Alternative Finance to Debt and Interest

1. As far as property goes, if we rent to own with a sufficient deposit to cover eviction is all we need. If everybody is in the same boat, then it wont matter that we not allow a third party to enter with the prospect of 100% payment. Given that the third party will cause havoc and eventually become our master, it seems a small price to pay.

2. Financing business, though a little more complex, can be done through stock ownership or what is called equity finance. Businesses will have a greater chance to succeed if they don't have that oppressive loan payment to deal with. Currently, 'Blue Sky' laws have the affect of discouraging this type finance. And add to that a lack of local Stock Exchanges force us into the 3 or 4 now in place. Buying shares in productive business can serve as a social safety net as well. The dividends they produce can be used in any number of ways. And as you age, the more you accumulate which works out well as far as health care concerns. In terms of macroeconomics it sets natural boundaries for growth.

3. I believe cash will likely be the primary beneficiary of both these measures, since so much of our product cost is currently tied up in interest.

The Nature of Interest

There is a prevalence of thought nowadays that interest is simply 'rent' on money. It is accepted as if it is of no consequence when it is used. Lets re-examine this notion.

When we purchase an item on credit that has interest attached to it, we are saying the item is worth $100 dollars now - but will be worth $110 after the loan is paid back. The $10 being the 'rent' owed for use of the money. Let's say the item is an ounce of gold. The gold is only worth $100. But because interest is charged beyond its worth, it automatically creates $10 more in gold. But gold can not be magically created like this in reality. It must be mined, or labored for. How can we allow somebody to exact worth that otherwise wouldn't be possible? We are expected to furnish a premium on each and every item bought with credit in the form of interest. The interest though, is not a charge for the use of money since it is magically created. It is simply a scheme to acquire a permanent revenue stream to a thief by means of fraud.

This magically created money adds money to existing money stock. Inflation can be the only outcome. The only means of stopping inflation is to prohibit interest. Blasphemy you say? Not really. Those that exact interest commit fraud in a more insidious way too. How? Well they incrementally steal our real money, gold and silver, as in the graph on the bottom of this page. Then in order to keep the fraud going, they must create a substitute artificial money - known as fiat. This gives them elasticity to maintain their permanent revenue stream beyond the limits of a finite money supply such as gold and silver. We accept the inflation because we need loans. We accept interest because we have been convinced the interest is a charge for 'renting' the money. We accept fiat money because authorities say its money. But its money created through fraud and therefore can only have a decaying effect on any economy who uses it.

Next, what is the alternative?

1938 Comment Almost Got It Right

“When the Congress shall declare a national monetary policy which shall give the Nation a dollar whose debt-paying, purchasing power shall remain the same from one generation to another, the people of the United States, for the first time in their history, will have an honest dollar. The only honest dollar is a dollar of stable, debt paying, purchasing power. The only honest dollar is a dollar which repays the creditor the value he lent and no more, and requires the debtor to pay the value he borrowed and no more. The people of the United States are entitled to a sound currency. The only sound currency is a currency whose exchange value is the same from one generation to another. The failure of the Government to create and stabilize the value of money has not only resulted in the unemployment of millions of people through no fault of their own, but it has seriously changed the- relationship between debtors and creditors,… The experience of the last 31 years of four serious panics and depressions is proof positive that the banks cannot control the volume of money, and that their failure to do so has not only destroyed thousands of banks, but has inflicted the people with great suffering. The Government alone can give relief. The Government alone has the legal authority and duty to establish and regulate the value of money, and to create it in sufficient quantity to serve the national use. It alone has the power and the duty to prevent either injurious expansion or destructive contraction. “


-Robert L. Owen, Former Chairman, Committee on Banking and Currency, United States Senate. Sited in US Senate Doc. 23, 76th Congress, 1st Session – Written Dec. 23rd 1938, and printed January 24, 1939 pages 74-75: 


http://www.archive.org/download/Nati...kingSystem.pdf

First, it is a true statement that lenders of money should only ask for the amount lent in return. Asking for interest on top of the principal forces the money system into unsustainable chaos, and then requires an overseer to establish quantity. The overseer having the upper hand in our lives. Causes the schism between rich and poor, and is a havoc creator.

Second, why does there have to be any 'money creation'? Simply take two elements, gold and silver, and have government certify weights of each in various coin and be done with it. The total earthly supply of each fixed in quantity, though some yet to be discovered, will represent the value of all goods and services produced. The value of each(gold and silver) fluctuating based on the aggregate of production at any given time.

Why Fiat is the Monster

Essentially, fiat money is able to grow which debases existing money if you consider paper money - money. Why fiat money must grow is because interest is tacked onto loans which necessitates creation of more fiat money in order to pay previous loans.

Welcome !

Just like to welcome all who read my rants.