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| Joined: | Mon Nov 21st, 2005 |
| Location: | California USA |
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The textbook conclusion is that this will stabilize the value of money, because no one will dare demand higher wages or higher prices. But the macroeconomics textbooks are no longer worth much in the age of globalization. Modern inflation is driven by the global scarcity of resources. Nowadays purchasing power exceeds purchasing opportunity. Most of all, there is not enough oil, and too few raw materials and food products. These increasingly scarce resources are becoming the focus of disputes among many people and billions of dollars are at stake.
This is why the price of a barrel of crude oil (159 liters) has increased from $25 (€16) in 2002 to $135 (€87) in 2008. And it is also why the price of corn has tripled in the same time period, while that of copper has almost quintupled.
If the inflation introduced in the United States is excluded, a small miracle is revealed, namely something approaching price stability. Adjusted for inflation, prices are in fact rising by only 2.3 percent. If this were the extent of it, the Fed chief could simply blink like an old watchdog and go back to sleep. Instead, he is barking loudly, which is his job. But he has lost his bite, because the Fed's interest rate policy can do nothing about the scarcity of goods.
That is false. Even if oil is not made scarce on purpose by people for their profits (at the expense of other people and due to a Cartel agreement or monopoly) the Credit that can BOOM a War Economy can BOOM a war on Energy Scarcity or a war on Falsehood.
See how this works; please.
Suppose that the National Government decided to issue currency (public money) again in competition with the Federal Reserve Limited Liability Corporate Money Issue (private money) and now suppose both forms of money were available to The People.
We are all intimately aware of how the private money works (Federal Reserve Corporation money) because The Dollar is the world’s reserve currency. We are not at all familiar with honest money insured by an honest government (public money).
While supposing how the competition between public and private money would work in reality there is a need to list the similarities and the differences between these two competitors in the public forum where people conduct business. There is also a need to list the similarities where both private and public money do the same things for everyone; where both competitors are sanctioned by our National Government and licensed by each State in the United States (not “The Union”).
The first and most obvious license afforded to both competitors would be that each form of money is legal tender and by that term: “Legal Tender” the property or characteristic of that form of money is tax payment ability.
Both competitors can be used to pay taxes.
- Federal Reserve Dollars can be used by anyone when anyone needs to pay taxes.
- Power Independence Script can be used by anyone when anyone needs to pay their own taxes.
The Treasury is PUBLIC while The Federal Reserve Corporation Central Bank (Limited Liability Corporation) is PRIVATE.
That is the second similarity that The People would know and see once the competition began; where The Government gave license, or awarded the contract, to actual human beings in order for actual competing money to begin flowing through society.
The Congress is PUBLIC while Power-Independence Script Notes (authorized by The Treasury and by order of The House of Representatives) is merely a contract sent out to the lowest bidder (The People who can produce and maintain the supply of Power-Independence Script Money) for the production and maintenance of the new money flowing through society in direct competition with The Dollar.
- The Dollar can pay taxes. The Dollar is a profit making business awarded to people by government.
- Power-Independence Script can pay taxes. People profit from this money making venture too.
The person has a tax bill and other bills so the person goes to the money store to get (or deposit) money. Some people shop at Wal-Mart; while some people shop at Sears. If the prices at Sears are currently high and the prices at Wal-Mart are currently low the shoppers will tend to go to Wal-Mart (the ones who don’t have a lot of money).
The person looks for a money store and now there are two money stores instead of one Brand X. Now, we are supposing, there is Brand Y and Brand X money stores to choose from. Brand X is The Dollar. Brand Y is Power-Independence Script. Both can be used to pay taxes. Both are licensed by The House of Representatives, The Treasury, and The State Governments like California and The Terminator Governor State.
The person now has a choice between Brand X and Brand Y and here is where the person begins to see the differences between those two competitors. The person can purchase a Brand X loan or the person can purchase a Brand Y loan. The person wants high quality, of course, and the person wants the high quality purchased cheaply or, rather, at the lowest cost possible. Few people, both rich and poor, want less for more. Few people go into a store (even a money store) so as to give more and receive less like charity. Few people want to pay too much for poor quality stuff. Charity is fine when the people receiving the charity (The Federal Reserve Corporation receives charity when The People out-law money market competition) deserve charity.
The Federal Reserve store of money is very poor stuff and that stuff they produce and maintain is nothing short of fraud. The person having a choice between the fraudulent stuff (not matter what the cost or price of it) and the good stuff will choose the good stuff. This is what is known as a NO-BRAINER.
If you are confused, then look in the mirror to see if the head staring back at you has a brain. I’ll wait.
What did you find? I’m going to assume that you found a brain and that you are now inclined to dust off that brain, borrow it back from whoever has been using it, and proceed with these simple suppositions concerning money market competition for legal tender. I know this can be tough stuff for the people who, like me, allowed their brains to wander from logic, reason, and careful thought and be infected with falsehood. We the people have been duped; it is pathetic. It is time to dust off the brain and use the brain that God (or whatever) gave you.
The next thing to do is to imagine the reality of having a choice between Brand X and Brand Y money for anyone currently living on the planet earth and then see how both products compete for your business while your business makes the producer of that money a lot of profit. The business that is sanctioned by The Government to make money does make money. Make no mistake about that business. Brand X will make money. Brand Y will also make money. Now, please, entertain the possibilities. I am now going to describe two products at the Brand Y money store. You can then decide which money you want as you compare the competition between The Federal Reserve money store and one possible competitor.
Brand Y legal tender money offers two products. You go to the store and ask the person at the store if you can buy some money. The person replies to you, yes, you can buy some money. You ask if you can use this money to pay Federal or State taxes. The person says; yes. You ask if the stuff is worth anything. The person says; we sell two things because two things are the only two things Uncle Sam gave us license to sell. We sell two products and only two products; that is all we sell.
The person needs money to pay taxes. The person is looking for money. The person is not looking to store money. The person can find a store that stores money when the person has enough extra money to store. The person is looking to buy money to pay taxes. The person asks: how much does your money cost? The answer is: We have two products and the first product does not cost anything. The person says: How do you make any money? The answer is: We have two products and the second product is a money maker for us and the second product is a money maker for our customers. The sales man at the Power-Independence Script store goes on to say: We are going to make a lot of money, you can certainly join in on this money making venture. We like to share the wealth.
The person may get up and walk out since the person has been so deftly infected by propaganda as to abhor those words: Share the Wealth. The person persists and stays seated at the desk at the money store. The person, the potential customer, needs money to pay taxes so the person remains seated and asks: What is product number one?
Product number one, the salesman says, is a home mortgage or business loan to qualified buyers.
“How much does it cost?” asks the skeptical buyer.
“Nothing”; replies the money manager with the Federal License to issue tax payment money. “We make our money on product number two” and the manager or salesperson remains stoic or poker faced since this type of exchange has been going on all day. Some salespeople have given to laughter and others have been reduced to anger in frustration.
“What is number two and how much does it cost?” the buyer is, again, ready to walk out.
“Number two is a loan to qualified buyers for things like Solar Panels, Wind Generators, Solar Panel business loans, a New Electric Car loan, and things that fall into the renewable energy category type stuff” the salesman then adds “And the cost to you is one percent straight annual interest”.
The buyer really does need money, times are tough after all, so the buyer swallows his pride, or whatever it is that tends to inspire the feeling of disbelief, and the buyer thinks about these two products for a minute. Meanwhile the seller waits.
“You are saying, if I have this right, that I can buy a loan for my home…” The sales person cuts off the potential buyer.
“…or business property.”
The buyer corrects him or her self. “You are saying that I can buy a loan for my home or business property and you charge no interest on those loans?”
“Yes, we make our money on product two.” The money manager knows where the skepticism originates.
The buyer heard "The Fine Print" part so the buyer challenges this folly. “You said that these products are available to ‘Qualified Buyers’?”
“Yes. No interest to qualified buyers and that means that we charge higher interest to people who have a history of failing to pay back loans; which is a reasonable thing to do. We can check your current credit rating right now if you would like. We are licensed by the Federal and Stage Governments.” The sales person knows, just by looking at this customer, that he or she qualifies and he or she (the money manager) would bet on it. The customer is just an average honest hard working person. The customer is skeptical of government and PRIVATE corporations, just like the money manager for hire.
“I have one of the highest FICO scores on my block therefore I should be “qualified” if anyone can be “qualified”, lets go ahead and check that now.” The customer uses both hands in mock quotation of “qualified” and it looks like Richard Nixon peace signs to the money manager.
“I’d bet on you being qualified.” says the money manager while he checks the computer database.
“You are qualified for both products, no problem.” The money store clerk states with an air of authority.
The buyer is dumfounded for a moment, just a moment, and then it hits her or him between the eyes.
“Who gets the title of my home?” Now this is a real challenge, the customer thinks, and now I’m going to expose this fraud for what it is – exactly.
“You buy the title of your home from whoever now holds that title now. You get the title; however we may be forced to take you to court to get that title if you fail to pay your loan back fraudulently. Your past credit history suggests that possibility to be a remote possibility; however we certainly know that hard times can make all of us desperate." The store clerk continues: "If your credit rating were low because you have a history of failing to pay back loans…”
“I pay back all my loans.” The customer cuts in.
Silence fills the space between customer demanding and supplier supplying.
“I get clear title of my home?” The customer breaks the silence just after it started.
“You get the title, yes; we may claim to have an interest in your title in court due to the loan that you purchase from us...” The supplier of money waves off a premature response from the demanding customer. “We do not plan on going to court in any case other than cases where the customer is clearly a fraud beyond any reasonable doubt…” another wave to stave off another response. “While customers who merely fall upon hard times will keep their homes and lose their good credit rating.”
More silence and then a break by the money manager. “We buy insurance with the money we make on product two, but that is probably not your concern.”
“I get my title when I buy product one from you and it doesn’t cost me any interest payments: What is my monthly payment to you?” The customer begins to warm up to the idea.
“You can keep your current monthly payment and pay off your loan early or you can maximize liquidity, which means…” The customer breaks in.
“I know what you mean; I’m not stupid.”
“Yes, of course, your monthly payments can be lowered significantly depending upon the principle balance of your current loan. You may want to know, also, that California, being one of the most progressive States, has passed a law that voids prepayment penalties on existing loans in California. It seems that the Governator is banking on our success.” The money manager puffs out his or her chest in a show of pride and confidence.
The customer had another idea to expose the scam before him. “What happens if I do not purchase product number two; I don’t want it. You can forget about selling it to me. I am only interested in product number one.” The customer has this guy or gal by the private parts now – he or she is certain.
“No problem. We can proceed with the purchase of product one if you like, or you can go to Brand X if you like.” Here is where the manager knows not to be pushing something that will, inevitably, sell itself.
The silence proceeds and this time the silence continues like a Mexican Stand-off.
The customer breaks the silence again. “No sales job?”
“Nope”
“I’ll come back tomorrow.” The customer will then bring his or her significant other back to the bank. “Do you have any information on these loans?”
“Here is product number one.” The money lender hands over a very small pamphlet while keeping product two in his or her hand, then the customer reaches out to get both pamphlets.
Product two produces economic prosperity for us and posterity.
Last edited on Sun Jun 29th, 2008 11:58 am by Joe Kelley