Monday, November 17, 2008

An Elegant and Powerful Concept

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Let Us Introduce an Elegant and Powerful Concept:

CLEAN CAPITALISM

Clean Capitalism is where the people own their production, the means of production and their money.

It's positive, forward thinking and pro American.

Honestly, what we have now can hardly be called Capitalism, when the people are forced to rent both their money (interest), and their property (taxes). Instead, it has become synthetic and dirtied over many years. That was not The Framer's intent; you and I, both know that.
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It is our right to own the fruits of our labor. It is our responsiblity not to leave a mountain of unpayable debt to burden future generations. .It is our duty to fix it.
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The good news: We Can Fix It.
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Clean Capitalism, where the people own their production (property), the means of that production (business) and their money (medium of exchange), will unleash the leadership, creativity and growth of the American economy like never before - while promoting liberty, financial responsibility, and limiting massive government bureaucracy. We'll be discussing the concept on this site, using the principals laid down from the first entry and building on this elegant and powerful concept.
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Read this blog from the bottom to the top - carefully, thoughtfully. Email with questions. There is high-performance, low-drag information here.
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"If It's Such A Good Idea, Why Didn't Someone Think Of It Before?"


Whenever there is a break-
through idea, there are the naysayers.


What does so-and-so say about the idea?

That's never going to work.

Why, that's not how we do things around here!

You and your ideas! You'd better let the "experts" handle this.

That project of yours will never amount to anything.

The chance of it working are so slim, one might as well not even try.


Maybe they are so beaten down, it's easier to criticize a good idea. Or maybe they are out of ideas, or they are wedded to an idea that is obsolete. They either can't see it, or won't; either way, we should not look to them for leadership. They are followers. Perhaps disgruntled followers. But, followers just the same.

Leaders and innovators have vision; they have ideas. Sometimes they just need a little help getting the good idea off the ground. They need a few people to work with them, for everyone's benefit.

You can help. Just find the email address at the left of this web site. the Gold Certificate and send us an email letting us know that you want to help solve the economic mess.

It's easy to help.

It's even easier to be a naysayer.
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Man! That's Velocity!

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Usain Bolt is the fastest man on the planet. Running half sideways and with his shoe untied!

How fast does he need to run around the track, before he becomes two of himself?

Is that possible?

Economists are fond of the idea that if we take loans out fast enough, as the money circulates, there will be enough available for everyone to get a hold of and pay their debts - plus the interest that is owed, but was never created. In other words, if your loan principal changes hands fast enough, it becomes loan principal + interest. They call this concept "velocity".

Money can never go from hand to hand fast enough to become more money. That's like saying a man can run so fast that he becomes two men.

Recent events demonstrate what happens if the loans aren't made fast enough. Words like "credit freeze", "credit crunch" and "credit crisis" are tossed around - and so are trillions of dollars (1 trillion seconds is more than 31,000 years - this year alone, we've borrowed more than $5 trillion. Can we borrow to pay that off too?), to try and plug the obvious holes in the system that the theory of "velocity" can't describe or predict.

Velocity is an interesting theory, but in reality - in the world beyond theory - velocity is not a real answer. It merely covers up the fact that we have no permanent money system, the interest due on loans is never created and there is always more debt than money. Always.
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"The Fed Just Prints It Up!"

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Nope.

The Federal Reserve does not print our currency. The Bureau of Engraving and Printing does; it's an agency within the Department of the Treasury.

The Bureau of Engraving and Printing prints, among other things, Federal Reserve Notes, and sells them to the Federal Reserve at pennies on the dollar - roughly 4 cents a piece.

The Federal Reserve, however, creates new money electronically, to buy the Federal Reserve Notes and other US Government Securities - each one representing more debt to the US taxpayer.
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New money is also created when someone takes out a loan at a commercial bank. When a loan is taken out, they can NEVER simply count out the bills to the person taking out the loan, and give them the green paper. No, no, and again, no. The new electronic money must first be monetized through a checking account. Then, if the person who took the loan chooses, they can buy some of the paper stuff (Federal Reserve Notes) with their new electronic, checkbook, loan money. Those Federal Reserve Notes will represent their new debt.
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For example: You can take out a $1,000 loan. The bank creates the new electronic money and deposits it into your account (at 10%, instantly, you owe $1,100). You can now take your checkbook and write out a check for "cash" and buy some Federal Reserve Notes to spend. The Federal Reserve Notes would be "evidence of your debt".

When you spend them out in the economy, some of them might end up in my wallet. Imagine it. Evidence of your debt, in my wallet, that I call money, and that you owe interest on.

We use debt for our money.

We can change that.
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