VITAL DIFFERENCES Synopsis : the incremental impoverishment of Americans despite the progress in reducing labor needed to produce necessities is indicative of the “money mad” system - where a scarce and precious metal coin (or its paper equivalent) is used to “ration” goods and services. The problem is that there is no real connection between the supply of money tokens and the marketplace of goods and services. And any increase in productivity reduces the number of laborers, hence the distribution of money tokens, triggering more suffering and economic decline. Solution: acknowledge the right of the producer / laborer to issue the medium of exchange (ex: promissory note) denominated in that which he can do, produce or possesses, to be used to facilitate trade. The more laborers, the more notes they can emit, for others to hire them. The more factory can produce, the more notes it can emit, for others to “buy” the production. ● In the current money mad paradigm, the money tokens are scarce, in demand, and force producers to accept inequitable trade. ● In the new private money paradigm, the money tokens are plentiful, and in proportion with the available goods and services, so that equitable trade results. ● In the current money mad paradigm, hoarding money tokens (“saving money”) reduces the available supply, hindering transactions and further triggering economic decline. ● In the new private money paradigm, you can’t indefinitely save “money” nor expect usury (interest). The function of the note is to allow for an equitable trade to complete, after some period of time between the first phase and the last phase. Stockpiling undischarged notes benefits the obligated party, not the holding party. ● In the current money mad paradigm, the money tokens are borrowed, at usury, and when used for usury, require an infinite supply. Since this is impossible, a proportion of debtors fail, and are deprived of their pledged collateral. (Or unsecured creditors lose their investment) ● In the new private money paradigm, the money tokens are not borrowed, nor can usury be charged. An obligated party on a note can only default if he fails to discharge his note or offers no equitable compensation to the holder. ● In the current money mad paradigm, the money tokens are scarce, so any business has to engage in economic warfare to acquire market share, and recoup the initial expense of capitalization (expenditures for labor, materials, overhead, etc) and make a profit. Failure to accomplish that goal causes collapse. ● In the new private money paradigm, the money tokens are plentiful, and in proportion with the available goods and services, so that any new business (or laborer) has no need to engage in economic warfare. The producers issue that which is needed to buy their production, so there is no need to fight for market share, advertise for customers, or even seek out employees. Any holder of a note is a prospective customer. Any issuer of a labor note is a prospective employee. Cooperation can replace destructive competition. ● In the current money mad paradigm, the money tokens are lent out at usury (“invested”), and thus the creditors skim a proportion of valuable goods and services without producing any goods or services themselves. In essence, they are parasites and plunderers. This does nothing to create nor expand prosperity. ● In the new private money paradigm, the notes (used as money tokens) cannot be lent out at usury because they are not denominated in anonymous money. A note denominated in 1 hour of labor cannot be transformed into a promise to perform more than 1 hour of labor. Commodity notes reflect the actual marketplace of available goods and services, and no parasite or plunderer can skim prodigious wealth at the expense of the productive people or industries. ● In the current money mad paradigm, a monopoly can charge more money tokens for the goods and services. This does nothing to create nor expand prosperity. ● In the new private money paradigm, a monopoly cannot charge more than the notes (used as money tokens) it used to capitalize its production. It may have a higher “price” denominated in money, but it cannot arbitrarily discount its own obligations (notes). No monopoly can acquire prodigious wealth at the expense of the other productive people or industries, nor arbitrarily exclude customers. (Possible exception - an owner of a resource that does not have to capitalize his operation to produce the end product offered for sale. However, since he has not “spent notes” into circulation, his customer base will be limited by the “money mad” system. Furthermore, if his behavior is deemed unacceptable, others are under no obligation to trade with him, nor accept his tender of money, etc. In short, he had better be self sufficient and autonomous. His “money wealth” won’t grant him power when there is no money monopoly.)
Posted on: Sun, 18 Aug 2013 23:22:30 +0000
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