How Much Does Heaven Cost?
May 28, 2012 in Economics
The globalists have confused people into believing that fiat money is the cause of the global depression and loss of jobs. Debt-money is the real problem, and true fiat money, if we can get it, will bring heaven on earth.
By Richard Walbaum
Many believe that fiat currency is the cause of our problems, and gold is the solution. I contend that the real culprit is debt-money which is being confused with fiat money. Debt is the method of putting the money into circulation; fiat (i.e. decree) is the method of giving the money its value.
We have a debt-money system, which means that all money is loaned into circulation by banks, and has to be paid back plus interest. The money supply is a permanent debt, you don’t pay back a money supply, and there is always more debt than money to pay it back making it impossible to pay back. The interest demanded in law does not exist in fact; the best we can do is refinance it. A permanent debt at interest will compound to astronomical amounts and the banksters will end up owning everything. This is why the nations of the world are now bankrupt. Money should be a public utility administered by government; we should not pay private banks for the privilege of buying and selling.
In a fiat-money system, the money is given its value by government decree; the value is not based upon a commodity, but by law. Today’s money is issued by the private Federal Reserve and banking system whose value is not controlled by government or law, so it is not strictly fiat. But it is not based upon a commodity so it is usually referred to as fiat. In any case, the above mentioned destructive properties of debt-money are wrongfully attributed to a fiat-money, which in fact is the only system capable of creating unbridled prosperity to support heaven on earth.
Proponents of gold as money argue that because of its natural scarcity, gold will prevent government from excessively inflating the quantity of money like a printing-press which would cause the money to lose its value. But in truth money is a creation and creature of law, and if the law is corrupt we will lose even a gold-backed money, as we did in 1971 when Nixon was forced to close the gold window. They also argue that fiat debt-free money is not natural like gold and borrowing; but an automobile is not natural like walking, and a house is not natural like a cave. Natural is not always the most effective.
Once law is established on the bedrock of natural law and justice (which I expect will be soon), the question is: What is the best system? While gold will provide stability, I would dismiss gold as a contender because, first, those who have large quantities of gold can manipulate and profit from the price. And second, you cannot create unbridled prosperity from scarcity; its only benefit, scarcity to prevent theft via inflation, is not needed in a lawful society.
To give money its value you don’t need a commodity; all that is necessary is for government to accept it in payment of taxes. There are two good historical examples: Lincoln’s Greenbacks (See The Lost Science of Money,Ch. 17, Zarlenga); and the Tally stick of King Henry I which used markings on wood that could not easily be counterfeited, in circulation for 726 years. Both were not a promise to pay and did not incur government debt; they were money itself, and there was no interest to pay.
The Federal Reserve must be done away with — debt-money must be abolished and replaced with debt-free money, to form a permanent interest-free money supply; this applies whether we use gold or fiat money. Switching to gold without first abolishing debt-money will not solve the problem, only muddy it up by making you think you solved it. An interim step to abolishing, would be to tax the Fed, and use the tax money to fund infrastructure repairs (creating jobs) and retire government debt. The reserve requirement would be simultaneously raised to prevent rising prices.
It is possible to design a monetary system capable of sustaining heaven on earth, where income tax is abolished, money to business is always available on demand at a constant fixed low rate resulting in a natural full employment, there is no business cycle, money supply controls are in the background and not felt by anyone, and prices are stable. This is the promise of a fiat debt-free currency. The design is explained in a video, with complete details given in the book Designed for Plunder.