by Jeff Ganaposki

How do you tell someone, in a kind way, that they’re suffering from a terminal disease? Do you gently approach the topic? Inquire about their health? Emphasize certain symptoms as evidence? And when the news is delivered, what more can you do? If they lash out in anger, do you hold it against them? Of course not. In time, they either accept the news or deny it. And depending on their reaction, make decisions for their future.

Now, how do I tell a civilization that it is insane – but in a kind way?

Perhaps I will start with language and make sure we are using the same terms and meanings.

INSANITY – extreme foolishness or irrationality.
FOOLISHNESS – lack of good sense or judgment; stupidity.
IRRATIONALITY – not logical or reasonable.
STUPID – lacking intelligence or common sense; dazed and unable to think clearly.

What is not logical or reasonable about civilization at this time? What is going on that shows a lack of common sense or intelligence? What symptoms expose the lack of good judgment?

❏    Institutionalized slavery – compulsory charity – taking the labor and property from one to give to another, as determined by government or its delegate. (Collectivism, socialism)
❏    Money madness – the belief that a money token “holds value” independent of the marketplace of goods and services.

Though it is far easier to expose the fallacies of penalizing the productive for the benefit of the non-productive and giving political power to a recipient class, institutionalized slavery of collectivism is one of the poor attempts at dealing with the consequences of money madness.

Money madness

Most people are not born money mad. It is an acquired affliction, based on indoctrination and programming. Children are slowly trained to assign a special value to coins and paper money, because such things can be traded for whatever one desires. In time, the lesson sinks in, and the youngster begins to evaluate his world in reference to money, or lack thereof.

To appear rational, this madness is based on acceptable explanations. Money is a medium of exchange that facilitates trade beyond barter. Money “holds value” for a future trade. Money is an accounting tool. Money is a reference value that other items can be pegged to. Money can be invested and interest earned. There is even a science of Economics that tries to come up with ever new ways to prove madness is really sanity.

What is insane about money?

There are two aspects of money or madness that are not hard to prove. One, is based on law, the other is based on mathematics. In America’s case, the law says that only silver and gold coin are tender in payment of debt. Based on the 147.4 million ounces of gold allegedly held in Fort Knox Depository, coining that bullion would result in 2.9 billion dollars. Divided among 317 million Americans, that is $9.15.
2011 Silver production in the USA = 36 Moz.
In terms of lawful coinage, that computes to 46.7 million dollars… or $0.15 per American (roughly).

Under lawful money rules, the per capita share of bullion computes to $9.30.

Of course, this makes no sense. The national debt is over 17 trillion dollars. There are far more “dollar bills” in circulation.

Ah, but “dollar bills” are not dollars. They are promissory notes. See: Title 12 USC Sec. 411. They are IOUs, denominated in dollars. But they were repudiated in 1933, and thus have been worthless – except as “legal tender.” (Hold on to your seats, folks, it is getting craz-zee around here)
An obligated party on a note must accept their own note in lieu of lawful money. Pursuant to 12 USC Sec. 411, the U.S. government is an obligated party and must accept their own notes.
So how did the rest of us become obligated parties on the debt?
In America’s case, it is the Federal Insurance CONTRIBUTIONS Act (1935). Each enumerated “human resource” is a surety on the debt.

CONTRIBUTION – … The share of a loss payable by an insurer when contracts with two or more insurers cover the same loss… The sharing of loss or payment among several…
— Black’s Law Dictionary, Sixth Ed., p. 328

Though most Americans were misled to presume FICA was insurance for them, the courts and the law say otherwise. In two important cases, Helvering v. Davis and Flemming v. Nestor, the U.S. Supreme Court ruled that Social Security taxes are simply taxes and convey no property or contractual rights to Social Security benefits. Benefits are at the sole discretion of Congress. And no law compels participation nor punishes non-participants in FICA. It is entirely voluntary and thus constitutional.

In essence, American socialism is an attempt at dealing with two aspects of money madness – the repercussions of increased productivity reducing the workforce – and usury, the abomination. But before I go into those aspects, lets recap the money madness due to law.

Pursuant to law, real money is limited to gold and silver coin. And that scarce commodity computes to roughly $9.30 per capita (2.9 billion dollars). And since “dollar bills” are debt instruments, the total sum cannot exceed the outstanding public debt (over 17 trillion dollars, Dec. 2013).

We have known two limits : 2.9 billion dollars, and 17 trillion dollar bills (IOUs).

So how can one assign a value in excess of those limits?
Lists gross domestic assets at 156 trillion dollars (bills).
Total assets of the USA estimated at 188 trillion “dollar bills”.

How can you trade those assets with “only” 17 trillion “dollar bills”? Or with 2.9 billion dollars?

Buying and selling “only” chunks no more than 17 trillion?
Oh, can’t do that – there’s only about 2.6 T in circulation (Federal Reserve M1, Nov. 2013).

The money does not exist

Even the promise of space colonization and exploitation is skewed by money madness. This site shows over 600,000 asteroids listed with “economic value” denominated in trillions and quadrillions of “dollars.”

What if an entrepreneur walked into the biggest bank in the world, and said, “I would like to borrow 100 trillion dollars to be used to mine asteroids whose net worth is 40 quadrillion dollars, and gladly pay you ten percent interest per year…”

Can’t do it. The money does not exist. Regardless of the mineral worth or other valuables involved, there is never enough money under “money madness.”

This is also the problem with usury, the abomination. Usury is mathematically unsustainable in a finite money token system due to the exponential equation used for compound interest. Over the long term, one needs an infinite money supply. That is not possible, thus a portion of debtors must default because enough money never existed to pay all outstanding usury (principal and interest). In short, usury was and is a scam to rob people, which explains why it was denounced for “only” 3500 years and proscribed by every religion that I checked.

Usurers rely on the fact that the money does not exist, to generate demand for their credit, offered at interest.

You and I are entrapped in an economic system based on insanity. It throttles trade via scarce money tokens, empowers parasites to skim prodigious wealth in goods and services for doing nothing of value, and creates pain and suffering by its very operation. If you examine past civilizations and their collapse, you may see the tell tale symptoms of money madness.

The madness of money keeps people from achieving prosperity, because wealth is not prosperity. Prosperity is the production, trade, and enjoyment of surplus usable goods and services. The sum total of all goods and services is dependent upon population (growing, too!), labor multiplication by tooling, and technological advances. There is no way that any finite money token can be used to “hold value” for such a dynamic system.

That’s why there is unemployment, closed factories, and unmet needs. Money madness is at work.

Sadly, creating infinite money is no solution, either.

If money really cured poverty, let us give everyone 22 billion billion quatloos, making them “Set for life,” with more than they can ever spend. What happens if no one bothers to go to work, labor, manufacture, transport, and trade? Civilization collapses.

We are a money-mad people, wholly ignorant of our madness. We are so indoctrinated, that we cannot perceive that the abstraction of money clouds our reason about the reality of prosperity.

Another example of madness

Consider that when a productive enterprise boosts efficiency and needs less labor to produce, that should be a “good thing.” But when it results in a reduction in the workforce, laborers are pushed out of the workforce and the means to acquire money tokens. Unless new jobs are available, their only option is charity or predation. Not good. Expand that across a whole economic system, and not only are you hurting productive laborers, you shrink the customer pool, who now lack the funds to buy the more efficiently made product. Not good x 2.

There are currently three ways to acquire money tokens – trade, charity, and predation. When money madness closes off trade (i.e., jobs), all that remains is charity (socialism) and predation (crime, etc). We don’t want more crime, and we certainly can’t afford socialism, so what can we do?

Let us consider prosperity or the lack thereof.

As stated before, Prosperity is the production, trade and enjoyment of surplus usable goods and services.

Next – what is preventing those who wish to work, and those who are in need of goods and services, from connecting and trading?

In other words, we have unmet demand, surplus labor and productive facilities, so what’s really stopping folks ?

Don’t ask economists, they’re clueless. Worse, they’re barking mad. (Economists use a variable as their unit of measure, and apologize for usury, a mathematically unsustainable scam.)

What prevents the Amish from helping a newly wed couple get started, by building them a house and barn? What prevents parents from caring for their children? Not enough “living wage”? Not enough socialism? Are you getting the hint?

SANITY is the opposite of MONEY MADNESS

“You have to decide whether you want to make money or to make sense because the two are mutually exclusive.”
– – – R. Buckminster “Bucky” Fuller;  Critical Path, p. 255

Most money mad people presume that the lack of money is the reason why customers can’t buy, employers can’t hire, business can’t expand, prosperity cannot be restored. That’s not half wrong, but it is not half right, either.

What is stopping people from generating prosperity is a common agreement for an ALTERNATIVE medium of exchange, and an ALTERNATIVE method of accounting, that tracks with the marketplace of available goods and services. In other words, as the pool of available labor grows, so must the means to buy / trade that labor, and its production of goods and services.

Current money systems all rely on making money finite and scarce. Precious metal coin is the worst. But such systems enrich the usurers who lend at usury or extend credit at usury (interest). Since compound interest requires an infinite money supply (due to the exponential equation), usury is mathematically unsustainable in such money token systems. Which partially explains the booms and busts that we cycle through. There is never enough money, nor can it grow in proportion to the increase in population, nor with the multiplication of output by machinery and automation. Money throttles prosperity, despite its reason for existence is to facilitate trade. That’s why hoarding money is also counterproductive. Money that is not facilitating trade is useless.

So what is the alternative?

PRODUCERS (laborers, businessmen, industrialists) must have the power to create the medium of exchange needed to BUY that which they produce. The more they produce, the more alternative monies they can emit.
❏   A farmer can emit private promissory notes (i.e. coupons) denominated in his harvest, and use those notes in trade. When harvest time comes, he redeems his notes with his harvest.
❏   A restauranteur can emit notes to finance his operation, buying labor and supplies, and redeem his notes with the finished product – meals.
❏   An unemployed laborer can emit notes denominated in hours of labor, and use them to buy his necessities. The laborer redeems his notes with his labor, when tendered to him. Prospective employers do not need to advertise, nor do prospective laborers need to seek work. There is no need for socialist charity in such a system.

It is stipulated that such private money systems may only function in small communities where the folks know which people are creditworthy and which are not. However, it is also true that many small communities suffer from lack of money and would benefit the most from the unleashed prosperity of an alternative means to account for trades and transactions.

Unfortunately, most money mad people do not trust others, nor would be open to forming alternative mercantile exchanges. It is not surprising that tight knit communities, such as the Amish, would operate outside of money madness. But that should not be a barrier to forming such exchanges – especially under these trying circumstances of hyperinflation and money drought.

Are there downsides?
Those, whose wealth and power are dependent upon money madness and usury would be at risk. Imagine what the worth of billions and billions of worthless IOUs (“dollar bills”) are once productive people can generate as much alternative money as they need to trade?

The whole basis for speculation and investment evaporates.

To illustrate : A coupon / note denominated in a meal cannot be inflated, deflated, corrupted, speculated or otherwise manipulated. You cannot “invest” it to get more meals back. It provides an equitable trade in accord and satisfaction between the producer and the customer. No skim, overhead, nor dues involved. The more people can produce, the more notes they can emit, the more goods and services they can enjoy.

Prosperity beckons.
But only if we leave the money mad asylum.