Sunday, May 1, 2016

Credit Cash Money - Fallback Positions

People fear the future, change is afoot.  Rome took 300 years to fall, and even though our world is likely faster-paced, nothing will happen overnight.  And that is the problem, the hegemon cooks the frog slowly.

A good part of life is commercial, and that is where the hegemon directs traffic if allowed to do so.  He is not only allowed, he is adored and glorified by the masses.  We are told if we toss in all of our gold, a golden calf will walk out of the fire!  Then we can party naked!  With scarce assets to support USA's extravagances, we are indeed partying naked.

The Romans got to the point of writing a fugitive landowner act, in which escaping farm owners were returned to their farms to work.  Why did the farmers flee?  Because they were taxed to poverty.  They tried to escape to anarchy.

You cannot escape the hegemon if you do not understand the differences between credit (mal and bene), cash and money.  Most people have been socially conditioned by the hegemon to use all terms interchangeably, although internally the hegemon and its minions maintain strict definitions.

Money is gold and silver.  Done.

Bank credit is malCredit.  Asset-less credit lent at interest, created when the victim (borrower) is confident against all reason and experience malCredit will be a personal benefit.  Think auto loans today. "But but but, auto loans are secured by the auto against which the loan is made."  Sheer nonsense, sheer delusion.  The banks don't want another stinking Cadillac Escalade profoundly overpriced by a capitalist system.  They want yet another human tied down.  If an when the loan goes bad, they bank could care less what happens, they lent air so if all they got was the down payment, that's ok,  They are ahead.  A bank loses nothing on a bad loan because they never had anything at risk, only digits on a tally.

Cash is the most liquid form of medium of exchange in an economy.  AKA currency, it represents either money or malcredit or benecredit, depending on the regime in power. It is the quickest to convert given an day's events, so it is far more valuable in a jam than malCredit than bank credit, what you access with a debit or credit card.  The way to keep currency honest is to let it be produced by competitors in a free market, as it was for much of USA history.

People used to know this...    I was listening to a radio drama from the 1950s in which a crooked banker was trying to bribe someone:  "I'll pay you $25,000... cash!  Not credit!"  Million of common people listening back then knew the significance.  Today social conditioning has dumbed us down.

Enough people do know, so they store cash.  When the Harriet Tubman $20 is ready about 2018, you can bet Uncle Sam will outlaw the old ones, and to legally convert to the new ones, you'll have to explain to the IRS how come you have $10,000, $100,000 a million in cash.  Talk about irony.  A USA escaped slave will be the image of Americans being enslaved.

Mony malCredit Cash.  So what else is there.  The one everyone overlooks: benecredit.  Private credit extended voluntarily based on assets at no interest between two parties engaged in commerce.  A short definition is simply vendor-financing, although that can be dicey since now vendors tend to charge interest too on the time extended (but knowing full well borrowers in these instances tend not to pay the interest.)

A loan is always a charitable event, ethically.  Vendor financing is always a commercial event.  What is lent is goods and services, not money. So benecredit is never charity, always commerce.

And it is always fruit too high and far apart for the hegemon to pursue, as long as your work is your lifestyle.

The alternative is paycheck, property and pension... the low hanging fruit the hegemon must pick first.

Feel free to forward this by email to three of your friends.


Anonymous said...

Hi John,
Does the usury system or mal-credit inflate asset prices? I'm thinking of home prices and mortgages in particular. I remember hearing my parents and other old people talk of the days in olden times when one could buy a single-family home for the price of a new car today, $20k - $30k (and I'm not talking about Detroit here, but normal, nice homes in good areas). Even modest homes today can be very expensive. I don't remember them saying anything about mortgages and interest, and I'm not sure of how homes were bought and/or financed back then.

Anonymous said...

Just the other day Spanish construction workers found a trove of 1,300 lbs. of bronze Roman coins dating back to the 4th century A.D. According to archeologists, the initial hypothesis is that the money was used to pay taxes to the Roman government. It's ironic how history repeats itself and truly bizarre how
an escaped U.S. slave is shown on American currency (as you pointed out). One can only imagine what the value of the Roman coins mentioned above would be if they were from 33 A.D. instead of 333 A.D. or gold and silver instead of bronze.

John Wiley Spiers said...

Well all prices have risen, when counted in malcredit and not money. you could get a gallon of gas for 2 silver dims in the 1960s, and you can today as well.

People often got home loans from Savings & Loans or credit unions, where the money was local and the rates were low enough to cover expenses. But there were also fraternal organizations helping out (Eagles, Forresters, Masons, etc) and loans were assumable. If you had a 30 year loan and needed to move, you could transfer the home loan to your new buyer or your kid. If the payments were made, who cares? It was a completely different world.

Malcredit wiped out the Savings and Loans industry, and the hegemon loved when interest rates dropped from 9% to 6%, those who could afford payments on a $200K house could now afford the payments on a $300k house. Did the buyer get a $300K house? Nooooooo! The buyer paid $300k for a $200K house. And the tax revenue just jumped up 50% without a vote!!! Yay for the hegemon!

Follow that from 6% down to 3% and lower interest rates...