From my friend Merle

One thing is for certain, most people are frustrated about money and the economic mess that they endure. But when you try to get a straight answer, you get pushed aside with lame excuses, pat answers, and outright lies.

Secret of Economics

If you haven’t noticed the economic morass that’s shaking the world, let me point out that things are not good. Of course, the trained economists trot out explanations and predictions, but we all know that the easiest way to start a fight is to put two economists in the same room. Economics, as currently taught, is as scientific as counting the bumps on one’s head.

Why is Economics not a Science?

The simple fact is that the unit used for accounting trade, paper money, is a complete fraud. To have any scientific measure or predictions, one needs facts, not fraud.

Why is paper money a fraud?

In America’s case:

1) A Federal Reserve Note is a promise to pay “money,” not money itself.

2) A Federal Reserve Note was originally a promise to pay a gold dollar, on demand               (silver dollars were by a different certificate).

3) In 1933, the Government repudiated their notes, thus making them unredeemable,             worthless, and with no par value.

4) The underwriters of this debt, the signatories to applications for participation in Social         Security, were never informed of the Legal ramifications of their “contribution.”

That’s fraud.

Not-so-Great Britain had the Bank of England. Remember that a “pound note” once was redeemable for a pound of SILVER. [About $20 U.S. silver dollars]. It’s not worth that now. Wonder why?

More fraud?

Let’s move forward.

If you stop and think, prosperity is not a surplus of money, but the availability of goods and services, that one can trade for. Money is a “nothing” – nothing but a medium of exchange, an easy way to measure relative values and account for them in trade.

At this very moment, if you asked someone, “How do you know you’re rich?”               They will usually answer, “When I have a ton of money.”                                                 How did people confuse money (the illusion) with creating goods and services (the reality)?

Constant propaganda is one method. And attacking any alternative is another popular method. But the easiest way is to distract people from observing the facts.

What facts?

The first fact is that money has no intrinsic value. The real value is in the available goods and services one can trade the money for.

The second fact is that if you do give money an intrinsic value, like “hard” money, precious metal coinage, it becomes a subset of the whole set of goods available. There’s no way that an equitable measure or relative value can be established with such a system. It can never grow at the same rate as the total pool of goods and services.

The third fact is that “hard money” requires intrusive Government dictates that bullion must have a value less than the coin’s face value. If not enforced, the coins will be removed from circulation when bullion demand exceeds the official price. And ultimately, that means market forces are going to be thwarted or made Illegal

The fourth fact is based upon the idea that money is merely an accounting symbol. The sum of money tokens must be proportional to the complete set of available goods and services. Any increase in available products requires a proportional increase in the money tokens in circulation. Failure to increase tokens will either require producers to accept less tokens (lower prices) or drive them out of business, unable to pay for their materials, nor hire labor.

The fifth fact is that modern paper currency is borrowed into existence, often at usury. Banks and Governments are consumers, i.e., parasites. It is impossible to expect such a system to police itself, nor is it logical to expect it to do so.

The sixth fact is that usury, charging a fee, denominated in money, for the use of money, is proscribed by scriptures used by Judaism, Christianity, and Islam. In a finite money token system, usury is also mathematically impossible to pay. Usury is calculated with an exponential equation. Over time, the aggregate debt can exceed the total amount of money in existence. That means it’s impossible to pay all debts due.

The usurer doesn’t care. If the victim defaults, the usurer can claim the pledged collateral. If the victim can pay, the usurer wins. But impossible contracts are Illegal, aren’t they? Unless the debtors can create the money tokens to pay the debt and the interest, usury is an abominable contract. Usurers are thieves and scoundrels. “Modern” finance is based upon postulates, axioms, and procedures that disguise the theft.

Usury and debt-money are the main reasons why Economics cannot be a science, and Economists are divided into partisan groups, endlessly squabbling.

Obviously, the creators of new goods and services should be the only sources for new money. But such an innovative concept would destroy the financiers of the world. In other words, who needs to borrow money, when you can make it – legally!

The last fact is the definition of prosperity. True prosperity is the creation and trade of usable surplus goods and services. Money only facilitates the trade of the existing goods and services – it can’t create them.

Having a ton of money is useless when there’s nothing to buy. And having a ton of surplus potatoes is useless if you can’t trade them for what you want.

What about unemployment, closed factories, and other indications that there’s surplus manufacturing / productive capacity?

The Academics will trot out explanations like “there’s no demand for the product” or “there’s no financing for that factory” or “there’s no available labor at a price that’s profitable.”

Can you smell the rot?

“no demand” = price too high / not enough money                                                         “no financing” = no money available                                                                             “cheap labor” = no money available to hire

It looks like scarce money is the culprit. Without surplus cash sloshing around, it’s too “risky” to invest, impossible to buy.

Inflation / Deflation

It’s been mentioned in the news that Japan has steadily deflated prices, and is entering into economic crisis. We are close behind, based on the usury-based money system’s incremental theft by inflation.

According to Economics theory, inflation is “too much money chasing too few goods.” Deflation is “too much goods chasing too little money.”

Is that correct?

If there’s unemployment or underemployment, isn’t that surplus labor?                     Shouldn’t the cost of labor DROP?                                                                                     If there’s closed factories, isn’t that surplus productive capability?                               Shouldn’t the cost for American manufactured goods DROP?                                         Then how can there be “inflation” in America?

According to the Economists, there’s got to be a monstrous sum of money tokens, supposedly too much for the available pool, to boost prices.

So why aren’t factories humming, and labor at work?

There’s no money to invest nor hire.

That’s contradictory, isn’t it?

In fact, there IS a money scarcity. One cause was the “balanced budget” that eliminated the easy boost of new debt to authorize more Federal Reserve Notes (debt-money). The other cause of scarce money is the usury.

Now you are starting to see why the Federal Reserve nor the Government have any real solution to the economic mess. Though high interest rates of the past are no longer helping boost retail prices, there’s still enough usury to topple the economy. Despite beliefs to the contrary, the deflationary pressures of decades have built up to a dangerous level.

You are witnessing the bursting bubble of the fraud of debt-credit. It’s not unlike the Crash of 1929, when the bankers pulled the credit money out of circulation. When they called loans (yes – all loans have a “due on demand” clause), they eliminated the money power (medium of exchange) of that debt-credit. Then, the money drought made it impossible for debtors to pay creditors, and each default traveled up the line.

The Internet collapse was a forerunner of the ongoing collapse. When the money supply can’t expand as fast as needed, the evaporation of prosperity from the money drought is a certainty.

This collapse will propagate, each a cause and effect, that knocks out the private sector. The sound of falling monoliths of industry and enterprise is booming and echoing in the news reports of layoffs, more downsizing, and more belt tightening.

Let the Productive Make Money!

The best solution, short of euthanizing usurers, is to accept that the productive have the power and right to make new money with which to buy their production.

It’s not that odd, nor is it a novel idea. Every coupon that offers “free” something, is a form of promissory note. The only thing missing is the established trade value for that specific item. For example, if you read the fine print on a typical coupon for something “Free,” you’ll see something like : “Cash value 1/20 of a cent.”

Why would it be necessary for a coupon that can be exchanged for something of value, be deliberately denominated in a fraction of a cent?

Could it be that “someone” doesn’t want you to equate the coupon value with the promised item?

Imagine if MickyDee could pay its creditors with coupons for Free Micky Burgers?

Imagine what would happen if entrepreneurs could finance their enterprise by issuing promissory notes, denominated in what they CAN do / produce?

For example, you want to open a restaurant. Instead of begging for a line of credit from the local institution of usury, you issue “pay to the bearer on demand – one meal valued at XXX.” With these notes, you buy raw material, hire labor, etc., etc. And when you redeem your notes, you do it with what you CAN do – make meals. It doesn’t require that more money be printed, nor a creditor be given money. Who cares about the inflation or deflation of money, when you make private notes the circulating medium of exchange.

In fact, one of the biggest complaints that small communities have, is that money flows out, not in. That keeps them disproportionately poor. When there is plenty of money to stimulate the movement of goods and services, there’s a better chance for prosperity.

The biggest bugaboo trotted out by classic economists is that if you don’t regulate the creation of money, you will have HYPER INFLATION.

It’s true that an unscrupulous issuer might pump out more notes than he can redeem. But in any community, such an act would only succeed once. In other words, a man whose note is not his bond, has lost his “credit worthiness,” and can’t make his own money to fund his enterprise. He is stuck with using whatever is the current money. Let the thieves and scoundrels borrow from usurers.

What about wide scale trading? Obviously the checks and balances of a local community won’t work. So we allow banks to discount local notes, and issue widely circulating bank notes. These bank notes would be “backed” by the private notes held by the bank. Of course, there’s no usury allowed, so no bank can use “fractional reserve” to steal. The sole profit will be in user fees and profit from discounting the private notes.

How does this work?

A local farmer, with a proven track record of crops, offers promissory notes denominated in his next harvest. He wants to buy something outside his community. So he goes to the local note discounter (bank), and trades enough of his notes, perhaps with a 15% discount, to get sufficient bank notes. The banker can tender private notes for either commodities or labor. Or the banker can sell off the notes, at face value.

The same concept can eliminate the need for “workers unemployment insurance.” Instead of public charity, the prospective laborer can issue promissory notes denominated in hours of his labor. He can trade them for his needs. When a prospective employer wishes to hire labor, he can buy up notes from the local note discounter, and save a bundle on advertising costs. The worker redeems his notes, with his labor, or cash. Any one who won’t redeem his own labor notes, won’t ever get a second chance.

Already, we have seen that the inflation that plagued America has no real connection to classic “too much money” since there has been a money drought. And the change to destructive deflation will not be “too much product” since there will be an economic collapse eliminating both products and the funds to buy them.

This crisis will drive people to demand that the Government DO SOMETHING.

And you can wager whatever you wish, that the solution will only require another loss of freedoms, liberty, and property rights, beyond what we have already lost to Tyranny and Usury.

Helpful reference to morality

I.  Morality is survival as long as it doesn’t injure the survival of other innocent sentient             beings.

II.  Greatest morality is self-sacrifice for the survival of other innocent sentient beings.

III.  Evil is self-survival by the deliberate injury to another innocent sentients’ survival.

IV.  Greatest Evil is the deliberate injury to another innocent sentient’s survival, without             reason.


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