Days
Commentator
Currency literally means the printed money in circulation. But the idea of printing money is used broadly to refer to the creation of money, whether it is hard copy or the much more abundant electronic currency. So, about 7 years ago I started using the term currency to represent all the money in circulation, paper and electronic. That's the real currency of the 21st Century and I think mainstream economic thought is using the term the same way I do... it just makes more sense.
Previously, I talked about how a fiat currency is not real money with intrinsic value like gold or silver, it is a synthetic money with ascribed value, created by the laws of the state... in today's global economy, that mostly is done through a central bank. This is a top-down system, meaning that the currency is created in bulk by the banks, of the banking system, and for the banks. This is in contrast to real money which is generated at the street level through trade, by the market, of the wealth, for the commercial interests generating wealth. As such, a synthetic money represents wealth, but is not in and of itself wealth. Not only so, synthetic money can be created and destroyed by contract, whereas real money has to be mined and minted and is indestructable.
When a nation is 100% using synthetic money, like most nations do, the economy is no longer measuring actual trade or real wealth or the generation of real wealth. The fiat economy measures the flow of currency, hence it is a measure of how much synthetic money has been created and traded and destroyed... so it can be very deceiving, it is really a measure of banking activity, not actual trade. Trade drives banking activity, so it is related. But 21st Century banking can create and destroy more currency intra-banking than it does for the trade of the nation. Currently, global banking is creating and destroying about ten times as much currency for intra-banking than it does for world trade. That would seem to render the GDP numbers completely pointless, and it would except most of the intra-banking currency isn't counted in the GDP. Nevertheless, banking derivatives and the carry trade are part of the global currency. But they are contained in their own market, they are not traded for milk at the local 7-11; otherwise milk would cost hundreds of dollars.
If I haven't gotten you confused , frustrated, and angry yet... here's where I wanted to arrive in this post. The federal budget has been snow balling debt for quite some time. By snow-balling I mean that every year it goes a little more out of balance and rolls up more and more debt; like a snowball getting bigger and bigger when you make it. I wrote this ten years ago, folks, it keeps happening because of the nature of the currency; that's how we knew the market was going to crash and that's how we knew there would be trillion dollar deficits, it didn't just happen over night, it has been coming on for 80 years, like a ticking clock, ever since FDR put us 100% on synthetic debt currency.
Now, that's another term; debt currency. Since the deficits result in bonds (debt) and those bonds are used as asset/reserves by the banks to loan money, and since the loans are what create the currency in the market, the currency is created from the bonds (the debt)... hence, it is debt currency. Economies run on money supply the same way an engine runs on fuel. So realize this; in our current system of money, the debt fuels the economy. When politicians talk about cutting the deficit and growing jobs at the same time (as the current presidential candidates love to promise) they are talking an oxymoron; you either grow the debt or you cut the debt, which will in turn grow the economy or shrink it. That's why debt currency sucks. That's why gold bugs or silver bugs (I'm the only one left, born a century too late) want to return to real money for currency, because with real money you can generate wealth in the market and tax it and use those taxes to pay down the debt... which is exactly what politicians claim they are doing, but isn't possible with debt currency; you have to have real money to do that.
So you are being lied to. BIG TIME. But now, why does Wooley go nuts when Ron Paul wants to return to gold currency? Because Ron Paul is nuts! We have this enormous debt to pay, if you return to real money, you have to really pay it! With real money! The banks would love that. The only reason the banks are not behind Ron Paul is because they know the government has no money to pay their debt. What I have been saying is this; introduse a silver coin into local markets at the state level; go back to the Constitution for the part that says our states have to disburse real money and deal in real money. In order to do that, you would need to allow the states to enter into the creation and destruction of currency. NOT make their own money, but enter into the national currency. I am the lone voice in America calling for this... and it is our only hope. Laws of escheat return the land to the state; in our Republic, the state is the rightful owner of all the land and you hold title with the state. Therefore, it would make an enormous amount of sense to grant our states the power to bank that real estate. In doing so, all the land would be mortgages would be owed to the state which makes sense since the state owns the land... not the banks. Ever wonder why property taxes are paid to the state? Because of laws of escheat... the state is the rightful owner of all the land and they can take it back any time they please... that's why it is called eminent domain; in essence, the state is the king and the land is the domain or dominion of the state... a kingdom. Our real estate laws are directly derived from English common law... half a millennium old. So don't scream at me and call me a communist; I'm worse than that; I'm a mortgage banker... you guys just don't know real estate.
Well since my dream of repairing America's currency will never happen. The next best thing is for the US Treasury to return the power of fiat back to itself (the Federal Reserve Act built a central bank attached to the Treasury and borrowed the authority of the Treasury... it needed to do that to empower itself as a fiat, there is no central bank in the Constitution) ... or at least return a degree of the fiat back to the Treasury by printing dollars in US Notes, instead of Federal Reserve Notes. Kick the damn central bank out of the mints! Look at that. Now the central bank has to borrow the money from the Treasury instead of the current adulteration of printing central bank notes with our mints and forcing the Treasury to borrow its own money from the central bank. Of course this goes beyond hard copy. The Treasury has to do this electronically as well. Once you return the power of money creation to the government, the government will begin to rule over the banks instead of the current adulteration where the banks are ruling over governments. Banks are awful rulers. Money is a hard master. Austerity is the real terror on the planet today.
Previously, I talked about how a fiat currency is not real money with intrinsic value like gold or silver, it is a synthetic money with ascribed value, created by the laws of the state... in today's global economy, that mostly is done through a central bank. This is a top-down system, meaning that the currency is created in bulk by the banks, of the banking system, and for the banks. This is in contrast to real money which is generated at the street level through trade, by the market, of the wealth, for the commercial interests generating wealth. As such, a synthetic money represents wealth, but is not in and of itself wealth. Not only so, synthetic money can be created and destroyed by contract, whereas real money has to be mined and minted and is indestructable.
When a nation is 100% using synthetic money, like most nations do, the economy is no longer measuring actual trade or real wealth or the generation of real wealth. The fiat economy measures the flow of currency, hence it is a measure of how much synthetic money has been created and traded and destroyed... so it can be very deceiving, it is really a measure of banking activity, not actual trade. Trade drives banking activity, so it is related. But 21st Century banking can create and destroy more currency intra-banking than it does for the trade of the nation. Currently, global banking is creating and destroying about ten times as much currency for intra-banking than it does for world trade. That would seem to render the GDP numbers completely pointless, and it would except most of the intra-banking currency isn't counted in the GDP. Nevertheless, banking derivatives and the carry trade are part of the global currency. But they are contained in their own market, they are not traded for milk at the local 7-11; otherwise milk would cost hundreds of dollars.
If I haven't gotten you confused , frustrated, and angry yet... here's where I wanted to arrive in this post. The federal budget has been snow balling debt for quite some time. By snow-balling I mean that every year it goes a little more out of balance and rolls up more and more debt; like a snowball getting bigger and bigger when you make it. I wrote this ten years ago, folks, it keeps happening because of the nature of the currency; that's how we knew the market was going to crash and that's how we knew there would be trillion dollar deficits, it didn't just happen over night, it has been coming on for 80 years, like a ticking clock, ever since FDR put us 100% on synthetic debt currency.
Now, that's another term; debt currency. Since the deficits result in bonds (debt) and those bonds are used as asset/reserves by the banks to loan money, and since the loans are what create the currency in the market, the currency is created from the bonds (the debt)... hence, it is debt currency. Economies run on money supply the same way an engine runs on fuel. So realize this; in our current system of money, the debt fuels the economy. When politicians talk about cutting the deficit and growing jobs at the same time (as the current presidential candidates love to promise) they are talking an oxymoron; you either grow the debt or you cut the debt, which will in turn grow the economy or shrink it. That's why debt currency sucks. That's why gold bugs or silver bugs (I'm the only one left, born a century too late) want to return to real money for currency, because with real money you can generate wealth in the market and tax it and use those taxes to pay down the debt... which is exactly what politicians claim they are doing, but isn't possible with debt currency; you have to have real money to do that.
So you are being lied to. BIG TIME. But now, why does Wooley go nuts when Ron Paul wants to return to gold currency? Because Ron Paul is nuts! We have this enormous debt to pay, if you return to real money, you have to really pay it! With real money! The banks would love that. The only reason the banks are not behind Ron Paul is because they know the government has no money to pay their debt. What I have been saying is this; introduse a silver coin into local markets at the state level; go back to the Constitution for the part that says our states have to disburse real money and deal in real money. In order to do that, you would need to allow the states to enter into the creation and destruction of currency. NOT make their own money, but enter into the national currency. I am the lone voice in America calling for this... and it is our only hope. Laws of escheat return the land to the state; in our Republic, the state is the rightful owner of all the land and you hold title with the state. Therefore, it would make an enormous amount of sense to grant our states the power to bank that real estate. In doing so, all the land would be mortgages would be owed to the state which makes sense since the state owns the land... not the banks. Ever wonder why property taxes are paid to the state? Because of laws of escheat... the state is the rightful owner of all the land and they can take it back any time they please... that's why it is called eminent domain; in essence, the state is the king and the land is the domain or dominion of the state... a kingdom. Our real estate laws are directly derived from English common law... half a millennium old. So don't scream at me and call me a communist; I'm worse than that; I'm a mortgage banker... you guys just don't know real estate.
Well since my dream of repairing America's currency will never happen. The next best thing is for the US Treasury to return the power of fiat back to itself (the Federal Reserve Act built a central bank attached to the Treasury and borrowed the authority of the Treasury... it needed to do that to empower itself as a fiat, there is no central bank in the Constitution) ... or at least return a degree of the fiat back to the Treasury by printing dollars in US Notes, instead of Federal Reserve Notes. Kick the damn central bank out of the mints! Look at that. Now the central bank has to borrow the money from the Treasury instead of the current adulteration of printing central bank notes with our mints and forcing the Treasury to borrow its own money from the central bank. Of course this goes beyond hard copy. The Treasury has to do this electronically as well. Once you return the power of money creation to the government, the government will begin to rule over the banks instead of the current adulteration where the banks are ruling over governments. Banks are awful rulers. Money is a hard master. Austerity is the real terror on the planet today.