclair is right about one thing; we'll only take gold (and silver and maybe platinum eventually). But basing a modern money on the old one was also what we had in mind from the beginning because our goal was to have an economy vibrant enough that once again as it was in Solomon's day, gold would fall from our hands and we'd walk on it under foot with no thought as we had more value in other things, ideas and concerns.

If there were no markets that manipulate prices of gold and silver, we'd probably decide, through the proposed IVES of course, that V1,000 = 1 oz Au (gold), and something similar for Ag (silver). But there still would not be a one for one correspondence because my labor backing into existence my money sure as hell is worth some gold and my aged relative living on his subsistence out of the very will of his life to live is also certainly worth more than any gold. We wont have as many sharks since there wont be capitalism as it is presently practiced. Oh, people will likely be buying and selling businesses as has been done down through time, but the dreams of avarice will be given over to more productive and useful and interesting occupations for all of our natural and acquired talents to explore. How much is your time worth? Why wait? It's long past time to be doing this blog's proposal.]        

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