#57.20: Perspective – Attitude, Work and Perception

Isn't it crazy to expect people, who can barely function past 65 years old or before 18 years old, to be able to establish their own monetary system, which of course requires their own economy to support it? (No I don't mean THEIR economy) You can't build an economy in a person's life span. It takes many generations. You keep hammering the same point, Its not your money! Never was! I wonder why that is :( Spongy Iris

Or is it more crazy to continue to allow someone else to do for us what we should have been doing for ourselves all along? What have we said about money? That it's an accounting machine, with the various circulating tokens as mere instances of what is recorded “on the books.” Why have we said that pieces of paper with denominations printed on it works better than anything else? Because of Gresham's law reversed, which is a real law, which means that Nature and FORCE has something to do with it, like the FORCE of gravity which does not permit you to step off a cliff and walk in mid air. Remember that as we move forward with this essay. The cheaper the means of exchange, the easier it changes hands and eventually drives everything else out of circulation as money tokens. 

Due to the inadequacies of our present education system, most people are completely unaware of the actual situations surrounding the making of a living. It's never taught in school. Neither is very much taught about the common uses of money. Those things, in most places, one finds out on one's own. 

This essay concerns the obvious. If it is of interest to you, perhaps you'll be entertained. Maybe I'll not be all that entertaining, but I promise you, everyone you've ever been entertained by – aside from those among yourselves personally – that's right, through the media, that constant source of interruption that schools prepare you for, all those entertainers were of course PAID by someone, to keep you entertained. 

Those paid entertainers were working to entertain you, while being paid by someone else for doing so. The time spent by them was remunerated to them in money. That money came from somewhere. Do you ever bother to consider the source of the money you are paid with? You assume it's yours too, I don't doubt. Your name on one of THEIR bank accounts proves that, doesn't it? 

For many more obvious reasons, among the entertainers, I have to include the vast array of musicians of all genres, as well, anyone connected with the visual arts, any of the technicians connected with these tremendous enterprises; they are all paid to do what they do and it has a purpose. This represents a considerable swathe of wealth in most modern societies. 

In the United States, a lot of it emanates from the state of California, a place with roughly twice the area of Great Britain, half the people and about the same sized economy. Great Britain of course has perhaps a quarter of its economy emanating from London. The same pattern is found in all major developed countries. Patterns of work are generated by streams of money, flowing and directed to attain certain goals, always to sell you something, whether it's a product, service or just an idea. 

What are the implications? Of course, you know them. Just pay more attention to them and – responsibly, I would say to each one of you – decide when and where to pull away from THEM. Why? Because you don't need THEM. Are they paying you to entertain you? No. You pay for all kinds of services to allow THEM to intrude on your time and space to entertain you. What's THEIR message? Figure it out. Is it real? Is it fake? Especially if it's fake, you would perhaps be more concerned to know. 

We've said that work is the time out of the rest of your life that you spend being paid to do something. This takes all kinds of forms and terms of barter, one's time and labor for what one really needs and wants. Some are in money payments on specific dates. Some are settled in deliveries of agricultural or industrial products for which one is paid in money at a particular time. The terms of barter settled by money are still barter, which never goes away. Money performs the task of splitting the barter, so that a far wider range of exchange is possible. But before charging forward, let's briefly consider just how exactly much of humanity lives. 

There are people who live on the land and are totally dependent on what they derive directly from the land, some actually live as hunter gatherers and have indigenous societies that go back deep into time, measured as we measure it. But these people do not measure time as we measure it, not at all. They may know some of the annals of their people, should there be any. These people may be some of the luckiest on earth, as some have romanticized them. But among such people, any who have been exposed to the modern world, its modern conveniences they seek would invariably bring about the destruction of their primitive societies. 

Primitive people, if they trade with others or not, settle matters within their tribes, based on some rules involving barter. Someone gets something for doing something or provides something for getting something else, and so on. Nothing about their interactions has anything to do with time as we know it. They neither measure it, nor have much in the way of an interest in the use of numbers beyond counting the number of their fingers and toes. They have plenty of interest in reading natural signs. As we understand the skills of reading and writing, they have no interest whatsoever. 

Everywhere else, one must earn one's living by a means of barter involving money. You put in your time, you accomplish your job, you get paid according to the satisfaction of who's paying you, your ability to do or to stand the work, etc. This is the time out of the rest of your life for earning your living. The rest of your life, you sleep, you eat, you take care of your personal needs and you're entertained. 

You might be able to afford to buy a car, a boat, a house, a farm, some land, some animals. In most cases, you won't have all the money to buy it in cash, so you'll have to finance it; borrow / rent the rest of the money you'll need to buy whatever it is. 

You were never taught in school to regard everything you own as an asset. You were probably even scolded into thinking something like that considering anything an asset was somehow reducing it to its value as mere things in terms of money and that whole attitude has clouded your perception. Some of you bought very overpriced products that you thought were going to be assets to you, but they aren't.

Check out the advertising and entertainment you've been exposed to, lately, last month, last year, ten years ago, etc. You had to do this, else you wouldn't be happy. Who said so? It was some combination of things that all came from the entertainers. You see what I mean? In fact, there are some things about you that you decided to emulate or succeed in because of something you got from some entertainer, even if it's as seemingly insignificant as the way you'd play a song, because you heard someone else do it that way.

So anyway, we all acquire assets and these improve, or supposedly improve, our chances of success at one thing or another, always with the intention of improving our standard of living. No primitive human, no matter how happy or unhappy they are, would find any of this to his liking. We all remember the film about the bushman who found a coke bottle one day. He was never happier than when he threw it over a cliff. Primitive people generally like the way things are, as long as Nature cooperates. 

But we have to earn a living. There's just this little problem; there's never enough money and most of it is never in the hands of the common people. By THEIR own admission, THEY hold 97% of all the monetary assets on earth, leaving the rest of us who care about trying to earn a living, with the remaining 3%. 

Most of the stuff you hear or read anywhere of an economic nature presumes that 1) you already have a lot of money and 2) you are willing to surrender it for the purposes of gambling on the future prospects of this or that chain of productive operation. Most of you don't have any money, you never have and you never will. Increasingly, it will be difficult for you to pay your bills, have decent living conditions, do much of anything, all because there isn't sufficient money for you to do them. You've relied all your lives on someone else's money that you must have in order to support your life, your food, water, electricity, heat, the roof over your head. And you wonder why there are so many homeless people? 

So along comes E. C. Riegel and he says that only those without money may be allowed to issue it, he comes up with a perfectly obvious and sensible idea upon which to base the monetary unit, realizes that it would be international in scope and stumbles over the fact that fiat (will) has been stolen from us by all the illegitimate issuers of THEIR money (which doesn't even belong to us).

So then, each of us may have something we can willingly do for someone else and if it's reasonable, a certain amount of Valuns would naturally start flowing through all the local communities everywhere and build a parallel economy that would outlast THEIRS. I'm letting everybody know that THEY can't keep THEIR economic Titanic afloat much longer and with much that's being revealed, well, it's only a matter of time.

What are you going to do when there is no gold, no silver, none of THEIR STOLEN fiat money floating around? This would happen if the value of the asset base crashed and was not recoverable. Where again did all that money go? Come on students! Those who said depreciation of assets win the cigar. It's the death of all money and incidentally it's also the reason why THEIR limited quantity commodity theories of money are GARBAGE, and I'm being extremely kind. That instantly rules out ALL cryptocurrencies, because they are all based on this scarcity of the trading commodity concept. And all one needs do to erase them is pull the plug. Bye bye now!

So Trade Genius or not, and there are dozens of other investor services out there, when the doors of the stock exchanges close because nobody has any confidence in them anymore and all that money has disintegrated, and deflation savagely sets in, no, there won't be any gold or silver floating around, because it will be too valuable compared with everything else. And what's the value of labor under these situations? It falls through the floor. Massive unemployment occurs, all because there is never enough money. 

E. C. Riegel saw this and it is one reason why this blog exists. We feel PASSIONATE about employment and work and desire to foster a solid work ethic, because we WILL it! Understood? FIAT IS WILL and without it we are all THEIR slaves! 

Let's again put this as mildly as we possibly can, ok? Most know the famous jibe that opinions are like anal sphincters and everyone has one. So you want the facts? There are some clowns out there who similarly say that the ultimate value of any fiat currency is zero, and they may be right, but always for the wrong reasons. Fiat? Fiat currencies? It's WHOSE fiat that matters. 

Yes, the same mistake has been made over and over and over again, down through time. The Chinese are said to have started it, others followed. WHAT DID THEY ALL HAVE IN COMMON? Come on students! That's right, they were all issued by either a government or a bank. That's the right answer. 

So we say squarely to the clowns, it's not our fiat, stupid, it's THEIRS that's illegitimate and THEIRS always fails because non producers issue it. There are a few complementary currencies that are still around that are based on some form of barter valuation and yes they are all fiat currencies. They are PRIVATE fiat currencies and in order to issue any, you have to be a member that has something to sell to the community of others that use that currency. 

We understand that most of us can't just walk away from THEM and THEIR money, because we are carrying mountains of debt. You know what will eventually happen with all unsecured debt? It will default. That will cause the Ponzi like structure of THEIR financial system to collapse, and since THEIRS never separates clearing transactions from lending money, when THEIRS fails, it takes everyone's wealth with it. There won't be any money after that, because it was lost in the depreciation (fall in prices) of the assets it purchased, which can no longer be sold for even a fraction of their original prices.

Now hyperinflation. That's when there is so much money floating around that prices of everything rise until it costs you a month's rent to buy a hamburger. Long before that, your money has become toilet paper. Think a Weimar meltdown isn't possible in any number of countries? All it usually takes to bring down a government is a sufficient rise in food prices. How do the governments usually cope with this situation? They hand out more money for no work. They appropriate expenditures over taxes for their friends. They just give money away without ever expecting any to return, because they as issuers are illegitimate to begin with, they produce nothing anyone wants to buy.

As we have further stated, grifters and grafters are usually behind all of this corruption and that's what this is. Think hyperinflation wont happen? You have been living through it in every advanced and developing country. It's just been going on in slow motion due to the tremendous amount of used stuff that's a break on rising prices. Hyperinflation has already run its course in various countries, like Zimbabwe and Venezuela. The weather too, all about whatever is behind it? Who knows? 

So this is a strenuous time and it will require strenuous and precision efforts; always work smart not hard. Has anyone seen that series on the Russian fellow who built his own log cabin, etc.? He worked smart as well as hard. It seemed every action was precisely timed and thought out. His tools were in tip top condition too. He used physical leverage a lot, etc. Above all, he had the right attitude about his work and wasn't being paid for it, though his videos I'm sure are paying him a little and he claims he has a regular job. Entertainment again. What's the message? See America? Do as this Russian guy is doing. And maybe more of us might do so, because we want to distance ourselves from THEM and THEIR entertainments. 

What's the difference in doing something for money and doing it for nothing? For one thing, a level of expectation is usually part of a paid situation. The employer has certain requirements and expectations that must be met or the situation doesn't last too long. There's usually some sort of fit or chemistry involved as well. One usually has to be socially liked or accepted by the other people one works with or for. Having to earn a living makes it far more important to be able to go outside your own personal focus and actually interact with other people. What do the entertainers promote? The stay at home by yourself meme is catching on and it's got some definite downsides.

School never taught us anything about basic attitudes we would need to succeed, because maybe they didn't even know what these were or ever considered them important. As a bare minimum, education would have enabled us to acquire the abilities to read and write in at least our mother tongue and to count things using numbers. Reading, writing and arithmetic (hope you never had Common Core) are still the basic skills required in the modern world. If you still don't have them and aren't living among hunter gatherers, these would be the very first skills to acquire as soon as possible.

In some societies, conformity to particular standards of dress, sociability and composure are required, else one easily becomes dismissed as an antisocial or deviant. THEY have social services to take care of those people, so they are rarely seen. In the worst cases, THEY have prisons where those who won't follow the conformity can be taken out of regular contact with others. The proposed social credit systems are intended to accompany all usage of THEIR cryptocurrency, when or if it appears (all others will simply be devalued or turned off so you wont be able to get to them and since they were ephemeral to begin with, too damn bad if you spent too much of THEIR stolen fiat currency on any of them). As we have always said, it's THEIR internet and when it goes off, bye bye.

The basis of this conformity stems from the same source as the entertainment. Just sit back, relax and enjoy, pay and consume. You can't afford it? You want it bad now too, don't you? You can't live without it, right? How much more would you be willing to pay over time to have it right now? Wait. Do you have a job? Are your prospects good for keeping your job or even getting a promotion? How much more time and energy are you willing to exert in future to have that whatever right now? And THEY just love the idea of you living way above your means, even if THEY never do, because even when THEY (come on, usually synonymous with the top 5%) have all the money in the world, THEY still require servants (slaves) to help THEM do the most basic chores.

Consumerism was born the minute someone could finance something they couldn't afford to buy. The rest, always involving some form of entertainment, was punctuated by interruptions for commercial advertising to get you into that craving for something to make you happy when nothing around you is doing the job.

You need to start asking some serious questions that might put you at risk of becoming an antisocial or deviant. Who are you? What are you? What about yourself is really your choice? How would you choose, from what you honestly know about yourself, to change about yourself to become more the person you want to become? How does an audience, a market for your skills enter into all of this? What style of life would you prefer to become accustomed and how much is that likely to cost you in time, effort (your energy) and money?

This blog has never advocated anything as ridiculous and foolish as political revolutions or activism intended to overturn the existing structures. Never! What obvious foolishness! We have plenty of history to prove that all of these efforts, some ongoing even today, were always intended to benefit THEM, never the people at or near the bottom. Most of these would be leaders refer to the people as “the masses” the better to depersonalize them for later elimination when THEIR masterful social schemes don't work out, when enough people wake up to realize they have been cheated once again. E. C. Riegel would never have advocated anything of the kind.

Riegel recognized that economies to scale require effort to build and set up, that they can't always spring into action to take up the slack that THEIR economies have eliminated as they became “too big to fail.” By the way in the process of merger and acquisition, wealth was actually destroyed because streams of income were eliminated for more regular folks. The hubris behind many of THEIR acts of defiance of Nature runs centuries deep.

Do you know what hubris is? HEW-bris. Hubris = excessive pride or self-confidence, lacking the basis for either genuine pride or confidence, frequently associated with arrogance, conceit, conceitedness, haughtiness, pride, vanity, self-importance, self-conceit, pomposity, superciliousness, feeling of superiority, imperiousness; hauteur; in informal usage, uppitiness, big-headedness and also by direct inference, NARCISSISM. The biggest ploy of THEIR entertainers is to equate your happiness with some very profitable form of mass narcissism. And of course narcissists attract predators, more of THEIR legions.

By any likely comparison, E. C. Riegel was a very humble man, merely asserting the obvious and wishing to bring it to our attention. You will (fiat) have to consider the best wishes for your fellow men as you pursue your own attainments and happiness. The rugged individualist, another of THEIR favorite memes, will not help you long term. So this isn't about you just becoming someone you'd be proud of, it's about being involved with other people, based on something real, the exchanges of time, labor, services and products.

Obviously the entertainment we have been exposed to has left certain impressions on us that THEY intended to use to further THEIR goal, to take over the world. In that scheme, perhaps you count as a consumer of economic product, perhaps you are used as part of some public policy effort, to make some politician or political party seem more intelligent, enlightened or compassionate, when none of this is the true objective and to whatever extent you personally are involved, it has nothing to do with you.

When it comes to earning a living, what most of us require is knowledge of what other people want or need doing and whether or not we might be qualified to do what is required and of course for the price offered. The proposal is built around a new institution we call an exchange. Of course we exchange our goods, services and time among our members and these are measured in Valuns instead of THEIR money. Meeting other real people through local exchanges is something THEY have tried to make uninteresting to the vast majority. Would it have been better had we said we were going to establish a network of private clubs? That's what this proposal looks like, but we'd prefer calling them exchanges. 

How does one meet or associate with people anymore? On what basis? The local exchange focuses this key human need for cooperation and interaction to achieve both for ourselves individually and as communities, what we each might want. Of course any core product involved with the basics of life; food, clothing, eventually lodging, housing, capital goods (machines, vehicles, etc.) is already going to be there operating in THEIR system. Many operators are aware of the problems with THEIR money and will want to seek a hedge against the failure of THEIR money, etc.  

How do we connect then? Assume the internet is down or no more. Even if it's up, it's time to move in the opposite direction. All the way back to hunter gatherer societies, as are currently springing up even in advanced countries, because there's not enough money where it is most needed? No, back to what we have always spoken about, the size of each enterprise always operating within its own scale; production, customers, revenue, finding that place where further growth would result in diminishing returns to scale, a fundamental law of Nature itself which THEIR economies always defy to OUR peril.

We did mention Herbert Stein's law, “trends that can't continue, will stop.” If a company expands at the wrong time, they may be doomed. If they expand at the right time and then fail to scale back when the trend fades, they are likely doomed. There are structural changes in technology and custom that can also doom various kinds of businesses. Whole areas of consumer products that used to be sold as “this is what you need to make you happy or at least more satisfied,” are long gone out of business because the trend could not go on, so it stopped. Some things once stopped can never be restarted. Once automobiles became more feasible, horses and buggies were never coming back, etc. 

The connection with each other as members of the proposed local exchanges are 1) by dropping by the exchanges on a regular basis to check out all the offers for jobs that our members would be offering and 2) by seeing advertising on the backs of our money, letting us know who will take it in exchange for goods and services we actually want or need to buy.  

In order to ensure the vast majority of humanity from THEIR fully intended genocide or obsolescence, we must make it our deliberate business to care a little bit more for each other and less about our own narcissistic preoccupations, many of which if we look more carefully at them, will reveal themselves to be foisted upon us by THEIR entertainers.

Many discussions over the years about this proposal have convinced me how few people actually understand their situation in life, how to make it better for themselves or avoid making it worse. We are often propelled through life on the expectations of others, but more often the ideas we have about our own aspirations come directly and indirectly from THEIR entertainers. And we PAY for THEM to entertain us on top of it! But there is often truth in observed irony.

As for building economies that take several lifetimes, we have all lived through situations where economies were created overnight by THEM, - remember the dot com bubble? - only to be smashed to bits (pun partially intended), when THEY had made enough money on THEIR money without work. That's THEIR goal.  

Meanwhile, we need to band together, figure out who we are, where we are, what we can do, what we can't or won't do, etc. and it's best to begin with already existing businesses that have been going on for a long time already that serve as models. We know the difference between wholesale and retail. We know that the difference has to do with efficiencies to scale. We are also aware of many structural changes that make and break industries. We are aware of THEIR gadgetry, all intended to make human effort seem more worthless. What happens when a job is always paid in money issued by the employee not the employer? What happens when nobody buys what THEY are selling and instead buys locally from people they know and trust? What happens when the trust of those in distant places falls away so much that THEIR long term trends can't go on? Those trends top out and fall or just stop in mid stride as has happened dozens of times when some technology got too far ahead of actual usefulness or other hazards were discovered that rendered the technology useless.

Don't for any instant be fooled by the so called power of any technology. These are tinker toys of adolescent narcissists who usually have very little use for anyone but themselves. Having been occupied in the computer technologies most of my life, I've run into quite a few of them. I suppose that when a computer program of their choice finally says “I don't need you anymore,” perhaps they'll have sense enough to pull the plug and for good measure purge the program, so it can't be spread further. Remember, the choice to be whatever you want to become is bounded by your attitudes and your information before you ever set out to acquire any skills. 

All the best, 
 

David Burton

dpbmss@mail.com

#0: Bitcoin Busted for Fraud & Patrick Byrne gets Redpilled by a Russian Spy - AIM

 

Bitcoin Busted for Fraud - Gabriel & McKibben

Patrick Byrne Gets Redpilled by a Russian Spy

The truth is out there. Listen and learn and then run, don't walk away from all cryptocurrencies. What we have always reiterated will be termed FRAUD and it always involves LIES and everything that's FAKE. It's time to pull the curtains away and see the players behind the scenes. Yes, the usual suspects. ANYONE NOW ADVOCATING CRYPTOCURRENCIES, YOU ARE HEREBY WARNED TO STOP OR GO DOWN WITH THE FRAUD. THERE IS NO ESCAPE, NO SILVER LINING, SO NEVER BOTHER GETTING STARTED. All that has been deliberately hidden, because THEIR intentions have always been nefarious, will be brought to light and then Nature will certainly be taking its course. No regular ordinary person, with far too little of THEIR money to waste on such SCAMS, should have anything to do with any of this because IT IS FRAUD AND HAS NO LEGITIMATE FUTURE. Besides which, we already told you that if you didn't issue any of this "money" it isn't yours. So back away from everything associated with THEIR internet and THEIR blockchain baloney, and get with the proposal outlined on this blog, before we go back to reality, back to truth, back to having OUR OWN money, which is the mission and purpos4e of this blog. Gabriel and McKibben aren't kidding and the truth they have uncovered will stand, whether that be today, tomorrow, next week, next year, whenever.

Be seeing you.

#57.19: Perspective - The Valun and THEIR money

I review many charts each and every business day.  But I always watch this chart.

We have recently seen the precious metals surge in prices measured in US dollars. These are the two principal brands of THEIR money. The experiment we have conducted since 2011 has given us the vehicle to comprehend the shifts in purchasing power of these two principal brands of THEIR money.

The Valun began at $2.16 or 1,000 Valuns for an ounce of gold bullion, on the date of the Valun's inception, 11/2/2011. Since then, the price of gold has fallen, so an ounce of gold bullion no longer buys what it did back on 11/2/2011. This has been reflected in the value of a Valun measured in US dollars; the Valun has almost always been well above its inception, at its peak, reaching $3.00 on 12/02/2015. 

As we have always said, the Valun is offered as an international standard unit of value measurement in a trade for goods and service, a substitute to whole barter, while barter never goes away. The Valun is never a commodity masquerading as money, that changes its ability to measure value in a trade, based on the whims of speculators and other insiders. These people are those engaged in making money on THEIR money without work; without contributing to the store of wealth, which must provide an income for its producers. The Valun remains as an unchanging unit of purchasing power, devised to represent an unchanging point of reference.

Critics, of whom most wouldn't know an honest argument if posed to them, because half of them have enormous chips on their shoulders to begin with, that prevent them from having any honest discussion about anything concrete or relevant, will say that this contention, that the Valun remains unchanged, is not so. They will contend that the proposal intends on changing this fixed unit as soon as the price of gold rises above Valun inception.

So to anyone, the exception is when the price of gold marches up above the original Valun inception. Then, we would see a new inception point for the Valun, always higher, never lower, and that's the key. What happens should gold bullion no longer be sold for US dollars? We consider this possibility highly unlikely, whether there's a Federal Reserve bank or not, whether the US Treasury, unconstitutionally by the way, decides to issue what they'll call US Government Notes or US Treasury Notes, or whatever. We'll still see gold sold for these as it is for FRNs today.

What if there are a string of new highs for gold in quick succession? We'll just post the inception point for the Valun as many times as required to represent the highest point in THEIR valuations of dollars and precious metals. 

Example: The price of gold reaches $2,200. That's our bid, not THEIR spot, which is always 25% lower. That's our bid price, which means we have adequate advantage and may be buying more gold than we need to cover the exchanges into Valuns. At $2,200, the Valun's new inception is at $2.20 rather than $2.16. But the next week, gold reaches $2,560. The Valun's new inception point becomes $2.56. Now what's the price of gold actually going to do? None of us knows. Why? Because none of us controls any of that. Let's say that you have decided to purchase stock in gold mines, or silver mines. Does your stock ownership affect anything concerning those mines? Who determines what those shares are worth day in and day out? Do you? Does anyone have anything to do with any of the mints, public or private, unless they actually work for any of them, and even then? The most basic question: do you actually OWN any of the money you use? 

So anyway, does the price of gold just go up and up forever? Not unless the purchasing power of US dollars is running downhill into a Weimar meltdown as we have already seen in places like Zimbabwe and Venezuela. What could happen to the Valun, if that begins happening here? The Valun just gets harder and harder as a result, and we have no intention whatsoever of devaluing the Valun, once a new inception point is chosen.

So, if gold reaches our bid for it of $3,800, the Valun is now $3.80. As the price of gold falls back from this point, as it would, else the US dollar is toast, the Valun gets even heavier, because it would take more gold to buy one. Right now it takes more gold to buy a Valun than at its inception. Most of the time, no, ALL of the time, we want it that way. Even so, the Valun would never do what is common in typical “buy and hold” fake scarce commodity cryptocurrencies, where one sees runs into the thousands of dollars and gigantic price plunges soon afterward. I remind you all that commodities speculators make money both ways, whether the price changes are higher or lower.

There is always a range, the reverse almost of the one chart seen at the head of this post. Gold will never be worthless, so the upward limit to the Valun in US dollars would always be far smaller. At $3.00 back in 2015, gold was selling at just above $1,000. How much lower would gold have to go for the Valun to reach $4.00? At our bid price of $260 an ounce for gold, how likely is that?, the Valun reaches $4.00. So the Valun trading range is always only a matter of a few dollars.

It's more likely that precious metals would behave exactly as they have for as long as people want to examine the charts. In the chart at the top of this post, you see a volcanic looking formation centered around 2011. We chose our Valun inception to be among those peaks. Following this, we've seen gold fall back in price, where it tried to find its bottom and normal trading range. Usually a kind of plateau of trading prices for precious metals is established which lasts for some years. Since all of this activity usually occurs far below the occasional volcanic price surge formations, the Valun maintains its comparative price advantage throughout these often multi-year plateaus in precious metals prices.

As this blog has continued over the years, we have received many suggestions for altering our basis for the Valun. No matter what we could have chosen, prices in any commodity possibly chosen are still affected by THEM through THEIR speculators and without the clear fundamentals that basing our exchange on the price of gold would offer us, to easily determine what the exchange rates for all the rest of THEIR money would trade for in Valuns. We have and will continue to steadfastly ignore any other possible bases for the Valun. Those reading this blog ought to know exactly why gold was chosen from the outset; it is THEIR oldest brand of THEIR money and allows us to defeat that basis for value as well as any of the other of THEIR STOLEN fiat currencies. As we have stated many other times, there is no substitute.

We certainly want anyone to know that when the Valun system gets going, a Valun will never be worthless, nor subject to any more speculation than already exists with all of THEIR money, yes, including THEIR cryptocurrencies, which we consider more than worthless. We will NEVER need to, nor ever will accept any cryptocurrencies in trade for Valuns. We remind everyone that E. C. Riegel observed that all of THEIR money was illegitimate because it was issued by non producers. What backs a Valun? The work or will of the members, nothing more is required. 

Best 

David Burton 

dpbmss@mail.com

#0: BTC Founder Losses $10 Billion BTC

BTC Founder Losses $10 Billion BTC

This is the smoking gun story behind Bitcoin, exactly as we have always maintained.  What can be said about Bitcoin is certainly true of ALL cryptocurrencies.  As we have always said, these are just more brands of THEIR money and none of this CON GAME baloney belongs in anyone's serious asset portfolio, period!  Now, it's time to call things by their proper names.  BITCOIN IS A GIANT KINGSIZED FRAUD and so are ALL THEIR cryptocurrencies, period!  We're thankful to Thomas and Betsy for doing this deep research to uncover more of the truth behind this gigantic FRAUD.     

#57.18: Perspective – The Sales Pitch

1) Why do we need more money?

Those among the 2% who have on average 97% of the all the financial resources on earth, don't need more money. The rest of us are expected to subsist on the remaining 3%. Most of us need more money. One hears all kinds of pronouncements from economists, all beating the same drum; THEIR system is fair and just and works the way it does and woe be to any outsider whoever tries to displace THEM. Again, just who are THEY? Broadly, globalists, bankers, elitists, technocrats, satanists (those who have an entitlement complex to be predators on others), pedovores (the whole range of abuse here), scribes (writers and lawyers) and Pharisees (politicians and their sycophants). We need our own money so that we can and will be able to move out from under THEM and away from THEM as THEY face ultimate oblivion.  We, the people, by our work and our will, choose not to follow THEM.

2) Why should we accept the Valun?

The proposed Valun (international standard value unit) does not change. It is based on a specific piece of purchasing power defined by an ounce of gold bullion for $2,160 on 11/2/11 a specific point in TIME. We divide this by a thousand and get our Valun at inception at $2.16. But today, the price of gold is 12% lower than at inception. So the present value of the Valun is $2.43. The Valun can never fall below $2.16 nor rise higher than $4.32 should gold all of a sudden become worthless, which is not very likely.

E. C. Riegel made many contributions to our understanding of monetary reality. He seemed to sense that defeating the “commodity theory of money” would be absolutely necessary, though he didn't state it quite that way. Riegel was an autodidact. We need more of them. There were others who saw this flaw in THEIR monetary understandings. Arthur Kitson was one of them. With a solid unchanging reference point, we can tell right away whether precious metals or US dollars (THEIR primary brands of THEIR money) are gaining or losing purchasing power compared with ours. Right now, precious metals are gaining purchasing power and dollars are losing purchasing power.

What happens should our inception point ever be surpassed by gold prices forcing our initial $2,160 per ounce higher? We raise the inception point and all Valuns assume this new higher valuation. It will never be possible to lower the inception, therefore Valuns will retain their purchasing power over all THEIR money. Should US dollars no longer buy gold, the US dollar, after years of constant economists prattling, is probably done for as functioning money, much like what happened to the Venezuelan Bolivar.   This provision ultimately results in a harder and heavier Valun moving forward against all of THEIR money.

For example, let's say that gold surpasses $4,300 per ounce spot price. That makes our bid price up to 25% higher, $5,375 per ounce. That new inception point is recognized by IVES (everyone should be able to explain the relationship between IVES and the local exchanges) and the Valun is now $5.38. Now what happens when the price of gold falls from there? The new valuation is going to make it more expensive in gold in present dollars and therefore the Valun goes up further. It may be necessary when that happens, because it's probably going to happen, to have V-Checks representing V¼. At the new inception, at $5.38, the quarter Valun would be at $1.35 and the cento or fen would be a bit above five cents American. 

3) How does this help us build wealth?

Since our goal for everyone is individual-sufficiency, individual-actualization, individual-attainment, etc. we recognize that we will need to interact with each other, through exchange of our work for goods and services, we will need to organize to actually own together that which helps us all toward our individual goals. That's one reason Riegel called the new organizations we would require, “exchanges.” The present monetary system cannot and will never be sufficient to our needs. THEY already know that we seek ways out of THEIR system, so THEY devised cryptocurrencies, so that THEY can eventually put up their “social scoring” technology against us. We are also flatly opposed to more reliance on the internet, which also belongs to THEM. Our proposal understands these realities and seeks ways out of and away from THEM and THEIR systems and solutions.

Wealth to us, must provide an income, or it isn't wealth. Each one of us has acquired some interests and skills that are capable of providing us an income, therefore our work, the time out of the rest of our lives spent earning money (barter), constitutes our individual innate wealth, just waiting for expression as income to us. That extra income, from undeveloped or expressed innate wealth, is used to maintain and build more wealth opportunities, all intended to provide income to us. Having the Valun as a supplementary currency allows us to grow our wealth apart from and beside THEIRS. Eventually, as THEIR fake STOLEN fiat, unbacked credit and “commodity money” systems are seen for what they are, more people will want out into something else. The Valun will be worth having and saving as well as spending and investing in projects that actually benefit people rather than stealing from them. 

4) How does this help us ensure that our children have a future? 

Valun accounts are inheritable assets among all our members. Our children will be the normal and natural inheritors of our assets. There is little or nothing about the present monetary system that can be relied upon long term and anyway, none of it actually belongs to us. So we need our own that can eventually belong to people of our choice, usually our families and our children.

5) How does this proposal help local businesses?

In our proposal, an individual gets an A member account with V200 in it. They can set up a B member account for their own business for free as long as they put Valuns into it. Any business can put Valuns into their business account by submitting transactions to increase the Valuns in their Equity balance. Any tools, inventory, supplies, fully paid for in THEIR money can be added for their value in Valuns. There are no transaction fees for making changes to the Equity balance, as all the changes occur in one account. You would be building the value of your business in Valuns. Some businesses that are already in existence can apportion a percentage of their inventory for sale in Valuns or some other equipment that is fully paid for that would be included in their business.

The proposal intends to limit the competition from “public” corporations and “public” institutions. No B member business may be an absentee owner, “limited liability” corporation. No government organizations may be B members either. The intention is to limit the Valun market to actual producers as far as possible. A B member business intends to make money as a for profit operation. They must have identifiable owners. An A member opening a B member business is the actual owner of that business. Otherwise many A members can form partnerships and all family owned and operated businesses are encouraged to become B members.

6) How does the Valun defeat price inflation?

Another of Riegel's contributions was the recognition that price inflation was directly influenced by government spending over taxation; deficit spending. The only break on this, as we have maintained, ignored by most of THEIR economists, is the role of depreciation of assets in the destruction of money. The second hand markets for all goods and services actually provide a hedge against general price inflation.

Let's examine THEIR fundamental explanation for inflation; too much money chasing too few goods. This idea has a fundamental flaw, which means that it's a lie. It concerns something very simple, the observation that not all units of exchange (money) can or will be bid on the prices of all goods at the same time. Not everyone shares the same interests, has the same perceptions of economic decisions, including whether to make or buy something, whether to expand or contract business based on risks, etc.

Our contention is that the stability of the Valun over time, designed specifically to beat all of THEIR money, will tend to bring prices into whatever the correct balances between offered products and services will be and over time these prices will become more stable. Conversely, any differences in price, from a longer term average, will be easily identified as caused by either temporary or permanent changes in buying habits, the results of real physical shortages, etc. rather than the relentless march of higher prices brought about deliberately by THEM to steal more and more from us.

7) How does advertising help sponsor our money?

We need to identify ourselves to each other in ways that improve our bottom lines. We proposed that the actual tokens in our proposed system, the six month open Valun-Checks (V-Checks), would be the most attractive advertising we could make it, cheap enough to circulate among us and provide necessary account clearing information. Businesses that can afford it, would be encouraged to buy advertising from their local exchange, that would appear on the backs of these V-Checks. To begin with, they would be issued in V½, V1, V2, V5 and V10 denominations. They will require paid advertising on all their reverse sides.

8) How is usury defeated?

The rent of money is the particular subject associated with gaining income from wealth, in the form of money. Wealth to us must produce an income, so besides each one of us having innate wealth, which is free enterprise, the acquisition of more money would enable us to practice capitalism, the making of money on money without work.

But unlike THEIR system, all the rent for any borrowed money must be paid up front, and very importantly, paid out of already existing money, not as in THEIR system, from money that was never issued over and above the issued money supply. We have also determined that THEIR fractional reserve system allows certain special people the authority to loan money they don't actually have. We forbid this practice. We have also deliberately separated the transaction clearing function from the money lending function.

Since none of the money in the accounts we will maintain belongs to anyone else but the owners, there is no need for deposit insurance because there will never be any outside lending claims against any of this money as any kind of reserve. If someone intends on becoming a financier, they would have to acquire the necessary Valuns to lend from those who have the most of them at the opening of the exchange, and pay those people up front as well for the rent of their money.

If anyone needs to borrow money in our proposed system, they will pay the rent for it up front out of already existing money and all compounding of interest, allowing claims upon claims for money that never existed, thus causing a “musical chairs” economy everywhere; this is also forbidden.

We further make borrowed money work for the communities it is raised within rather than some other communities with one of our 80% rules; if a lender raises the money within a particular exchange area, then 80% of that money must be lent within that same area. This simple rule helps eliminate capital flight away from where it is produced and invested. Obviously the more productive a community is, the more financing it will have and conversely.

No matter where one is, our proposal upholds and supports the work ethic, which begins with our perception that all work is the time out of the rest of your life to produce or provide something for payment in money to satisfy the terms of barter. The erroneous assumption, another lie, is that transactions using whole barter are different from those using money. But in truth, barter never goes away. We just use money to set up and clear our terms of barter, splitting the terms of the trade between buyer and seller.

We have other practical rules for ensuring that everyone stay out of onerous debt. The practical goal for our system is that everyone operates in the black, not the red

9) How is poverty defeated by this proposal?

E. C. Riegel observed that only the poor should be able to issue money without producing anything. He was referring to the indigent. How do we determine indigence among our prospective members? Let's begin by saying that any business that is running in the red is not fit to remain in business. So businesses may come and may go, but individual people, their needs and aspirations, remain. Our proposal benefits any who are disabled, veterans, unable to work, retired or homeless.

Within the United States, and eventually everywhere else, we only have one simple question; are you really an American citizen and can show proof of it? Many of our citizens are chronically homeless, unemployed, etc. and we'll be honest, for some of these people, perhaps nothing but some form of extended stays in sanatoriums for remediation of longstanding difficulties, is likely to produce beneficial results. In other words, this powerful tool, important as it is, may not be sufficient in and of itself to help the most needy.

Nevertheless we have as part of our proposal that indigents would be eligible to issue Valuns based on some predetermined policy, backed by a form of credit contract between the indigent and the exchange. Since it takes two sponsors for each A member, the indigent member will know and be known by other members of the community. Perhaps their ability to issue Valuns will change, perhaps not. An indigent might decide to spend as few of his Valuns as he can, saving sufficient Valuns, so that when he has the means, he opens a B member business and begins the process of sliding out of indigence.

Who benefits from any extra Valuns that enter the system? The poor will likely spend most of theirs. So who gets them? The producers. And unlike any of THEIR money, none of the extra Valuns can contribute to inflation directly, because the exchange value of each and every Valun is never determined by speculation (speculators) concerning the amount of money available to lend, nor in calculations of the financier's take, the interest out of money that was never created/issued.

We suggested a long time ago that probably the first segment of the population to attract to our proposal would be law enforcement, both active and retired, and their grandmothers. Likewise veterans and their grandmothers. Let's look at a few details from our proposal that have specific meaning for these segments of our population.

We cannot operate anything without adequate law enforcement. We need and want these people to be part of our private economy. Whether retired or not, we can help them. Any A member begins with an Issuance balance of V200. Any active law enforcement may become A members and while earning THEIR money, earn up to 80% more in Valuns. Since their employer is some government that can't become a B member, each police officer has a labor contract with the exchange itself operating as a proxy. These contracts are simple one page affairs that specify how many Valuns at what times are deposited into their Income balances.

Now then, their grandmothers, retirees, veterans, etc. We have another policy that says that these A members can issue as many Valuns as the accumulated proceeds received from any and all pensions, retirements, etc. since Valun inception on 11/2/11. If you received Social Security since that time, you can begin stacking your yearly statements because when the exchanges start near you, you can take those into our offices and find out how many thousands of Valuns you will be entitled to issue. If someone has retired from some skilled job having its own pension, whether paid or not (as some have gone broke through incompetence or corruption), as long as they have documented proof, they will be able to issue 100% of all that value in Valuns.

We hence have three ways that Valuns can enter the market using them; by work (labor contracts), by will (credit contracts) and by indigence. The way Valuns disappear from the system is the same as in any other money, through depreciation of assets.

This is a simple idea and doesn't take any advanced degrees to understand. If anything is sold for less than it was purchased for, the difference in terms of money, disappears, dies, is gone forever, never to return. The quickest way to a continual recession would be one where nobody ever bought any used goods. Then, inflation would behave according to THEIR economic rules, and happen much faster. We'd also be buried in used junk before too long. But of course, nobody follows this because used goods are everywhere and nobody is FORCED to buy brand new of anything. The same economic rules affect recycled materials. Any work to recapture discarded value, can still produce an income, but comparisons between the brand new and the slightly used, well worn or obsolete, surely affect the prices asked and any differences between an item being sold as brand new and one sold as obsolete, always involve the destruction of money over the useful life of the asset.

All of which illustrates how far off THEIR limited quantity of some scare commodity theories about money, pricing, etc. really are, since money is created and is destroyed. There is no conservation of energy theory here or any other such nonsensical idealism. Legitimate money, not THEIRS, always begins when someone buys something and is always destroyed in the process of asset depreciation. In fact, there are many cases where the superlative quantities of stuff, great mansions, great estates, luxury automobiles, etc. are no longer economically sustainable, since they often do not provide or produce any income. Many of these items become so top heavy in relative valuations, that they become practically worthless. Remember that the next time you think to expand your holdings too far. There will always be taxes to pay in THEIR money. Consider it a protection racket or a FORCE of Nature as you will, taxes will always present a limitation on what any of us may do.

Since the proposal is nether a tax dodge nor a money laundry, all prospective A members would be aware that in joining and owning come tax responsibilities that can only be handled in THEIR money. And very important, we have a way into exchanging THEIR money for Valuns, but there is no way back to THEIR money. Money laundering is eliminated in this way.

We say today (8/17/19) that a Valun is worth approximately $2.43 and that's what we'd expect a member to pay in dues if collected today, but they can't cash out of Valuns back into any of THEIR money, because the Valun is intended to be the rock bottom for all money everywhere eventually. Of course some scoundrel might try and operate within the Valun system trying to produce something that would be sold only in dollars. But none of that sales would ever show up as transactions representing income to that B member business. It would show up on the rest of the accounts representing their business, not the B member account. Were such practices to be attempted, we assure you that they would fail pretty badly, especially since before one got anything to sale, it is likely that THEIR money would have inflated more and reduced their expectations of reward. So, it's best to stick with Valuns.

Now we have indicated three groups of people with respect to Valun issuance, because only money that is issued by individual natural persons in the act of settling their barter is legitimate money to us; THEIR money is still money all right, but it is illegitimate, entirely because of who issued it, either some government or some bank. These three groups of people are the employed, retirees and the indigent.

We fully expect the indigent, not all but some, will decide to start businesses and begin acquiring assets in furtherance of those businesses and that they will all begin by establishing a B membership and adding to that business's Equity balance. Eventually, these self-employed formerly poor people may well slide off their indigence contracts with their exchanges and begin to become self sustaining. The rest will furnish the only free money to anyone in the system.

Retirees are given their entire accumulated pensions since Valun inception on 11/2/11 in Valuns to issue. These do not represent earned income because they aren't actually money until they are spent into existence. But they are assets that can be inherited by another member. That information is part of the membership contract everyone will have with their local exchange.

Example: Joe, a retired Army officer, has an initial V45,000 in his issuance balance. He does nothing but spend down his issuance and upon his decease has V25,000 and has bequeathed this asset to his niece Judy, who is an A member. She gets her uncle's V25,000 issuance and might be subject to whatever taxes this implies. Right now, 25,000 x 2.43 = $60,750.

If taxes are required, what's the surest way to raise money? I'm suggesting that the precious metals dealers we associate ourselves with, will be willing to hold some Valuns. They would actually need to, in order to hold a B member account open. If you have a valid tax receipt and this would probably be the only exception we would ever allow, you would take however many Valuns it takes, buy gold or silver coins with your Valuns from one of our reputable B member business engaged in dealing in precious metals, and then reselling them for the money required to pay the taxes. This will probably be the only way any of our money becomes transferable back into theirs and will presume that any and all precious metals dealers understand the role and value of the Valun moving forward.

How would a precious metals dealer be able to sell their wares for Valuns? The same way any other business would, by setting up as a B member and allocating a certain amount of inventory for sale in Valuns into their Equity balance. Right now (8/17/19) an ounce of gold trades for V875.25 and the dealer will probably want slightly more to effect the transfer.  As the recent rise in precious metals indicates, their purchasing power is increasing relative to dollars.  Were the price of gold to reach our bid price of $2,160, making each Valun $2.16, then an ounce of gold bullion would trade for 1,000 Valuns as it did at Valun inception.

We presume that precious metals dealers are just like any other mortals and would want the benefits of local trade wherever they are operating. From the very beginning, we steadfastly recommended that there would be a place for precious metals dealers in our system. They would be the only effective means of converting THEIR money into ours or vice versa. But unless to raise money for taxes, there won't be any means of exchanging out of our own money into THEIRS.

Now then, how does one go about selling this proposal? Best to go out by two. Both should be signed up as putative A members. That way the two of you can sponsor any you sign up. Since there isn't an exchange as yet, you would be forming a local steering committee and signing up for the exchange that shall be. You would accept the V1 yearly dues, whatever that is, from each who signs up. You will have to keep all these funds separate, so I recommend as a temporary expedient only, that three of you decide to form a DBA (doing business as) and secure a regular checking account under that DBA until the DBA is re-established as a local exchange up and running and open for business. Then that DBA goes away and the assets of the defunct DBA now belong to the local exchange.

Tell everyone that this is something you are building that will require at least a year to bring into existence; they are being asked to pay it forward. Let them know what will be required, the software, hardware, etc. Describe what the local exchange is supposed to be like and how it is expected to function. Let them know that for some of them, you would be looking for advertising that would appear on our money. Tell them what they need to know, as though you were selling an investment opportunity, which this is, except it will always be outside THEIR system and not exposed to it in the usual particulars; speculators, grifters, grafters, liars, etc.

Don't forget to tell them that such a thing as we envision cannot be accomplished with fewer A members than 40,000 or fewer than 500 businesses willing to participate as B members.  Let everybody know that these are our goals for membership drives.  Above all, establish TRUST in all your dealings with anyone.   

If you cannot establish TRUST between yourself and those you approach, something may be very wrong with your approach. Remember, this isn't about everybody going it alone, this is about people helping other people. Approach your efforts with the attitude of bringing relief to everyone you meet, rather than saddling them with more baloney. Read and reread this blog often, so as to be familiar with all important aspects of the proposal.  Stick to the facts and build TRUST. Without that, no constructive purpose is ever achieved.

Thanks and best
David Burton
dpbmss@mail.com

[8/18/19: Many questions come to mind after this. What about insurance? What about fire-fighters? Could they earn Valuns in another state other than where they live? The answer is that any fire-fighter or primary medical service provider, while they may be working for someone else that cannot be a member, may still have labor contracts allowing them to issue 80% of what they earn in dollars in Valuns, as long as they meet the other requirements and are able to cover the additional taxes.

Let's say Ted is a fire-fighter who often works in Oregon, Washington or Idaho, but who lives in California. Ted would be an A member of his local exchange in California and establish B member accounts in Washington, Oregon or Idaho. His labor contracts would involve his personal business as a fire-fighter or service provider, operating in states other than his home state. Obviously, all these exchanges would have to be established, up and functioning, for any of this to be possible. Otherwise, Ted might be able to secure a labor contract through his home exchange in California, with the exchange operating as a proxy, as long as Ted's pay for services comes directly from some public source, like a local, state, regional or Federal government agency.

This brings up a point; anyone currently working for any government agency, as long as they meet the other requirements, can certainly become A members, once their local exchange is established, up and running. In all their labor contracts, the local exchange acts as a proxy for the Valuns they earn while earning dollars.

Can someone working for a public corporation also do the same? Their employer cannot be a member, but they still have a will and work and as long as they meet the other requirements, may become A members. They can even set up B memberships as long as they have Valuns in these accounts. Many might choose to do this in order to start a business on the side so that they can eventually leave the corporate rat race, etc.

As for insurance in a Valun system, this would require a far longer answer. Best.]

#57.17: Perspective - America's Opportunity

 

AMERICA'S OPPORTUNITY (from Chapter IV of Private Enterprise Money by E.C. Riegel)

Today, I had the opportunity to share this passage from the end of chapter four in Riegel's Private Enterprise Money with someone who is committed to the vision this proposal represents. In celebration and as a reminder concerning what this proposal is about, I decided to repost this passage here now:

America gave to the world the greatest political document ever conceived by man. America now has the opportunity and the challenge to give to mankind - through a universal, non-political money system - the greatest of all charters of freedom. That charter will liberate society's vast wealth producing forces, unify the peoples of the world on the economic plane, preserve and effectuate democracy – and banish war and poverty from the earth. Such a charter can be written only in terms of money freedom.

All the issues of the great war in which the nations are now engaged, all the problems of postwar planning, all the hopes of humanity for a better world, resolve themselves into but one question: can man in this crisis master money? Our whole thinking on this subject must be revised. The obvious lack of a science of money, after centuries of experience with it, should suggest to everyone that there is involved in past thinking and practice, a basic error. One may go to the parliaments, to the academies, to the counting houses, to the market places, in search of an understanding of money and it cannot be found. Instead of mastery, we find mystery.

No one need feel any inferiority in confessing lack of comprehension of this subject, for ignorance is universal except among those who dare to challenge the orthodox concepts. There is not lack of sufficient intelligence to master the problem; it requires only the courage to break with the old concepts and open the mind to new. If we have not this courage in this grave crisis, we are lost. If we cling to old ideas while men are sacrificing their lives, the dead shall have died in vain. The blood of the dead cannot requite the brains of the living.

Money freedom is a new cause in human progress. It has as yet no clarion. Ours is but a thin small voice in a world clanging with steel. But all the greater is our responsibility. We are custodians of an idea - and ideas are more powerful, more enduring than steel. The inscrutable wisdom that inspires men to undertake new causes, often, and in fact usually, commits to humble and obscure persons the task, the honor and the privilege to nurture the struggling cause, and, by so doing, not only serve humanity but become lifted out of their obscurity.

Let each of us assume leadership in the circle of our contacts no matter how limited, with the devout purpose of bringing to our fellows a new gage of freedom, a new inspiration and a new hope of a better day. And this day and every day can be bettered by devoting the mind to a constructive cause, rather than leaving it prey to the depressing thoughts of war and destruction.

Let us not ask despairingly, "what is this world coming to?" Rather, let us assert confidently, "this is what the world is coming to and I am part of the great constructive power that moves it." If we here and now resolve to grasp the opportunity that fate has brought to us, we shall have recollections of this day that will pay dividends of satisfaction and pride as long as memory lasts.

#57.16: Perspective - Membership and Business Accounting

People have asked me whether some natural people (not organizations, etc.) would ever be forbidden to join our exchanges. In answer, we have all become vary well aware of certain kinds of “business” which are less than honest. Again, for the awake, two words; gift and graft. 

Most have heard of graft. That's where someone enters into a contract with some “insider” for the intended purpose of defrauding a third party: two parties/entities agree to defraud a third party. That's graft in its simplest form. In our common parlance, graft is described as a form of political corruption, being the unscrupulous use of a politician's authority for personal gain. Our definition tells you exactly what graft is and shows you exactly how it is usually accomplished. Those engaged in such activities we'll call grafters from now on, not to be confused with anyone engaged in agricultural grafting of trees or plants. 

Following our definition, graft includes all kick-backs, payoffs, all inflation and cost overruns, everything that increases the bottom line for the third party, the intended victim, usually some government. It's commonplace to regard money stolen in this way as from the taxpayers. That line of argument assumes wrongly, that taxpayers' contributions to their government(s) implies that taxpayers deserve some sort of accountability or influence over policies, etc. As George Carlin said, you don't. You can't reasonably deserve or expect any accountability or influence, because none of the money you have ever used actually belongs to you. Besides which, you are not willingly paying your taxes, you are FORCED to do so and part of the reason this coercion works so well is that the taxpayers are cajoled into believing that political participation really means something while those doing the tax collecting know exactly whose money it is and where it's going. Our position must be to regard taxes, THEIR money, everything to do with THEM as FORCES of Nature that must be endured while they exist. Meanwhile, we must go about our own lives and businesses, helping each other, since this is not anything anyone can do all by themselves, to build our own grass roots economy. When THEIRS falls apart and THEY come after us with some new scheme, we can say, “sorry, we won't need you any more, in fact we won't have you any more.”

Grift is the general term for a swindle and a grifter is a swindler, pure and simple. The usual kind of fraud is to promise something and then deliver an inferior product or service, or even nothing at all, taking the majority of the proceeds directly into the fraudster's accounts, whether they be foreign or domestic. 

Beware. Many private and public non-profit organizations, various so called charities, etc. fall into this category, as grift. We have every reason to regard these organizations generally as tax dodges for the rich, or money laundries, where money comes in from some illicit trade, is socked into one of these foundations and then distributed to those who made the money through illicit trade, attempting to cover their tracks and avoid taxes. 

Our proposal has nothing to do with such arrangements and that's why no non-profit organization can ever be B members of any of our exchanges. This proposal is neither a tax dodge nor a money laundry. All so called “publicly held” corporations are also excluded from our membership. We jettison a lot when advocating for a complementary monetary system that actually belongs to us. We do not see fit to include businesses whose owners are anonymous and own something without the liability or direct responsibility for owning it. Shares in any “public” corporation are under limited liability protection, which means that THEIR corporations can literally get away with murder. 

Every potential natural person A member must fulfill certain basic requirements; must be 18 years of age or older, must be legally entitled to live where they are (domicile within the boundaries of the exchange), must be sponsored by two other A members. But I can assure you that every exchange will be asking in addition whether any prospective A member has ever been convicted of a crime. Obviously, we can ask such a question and will probably be legally required to do so. One could just say no and if one is later discovered to have been a convict, can be thrown out of the exchange and a prohibition placed on their ever being a member again, or for a sufficiently long time, perhaps five years. Of course some have made mistakes and paid for their crimes and that's fine. If you admit it and explain yourself adequately, you're probably in. 

We have as well to consider the needs of the tremendous homeless population. There are some who literally live on the road and these people need to be helped to have their own too. But most places require some residency requirements, in most states it's six months. If one has been homeless, but is a real citizen of the United States, one can try and move somewhere else where meaningful work is available and rent for lodging is still cheap. Stay there for six months, establish state citizenship in that new state, etc. and go on with one's life. But few will be doing this. There may be many reasons. We suspect that drug abuse and mental illness, stress disorders, any number of things, contribute to this situation. Our message to any of them who are still able bodied and mentally capable, is that real wealth begins with you. We call it innate wealth, since you by your own efforts are capable of producing an income. If you have certain skills that can help anyone else live better, your chances for finding a place in society are better. 

Another group we will watch carefully are people claiming to be what they aren't, fake professionals without valid credentials, required licenses, insurance, etc. If you're a fake professional and are caught, you're out. But we'll want sufficient proof of your right to practice where that is required by law. OK students, in which category of scoundrels do we class fake professionals? That's right, they're grifters. 

How many other attempts at a complementary monetary system ever address these kinds of issues? Did you guess none? That's right. The basis for any and all money is TRUST! Ask yourself how much trust is assumed or disregarded when buying into any of THEIR cryptocurrencies. It's all on THEIR internet and there are numerous terms and conditions that limit liquidity that those advocating their use never mention. Again, this is all just more of THEIR money, not yours. It's economic basis is FALSE too so don't be deceived. They all follow the WRONG limited quantity of a fixed commodity as a basis for money. It's a fine basis for a “buy and hold” asset perhaps, but not for a unit of exchange. Besides, most people don't want it! 

Again, this proposal involves people, people to people in action. Normal people live in the PERPETUAL EXPECTATION OF CONTINUING PEACE and are usually aware of anything that causes a disruption in that flow. We're not talking about natural or other tremendous disasters. We're discussing ordinary day to day interactions among people. Yes, it involves an implicit trust, just the same kind as most people observe at traffic lights. Concerning our proposal, let's break it down: 

We begin with E. C. Riegel. Everyone reading this probably needs to read all of Riegel's works, posted on this blog. He observed that money springs into existence to settle barter using credit instruments instead of actual goods and services. Barter never goes away even though money is used. We have by now all heard of economics prattlers trying to convince us that trade by whole barter and trade using money are somehow different. The primary usefulness of money is to split barter. Barter itself never goes away and settling terms of barter is completed when services or goods are finally exchanged for goods or other services. Money is used as the go between and is able to assume this role because its ability to measure value in any sale is trusted by all who use it.

Right now, we all use money that, those of us who have read and fully understood this blog would know, is illegitimate. It's money all right, in that it still settles the terms of barter for billions of people a day, but its provenance, where it issues from, is not legitimate, because it was all issued by non-producers! Legitimate money proffers something in exchange for something else, either a service for a good, a good for a good, a service for a service or a good for a service. 

What do you have? You have something you can do for someone else that they would pay you to do if they had the money. What if they don't have the money? The work doesn't get done and you don't have a job. Who has control over this? Right now, that would be the point of issue of all that money, the central banks and the governments that are their perpetual best customer debt slaves. The central banks lend what they do not have and charge interest from uncreated money. That automatically makes it impossible to pay all the debt at once in such a system and results in a “musical chairs” economy; someone else might have gotten the money to do the needful work and the jobs went there instead. Who decided? The bankers. It's THEIR money, stupid! 

So you still have that innate wealth inside you and someone needs your help, but they don't have the money, until now. Well, everyone gets two hundred Valuns to begin with, but we've been talking lately about how the various accounting nuts and bolts fit together to make it all work. 

So now, we get down to the nitty gritty. Here's something THEY never taught you in school because THEY didn't want you to be self-aware, self-actualized, self-assured, any of that. You were all kept from understanding the basics of simple accounting and why it's absolutely essential to all of you. Some of you may not be that smart, might be terrible with numbers, but someone else among you is naturally very good with numbers and probably would not mind as much the effort involved in helping others to get themselves properly set up to run on their own. How many of you were ever taught how to balance a checkbook? Not many. Most in fact use running balances on their bank accounts without doing much account balancing. But to stay “in the black” one usually uses some form of intuitive balancing anyway. 

The new understandings that come from the new accounts we have described are that everyone has assets and liabilities. One has assets that are fully and partially paid for, the remaining debt is considered a liability. In standard double entry accounting, there is an equality between assets on one hand and liabilities plus capital on the other, outlined thus: 

assets = liabilities + capital 

Accounting considers anything that can be determined in terms of money. In our case, Valuns. Every A member has three balances on their account with an exchange; Issuance, Income and Escrow. Issuance is an asset and also capital. If one listed one's Issuance, it might look like this: 

Asset: Issuance V200 = Capital: Issuance V200 

If one had a debt of V30, it would show up as 

Asset: Escrow -V30 = Liability: Escrow -30 

Were this all there was to balance, the result might look like this: 

Asset: V170 = Liabilities: -V30 + Capital: V200 

Now, you still need to raise your issuance balance, which means you will need to issue Valuns for something to buy. We allow you to issue Valuns through a labor contract. This does something automatically to every single Valun issued in this way; it is all backed by the work performed by the A member. You issue it to either a B member employer or to the exchange itself as a stand in for those employers that cannot be B members. You buy a job with your own money, you get paid back with the money you issued. That money is now backed by your work and your ability to pay the extra taxes if required. 

How much money are you allowed to issue? What are your restrictions? Income taxes is one. You will need enough money of THEIRS to pay taxes. The more Valuns you issue, potentially, the more taxes you will be required to pay in THEIR money. So in conducting business using Valuns, your prices for goods or services would be in Valuns and however much of THEIR money you will need to pay taxes. Your labor contract will not include anything about THEIR money, so you will have to determine what that percentage of your income in THEIR money will be required of you to cover taxes. 

Now, each dues paying A member gets an account with V200 in it. They also get to do something else, to set up as a B member as well. Most exchanges will want to see a DBA 'doing business as” usually from the county the exchange serves. An A member with a DBA can open a B membership account without charge. The exchange will still collect one tenth of one percent of all transactions from one account to another and there is no difference between accounts as far as transaction fees go. 

The B member account also has three balances, Equity, Income and Escrow. The key element to begin with is the Equity that can be assigned to the account; what tools, accessories, etc. that are fully paid for, without extenuating debt in any of THEIR money?  These are listed as assets and added to the Equity balance. As well, you can take all of that and add 10% of it as goodwill. You would be determining what all this is worth in Valuns on a particular date. If you have product you intend selling for Valuns, you list that and give your approximate purchase price in Valuns for the items and these are listed among the assets in the Equity balance. 

Now you also consider that you're just starting and have no income. So we allow you to project six months of income in Valuns in the Income balance. We may decide that income for this purpose can't be any more than 10% of the total Valuns in the completed Equity balance. 

Now the 80% rule that says you can't have Escrow more than 80% of your combined Equity and Income balances. Let's give you some ranges to consider: On 8/2/19 a Valun was $2.51 

Company ABC 

Equity: V1,000 = $2,510.00

Income: V100 = $251.00

Escrow: V880 = $2,208.80

Company DEF 

Equity: V2,500 = $6,275.00

Income: V250 = $627.50

Escrow: V2,200 = $5,522.00

Company GHI 

Equity: V10,000 = $25,100.00

Income: V1,000 = $2,510.00

Escrow: V8,800 = $22,088.00

Company JKL 

Equity: V50,000 = $125,500.00

Income: V5,000 = $12,550.00

Escrow: V44,000 = $110,440.00

Company MNO 

Equity: V100,000 = $251,000.00

Income: V10,000 = $25,100.00

Escrow: V88,000 = $220,880.00

These examples will cover the range most encountered for single proprietorship businesses. The amounts in Equity are permanent or subject to changes effecting inventories, depreciation, etc. Those in Income are for six months.  Those in Escrow, including your job, could be for any contractual duration.  Most labor contracts would coincide with a tax year and be renewable or not as required.  Pay particular attention to the Escrow balances because these limit how many Valuns you may issue to buy a job in your own company. 

Your Issuance balance now has V200 in it and you decide to leave it there, but it can be increased right away with a labor contract you have with your own company. Let's say you're ABC. Let's say you have no existing credit contracts requiring regular payments so the entire ABC Escrow balance may decide how many Valuns you presently want to earn. That's V880. Carried over twelve months, that's V73.33 per month. 

Your Issuance balance V880 

to ABC Escrow balance

Your issuance balance V0.88

to local exchange

Congratulations! You just raised your Issuance balance from V200 to V1,080 and each month as you collect your Valuns on whatever payday you choose, your Issuance balance is reduced back to V200 and you increase your Income balance by V880. That might be something like $2,208.80 over a year, hardly enough to rock anyone's boat. BTW, you pay the transaction fee of eighty-eight cento / fen to the exchange and that is paid back to your Issuance balance as you get paid in your Income balance. 

Now you can look where you might fit into this design. What size is your projected business? Whatever you earn in Valuns you will also need to earn some of THEIR money to pay all those things that must be paid in THEIR money. But these examples give you some kind of framework from which to proceed. 

What are you building in the Equity balance? The actual value of a business in Valuns; what someone else might be willing to pay for your business in Valuns. You might be of a kind that starts something, gets it up and running and then sells it off to someone else and moves on to do something else. Doubtless there are other ways of figuring out what your business might fetch in THEIR money. You would merely add the Valun basis into the basis in THEIR money and come up with what it would cost someone else to take over your business. Of course the larger your Equity and certainly your Income balances become, the more debt you can take on as included in your Escrow balance. 

Another thing you can do is advertise with your local exchange. These matters are expected to be conducted in THEIR money and all advertising with an exchange would be tax deductible because advertising is certainly to be one of the primary businesses of each and every local exchange. 

Figuring how much you will need to take in, in THEIR money as well as Valuns, is based on THEIR local sales tax percentages and any other taxes which apply plus whatever figure is needed to cover overhead that must be payable in THEIR money. 

Let's say that the sales tax is 8% and the item(s) for sale are V100. So that's V8 required for taxes. Today a Valun is $2.51 so that's $20.08 on a sale of $251.00. You'd be asking for V100 plus $20.08 for your trade. 

We have presented here a framework to better understand how to visualize, set up and get running your own business, when the time comes. It's actually pretty simple. But one thing you'll notice which is quite different from anything THEY have to offer; you are really doing everything yourself and it all belongs to you. These Valun based businesses are not some “build it and they will come” concept by some nameless faceless corporation that has officers and other responsible people far away in some city you never intend to visit. These are businesses that you build yourself, with less of THEIR money and more of your own. You pay your way in THEIR money and make your own money in ours. It's really the only way forward because there is something I just saw called “Stein's law.” Herbert Stein, yes, one of THEIR economists said, "If something cannot go on forever, it will stop." That applies to ALL of THEIR money for a variety of known reasons. It's not a new idea, but the issuance of our money belongs to us, is the only truly legitimate money and we used Riegel's fixed basis point of time determination of our unit of purchasing power to beat all of THEIRS in fair trade over the long run. All of this takes organization, as described, and will involve, in issuing our own money, retrieving our rightful fiat (OUR will) from the gross liars and fiends behind contemporary economics, none of whom bothers to challenge the underpinnings of the old existing corrupt machine, what they must do to rid themselves of delusions and false paradigms. You know what?  To Hell with THEM! We expect most of THEM will be going there anyway. But we won't care because we will finally have our own. 

David Burton

dpbmss@mail.com