#53.2 What Some Would Do - To Hell with Fractional-Reserve Bankers Constitutional Amendment

We have friends who have ideas that are percolating about and really deserve a response. Dennis Spain, someone whose professional interests I highly respect, has been pondering monetary reform and he wrote the following a few days ago, reproduced here in full:

To Hell with Fractional-Reserve Bankers Constitutional Amendment
Dennis Spain · Wednesday, September 6, 2017

I invite feedback on a “To Hell with Fractional-Reserve Bankers Constitutional Amendment”:

(1) Rescind the Federal Reserve Act of 1913 and replace all Federal Reserve notes and check book balances in all U.S. banking institutions (and any other domestic credit-creating institutions) on a 1-to-1 basis with U.S. Treasury-issued dollars and U.S. Treasury-denominated bank balances.

(2) Honor only the repayment of principal on all presently existing financial contracts in the U.S. Federal Reserve banking system and prohibit the interest payments on these fraudulent contracts. Payments on principal for these presently existing financial contracts are not to be extinguished from the money supply, as is heretofore the case. Prohibit all future lending by any banking institution of funds which do not originate from actual savings of the holders of the new U.S. Treasury dollar notes and U.S. Treasury denominated bank balances and stringently require any interest charges to be determined solely by the two parties involved in these valid loan contracts. (A valid loan contract is an actual lending of the previous savings of one party to another party for a stipulated time period.)

(3) Fund infrastructure projects nationwide which cross state borders with U.S. Treasury-issued currency in amounts proportional to the population of each state affected and without leaving any state's cross-border infrastructure needs unfunded. These infrastructure projects are to be authorized by Acts of Congress and can include, but not exclusively of other examples of infrastructure, roads, airports, harbors, waterways, pipelines, electric utility lines, high speed rail, etc. all such projects being put out to bid to private companies on a competitive basis.

(4) Fund the U.S. Military with Treasury-issued currency.

(5) Fund Disability and Medical Insurance for all U.S. citizens with Treasury-issued currency, awarding contracts to private firms for such services on an openly competitive basis and in such a manner as to apportion the created funding according to each State's population.

(6) Continue to fund Social Security retirement liabilities separately by a tax on workers’ incomes throughout their working life and absolutely sequester these funds from any outflow payments other than to retirees.

(7) Abolish the Federal Income Tax and institute a federal sales tax with a varying yearly tax rate adjusted by the U.S. Congress in session, the sole aim of such adjustments being to maintain a stable Consumer Price Index based on data collected by the Federal Government. Any such sales taxes taken in by the Federal Government are simply extinguished from the currency supply to keep the Consumer Price Index stable or decreasing.

(8) There are to be only two federal taxes levied on the American citizenry: sales taxes, receipts of which are extinguished to prevent inflation; and social security taxes applied to retirement accounts. Thus there is no need for the Internal Revenue Service. That agency is hereby abolished and the 16th Amendment to the U.S. Constitution voided.

Now, a comment on Dennis' remarks, with my response:

EE: The Federal Reserve Act is UNCONSTITUTIONAL anyway. Only CONGRESS is authorized to print U.S. Money.

Nope, the Constitution does NOT allow the Congress or anyone else to issue any printed money; only gold and silver were to determine settlement of debts; splitting of barter. The Constitution allowed the government to operate mints where they would coin money from precious metals, but the metal itself was to belong to the owners of the metal, paying the government a slight fraction of the mintage as what is called seigniorage: profit made by a government by issuing currency, especially the difference between the face value of coins and their production costs. It should further be noted that in 1792, Congress established the weight of a dollar (that little pain) chosen as the official money of the country. A Constitutional dollar was held to be 371.25 grains of silver = .7734375 of a troy oz. It would be a coin slightly more than ¾ an oz. of silver and such were minted into the 19^th century and served as the national commodity currency with various monetary reforms, etc. including the issuance of gold coins and silver coins at the 1 troy oz standard.

The Constitution never allowed the government to issue paper money. Never! It's not because those around at the time had no idea of paper money. It was not invented by the British colonists (the Chinese may have invented it), but the American colonies did issue paper money and for the most part, until the British started counterfeiting paper Continentals, it worked very well, which was the real reason for the American revolution. The mother country was involved in a world war and needed hard specie (precious metals) to fund their war efforts and needed to grab it from whatever source. You can all guess where the silver and gold were bound now can't you? Anyway, from day to day business, you all know damn well that paper money instruments work just fine. What you don't understand is what money must represent; splitting the barter which never goes away, and so if these pieces of paper somehow do not agree with the actual barter in society, that money is suspect. The music stops when money is no longer accepted in trade or when it becomes so rare that nobody has any of it.

I have seen some of this colonial money in some collections, but never have I seen in person, to hold in my hand, a Continental, real or counterfeit. I doubt you'd be able to tell the difference without analysis of the actual materials, especially the ink used. The original paper currency of the United States remains somewhat rare, because I assume most of it was destroyed, perhaps on purpose, probably by bankers. You can get one, perhaps a $4 bill, which says it is the Continental Currency of the United Colonies for $350.

I want you all to remember that the inflation in Continentals was due entirely to Bank of England instigated (yes, I'm accusing them directly!) counterfeiting of Continentals! And of course there was a lot of trade between the new United States and Britain and all accounts were inevitably settled in silver and sometimes in gold. This meant that one could actually buy precious metals with Continentals. So how do you drive up the exchange and break the Continental? You print up more Continentals and then start trafficking them for goods by offering more of them in trade for some measure of goods. The new government of the United States could not deficit spend into infinity, so they had no way to contribute to price inflation. The reason for the Constitution was so that the new American government could borrow money. The original US government bought far less than any government that followed it under the Constitution of 1787.

The reason Congress was forbidden under the Constitution from issuing or printing any paper money is because the Constitution was first and foremost a formative commercial document intended to bring the new American government into the worldwide fold of the money lenders, who have always controlled gold and silver from mines to markets, and THEY didn't want any of the governments to be issuing their own paper money; oh no, they had to borrow it all from a bank, of course. So, who really won the American war of independence? Whose money do we use anyway?

I'm not really surprised that most people don't know what the Constitution really was and is. It was and is a commercial contract with the rest wrapped around it. The Bill of Rights is the ONLY part of it that is ours; our part of the agreement was the rest of it. We held the government and its creditors to the Bill of Rights that THEY were supposed to respect and never breach. But THEY are dragons and will “do as THEY wilt” and so it is THEY who have broken all ten of the amendments and have wrecked for the most part all of the foreign policy of America to stand for the whims and adventures of rich CAPITALIST rascals, both foreign and domestic. Most don't know that because after all, most of us attended government schools with THEIR own agenda embedded so deeply inside these bastions of statism, that we would never have found out for ourselves until we took the trouble to find out for ourselves what became the obvious, right in front of us, as it crossed our careers and lives.

Most don't know that the Constitution was literally voided as a valid contract back in 1861 when the Southern states exercised their perfectly legitimate natural right to pull out of an agreement that was clearly against their own interests. Perhaps gaslighting has been around much longer than we think; the fraudsters tell you that some agreement they made with a pack of foreign bankers is really the people's when it was drawn up in secret, under armed guard, and then pushed through all the state legislatures to get the thing accepted as we suppose it was. What did it say up front? We the people, etc.? All a huge sales pitch for national indentured servitude to international banksters from then on! So until we have a thorough audit of the Constitution, specifically how every last amendment after the 13^th was enacted, including the original 13^th, that we want back, the repeal and repulsion from law and society of the 14^th, 16^th and 17^th amendments and probably all the rest thereafter as not duly ratified under the actual original terms of the document itself. We know almost for certain that he 14^th amendment and all law connected to it, all the so called “civil rights” which defy all natural rights, of right should be totally abolished and all so called law and rules following from it ripped from the statute law books across the land. But that's not what this blog is about. Promoting a complementary monetary system is enough of a challenge.

So what is Dennis going on about now? He isn't alone. There are plenty of people out there thinking along the lines he sets forth. We'll explain as we parse his remarks:

(1) Rescind the Federal Reserve Act of 1913 and replace all Federal Reserve notes and check book balances in all U.S. banking institutions (and any other domestic credit-creating institutions) on a 1-to-1 basis with U.S. Treasury-issued dollars and U.S. Treasury-denominated bank balances.

First off, this is what Lincoln did and what Napoleon wanted to do. It is the same idea promoted by Bill Still and others. Is any of this possible? No, it isn't. Why? Because THEY (usual suspects as described elsewhere throughout this blog) run the show … until THEY don't. What would it take to remove THEM? Elections? What have we learned lately without a question of any doubt concerning any elections? So what does it really take to bring these things about? Power other than civilized is violence. Are you suggesting that we advocate preemptive violence? We will leave that to THEM. What do we decide to do when THEY bring violence upon us for distancing ourselves from THEM? THAT is the real question more of us should be asking ourselves right now. What will be our response? We know already that THEY initiate violence in order to encourage more violence; organized violence = war, which is very profitable to the bankers and military industrialists. It's our response to THEIR expected initiation of violence that we need to decide upon. But that's not the purpose of this blog either.

Now, what have we said about the difference between barter and money? Barter is simple trade of things for things or sometimes services for services: a trade among time worked for goods and services. If rather than excepting something traded for barter, one gets a token used as some kind of exchangeable measure of value for fulfillment of barter either soon or later, then whatever that token is becomes money.

If we use gold and silver coins as tokens and refuse to account for any trades using them (what some people imagine they want), we are still operating at the level of whole barter, because both silver and gold have other uses besides as money. The third party in any trade using them is the dealer you bought your coins from.

But if we add the accounting and tokens are made of paper, then we move away from whole barter to split-barter. However, barter never went away. A return to barter is a return to whole barter which would plunge society back to times when life was truly nasty, brutish and short.

One other point: since gold and silver are commodities and since there are other monetary systems, there are speculators who do not make money unless prices change. So today that chunk of gold buys one thing and the next day something else. Precious metals are many things, but one is that they are relatively scarce and this is believed to prevent the money losing its purchasing power.

So tell me, have you ever taken precious metals in pay for any work you have ever done? Right, I guessed that no one out there has actually received trade for their labor in silver or gold. According to the US Constitution, all of us should have been paid in nothing but gold and silver. Have we? So you tell me where the fraud lies and how far back does it go?
Dennis (and others) suppose that all we need to do is replace the outer accounting in the PRIVATE Federal Reserve with an inner accounting within the PUBLIC US Treasury department. Do you ever expect to see anything like the transparency required to do this? All this proposal has ever meant is to exchange one set of knaves for yet another, and since the revolving door still operates, and will operate too, between the Treasury and the private banks, what's the difference? FRN's or TN's? There is no difference.

Then we have the real issue of backing. If all the money issued under such a scheme were taxed back and re-spent (that is there would be little or no borrowing from the public), the money supply would be fully backed, but eventually not be able to keep an economy going due to depreciation of assets not of the money itself.

The governments are the first buyers under such a system and why should that be? Right, it doesn't belong to any government by any natural right; it is a scam perpetrated on the general public since forever. And they buy what they want rather than what we want. This is where I compare whining people petitioning their government for spending changes as similar to kids in the back seat of a car complaining about how their father or mother might be driving the car.

So, all this commotion concerning taxpayers' money is strictly speaking horseshit, because ALL money collected by the IRS goes directly back to the central bank for payment of interest on the government's loan of money from THEM. The public debt can get stratospheric, but the game continues and just because you might have some other idea and may think so doesn't make it so. Most taxpayers think the money they pay in taxes is actually theirs too. It isn't and everybody is a debt slave.

But back to backing. All that money that was spent was issued by the government, an actor in the economy that cannot sell back into the market what value was represented in the money they spent. So all that money must be taxed back to be backed for future spending. It isn't of course, so it floats around starting from the winners of government contracts, most of which buys rapidly depreciating products (anything that can't be sold for what was paid for it) so that money is lost. The rest of the money flowing from the font of government spending dribbles down until a few have enough money to offer others work. Understood? This solution does NOT solve anything! But we don't care as we expected that it wouldn't anyway. It has already been tried and THEY put a stop to it because THEY control states.

First we have to get away from the most obvious misconception: NONE OF THE MONEY WE HAVE EVER USED IN OUR LIVES ACTUALLY BELONGS TO US. All the baloney I hear every day about protests about government spending OUR TAX DOLLARS is complete foolishness. NONE of the money we pay in taxes is ours even if we earned it with real work. Terms of our labor and payment for labor are indications of our slavery, not of our freedom.

(2) Honor only the repayment of principal on all presently existing financial contracts in the U.S. Federal Reserve banking system and prohibit the interest payments on these fraudulent contracts. Payments on principal for these presently existing financial contracts are not to be extinguished from the money supply, as is heretofore the case. Prohibit all future lending by any banking institution of funds which do not originate from actual savings of the holders of the new U.S. Treasury dollar notes and U.S. Treasury denominated bank balances and stringently require any interest charges to be determined solely by the two parties involved in these valid loan contracts. (A valid loan contract is an actual lending of the previous savings of one party to another party for a stipulated time period.)

Now this is a lengthy and weighty paragraph, so we'll wade into it

Honor only the repayment of principal on all presently existing financial contracts in the U.S. Federal Reserve banking system and prohibit the interest payments on these fraudulent contracts.

Any sensible person would regard this as the honoring of fraudulent contracts when the rightful penalty by real natural law would normally be TWICE THE PRINCIPAL to be repaid … to who? … by the perpetrators of these frauds. So are these really fraudulent contracts?

It depends on one's perception. If one thinks it is natural to have a dragon you are forced to live with in your house, then I guess maybe. But again, what power does anyone have to actually accomplish this? And then, so what? What one has to get through one's head is that the state and the banks are both not just necessary evils, they are damned evils that imperil life itself, that we do best to stay away from and out of, in order to avoid being caught up in their games, frauds, schemes, blood sports, etc. The message has always been “come out of her, my people” and to build a monetary system in parallel with THEIRS and begin using it, so that when the worst possible happens, we will have our own money in place to eventually repudiate and renounce any of THEIRS.

Payments on principal for these presently existing financial contracts are not to be extinguished from the money supply, as is heretofore the case. 

Honestly, we don't care.  It's THEIR money, not ours and if THEY can't maintain an economy, even for the grand and stated purposes of looting the rest of us, then the rest of us have the right and the ability (there are many very gifted people out there whose talents can find no natural market) to form our own peer to peer networks and institute our own monetary system. 

ATTENTION: NONE of the cryptocurrencies are yours. These are more of THEIR frauds. We don't give a damn who is behind them either. So what? They are not from and of us. They are in fact false paradigms based on an idea of a rare artificial commodity pricing all other commodities. With all due respect, the ways most of these come into existence is by methods that none of us would regard as real work; so called mining does not impress us, sorry (not really).

Prohibit all future lending by any banking institution of funds which do not originate from actual savings

This is one of the pillars of the proposed Valun based system. One cannot loan to another that which one does not already have. Logically all loaned funds must have originated with savings. All loaned money in the proposal must have come into existence first; no lending institution can ever create money out of nothing, because they have a special right to do so. This is usury and theft from everyone else and is absolutely prohibited in the proposal. One cannot be forced to pay back that which was never issued. It benefits money lenders above all others in society and we will have an end of it!

… of the holders of the new U.S. Treasury dollar notes and U.S. Treasury denominated bank balances and stringently require any interest charges to be determined solely by the two parties involved in these valid loan contracts.

Yes of course, but we go one step farther: in the proposal, since rents of money lent must be paid and agreed to by the two parties, and since compounding of interest (another huge scam) is forbidden, all rents of money lent must be paid up front from again existing sources of money. In this way, usury is a defeated dragon. If one cannot pay the rent for borrowing money up front (to be maintained for all credit contracts above one year in length out to 49 years), then what business have you to be borrowing money anyway? Better to find something useful to offer and sell it for Valuns. They will be worth earning!

We intend to reinstate a robust economy by encouraging work and savings and discouraging debt and maintaining our Valun as a superior vehicle for preserving purchasing power over ALL possible contenders, or else why bother? The Valun will be worth saving, especially as the natural economy in peer to peer networked trade builds.

You'll notice something: there is never to be allowed a means whereby those who didn't make something (real wealth that produces an income or it isn't wealth) can be taken away by those who only had the credit money to buy it out from under a debt encumbered owner. Yes, wealth building and wealth preservation are very much of interest to us and at the heart of this proposal. Everyone who has been serious about these matters knows it too.

(A valid loan contract is an actual lending of the previous savings of one party to another party for a stipulated time period.)

It will be the case under the proposal. All credit contracts are voluntary and under agreed upon terms and fulfillment of contracts will earn you notice and respect among all the other members of your local exchange or any other Valun exchange member you might deal with.

(3) Fund infrastructure projects nationwide which cross state borders with U.S. Treasury-issued currency in amounts proportional to the population of each state affected and without leaving any state's cross-border infrastructure needs unfunded. These infrastructure projects are to be authorized by Acts of Congress and can include, but not exclusively of other examples of infrastructure, roads, airports, harbors, waterways, pipelines, electric utility lines, high speed rail, etc. all such projects being put out to bid to private companies on a competitive basis. 

I hate to break it to you all, but all such spending is actually unconstitutional (see Article 10) and it is the responsibility of each state to deal with financing its own infrastructure. Else, if allowed (and of course it has been), then this is some false stimulus to an economy that hasn't been asked of by the people involved whether they wanted to have or fund such projects or not.

The American interstate highway system was based on what Hitler had done in Germany and admired by Eisenhower and others. Spending for it was considered part of national security and all the roads and overpasses were supposed to accommodate any military vehicles. But whether or no, we are more concerned with rebuilding the local economies in all countries everywhere and we are sure that as each community thrives, its own ability to finance paving the roads, etc. will improve.

One contracts for all infrastructure jobs the same as for any other construction and most graft can be least practiced where better exposed at each local level. Since at present, the proposal does not allow governments or non profits to become members, the future dealing with these in Valuns would require local bond issues in Valuns and again, where is that money to come from? From the savings of those most affected in their own areas.

(4) Fund the U.S. Military with Treasury-issued currency. 

Again, what the state decides to pay their military personnel and with what is their business. All we say is that we allow every past or present military person in our communities the right to earn Valuns along with dollars and to be paid in Valuns as well as dollars regarding any pension benefits. We want and welcome these military people and their families as members. They have mostly been mistreated by society and deserve our help too. And we will need their help. 

(5) Fund Disability and Medical Insurance for all U.S. citizens with Treasury-issued currency, awarding contracts to private firms for such services on an openly competitive basis and in such a manner as to apportion the created funding according to each State's population.

This is also strictly speaking unconstitutional. When did we ever get it into our heads to ask the government to reduce risks for people's health? If people want health insurance let it be competitive and private and it would produce the best results within a certain price range for services. So if you're talking about providing such for the poor, then again you're breaking the Constitution. Why did we have poverty and why do we still have it? There are many perfectly natural factors including natural disasters and unforeseen calamities, epidemic disease outbreaks, structural changes in the patters of employment as industries shift from one phase to the next. Even regular household products eventually reach a saturation point. How long before the number of products produced can no longer be sold even at constant levels of production? What is particularly irksome is the notion of entitlement to goods and services where none really exists: there's no such thing as a free lunch. That's true even if you eat your lunch at home too. So what's so different about healthcare? Is all the medical insurance in the world going to guarantee your next heartbeat? THERE ARE NO GUARANTEES and expecting far more than is reasonable from perhaps wanton disregard for health risks is … naturally to be borne by the person taking the risk, not the rest of society.

But how would our proposal deal with this? First of all, anyone who has been living on a pension since Valun inception (11/2/11) gets the accumulated pension and payments thereafter in Valuns plus monthly payments in Valuns equivalent to what they receive in public money. That starts all seniors with an issuance balance that may be quite large. If they need help and people are willing to contract to help them in Valuns, then … maybe other alternative forms of medical treatment will finally be able to be adequately paid for what they're worth, etc. Our proposal would inevitably break the grip of THEIR medical dictatorship of the pharma (sorcerer) drug cartels.

 (6) Continue to fund Social Security retirement liabilities separately by a tax on workers’ incomes throughout their working life and absolutely sequester these funds from any outflow payments other than to retirees. 

THEY can do as THEY like. We have already said what we would do for all and anyone presently living from a pension. They would be able to issue Valuns equivalent to what they received from THEM in THEIR money. Many who are retired might choose to become useful capitalists (providing finance for items that require it within their communities) or might be willing to buy into health coverage plans set up by health practitioners to be paid in Valuns and enough public money to cover taxes. What this does is relieve the system from any extra strain as the 1% who already have 97% of all the financial assets sure could use it more than you need to support your health. And furthermore since none of THEIR money is ever yours, you are making deals with dragons anyway. Better, far better for each to have their own and know from the outset that it belongs to each member.

(7) Abolish the Federal Income Tax and institute a federal sales tax with a varying yearly tax rate adjusted by the U.S. Congress in session, the sole aim of such adjustments being to maintain a stable Consumer Price Index based on data collected by the Federal Government. Any such sales taxes taken in by the Federal Government are simply extinguished from the currency supply to keep the Consumer Price Index stable or decreasing. 

Everything mentioned here is of course THEIR business, not ours. We have to get used to seeing things that way so as not to be confused or abused. First we have the notion of the money being the responsibility of the state. What an atrocious idea! We take the most important function we have, an extension of our will, our fiat and award it to a bunch of known knaves and scoundrels! Far better to join with your friends and neighbors and OWN one's own position in one's own money system (you see how the state and THEIR money system atomizes everyone so few actually know ones friends and neighbors anymore, something else this proposal intends to change). At present I regard the repeal of all income taxes everywhere as necessary to promoting freedom, but I'd give less chance of it ever happening, until the government is literally declared a joke and the bankers taken out to the gallows than …. than that a teacup orbits the planet Mars. None of that concerns this blog. We have to live with taxes as they are imposed by law and law is FORCE. 

(8) There are to be only two federal taxes levied on the American citizenry: sales taxes, receipts of which are extinguished to prevent inflation; and social security taxes applied to retirement accounts. Thus there is no need for the Internal Revenue Service. That agency is hereby abolished and the 16th Amendment to the U.S. Constitution voided.

And after all is said and done, can any of this be expected to be accomplished short of violence and if then just what would you have? It wouldn't be any freer a country and a lot of innocent blood might be shed over a reform that would accomplish little or nothing. 

I have two BIG criticisms: 1) All of it applies to states not to us so I don't really care as it's nothing any of us can do anything about and as I said there are no guarntees that any of this would help anybody moving forward. And 2) all of it concerns itself with THEIR economics based on THEIR ideas which are NOT SCIENCE! Even if they were, this blog has adequately disproved most of THEIR economics and will continue to do so. Bring it on! I was once on the inside so I know damn well how bankers operate; mostly as pirates open for any opportunity to make money on money without work. OK? 

The Valun system places issuance of money squarely where it belongs; with each one of us, not some government or bank, because WE WILL (fiat) and whether THEY can FORCE us to accept certain things, ultimately it will all be foreign to us; THEY have stolen our fiat which is ultimately why THEIR system fails and has done so many times before this and shall again. 

So regardless of what THEY decide to do, we had best decide to do what we need to do for ourselves. Hasn't that been clearly expressed throughout this blog? The real question is what level of testosterone has the system left the average person? Why so few responses? Hmmmm?

David Burton 
dpbmss@mail.com

[9/28/17 Q: Have you seen this? Specifically what do you say concerning reliance on electronic or electric networks? Is it ever possible to hide anything from governments? Boris in Minsk

A: I wouldn't know, Boris. I suspect that criminals who defy natural law against LIFE, LIBERTY and PROPERTY of other people, whether they represent states or not, are still criminals. Crime likes networks and tends to operate under hierarchies where the pay starts from the top and trickles down; gangsters hiring other gangsters to do crimes with “plausible deniability,” etc.

Our proposal recognizes that all value and determination of value originates in each one of us, we determine and maintain a standard, we support natural law, we support natural human rights, the rights no one has to go into some fake admiralty law court to decide.

Our message is to provide a means to finally “come out of her, my people” instead of figuring out how best we can deal with “necessary evils.” So no, crime being crime, I suspect that the same kinds of people who consistently break the basic law stipulated in the American Bill of Rights, will continue to do so; THEY usually take whatever they like because THEY live under “do as thou wilt” rather than any law. THEY live by brute FORCE, the law of the jungle. THEY commit terrible crimes and never get justice for what harm THEY have done.

But yes, we do see the problem with reliance on electronic or electric reliance for money and monetary systems. Obviously our V-Check proposal for cash instruments provides some help, but ultimately as we have consistently maintained, money always involves three people; the buyer the seller and the accountant. Money is accounting and all reports required to backup accounts MUST be on paper.

Q: Could you ever see the Valun as carried over a blockchain network? Eric in Zurich

A: We aren't even off the ground. It takes recognition by lots of people to get something like this going. We appreciate what the blockchain is supposed to represent, and we are aware of how the basic concept works, but all we could see as a benefit is that all transactions will be both encrypted and separated from each other and presumably could be transmitted faster as the blocks do not need to be any bigger than 256 characters. But we don't care about a service that carries the accounting around with it. All the accounting needs to be done locally even though we use the same ledger.

The biggest difference between a Valun and a bitcoin or any of THEIR money is that all Valuns are based on a transaction that has already happened, so there is no speculation or opportunity for speculators within the proposal. The daily exchange rate is merely today's value of that initial transaction. We want our money to be a steady yardstick of value, immune from the usual causes of price inflation and thus all notions of money being a commodity pricing all other commodities and that money must be a purposely scarce commodity are demolished by our proposal. Ours is not a “buy and hold” investment as ALL cryptocurrencies are. THEIR system benefits those who live without work, the real sponges on society at or near the top. Our proposal recognizes that the fiat to issue money is a natural right of each of us and we propose a framework to make that recognition a working reality.]

#0: Gordon Long – Markets in Delusional Phase

Gordon Long – Markets in Delusional Phase

 
You have consistently said that capitalism is money earning money without work and yet Gordon Long says that capitalism is where companies invest their savings, called profits, into productive assets which in turn create savings or profits that are reinvested into assets, etc. This enables capitalism to work for the betterment of us all. What have you got against this?   Marvin in Utah.

Gordon Long is simply equating capitalism with free enterprise. Since we are about eliminating confusion not aiding it, we draw a REAL distinction between the two. Mr. Long has made enough money to not have to work anymore; he doesn't add anything more to the economy through work; spending time away from the rest of his life for which he is paid, wherein one performs some productive service. Mr. Long does spend time managing his money, but we do not accept that as honest work, sorry! He is a capitalist in that he fulfills our definition of being one; someone rich enough to makes money on money without productive work. Also notice that Long indicated that productive assets were to enhance or improve productivity. Whose productivity? The productivity of all the human factors in any business. But what are the limits to productivity? The market supposedly determines this; if you produce more of something than a market can absorb, you may have excessive inventories that depreciate rapidly, especially if the goods are perishable. If they are not, they nevertheless may depreciate. Depreciation of inventories is often figured against taxes. Since what Long describes as capitalism is really free enterprise, we support the growth of free enterprise which must of course always be private, so let's make that private enterprise. As far as his analysis of the present system goes; THEIR system that we have all stupidly just allowed to assume authorities that it doesn't even deserve, our folly, his analysis is correct. This is just another reason why we need our own money, even people such as Gordon Long will need his own money. Be seeing you.

#0: 'Fire and Fury' in Korea It's really all about China - AIM RADIO

'Fire and Fury' in Korea It's really all about China - AIM RADIO

A lot of verified information here and as usual, all of it underscores exactly why we need our own money and why there is no salvation AT ALL in precious metals.  Recall our fundamental message, "come out of her, my people, lest you be guilty of her crimes."  We've seen lately a lot of fake protests that of course do not change a thing.  Want change?  Want to do good?  Why can't you?  Recently someone connected the word abomination with a really bad smell, something to be cleaned up as it causes things to degenerate.  People are usually repulsed by bad smells.  Even unconsciously everyone knows that "the system" is evil, that there never were any good old days, that we have been free range slaves under a piece of paper drawn up in secret under armed guard that basically handed the new grand republic of the United States over to the international bankers because all silver and all gold are still THEIR money, stupid!  Think I'm joking?  Better wake TF up!  Be seeing you.  

#113 .2: The Proposal - How It Works - Part 2

At the heart of the proposal is how most Valuns are issued. They are issued based on will (FIAT) as described previously but by far the most will be backed by work accomplished and take the following form:

→ The employee issues the Valuns to the employer as a loan at 0% interest.
→ The employer pays the employee back his Valuns over a period of successive pay days until the loan is retired.

We refer to this throughout this blog as the “self-financing of labor.” The concept was introduced here, here and here. This is accomplished using a Labor Contract that informs the local exchange what accounting functions to perform, what accounts are affected and when to transact them. Members are rewarded for completing contracts and the information is always available to members only.

Let's begin with something simple; V1,000 over six months. Now this being 16 August, 2017 the exchange for a Valun is $2.73 so V1,000 = $2,730 divided over six pay days would be $455 paid on each pay day. (V1,000 / 6 = V166.67 and V166.67 x $2.73 = $455. QED.)

Oh, and at the end of the fiscal tax year, each A member gets a 1099 (no specified hours are ever required) and in this case the $2,730 (minus transaction fees) would be liable for income taxes. For B member businesses all financial transaction fees are considered expenses of doing business and are deducted from taxable income. The 1099 would be issued as though you worked for the local independent exchange, which because you are a member, you also OWN. This is not a tax dodge. We apologize (not really) for the pernicious nature of the tax code, but that is none of our affair as long as we pay THEM what THEY require … until THEY require it no longer! Understood? This discussion is essentially about the terms of barter expressed in Valuns and its accounting and taxation unfortunately is the cost of living in FORCE by the state. We can't and wont do anything at all about that as it is not really our concern. So, let's go on. In our example,

Jack is the employee and Jill is the employer (LOL!).
Jack using his FIAT to issue money, buys his entire job from Jill for V1,000 for the entire six months of the contract. Jill is obligated to pay Jack back V166.67 each monthly pay day. Here's the accounting:

Labor Contract commences (Jack's first day of work)
V1,000 Jack's issuance balance → Jill's escrow balance

Jack's issuance balance is –V1,000
Jill's escrow balance is V1,000

Everything else is going to be routine, but the beginning of a Labor Contract that results in the issuance of Valuns requires that a few things are clearly understood: 

A basic E. C. Riegel concept is that money only springs into being in the act of somebody buying something. So does Jack actually have Valuns in his issuance account? NO! He was allowed to exchange his WILL (his FIAT) for work (defined as we consistently do) expressed in Valuns. So Valuns do not exist as money until they appear in Jill's escrow account. Jill got those from Jack to buy his job to be paid off in hours worked at whatever rate they agreed to; it could be a job requiring whatever hours and when the two of them agree to. The schedule might be ad hoc or subject to change. It would always be accorded the same as someone working as an independent contractor for another, what a 1099 represents. The hours worked could be as ridiculously little as only 3 hours total work out of Jack's time over six months and that would be a ridiculous amount of pay at the equivalent of $910 an hour. Plus taxes have to be paid in THEIR money, so any considerations are limited by that fact of life. There are a few others too. After all, why couldn't Jack just as well buy himself a V10,000 job payable over six months? There are limiting factors to consider as we shall examine further.

Secondly, there really is a negative balance of -V1,000 in Jack's issuance balance. It wont remain there, but for the sake of clear accounting, it is made to look that way until offsetting transactions are made as indicated.

1^st Pay Day
Jack's income balance ← V166.67 Jill's escrow balance.

Jack's issuance balance ← V166.67 Exchange credit offset. 
Jack's income balance → V1.67 Exchange transaction fee. 

Jack's issuance balance is –V833.33
Jill's escrow balance is V833.33

2^nd Pay Day
Jack's income balance ← V166.67 Jill's escrow balance.
Jack's issuance balance ← V166.67 Exchange credit offset.
Jack's income balance → V1.67 Exchange transaction fee.

Jack's issuance balance is –V666.66
Jill's escrow balance is V666.66

3^rd Pay Day
Jack's income balance ← V166.67 Jill's escrow balance.
Jack's issuance balance ← V166.67 Exchange credit offset.
Jack's income balance → V1.67 Exchange transaction fee.

Jack's issuance balance is –V499.99
Jill's escrow balance is V499.99

4^th Pay Day
Jack's income balance ← V166.67 Jill's escrow balance.
Jack's issuance balance ← V166.67 Exchange credit offset.
Jack's income balance → V1.67 Exchange transaction fee

Jack's issuance balance is –V333.32
Jill's escrow balance is V333.32

5^th Pay Day
Jack's income balance ← V166.67 Jill's escrow balance.
Jack's issuance balance ← V166.67 Exchange credit offset.
Jack's income balance → V1.67 Exchange transaction fee

Jack's issuance balance is –V166.65
Jill's escrow balance is V166.65

6^th Pay Day
Jack's income balance ← V166.67 Jill's escrow balance.
Jack's issuance balance ← V166.67 Exchange credit offset.
Jack's income balance → V1.67 Exchange transaction fee

Jack's issuance balance is V00.02
Jill's escrow balance is -V00.02

Now over the terms of the contract, Jack has received V166.67 every month for the past six months for a grand total of V1,000.02, the 2 cend rounding error is corrected by returning Jack's 2 cends to Jill.

Jack's issuance balance → V00.02 Jill's escrow balance.

Jack's issuance balance is V0.00
Jill's escrow balance is V0.00

This rounding error clearing transaction carries no fee and closes (retires) the contract. Both Jack and Jill get credit for completing a contract. The more contracts you complete the higher your credit worthiness rating within the system. This data set is free to all members only. All such contracts can be renewable, if that is the intention of both employer and employee and different terms can be arrived at for each successive contract.

The summary of all credit offsets in an exchange determines how many Valuns are actually issued using Labor Contracts in that exchange (Ooh boy! I can see all the commodity speculators out there rubbing their hands together with savage glee!) and these are to be open data sets that will be made available to all local exchange members only. 

We will not stand for or tolerate any outside speculating on the future value of Valuns or any debt instrument denominated in Valuns as a Valun will always exchange for all other money to be reduced to silver or gold, for what we say it is on the dates of contracts based on the present value of the initial transaction that established the Valun. If you feel like speculating of this kind, try arbitrage or perhaps betting on the future delivery prices of lots of gold and silver bullion. 

Notice also that a total of V10.02 in transaction fees ($27.35 at 8/15/17) were subtracted from Jack's total remuneration of V1,000 for a net gain for Jack of V989.98 or at today's exchange rate of $2.73 or a comparable total of $2,702.65 net gain for Jack. This would also be the sum reported on the 1099 Jack will get at the end of the year. Taxes are a fact of life and we live under THEIR laws and law is FORCE. Understood? 

Now Jack caused the Valuns to be issued and was repaid with his own money. Being paid with your own money is the means of issuing new money into the system and makes sure that from here on out, no one is ever bought entirely by THEIR money. We also intend to make it much more attractive and remunerative to get out there and work for less of THEIR money and more of your own.

OK, students! We've shown you how most of the money in our proposed alternative monetary system enters the system. So how does money leave any monetary system? How specifically is money destroyed? What incidentally is the actual reason most inflation doesn't grow to Weimar meltdown (or Venezuelan) proportions?

Anytime you bought something you can't sell back to someone for what you paid for it, money is lost and gone forever. This right here should prove the “hard money” or “sound money” crowd a bunch of knave lunatics who can't understand a simple fact of life; without replenishment, all money eventually disappears. What this means for repayment of debt instruments can be catastrophic. But the econometric crowd still claims all its planning and speculation and hedging are actual work, when they are the equivalent of stealing value (since money can be traded for real things) from the rest of the working society.

So that new thing that loses its resale value, so that it depreciates, causes money to be lost forever. If you can't sell it for what you paid for it, the difference is lost money, never to return, not to you or anyone else within the system. Think about it if you think you disagree or that I might be mistaken. Don't worry, I'm not. Although there are quite a few trying to talk you and everyone around you out of examining the obvious, no, usually your senses and your mental acuity don't fail you. If you bought something for $10 that you can not sell for $5 then $5 clearly went somewhere. Yeah, it's gone. It left the system, never to return. Unless, your item is discovered to have belonged to someone famous. What then? You discovered it for sale at $10 and may reap (from some sucker) perhaps $100 in which case you were able to add value simply by coincidental discovery into the purchase. But come on, incidents of this sort are rare. They don't happen every day, because after all, let's say it was a T shirt. So what, it's still just a T shirt. OK?

So someone buys a new car for $40,000 and as soon as he drives it off the lot, what he paid for it can no longer be recaptured through immediate sale. Even a few days or weeks later for a car could be several thousand dollars lost value in future sales revenue. So maybe after the car has been used for a year or so, it is sold to someone else for $36,000. What happened to the difference; the $4,000 between the price as new and price as used? It went nowhere but remained in the car, in depreciated value never to return.

Multiply these situations for everything you can think of that needs to last and have a useful life measured in months or years. Then consider these cases by the millions and you see that whatever the beginning of any product flow happens to be, if the market is to remain healthy, not only must depreciation be allowed to run its course, as the same car might change hands half a dozen times from brand new to ready to be scrapped, but some new cars need to be produced and sold into the market at the top end to provide benefit not just to those who can afford to buy brand new cars, but for those a few years hence that will need cars but can't afford to buy brand new ones. Depreciation of assets is where money is irretrievably lost with each and every transaction from brand new all the way down to the scarp yard stage.

Now, there might be some instances where things having little or no sales value could be restored, repurposed, etc. and gain trade value. But that doesn't mean all resources are similarly situated. Not all old value can be repurposed or turned into something that will sell for more than it would have prior to adding value to it in terms of useful performance or features.

Some machines are of this kind, some materials that were previously used may be in this category, but generally speaking, there are various grades of dry goods and staple products, which are priced based on newness, freshness, etc.

Anything used is usually incapable of being sold for the same as something brand new. So continual inflows of money are an absolute requirement for healthy economies and basically it boils down to working for your living rather than accepting that some state or some “public” stock corporation is going to provide a living for you.

Now, this “self-financing of labor” component to our proposal has tremendous accounting implications for all business. Since labor does not have to be paid for by the employer, the enterprise is free to devote scarce monetary resources to where they can make the most difference in the materials and design elements of the products or services offered to achieve sales revenue – income; proof of wealth.

For members having jobs for which they want to be paid in additional Valuns, we do not anticipate that remuneration in “public” money would be reduced, but then again, that has always been and is THEIR stated intention anyway, except for THEM of course, since they live by capitalism (the making of money on money without work). But the obvious consequences of this key component of the proposal catching on would probably result in lower wages in THEIR money anyway, and believe me, we're actually fine with that, because it will hasten the overturn of THEIR rotten system more quickly.

What happens when economies grow and whatever money forms the basic unit of trade in that economy, the energy of all economies, actually circulates among the most people where it naturally belongs? Generally living conditions improve, people grow to be healthier, stronger, happier, etc. and populations tend to stabilize as well. This has absolutely nothing to do with whatever pet political ideology one may have bought into. It should likewise be pretty neutral with reference to any theological or religious convictions.

Our proposal defeats usury, and monetary speculation, by setting our initial transaction as

1 oz Au bullion = $2,160 / 1,000 = V1 = $2.16 on 11/2/2011 

This is the basic unit of purchasing power for all of our money, expressed in day to day exchanges as the present value of that unchanging transaction; something that doesn't change; literally we expect prices stated in Valuns to become more stable than in any other money and resistant to price inflation and therefore more capable of determining actual indexes of supply and demand from region to region, place to place, etc. than any of THEIR money including precious metals.

See, we do not require speculation on commodities at all to determine their future value for some huge range of customers which enables those who know the tricks to make money on money without doing any actual work; none of what they do contributes to any product or service and their expense to contract business with are usually combined with the excessive overhead and waste that natural economic redundancy and smaller scale for all enterprise would immediate resolve.

Now Jill has from the start of this contract with Jack V1,000 sitting in her escrow account. What are the limiting factors that might prevent Jack from buying a V10,000 job from Jill or a V20,000 job?

We have these 80% rules. Jill is operating this contract through her A member account, which she is capable of doing as long as the escrow balance is never more than 80% of the combined totals of Jill's income balance and issuance balance. So if Jill has only the minimum V200 in her issuance balance, she would need a total of V1,250, so she'd need at least V1,050 in her income balance.

That's no problem for Jill, because she already has a job and has a labor contract of her own earning Valuns with her employer who happens to be a government service organization. Wait! What? No governments are allowed membership, right? Right. But Jill has a job that at least 2 sponsors thought required that she be allowed to earn additional money for her work in Valuns and at the time she contracts with Jack, she has at least V1,050 in her income account.

Now a statement about Jill's work. If you are a government employee of any kind and you are sponsored by two members and you fit all the rest of the requirements, then the Labor Contract you fall under is between you and the Valun exchange community itself, rather than the actual government agency. As long as you fulfill your obligations to do your work and you are paid on a regular basis, the exchange will allow you to receive Valuns for your work along with “public” money, so that you are paid what you want rather than what little THEY deem worthy to give you. The Valuns will be yours, issued by you to the exchange which holds the contract and pays you back your Valuns. The exchange will set up a dummy account representing the government job to handle all these transactions. Notice please that all of the Valuns that enter the Valun exchange network (the market where Valuns are used) this way are backed explicitly by the labor that brought about their issuance.

But where's the 80% rule? It's really simple, you take your take home pay in “public” money and convert it to Valuns and then take up to 80% of that and that is the amount of Valuns we'll allow you based on your “public” money salary. You could give yourself up to an 80% raise if you were willing to bear the extra taxes in “public” money of course. Taxes being what they are and Valuns not being promised tax exemption (I would hardly expect that ever to be possible under existing tax laws), the number of Valuns that you decide to earn alongside your present remuneration is up to you.

We are particularly interested in getting as many members of law enforcement and the military and veterans as members, because these are the men and women that our society has so used and misused the most and they perhaps more than anyone else, deserve our help as we deserve theirs as well. We would handle all parallel earnings in Valuns just as described.

As I said quite a few posts back now, the best strategy imaginable would be to canvas an area for veterans, retired people, police officers and their grandmothers and get them all to participate as founding members of an exchange. We also need to canvas each area to find and enlist all the really significant business leaders in each local community as we intend upholding them against the onslaughts of THEM and THEIR agendas and THEIR money. 

Best,

David Burton
dpbmss@mail.com

PS: These days, not everyone has work, you know, what we say it is here, time out of the rest of your life that you get paid for in money to barter for the things that you need and want to sustain your life. And there are many with skills who would like to work if they could get paid to work. But there's no money. It's all been speculated away or depreciated away and because of outsourceing, offshoring, and all the rest, the money stays where the work is, except or unless you are one of THEM in which case, you jolly well claim you are above all law, a “citizen of the world,” etc. while you go about more making money on money without any real work.

And then we also made mention of what some Germans (anyway at some point in the recent past) referred to as die Werke. Now this would be something that one is compelled to do, like a personal calling, a unique gift, something you can't help but want to accomplish, etc. You'd do it whether you got paid or not. 

Some know the stories of tremendous works of art or architecture that came into being which were never paid for or inadequately paid for. Patronage, the source of funding, money; that which actually enabled these things to continue and flourish, was necessary or they would not have been produced and perhaps we'd all have been best, the way things are happening nowadays, had we never left the stone age, as a great many seemingly resolve to remain as thoughtless, careless and ignorant as possible, as if somehow doing so, they can't or wont then be blamed for what happens to them; it will all be somebody else's fault.

But Wilhelm Reich was also correct about the fates of the majority and the work that must be done by the minority of those who resolve to make a contribution to positively affect the destinies of those who would benefit from their work. Listen Little Man is a short harsh book and yes everyone should read it. It's almost essential reading, especially these days); die Werke for those who have it to do, drives them on with a force as if called unto from the depths of Nature and of Nature's God as Tom Paine might say. Take a look at all that this website has in it. None of it was paid for by anyone. It was based on a mission, which led to a discovery, which led to the present state of this blog. And yet, as if such a seemingly revolutionary idea couldn't get any traction because people are just too scared, or too dumb or they already have whatever it is they are destined to have or want, etc. etc. So many excuses.

I'm not disheartened. I expected an alternative money would be a hard sell. Anyone who envisions anything like this is taking on tremendous risks. But there are some things one does because one is destined to be the one that does them. Yeah, I'm looking for those who are willing to take this proposal seriously.

Current Hypothetical Value of a Hypothetical Value Unit

#0: The Past, Present and Future of the Federal Reserve - James Corbett & Gary Null

The Past, Present and Future of the Federal Reserve

Posted on 8/17/17, James Corbett has again demonstrated his research skills (thank-you James for mentioning that the British - under direction of THEIR first central bank - were really those who spelled the doom of the Continental through vicious and intentional counterfeiting as they later would do the same to the revolutionary French Assignat). THEY are of those we accuse as the enemies of mankind and of the planet: globalists, BANKERS, pederasts, Luciferians, reprobate scoundrels, men and women who have sold themselves over to cold blooded murder in the name of representing THEIR globalist cause, which seeks the DEATH of 90% or more of humanity by any means as well as the destruction of the rest of the planet. THEY almost succeeded too, which is why THEY are so pissed off. Well, as the saying goes, "to Hell with THEM!" Understood? The proposed alternative advanced by this blog will give us the fiat and freedom to determine our own wealth and future and it will save humanity and the planet as well.

#113 .1: The Proposal - How It Works - Part 1

To be seen on all the proposed ciculating V-Checks.  The symbol for the proposed International Valun Exchange Society or IVES is a simple circle intended to represent a solid rock with the embossed letters for the organization and the interposed VU for Value Unit which together show a down to earth point and gathering together of the values associated with the people.

Before getting started, I have been asked about German economist Gottfried Feder. I am approximately halfway through his major work and right away I am struck by his obvious concentration on solving things for his nation and people through the state or through state fiscal and monetary policies. Feder was a statist, because he apparently didn't see the obvious: he was correct in his assertions that all value boils down to the value placed by measurement (in money) of labor. We agree with him about that. But he believed in saving as much as he could of the state. I believe that was also E. C. Riegel's intention as well.

We however are not Riegel or Feder. We accept that states exist, that the money that supports them is THEIRS (the usual suspects) and that taxes are as sure as death and must be paid, in THEIR money of course … until they are no longer to be paid. We view the state as a necessary evil that is best left to its own devices until it crumbles away of its own corruption and THEIR money with it. What's the saying? Nations matter, states do not. One is natural and will not be denied, the other is ephemeral and most of us could just as well do without most of what they claim to provide. Those who think otherwise usually believe they have a right to a parasitical life on others in society as a so called “expert” in something irrelevant or ridiculous. Again, I'm being far too kind.

By advocating an alternative or supplementary money (a means of conducting trade, business, buying and selling things, exchange) which springs directly from each of us, we are setting forth the bottom rung for ourselves when not if THEIR system eventually fails, but when it fails. Life rafts? Perhaps. But we intend on thriving and growing and “doing what we like” and “thinking what we like” too, because time is ticking by and we are all of us still alive and have tons of innate wealth (all of it must produce income in money or it isn't wealth) to express and we don't have the time to wait for anyone else to do it for us but ourselves! We will have our own money, free of any state or bank!

All we have proposed is that the STOLEN fiat, be returned to where it rightfully belongs, to We the People, who are individuals, who are natural persons; we came from nature, not from some fictitious and illegitimate legal pronouncement by some state or state official. The fiat belongs to us. It is associated directly with our individual will and includes why we bother even getting up and out of bed in the morning, etc. Our freedom (not having to ask anybody's permission) of speech, press, communication, organization, association, right to contract business with another natural person, includes the act of issuing money; our fiat. We decide, NOT THEM (the usual cast of characters). THEIR system can jolly well go straight to hell, which is where it is predicted to be going anyway!

Meanwhile we propose to conduct this whole business based on a few very simple agreements which are usually called contracts. The first one is the Membership Contract. The contract is between each A member and the organization that will support Valun exchange:

Each A member must be a natural person, 18 years of age or older, pass the domicile requirement (can't be an illegal alien: go back home and start a Valun exchange there and we can then trade with you) unless homeless and then must establish 2 sponsors anyway within the community, and all A members must have two sponsors who are already A members to recommend them for membership.

Each A member will pay a yearly dues that will be the equivalent of V1 (one international standard Value Unit – Valun) payable in local “public” money.

This is to be a PRIVATE association and NOT free to any who want to just walk in off the street. Well what about them? They obviously have to organize themselves under the same rules or find sponsors within settled communities. Then they could trade with us under the same monetary instruments under the same rules.

One thing I can tell you all is that any place has its opportunities, but it is up to the people there – can they work together, etc.? - even having the opportunity to have and use their own money, will they make something of their situations? We think that people most anywhere can and will. One actually can't do any better than this; if you do what is right, will you not be accepted?

Our rules are simple and fair and based on honorable dealing and standard honest weights and measures. The proposed Valun is just like a statute mile or a lightyear: a standard measurement, in this case affecting all units of the proposed money. It is NOT a commodity theory at all. Anyone believing in the validity of such trash economics (the usual hooey from those whose only interests are predatory) can take the exit right now. We will never be persuaded by what you may think you understand. This blog has specifically called out ALL economics and their adherents against the wall. We know all about you and who you represent. We'll have none of it! How about, get lost, since you are in all likelihood lost anyway!

Our money is based on a single transaction that has already happened so it can't be changed unless breached: 1 oz. of gold bullion for $2,160 US divided by a thousand on 11/2/11: V1 = $2.16 at inception. If that initial transaction is ever breached a new transaction above the last one, never lower, is chosen and the resulting Valuns all get progressively harder against all other money. We preserve purchasing power by preserving purchasing power directly in the design!

The present value of that initial transaction determines the day to day exchanges between THEIR money and ours. Right now V1 = $2.71 (8/14/17). It will never rise to $4.32 unless gold were to become worthless in dollars, which is absurd. So this is NOT another “buy and hold” fantasy investment where the sky is the limit and prices can rise as high as during the famed tulip speculation scandals, etc. (other schemes to make money on money without work, all of it capitalism).

There is no way around work. That's the time out of the rest of your life that someone pays you in some money to do something, provide a product or service, whatever. If you are sleeping, unless you are being paid by the hour to sleep, you are not working. Work is doing things, making things, providing a meaningful service to another, taking time out of the rest of your life to earn BARTER for things you really want or need and you are BARTERING USING MONEY. So all money is doing for you is splitting your barter. You worked the time, got the money and spent it and the things you bought were exchanged for the time you originally spent working. Barter never went away. The more and better work you have an opportunity to do, the better you might be able to live if the rest of your choices are efficient and correct, again, if you do what is right, will you not be accepted and moreover succeed?

Now did we say anything here about competition? Will there be any? I suppose so, but frankly, one person or one organization cannot fill all the needs out there. Monopolies are always prone to fail as a top heavy ship is to tip over. Economic redundancy is fundamental, natural and healthy and the only ones that stand against it are capitalists (people who make money on money without work) who don't like competition, unless THEY see it as an “opportunity buy” to make something bigger and expand or take over more of a market; as what Starbucks for example did for coffee, etc.

Membership contracts are not permanent. Your A membership comes to an end when you die, or you may decide to quit and that's always an option. But the resources the contract gives you are actual assets that can be passed on to another A member as again part of your will. These provisions will be mentioned to you when you become a member.

We will explain some of the features of our proposed accounting and record keeping, because frankly my dears, everything there is to know and understand about money are marks in account books, which used to be clay tablets and are now paper or microfiche or something attempting permanence, because when it comes to record keeping, the weakest pencil is always stronger than the sharpest memory (even if electronic). We aren't wasting our time pretending that the internet or wireless communications as we have come to know them are forever. We see many problems with accepting this,  including incredible vulnerability; placing too many eggs in one basket, asking that too many decisions are made by too few people, so that any one of their wrong decisions can adversely affect (and perhaps on purpose too) the lives of literally tens of millions of people overnight, as was recently done in India and soon to be tried in a country near you.

Three people get together and decide to start an exchange. This is not going to be an overnight sensation. They may all realize that even after a year of campaigning, they might still not get the membership they need. But we weren't kidding about wanting membership, which is why the dues are so low. We will set minimum requirements for opening exchanges for business for each area and we'll need active participation from local privately owned businesses too.

I was advised NOT to make A memberships free for a number of reasons: people usually don't respect anything they don't pay for and we will need the money to start the exchanges. A fraction of the dues will go to support IVES, the proposed International Valun Exchange Society. This group will support and coordinate, NOT oversee, the affairs of all the exchanges. It will know who and who is not a member and will determine the day to day exchange rates for all Valuns in each country. This IS an international proposal. This IS the call for a worldwide currency that is OURS not THEIRS. Do not accept any of THEIRS, just more fake speculation driven commodity based currencies all. THEY can't think straight about anything and haven't for hundreds of years! Don't expect anything new from them and bitcoin certainly is NOT anything new either.

Each A member will get an account. That account will contain accounting for your money. None of the money in that account will belong to anyone but you. There will be no loans that are credited based on the exchange's total Valun reserves as at a bank. None of the money in your account will have any specific claims against it unless it is placed in a certain balance on your account.

All A member accounts will have three balances. You will have an issuance balance of V200 to begin with. You will have an income balance and an escrow balance. All this is included in the Membership Contract. There is no need for deposit insurance, since none of the money in your account is anyone's but yours, with the exception of the escrow balance, which is a built in feature that you use to monitor and manage any debt you acquire within the VEN.

The income balance is the usual balance that all usual checking accounts have. This balance reflects all Valuns that enter your account (literally money under “public” law subject to income taxes); that is Valuns from somewhere else and an escrow balance. The escrow balance is the handy way to handle debt and to pay off any labor or credit contracts you might be party to.

Finance is being able to buy something you can't afford on the day of purchase. It is also the means to spread debt over longer periods of time. The success or failure of any proposed alternative money system MUST take finance into account. These time honored purchases are usually settled as credit contracts within a year (a bill), out to seven years (a note), out to forty-nine years (a bond). All debt is canceled or settled in the 50th year.  If we decided it would begin at the year following Valun inception, 2012, then the Jubilee Year might be 2062.  We will use these common words to describe credit contracts, though the structure and meaning of these instruments will be somewhat different from THEIRS: No compound interest allowed, no guarantees to the holders of debt instruments of any specified rate of return apart from a part of the rent of the money paid, always up front from existing money, so as to defeat usury, the paying back of that which was never created/issued elsewhere through real barter/trade.

No one can loan any money they do not have. That way finance is kept to where it serves and does not overpower a local economy, as in blowing credit bubbles, etc. To begin with, those who join as pensioners have the advantage of their WILL to issue more Valuns than most others. Here's an example:

We'll call him Werner. He is a veteran, 65+ years old. He has combined military and other government benefits of $1,500 a month, excluding all medical fees usually charged, etc. We're interested in what this total amount would be because we PROMISE our members in these situations to allow them to issue as many Valuns per month as they would be paid in dollars. Here's the thing though. Werner would be spending Valuns out of his WILL (literally out of his lifetime's accumulated estate measured in Valuns) and therefore would never see any Valuns he issued flow back into his income balance (subject to taxation) except of course unless he decided to buy some Valun denominated credit instruments that would pay him back dividends as declared based on the concerns of the managers of the finance business, or Werner might consider going into the finance business directly himself. After all, aren't those who have served the longest most deserving of living from money made on money without work? (Capitalism)

So we have established that Werner gets $1,500 per month right now. He would get that as long as the government pays him. What happens if or when they don't? Once Werner is an A member, he gets to issue the Valun equivalent of $1,500 per month from then on for the rest of his life and if he doesn't spend all his Valuns, they are property that he is allowed to bequeath to another A member upon his decease. The total in his issuance balance goes to whomever Werner designates as his heir.

Whatever amount Werner might have received from his pension might have been and probably was lower in November of 2011 than now. Perhaps Werner wasn't receiving any benefits back then. We'd want to know the nearest month with verification of course when Werner began receiving benefits. As long as that date is on or after 11/2/11 Werner gets a prefigured total of accumulated Valuns that would be placed in his issuance balance.

We can take what Werner gets now as a basis and work it back all the way to Valun inception and Werner ends up with a large number in his issuance balance as a result, because we have a contract with Werner that stipulates that he gets additional Valuns each month based on his status within the community: Werner is accorded the community asset privileges he deserves. Let's work out the number of Valuns as they are figured for Werner:

It turns out that he started receiving benefits in February 2012 and that he had many cost of living increases along the way. We can either take a conservative, tightfisted approach, or a realistic one. Werner gets $1,500 per month right now. The difference between August 2017 and February 2012 is 5 years and 8 months or 66 months. So if the contract were valid today, Werner would have placed on his account the equivalent in Valuns of $1,500 x 66 months or $99,000. So today a Valun is $2.71 so $99.000 in Valuns is V35,531.37 which is stated as thirty-five thousand and five hundred thirty-one Valuns and thirty seven send (Esperanto) or fen (Chinese). We could as well call them sou (Old French for a nearly worthless piece of purchasing power). 

Now that is a lot of potential purchasing power. Moreover it is an asset that can be willed, passed along to whomever you like within the Valun exchange network (VEN) who can be any valid member of any exchange. It is an extension of your will, your FIAT, expressed directly as part of your Membership Contract.

Anyone on a pension, social security, etc. will be accorded the same privileges. This is what we call natural socialism. It is only going to be used to start Valun exchanges because we will not expect to see anything like pensions necessary in the future, as Valun based business gets going.

We have other “dependent for the moment” groups within society that we will take care of, but they wont be able to have the same retroactive Valuns as Werner has. If you are now poor, adherence to our system is to make sure you don't stay poor. We expect that the assets of the future and their distribution will be far more natural, based on natural affinities and identities, rather than made up ones or those merely for some fashionable political gesturing, posing or some other perverse or noxious social engineering purposes.

Of course all A members are OWNERS of their local exchanges. They are each accorded the right to vote in all company elections for officers, etc. They are privy to any and all reports including the exchange's precious metals holdings and tax liabilities.

All B memberships in a local exchange are for businesses usually made up of A members. B members pay no dues but are expected to provide funds in “public” money to buy advertising that will appear on the backs of our circulating cash, the V-Checks. Advertising is what in fact our V-Checks are and so paying for ads on them is hence a legitimate advertising expense. Valun exchanges ARE going to be in the advertising business as far as their members are concerned. For B members, we're thinking family owned and operated businesses here and any other small businesses. The current “socialized” healthcare legislation under which much of the world lives is designed to starve out most small businesses altogether. Nevertheless, unless we are to endure a great technotronic Dark Ages from which it would be next to impossible for civilization to survive, we must perforce go into business for ourselves and our communities, to work for ourselves and for any family or anything worthwhile in life we want to come our way.

So the Werners in our system provide the mechanism to begin starting finance within the system; their accumulated retirement pensions are resurrected within our accounting and allow a market for honest dividend paying credit instruments to begin. We only have one proviso though. We have these 80% rules and one of them involves flight of capital. We insist that 80% of whatever Werner is willing to lend must be used in financing purchases within Werner's exchange area. You see, we want the people in the area Werner lives to benefit most from any money Werner might care to lend to the financial part of the VEN in his own community. 

Werner has capital that he doesn't want to spend that can earn something without him working (Werner is a useful capitalist). So he finds out that various items are offered for sale and he offers to finance a few of them; cars, boats, small cabins, other things that normally would fetch quite a few Valuns. He normally buys credit instruments as explained above and he collects whatever they pay and when the credit instruments fall due, Werner sees the return of his money to him and whatever dividends they pay. The dividends get paid into Werner's income balance, but the money he issued goes right back into his issuance balance and can be used again and again if he likes. All that money in Werner's issuance balance comes out of his will, his estate, and we are about preserving and building people's personal estates. Notice that Werner's stack of Valun issuance doesn't go up forever, as any money he earns is income and subject to taxation and doesn't get put back into his issuance balance. All of this sets a practical limit to what can be financed and how expensive something might actually become in realistic terms. We have an old saying that when something is offered for sale at too high a price the seller wasn't really interested in selling it.

Imagine! You thought all this time that the money tokens were important, but it is the accounting as we have just seen, that is essential! The tokens we've described as something like traveler's checks. Turns out they can be made of cheaper material because they are only intended to circulate for six months or so. We will determine how much it costs to print runs of them in V½, V1, V2, V5 and V10 numbered blanks. The IVES standards will be adopted so that all accounts are easily identified and verified. The B members will have either advertisements or get to put anything they like on the backs of these V-Checks. We can adjust for how these print runs meet the needs of our members or consider calls for larger denominations of these essentially open account checks that we'll use as our cash instruments. Members will be able to obtain them without any transaction fees and exchange them for new ones after the old ones have expired, or they can be deposited even when expired. The money hasn't gone anywhere, it is still in the exchange's cash account.

Now Werner decides he's going out to eat. He'll patronize a place that takes Valuns because all the dollars he gets are used to pay those things which must be paid in dollars; specifically, taxes. So he adopts the ways of all A members; he carries around two kinds of cash or maybe even a card and V-Checks. He sees a menu insert with prices in Valuns or sometimes the prices in Valuns are on the regular menu. He will have to pay tax on his meal in dollars, the rest he can pay in Valuns. More people do this and THEY are diminished.

Werner needs a lot of small chores done for him, so he pays for his help in a combination of dollars (for the taxes) and in Valuns. He chooses those around him in his own community who will take his payments and terms are adjusted based on taxes. So for instance if a job is V15 he'll expect to pay an additional 8% in dollars to cover whatever taxes might be due. Let's figure V15 at $2.71 per Valun = $40.65 (what Werner would have to pay for the whole job in dollars) and 8% of that is $3.25. So it might be customary for people to agree to a V15 + $3 deal to get a job done.

Patterns of spending begin to get more local as more local businesses accept Valuns and as more of those who have accumulated retirement in Valuns as described so far, begin participating in the financial business of their local communities.

Now there will be other members who see joining as a way up and out of their present miserable situation. These may be the so called “structurally unemployed.” I'm going to come right out and say a few things that most will find offensive, but the truth is often offensive to those who don't want their present situations overturned. No one is structurally unemployed. What I am saying is that somewhere someone is doing what you used to do before you got laid off. They are being paid less than you were and the net result is those who lent the money to make it all happen are getting paid first and ahead of and more than any that actually worked to make it happen. Capital gets rewarded while labor gets the shaft. And those people over in the Far East that have more work than they've ever had are getting the shaft too because they are NOT being adequately paid for what they do. So where's the fat, Jack? We had situations in the past where people were paid ten times, maybe even fifty times what members of their staff got, but these days the discrepancies in pay are monumental and immoral, sorry. There is actually no justification for bigness at all. None. But we'll let nature take its course while we begin to pursue ours.

Whatever that “structurally unemployed” skill can produce that can be sold for Valuns, well, as the saying goes, given a different financial level, a lot of “structural unemployment” goes away. But we have to decide what we want and don't want. We don't want a bunch of pseudo-scientific assholes limiting what we can do and how much we have to work for THEM. Now that's what taxes are, working (time out of the rest of your life that you get paid in money) for THEM and not for you. Getting it? Yeah and you need your own money and so don't we all.

David Burton
dpbmss@mail.com

Current Hypothetical Value of a Hypothetical Value Unit