Skip to content or view mobile version

Home | Mobile | Editorial | Mission | Privacy | About | Contact | Help | Security | Support

A network of individuals, independent and alternative media activists and organisations, offering grassroots, non-corporate, non-commercial coverage of important social and political issues.

[PFMPE] ECONOMIC COLLAPSE: What is Money, or Currency?

mike montagne - PEOPLE For Perfect Economy | 03.03.2002 00:31

Why the nature of currency is vital.

March 1, 2002


[PFMPE] ECONOMIC COLLAPSE: What is Money, or Currency?

Why the nature of currency is vital.


 http://www.perfecteconomy.com/pg-what-is-currency.html


_________________________



"Money" is not just a medium of exchange, unless it is only a medium of exchange; and so an exact and complete definition of money or currency is vital, because the very form of money may multiply debt in proportion to the circulation, to the ever greater cost and disadvantage of the subjects of the ostensible "economic" system, and to the ever greater profit and advantage of the few who impose that system upon them.

We cannot understand the ramifications of a monetary system unless we truly understand what is often called "money." In modern history, governments across the entire world have been corrupted purposely, to impose a currency which irreversibly multiplies debt in proportion to commerce.

As a result, vast accumulations of wealth have entrenched shaded plutocracies at ever greater cost to unassenting publics. For the irreversible disposition of every such system itself, we have suffered repeated, longer-term cycles of multiplication of debt and debt service, unto termination of commerce under insoluble debt. From the ashes of eventual, inherent bankruptcy across entire systems, after bankruptcy wipes away debt, the plutocracy, already empowered by unjust collection of the wealth, ensures their systems of debt multiplication are begun anew, to suffer no different consequence.


The original purposes of currency were simple, but complete insofar as serving the purposes of involved parties. The original forms of currency arose spontaneously in accord with the desired structure of trade. In such an original form, the money, if any, was a token of value. No party which contributed nothing to the trade, profitted from it.

Ultimately, governments would come to regulate monetary circulations. In very many cases, because the power to issue currencies is the opportunity to take tremendous unearned profit from entire nations, the advantages of a circulation which could be honored by — and which could fully serve — a broad trade system, were subverted and abused.


The colonies of the United States of America were unique among the nations and nations-to-be of the world, as they modeled their currency to replicate solely, trade between consenting parties, that no party extrinsic to the trade profitted unjustly from it.

The virtues of the near perfect American Colonial system therefore comprised the greatest possible threat to systems of multiplying indebtedness, because the very complete freedom to prosper without impediment, inherent solely to the perfected attributes exemplified by the American Colonial system, vibrantly demonstrated the iniquities of unjust profit rendered by the multiplication of debt inherent to, and irreversible within, central banking systems.


The money of the American Colonies thus became the principal cause of the American Revolution.

On behalf of the Bank of England, British Parliament ordered the colonists to give up their interest-free currency. No such system as the colonists had devised could be allowed to demonstrate the impoverishing costs imposed by the plutocrats, of a currency subject to multiplied, unearned profit. By dictate of the plutocracy of England, in America, as everywhere else in the world, debt would be perpetually and irreversibly multiplied upon the unassenting subjects of the system, to their ever greater detriment.

The colonists would pay some thirty-percent annual interest for the imposed currency. Benjamin Franklin reported, "Within a year, the poor houses were filled. The hungry and homeless walked the streets everywhere." He later explained, "We would have gladly borne the little tax on tea and other matters, if it had not been that they took from us our money, which created great unemployment and dissatisfaction."

How did the concept of money first originate, and what is the vital difference between such a money as the colonists devised, and the more convoluted instrument issued in its stead by the Bank of England — prototype of the central banking systems of the present world?


One day, a producer of a given product was approached by another. The latter said, "I have not yet produced the thing(s) which I will in turn present to you, which I can produce if you first produce the thing(s) I ask of you."


The first saw the prospective benefit of this commitment, should the second be so good as to perform the resultant obligation. Trust was involved; and the "money" that was thus created was comprised of the incumbent trust.

Money was created when the debtor was willing to attest to their obligation. The obligation was so much as penned to paper, which in turn represented the value, and very immutable units of, that which they promised to deliver. The paper, new money itself, held by the creditor party of the trade, was evidence of the debt. The value of the money held by the creditor was a promise to pay — a note.


A note of course is only so good as the integrity and capacity of the debtor to fulfill their obligation. No note, regardless of who issues it, is any better.


How do we emulate free, unimpeded trade by management of a circulation; and what properties must a commerce system provide, that it not impose injustice on its subjects?

If the value of our original note were diminished over time, the creditor might receive less than the intended obligation of the debtor, or vice versa. In order not to subvert the purposes of trade commitments or corrupt the value or cost of accumulated savings or assets, the value of currency must be consistent across time.


How is money to be introduced to the circulation?

The answer to this question rests on the further questions, must money represent debt; and when should money come into existence?


When new prosperity is rendered, and if money is to represent debt, and if the circulation is to represent the value of all things related to it, the singular place and time money can be and must be introduced to circulation, is when new wealth is created. If a circulation is to represent the value of things in part by constant proportion to those things, and if it is undesirable that a circulation impede trade, then the volume of circulation must be equal to the value of the volume of things for which it was created, and which might be traded, all at once, by it. Nothing less than such a circulation provides for full, immediate trade.

The need for further circulation thus coincides with the production of new wealth. This therefore is when new circulation must be introduced; and the quantity to be introduced must be equal to the new wealth.


Distribution of the circulation is readily solved. Where new circulation is required, it is distributed to the producer of the wealth, and the consumer of the wealth assumes a debt equal to the original value of the wealth.

Rate of payment is also readily solved. Only by paying against just such debts at the rate of consumption, is money in circulation kept equal to the current value of debt-related wealth; and then, and then only, are we paying only for what we consume, with an equal measure of our own production.

Only in such a system is the circulation always adequate to pay all debt; is there no inflation or deflation; is there no manipulation of value or cost by scarcity of circulation; is there no impediment to prosperity for scarcity of circulation; and is there no multiplication of debt in proportion to commerce, as inherent to interest.

Here and here alone, have we replicated entirely the conditions and interaction of our original two, unimpeded traders.

By agreeing together to issue and regulate such a currency by such a prescription, the integrity of the currency is further assured by society together (government) holding debtors accountable to fulfill the obligations represented by the "money." This was the apparent conviction of the American Colonists, who fought a revolution to defend their currency.




A government of free people and representing free people, such as the original United States Government, was not established to profit from the people.

The history of the American "Economy" led indirectly to a far different end than the founders fought for. In a century of strife, descendants of the original central bankers the American public had cast off, ultimately were successful in imposing just such a privately owned "banking" system as necessary to issue a currency with the additional attribute and ramifications of "interest."

Under the so-called "Federal Reserve" System — a conglomerate of international banks — a currency would be issued such as engendered the hunger and homelessness Franklin explained compelled the American Revolution.

What is the distinct nature of the central banker's interest-bearing debt currency; and what are the consequences of it?


The currency and interaction of modern central banks is analogous to a third party imposing upon our original two-party trade.

This third party, by nature extrinsic to the trade, produces nothing, and intrinsically contributes nothing to commerce. The extrinsic party writes the obligation to pay for the debtor party, and makes the obligation to pay no better than the debtor party's original promise, but adds to the cost of the transaction, whatever "interest" they coerce from the debtor by virtue of the need for such a token of exchange, as necessary to convey the diverse and dissimilar products of modern commerce.

The entire body of vying commerce then is reduced to a pool of debtors committed to deliver debt-and-interest obligations which, from the very beginning, exceed the entire such circulation.

The central banker has provided the original traders nothing they aren't fully capable of providing themselves, and something they certainly are fully capable of providing, in concert with further traders, to all commerce together. But by displacing such an equitable system with a paper or coin currency, the essential promises of which no banker fulfills, the system is subject to profit by interest, and the additional ramifications of interest — whatever those ramifications be.


What are the ramifications of "interest?"

In order to maintain the circulation vital to repaying their debts, and vital to sustaining the further, greater commerce necessary to repaying the obligations of those debts, which include interest, the subjects of the system are compelled to re-borrow what they pay against principal and interest as subsequent debts, increased so much as periodic interest.

So long as the system exists — so long as interest exists — debt is multiplied in proportion to a circulation, or the commerce which can be sustained by it. Ever more of the circulation must be devoted to servicing debt, altogether, at the ever greater profit of the central bankers, who provide no contribution to prosperity, for the mere, ostensible service of qualifying our credit-worthiness, and counting what we pay them in multiples of our own production.

As the sum of debt is multiplied, greater sums of interest are paid and re-borrowed; and thus debt increases by ever greater increments of periodic interest.

Ultimately, one thing — debt service — increasing in proportion to another — the capacity of commerce to support and survive debt — exceeds the latter.

While a society might issue and regulate its circulation without limitation and for the mere costs of qualifying creditworthiness (without impeding credit-worthiness) and accounting for (far less) payment of debt... from the very beginning a central banking system establishes total debts (principal plus interest) which cannot be paid by the circulation, and which, in order to maintain the vital circulation, inherently and irreversibly multiply debt to our ever greater detriment, and ultimate imposition of system-wide insoluble debt.


So, we see, modern "capitalism" is not true, free enterprise; and the nature of money is critical to the vitality and freedom of enterprise.



mike montagne — PEOPLE For Mathematically Perfected Economy





To find the players in all the corruption of the world, "Follow the money." To find the captains of world corruption, "Follow the money all the way."



"A country voting each for the self determines a subclass few of them will truly belong to, prevailing at the cost of the rest. Even a country voting for the good of all determines a good country only if it votes so well. It is incumbent on the wise to spread word of real solution."

PLEASE promote mathematically perfected economy by forwarding our newsletters to your address book, and by publishing PFMPE URLs to forums, newsgroups, websites and newsmedia. Where an ostensibly representative government and media serve oppression, everyone not participating effectually in solution is an accessory to the consequences.


PEOPLE For Mathematically Perfected Economy

 http://www.perfecteconomy.com/

PLEASE JOIN OUR FREE NEWSLETTER from links at the bottom of any of our pages.

 http://www.perfecteconomy.com/index-articles.html#pg-what-is-currency

mike montagne - PEOPLE For Perfect Economy
- e-mail: mike.montagne@perfecteconomy.com
- Homepage: http://www.perfecteconomy.com/pg-what-is-currency.html

Upcoming Coverage
View and post events
Upcoming Events UK
24th October, London: 2015 London Anarchist Bookfair
2nd - 8th November: Wrexham, Wales, UK & Everywhere: Week of Action Against the North Wales Prison & the Prison Industrial Complex. Cymraeg: Wythnos o Weithredu yn Erbyn Carchar Gogledd Cymru

Ongoing UK
Every Tuesday 6pm-8pm, Yorkshire: Demo/vigil at NSA/NRO Menwith Hill US Spy Base More info: CAAB.

Every Tuesday, UK & worldwide: Counter Terror Tuesdays. Call the US Embassy nearest to you to protest Obama's Terror Tuesdays. More info here

Every day, London: Vigil for Julian Assange outside Ecuadorian Embassy

Parliament Sq Protest: see topic page
Ongoing Global
Rossport, Ireland: see topic page
Israel-Palestine: Israel Indymedia | Palestine Indymedia
Oaxaca: Chiapas Indymedia
Regions
All Regions
Birmingham
Cambridge
Liverpool
London
Oxford
Sheffield
South Coast
Wales
World
Other Local IMCs
Bristol/South West
Nottingham
Scotland
Social Media
You can follow @ukindymedia on indy.im and Twitter. We are working on a Twitter policy. We do not use Facebook, and advise you not to either.
Support Us
We need help paying the bills for hosting this site, please consider supporting us financially.
Other Media Projects
Schnews
Dissident Island Radio
Corporate Watch
Media Lens
VisionOnTV
Earth First! Action Update
Earth First! Action Reports
Topics
All Topics
Afghanistan
Analysis
Animal Liberation
Anti-Nuclear
Anti-militarism
Anti-racism
Bio-technology
Climate Chaos
Culture
Ecology
Education
Energy Crisis
Fracking
Free Spaces
Gender
Globalisation
Health
History
Indymedia
Iraq
Migration
Ocean Defence
Other Press
Palestine
Policing
Public sector cuts
Repression
Social Struggles
Technology
Terror War
Workers' Movements
Zapatista
Major Reports
NATO 2014
G8 2013
Workfare
2011 Census Resistance
Occupy Everywhere
August Riots
Dale Farm
J30 Strike
Flotilla to Gaza
Mayday 2010
Tar Sands
G20 London Summit
University Occupations for Gaza
Guantanamo
Indymedia Server Seizure
COP15 Climate Summit 2009
Carmel Agrexco
G8 Japan 2008
SHAC
Stop Sequani
Stop RWB
Climate Camp 2008
Oaxaca Uprising
Rossport Solidarity
Smash EDO
SOCPA
Past Major Reports
Encrypted Page
You are viewing this page using an encrypted connection. If you bookmark this page or send its address in an email you might want to use the un-encrypted address of this page.
If you recieved a warning about an untrusted root certificate please install the CAcert root certificate, for more information see the security page.

Global IMC Network


www.indymedia.org

Projects
print
radio
satellite tv
video

Africa

Europe
antwerpen
armenia
athens
austria
barcelona
belarus
belgium
belgrade
brussels
bulgaria
calabria
croatia
cyprus
emilia-romagna
estrecho / madiaq
galiza
germany
grenoble
hungary
ireland
istanbul
italy
la plana
liege
liguria
lille
linksunten
lombardia
madrid
malta
marseille
nantes
napoli
netherlands
northern england
nottingham imc
paris/île-de-france
patras
piemonte
poland
portugal
roma
romania
russia
sardegna
scotland
sverige
switzerland
torun
toscana
ukraine
united kingdom
valencia

Latin America
argentina
bolivia
chiapas
chile
chile sur
cmi brasil
cmi sucre
colombia
ecuador
mexico
peru
puerto rico
qollasuyu
rosario
santiago
tijuana
uruguay
valparaiso
venezuela

Oceania
aotearoa
brisbane
burma
darwin
jakarta
manila
melbourne
perth
qc
sydney

South Asia
india


United States
arizona
arkansas
asheville
atlanta
Austin
binghamton
boston
buffalo
chicago
cleveland
colorado
columbus
dc
hawaii
houston
hudson mohawk
kansas city
la
madison
maine
miami
michigan
milwaukee
minneapolis/st. paul
new hampshire
new jersey
new mexico
new orleans
north carolina
north texas
nyc
oklahoma
philadelphia
pittsburgh
portland
richmond
rochester
rogue valley
saint louis
san diego
san francisco
san francisco bay area
santa barbara
santa cruz, ca
sarasota
seattle
tampa bay
united states
urbana-champaign
vermont
western mass
worcester

West Asia
Armenia
Beirut
Israel
Palestine

Topics
biotech

Process
fbi/legal updates
mailing lists
process & imc docs
tech