View Article  Bernanke Confirms Growth Mantra

 

http://www.federalreserve.gov/newsevents/speech/bernanke20080708a.htm

 

July 8, 2008

 

Instability in our financial system over the past year or so has importantly affected the availability and terms of credit and the pace of economic growth. The Federal Reserve, together with other regulators and the private sector, is engaged in a broad effort to strengthen the financial infrastructure.

 

Financial crises have occurred periodically around the world for literally hundreds of years, and it is unrealistic to hope that they can be entirely eliminated, especially while maintaining a dynamic and innovative financial system. Nonetheless, recent experience has illustrated once again that financial instability can have serious economic costs. The Federal Reserve will continue its efforts to make our financial system stronger and more resilient, so that it can continue to play its necessary role of supporting economic growth and making credit available to all qualified borrowers.

  

View Article  The Form of Money: A Treatise

 

Money is the lowest common denominator of valuation amongst a society, the blood of trade, primary to societal interaction, and should be perfect in concept and form. If the form of money is not perfect in concept and form, societal stress will ensue with potentially horrific consequences if ignored. Money is not the root of all evil; however, flawed money is the root of significant evils.

 

Money has had many forms over the millenniums, extending long before written history.  Some remnants of those ancient forms of money remain with us today: the penny looks copper, the quarter and dime look silver, and nickel is supposed to be nickel, and the dollar coin looks gold, testimony to the endurance of the ancient forms of money. The transition from these ancient forms to the now dominant form, Legal Tender, birthed 2,600 years ago by King Croesus, has been a prolonged epic of consolidating monetary control by nation/states and has been the prime driver of Western Civilization expansion.

 

Legal Tender is a legal contrivance, and when issued in the form of debt is nothing more than a pyramid/ponzi scheme. The quantification of debt wrongfully applies the algebraic concept of exponential growth - compounding interest - upon money. The distinction between usury and interest is an arbitrary legal determination with no basis in mathematics. Nothing can grow forever at an ever-increasing rate. As time moves on, the emphasis of ever-increasing growth becomes omnipresent, is quantified and institutionalized in the societal structure, encouraging over consumption, over development, and excessive expectations, pushing economic stress to its upper limit of expansion, eventually inciting conflict and spawning War to insure growth.

 

Economic systems of capitalism, communism, socialism, imperialism, colonialism, totalitarianism, fascism, nazism, monarchism, corporatism, and all other centralist monetary-isms maintain the monopolized control of money, and hence the control of society itself, through their own brand of Legal Tender that excludes other forms of money from the Market.

 

Today, Legal Tender is a near global reality, an epochal consolidation of Markets, heading exponentially towards a global conclusion. Legal Tender is a severely flawed form of money, the Mother Lode of Law itself.

 

The eventual conclusion of this monetary epoch, the triggering event, and the ensuing transition to the next, offers extreme potential of good and bad, impacting everyone and rippling for generations to come. Beyond Legal Tender is a truly Free Market where money is adaptable and flexible, in balance with individual needs, societal needs, environmental needs, and the needs of the greater reality.

 

Chance favors the prepared mind.

 

mammon

 

Table of Contents

Money Defined

The Market

Minting Money

From Commodities to Fiat Money

5: Legal Tender

6: Interest and Money

7: Civilizations and Usury

8: Interest, Usury, and Religion

9 Social Groups and Money

10: Alternate Forms of Money

Structure Flaw of Corporations

 

 

View Article  Series Break

So, I’ve finished the Constitution Series which I’ll edit occasionally. There are some topics that still need to be expanded, like, the presidents under the Articles of the Confederation. There were seven presidents after the 1776 Declaration of Independence before the ratification of the Constitution in 1789, under which General George Washington became the “first” President. If John Hanson, the first president under the Articles of the Confederation, had been recognized as the “first” US President, the quarter and dollar bill would picture a pudgy, pampered, privileged looking merchant aristocrat.

 

Like most Americans, I was spoon fed the sanctity of the Constitution drafted by the divinely inspired Founding Fathers. The reality is that economics, not ideals, was the driving factor to implement a national Constitution. In essence, the American Revolution usurped the British tax masters only to be supplanted by local tax masters. The debt masters, mostly foreign and otherwise, were never challenged. The debt before, during, and after the revolution, which increased substantially, was held sacred, and the Founding Fathers insured that this debt, along with newly imposed taxes, was honored and upheld with military might. Miscreants who thought otherwise about taxes and debt were on the receiving end of this military might, as evidenced in the Shays’ and Whiskey Rebellions.

 

I’m reminded of the lyrics by The Who – “Meet the new boss, same as the old boss.” Unfortunately, we have been fooled again. What will it take to exorcize the embedded flaw, noted by every prophet, perpetuated in the legal tender form of money?

 

So, for now, I’ve taking a break from any more series. I’ll fine tune the existing series and post topical. I’m now indulging myself in an escapist historical fiction novel, mental porting back to the time of Egypt and Rome, Cleopatra and Caesar. She birthed his son, and then three of Marc Antony’s children, while maintaining the independence of Egypt to the bitter end. I’ m close to finishing this 950 page epic, and I now look forward to reading Margaret George’s other novel, Henry the VIII. And what happened to the son of Cleopatra and Caesar, the rightful heir to the Roman and Egyptian empires? Well, there’s a story worthy of a great fictional history novel.

 

As usual, when I read a novel like this, there’s the economic angle. Cleopatra ruled over a vast wealth in gold and assets that would be the envy of King Croesus and the Federal Reserve. She financed Marc Antony’s army of 100,000 against Octavia. Her image was stamped on coins of gold, not on a debased metal where George Washington’s image now resides; however, George’s image does serve well as a public relations medium for perpetuating the Founding Fathers myth.

 

Several days later......

 

Well, I finished Margaret George's Cleopatra, and Octavia had the son of Cleopatra and Caesar hunted down and killed as he was escaping to India. Imagine if he had lived, what a legacy! So he died in his late teens which could make an interesting novel from the son's perspective. Cleopatra's three other children from Marc Antony [2 sons, 1 daughter] went to live in Rome, and were eventually married off to minor Kings and Queens. Through Marc Antorny's daughter from his Roman wife, Antony became an ancestor to Caligula, Cladius, and Nero. Caligual eventually killed one the sons of Cleopatra and Marc Antony. Such a loving family!