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Monetary Reform – what does it mean?

January 30, 2017

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Today, we have many who desire monetary reform and social justice for citizens who are victimized by our current monetary system. The American Monetary Institute speaks for many when it comes to monetary reform. This organization has proposed legislation called the Need Act to reform our money system and to centralize money creation within the U.S. Treasury Department. One politician who was behind this legislation was former Congressman, Dennis Kucinich of Ohio.

Monetary Reform generally means that the current system will be altered so that money is created and distributed by new sources other than the Federal Reserve System. The Need Act is proposing doing away with the Federal Reserve System. This Act also means that our current system of debt based money will change so that debt is eliminated (as a concept). Today, it is our DEBT which is excessive and which corrupts the entire system. My sense is that prior to any new reforms, however, we need to understand some basic concepts of economics.

Capitalism started in America back in 1607 and 1620 with the settlements in Jamestown and Plymouth Rock. Prior to Capitalism, Americans used barter and various types of commodities, animals, farm products, or unique valuables as our money. Money is a concept which is ‘invented’ by man. But the origin of money developed because Americans desired to own their land and the output which arises from this ownership. Private property, in other words, gives rise to this philosophy which we call Capitalism.

With the ownership of land (private property) Americans started the concept of barter and centralized (neighborhood) markets for the sale and distribution of goods. Goods (such as food items, clothing items, shelter items, and transportation items) became forms of ‘wealth’ which people exchanged within a marketplace. The concept of ‘exchange’ later gave rise to this concept called ‘value’ in exchange. ‘Value’ in exchange derived from our ownership of property and then the production of goods (from one’s property) for a marketplace.

‘Value’ in exchange, however, is subjective and without any objective measurement at the start. To measure this concept called ‘value’ we invented this concept called ‘money’. What can measure ‘value’ most objectively was the question? What evolved over time were various commodities which people desired as a substitute for ‘value’. Americans chose silver as the best substitute for ‘value’ (after our Revolutionary War period). Thomas Jefferson and Alexander Hamilton then proposed the American monetary system to our Congress and the Coinage Act of 1792 started our monetary system.

The American monetary system was based on money as being this commodity called silver (Ag) and a currency (called the ‘dollar’) as being defined in terms of this money commodity. The definition was 371.25 grains of Ag. Gold was also part of this original monetary system for our new American nation. Our Congress in 1792 then defined all our monetary units (dollar, half dollar, quarter, dime, nickel, penny) using a math based logic…with silver (and copper) as the metals of choice when defining each monetary unit.

It was now possible to ‘measure’ this concept called ‘value’ within a marketplace of exchange (using money and our currency called the ‘dollar’). Price discovery emerged in each neighborhood marketplace as people negotiated prices for the various products of wealth being offered. Prices being accepted then became the reference point for further price discovery when new products were brought to the marketplace. All this was created so that ‘value’ and ‘wealth’ could be measured so that growth and prosperity could emerge for our nation.

So what is the message of these ‘first principles’ of our monetary system? The message is that private property is at the foundation of Capitalism and this reality results in the production of our goods (called ‘wealth’) which then must be ‘valued’ for exchange and distribution. Valuation is subjective until some money commodity is chosen and a currency unit is defined/developed. Wealth can then be ‘valued’ and measured and this leads to price discovery within the various marketplaces. All this evolved over time.

So where are we today with these core concepts of economics? First of all, we need to recognize that we do not have any real money commodity today as our object of value. Value can not be objectively measured given the nature of today’s cyber marketplace. What we have today are ‘mental abstractions’ (called currencies) as our ‘money’ and these units get created arbitrarily by our Central Banks and our private banking systems. Today’s ‘money’ is really NOT money in any historical sense.

Cyber units ($1.00 and multiples thereof) are now circulated within our computer screens (as a form of money/currency). These units live within cyberspace and get created ‘out-of-nothing’ by our banking system. The distribution of these units goes mostly to the wealthy elites who have control of the system. This is why the 1% acquire these units to excess and the 99% are left with the crumbs. We have created an unfair/unjust/corrupt system of money. This is why many want ‘monetary reform’ and a new system.

To create a new system, however, we need to understand all the history which has led to our current non-system. We need to understand the core concepts of economics which underlie our monetary system. The so-called Need Act of the American Monetary Institute does not provide any of this important history IMO. The AMI does give lots of information about money and its history, but the key concepts are mostly missing or confused. The concepts of ‘private property’, ‘wealth’, ‘value’, ‘money’, and ‘currency’ are not explained logically IMO.

I agree that we now need to create a New Monetary System for our planet. This must occur as our current system is becoming mostly non-functional and corrupt. To get this discussion going I am proposing that we understand the ‘first principles’ which underlie all our economic evolution. America started with Jamestown and Plymouth Rock and the experiences which emerged during and after this time period. Now is the time to reveal these experiences and the events which evolved since this beginning.

Monetary Reform means that we must get to the ‘root’ of our monetary problems and understand the core concepts of Capitalism. Capitalism has been corrupted over the years and we now live with a system which enslaves rather than a system which promotes freedom and growth. Let’s get a new discussion going on this evolution of Capitalism which started back in 1607 and 1620 and which has evolved into our current cyber (floating) corrupted non-system. I am: https://kingdomecon.wordpress.com.

 

 

11 Comments leave one →
  1. therooster permalink
    January 30, 2017 2:33 pm

    The FED’s mission statement has been to lead the development of the global price model, going right back to 1944 with the launching of Bretton Woods. They don’t talk about this but that’s been accomplished. It’s self evident and needs no proof.

    The debt currency has been a means to an end and is not so important anymore because we can use the price model, the model that resides at “the other end” for price comparisons on debt-free economic widgets. They can trade directly now, without any debt involved in the trade. This is how goldmoney works, by comparing the prices of two economic widgets, where one is gold and the other is the item that the gold trades for …. like a new suit.

    That price model was essential for the purpose of debt-free trades, not the debt currency . The currency development (debt) at the other end was a necessary evil on the basis that you cannot create a price model at one end without the currency (medium of exchange) at the other.

    Think of a USD as having two distinct applications like a segment of string that would have two different ends. .

    Now that the real time price model had market traction and good will (1944) , the price of gold could then be set free (1971). Gold and the new suit can trade for each other debt-free, while gold also gets scalable liquidity based on market forces (USD/oz) …. in real-time.

    Price widgets in fiat … settle the trade for them with debt-free weight. Simple.

    Gold now has FULLY scalable liquidity (USD/oz) which it never had when it had a pegged price. The trade value of bullion has to be able to increase on the basis of a limited and finite supply.

    We all win on this basis. Debt can now be safely purged.

    Like

    • January 30, 2017 6:20 pm

      Let’s purge all debt from the system now. All we need to do is delete the numbers from the computer screen.

      Where does that leave gold?

      It becomes a commodity with a subjective value…which can be gifted to anyone.

      Yes, Dan, let’s purge all debt now. All global debt would vanish in a microsecond.

      Think on this proposal. D

      On Jan 30, 2017 1:33 PM, “Kingdom Economics – The Future Is Now” wrote:

      >

      Like

      • therooster permalink
        January 30, 2017 9:00 pm

        Don … you’re sounding dangerous. This is what comes of being an academic with no sense of marketing, transition, change, the process of change and the organic rate of change. You’re sounding like a liberal politician now.

        An instant purging of debt would be catastrophic to existing markets and decimate the livelihood and the savings of hundreds of millions of people , maybe billions , not because the purging is a bad idea, but because the rate of change with “the event” would be sheer evil. Consider that all markets trade with real-time pricing now.

        What grass roots gold-as-currency provides is rate of organic change that is predicated on free market consciousness of each individual , much like people’s personal faith.. What you are proposing can only be carried out by fiat. Listen to yourself.

        We can purge debt by injecting gold currency directly into the market by way of direct spending into the economy. That’s exactly what goldmoney supports as a bullion based payment system, global and seamless.

        The market process establishes a process that gently adds the “Yang” to the existing “Yin” within the global model for total liquidity. This supports real economy and also allows rates to rise for the debt currency and does so without massive damage to the innocents of the world. Debt is then purged safely

        A yin and a yang cannot survive without a symbiotic relationship. They seek a win-win.
        Destroy nothing !!! Capitalism is flawed on the basis of its incompletion.

        We must be as wise as serpents and as gentle as dove. Understand that.

        Like

      • January 30, 2017 10:49 pm

        Dan: The coming market crash will purge debt in minutes. Cyber money is based upon nothing physical…it vanishes into mental abstractions as values decline.

        Wake up to reality. Our cyber system is an illusion of the mind.

        There is no such thing as a physical dollar… anywhere. It’s all a mental delusion. D

        On Jan 30, 2017 8:00 PM, “Kingdom Economics – The Future Is Now” wrote:

        >

        Like

      • therooster permalink
        January 31, 2017 6:49 am

        You really are a self centered man, aren’t you ? A debt purging can be gentle, but you choose to cling to God’s plan B rather than His Plan A , where debt can be gently purged with no crash. He loves us and wishes that we may find providence with our new discovery in the real-time marriage of the measure and the weight so the natural laws of the market may be upheld. All are in invited to the ceremony and the celebration. .

        I’m not sure if you have mistaken goldmoney as being a crypto currency like bitcoin but goldmoney is a fully backed digital currency that has mass as the unit of account and the supply discipline of the digital mass is based on 100% gold bullion backing. That’s 100%, not 99% , where the account holder’s personal gold is held by Brinks (since 1859) (also with an option , now, at the Royal Canadian Mint). Every single transaction is audited in real-time by PWC. Since mass is the lone unit of account on the gold platform , the forensics are simple because mass is mass and there is no credit to muddy up any trails. The money is the gold bullion, while the digital grams that are fully backed by that finite resource act as the currency and are in reality, the title ownership to the vaulted gold.

        Members who have gold loaded accounts have the privilege of trading a measure of gold (grams) for a man’s new suit, regardless of how that suit is priced, I might add. It could be priced in any fiat currency or even in mass. This is where the CB’s price model acts as a real-time measuring tool for debt-free gold settlement when buying the new suit …. or top of the line TV …. or even a cross made of gold. Choice is a good thing.

        The economy gets market driven support from consumer demand , debt can progressively purged as the revelation of gold’s economic contribution trickles gently into human consciousness, via the Holy Spirit and forgiveness of all those necessary evils that people have perceived melt away as we add the light to the darkness in the process of completion.

        As the global liquidity yin-yang comes into view , symbiosis gains traction between fiat currencies(measures) and gold bullion (weight) . All we need to do to get there is “add assets and stir”.

        If you’re playing the devil’s advocate, you’re doing a damn fine job. Bravo.

        Goldmoney.com/r/0UZxqF

        Like

      • January 31, 2017 9:13 am

        Bravo, Dan. The market will tell us who is right. D

        On Jan 31, 2017 5:49 AM, “Kingdom Economics – The Future Is Now” wrote:

        >

        Like

      • therooster permalink
        January 31, 2017 9:55 am

        The market will tell us whether we have complied with Plan A or Plan B . Be accurate and take some courses in marketing. You may lose your dangerous edge. Who knows ? Be careful what you wish for, Don. Free thinking is the the calling from the Holy Spirit. May it find you.

        It appears to me that you want the world to crash and burn ….. ?

        Like

      • January 31, 2017 10:59 am

        Dan: In economics we use the term ‘creative destruction’.. not crash and burn.

        What we need is reality to prevail. This means that ‘creative destruction’ must happen. It’s all good, Dan, if you understand the principles of Capitalism. D

        On Jan 31, 2017 8:55 AM, “Kingdom Economics – The Future Is Now” wrote:

        >

        Like

      • therooster permalink
        January 31, 2017 11:31 am

        I prefer a creative constructive and progressive change , yet conservative in the rate of change, which you dinosaurs have not come to appreciate with the advent of real-time possibilities. The game changes now and the game changes for the better.

        Creative destruction was a necessary evil , just as Glass-Steigel was a necessary evil in the face of not having a real-time relationship between the measure and the weight. (USD/oz).
        That called for creative destructive , unfortunately.

        Rigidity is the precursor for crashes.

        We now have debt-free scalable liquidity, thanks to the information age and the free floating trade value of gold mass. The reality is that it’s trickling into the real economy. This cannot be denied and is self evident if you look in the right place for validation.

        You’re a throwback and the product of a rigid paradigm , Don. I’ll wager that you think a gold backed dollar (pegged) is better than a gold backed gram. There’s the evidence, if I’m right about your preference.

        If you want to make straight trades , one widget for another, I’m all for it but you’ll never arrive there if you can’t start out by trading a gold widget for a blue widget on the journey. Again, your marketing insight leave much to be desired.

        The goldmoney model’s use of the global price model to compare trade values on debt-free widgets leads to the exact place where you would like to end up , with no currency, but we have to climb steps , as a matter of our road back to providence. You’re impatience leads to your desire to leap. Good luck with that.

        Goldmoney.com/r/0UZxqF

        Like

      • February 1, 2017 4:51 pm

        Dan: I am for eliminating all monies from this planet. But until this can be done, I would suggest that the best option is the gold exchange standard which was practiced from 1946 – 1971 under the Bretton Woods Agreement. It worked for 25 years. D

        On Tue, Jan 31, 2017 at 11:32 AM, Kingdom Economics – The Future Is Now wrote:

        >

        Like

      • therooster permalink
        February 1, 2017 6:41 pm

        Absolutely not. Gold doesn’t work well if the price is fixed. It’s a dead end (71) street because of limited and finite liquidity that coincides with limited and finite gold mass. We can look back to 1933 for the same liquidity problem. Better to make the gold’s trade value variable (USD/oz) as per market needs, exactly what the USD/oz floating trade values does.

        This allows the market to price things with the fiat price model (the comparative measure) and settle a purchase with debt-free gold (the weight) in a real-time dance in the church of debt-free transactions.

        Everybody wins …. even the fiat currencies as they get new jobs as transaction measures for bullion See the set-up now, going back to 1944 for the price model architecture ? Now bounce forward to the other end when the gold price was set free. That gave the market the right stage to monetize gold by its sovereign mass with scalable trade value for what is now a theoretical reach that is totally undefined on the basis of finite mass.

        If the mass is finite and the demand for it grows , the price should be allowed to rise, according to the just law of weights and measures, should it not ? Your suggestion of a fixed price doesn’t support the law. It’s actually an abomination and as we saw, it had to go.

        Limitless debt-free liquidity is knocking on the door.

        Goldmoney.com/r/0UZxqF

        Like

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