Monday, November 22, 2010

Monetary vs. Non-Monetary Debate

I have decided that it is of very little value to try to talk to people about the conspiracy. There is very little utility in trying to convince people about the various conspiracies and crimes that have been proven and even confessed to in many instances. People just don't want to believe that such evil is possible. And even if we were to convince people and hold War Trials, we could never get at the people at the top of the pyramid.

But instead of focusing on conspiracy, I think its much more valuable to talk about economics. I don't think there is anyone who would deny that this country and the world under the G20/G8 are facing serious economic troubles and require revolutionary economic and monetary reforms. Accordingly, I have been thinking over the last year of a plan to fix the economy and corruption in the United States and the World.

The Power of the ruling elite rests in their control of the world monetary system. And the value in understanding how the rulers of this world derive their power is that if we as a people take back that power, then it would deny the handful of wicked men the ability to bankroll the corruption.

Since the creation of the FED, money in the US and elsewhere was taken off the gold standard. Instead of gold, our dollar today is based on 110% debt. That is correct, the FED never just prints money. Every dollar that the US Treasury prints is tied to a bond that is sold at interest to some capital investment fund, hedge fund, LLC, or joint-stock trust of some ultra-elite, ultra-wealthy family. The FED then lends that money to FED-member banking cartel, who then lend 10-20x that amount of money due to fractional reserve banking to the people via a rip-off amortized loan that collects all interest up front.

The consequence of this debt-based, fiat, usury-based, fractional reserve system is inflation, engineered stock market crashes, banking failures, and the enslavement of the people. Across the world we see wars waged; not to spread democracy, but to force more countries to submit to this corrupt world banking system. This year we are seeing countries like Iceland, Greece, Ireland, and Portugal on the verge of bankruptcy forced to give away control of their highways, rail lines, utilities, and government pensions to the international ultra-elite in exchange for a bailout.

However, all the corruption, and all the economic turbulence could disappear today, if WE THE PEOPLE would just become united behind our Constitution in taking back our right to "coin" our own money. To do that, we would need switch our banking, lending and economic system.

What we would do first is back our currency with gold, silver, land, and a basket of commodities. Next, we would need to get rid of the big banks and allow local and state banks the power to borrow directly from the US Treasury. Local banks would verify the credit-worthiness of citizens in their communities, and then they would issue no-interest loans for non-depreciating assets like land, homes, buildings, mining and manufacturing equipment.

The Federal Government as well as the local banks would generate revenue through loan-origination fees and monthly payment loan servicing fees. These associated fees become a voluntary tax which is is keeping with the original intent of the Constitution. Today, the Federal Government only makes a very small amount of money on a small fraction of the money that is created. These local banks we would call "Safety Societies" would operate on Full Reserve Banking, and would therefore be immune from market fluctuations, stock market crashes. No-interest loans would also cure inflation as the amortized loan has been the major driver of inflation since it was instituted in 1913 along with the FED.

While I would hope the people of America could get behind, and become unified behind a fair and equitable, resource-based, full reserve, no-interest, locally administered banking system, there are some out there muddying the water by calling for a non-monetary system. Their basis for a glorified barter system is a reaction against the evils and abuses of our current system. However, while Paul warns Timothy that "the love of money is the root of all evil" we need to be careful to understand what Paul meant. Paul wasn't demonizing money, but the love of money. Money is just a tool, like fire, that can be used or abused for good or for ill.

But money is only a tool. It will take you wherever you wish, but it will not replace you as the driver."

"It's the person who would sell his soul for a nickel, who is loudest in proclaiming his hatred of money,"

"Let me give you a tip on a clue to men's characters: the man who damns money has obtained it dishonorably; the man who respects it has earned it."

"Run for your life from any man who tells you that money is evil. That sentence is the leper's bell of an approaching looter. So long as men live together on earth and need means to deal with one another, their only substitute, if they abandon money, is the muzzle of a gun."

--Ayn Rand, Atlas Shrugged

Despite what Ayn Rand says about those that put demonize money, the fact is that you can't run our complex economy on a barter system regardless of how complex it is. But we could switch over to an equitable non-usury, full-reserve, locally administered monetary system tomorrow without skipping a beat. The choice is ours. We is the US are the ones who have built the Beast and have fed it with our 30-year home mortgages and consumer debt.

The problem with those who make the non-monetary argument is that it muddies the water, and prevents us from being united behind a new system that is constitutionally based, which would fix our country. But maybe that is why they do it-- muddy the water? We can't get anywhere with implementation of an equitable monetary system, if we have to endlessly debate non-monetary vs monetary.

No comments: