I have posed this question in other forums and the only answer I have gotten (and which is being used today) is to limit the circulation of the alternative currencies. Often this is done through imposing that transactions at the point of sale are split tender - some portion in the Queen's money and the other portion in this new currency. I have quite a few issues excepting solution for many rather obvious reasons. However I have not been intelligent enough myself to come up with anything better. I look forward to hearing thoughts from group.
-Anthony
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And this really is an important question because ultimately people
must decide if monopolistic control of the money system is granted to
government or whether its not. If we decide its ok, then I guess we
just get to deal with business cycles that wipe out Trillions of
dollars in wealth over the course of a few trading days, and
deliberately unmeasurable inflation that substantially and
consistently eats away at our purchasing power.
If we decide it's not ok, then we're basically requiring our
government to spend only what it takes in as taxes. We would be
forcing them to "steal from us" out in the open instead of hiding the
"real" tax through currency manipulation.
But removing the government's "power to inflate" is really all that an
alternative currency system presupposes. Apart from that government
entities could participate just like any other entity. They could
accept payments (taxes) and make payments (disbursements) in the way
they always have. What we want to stop, in my opinion, is the process
by which governments inflate themselves 'away' from insolvency, either
directly in the Fed's case, or indirectly via bond issuance and FRN
system borrowing.
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Michael,I definitely agree, for responsible individuals/companies that understand how to work with the system there will never be an issue,
the alt currency just becomes a pointless layer of obscurity to the individual participants.
The reason is because as you run the clock forward and the alt currency has changed hands enough times every bit of the value turns into taxes owed.
If you imagine then a number of these alt currencies all operating, and a bunch of exchange houses to support flow between them, come tax time everyone is going to want their national currency back.
At the first sign of abuse by the exchange houses no one will move their money back into the alt currency in the future.
Now I agree with everything that alt currency is trying to do
but if I am not mistaken some of the reasons for a government only accepting it's national currency is to negate those benefits.
Is there something I am intrinsically ignorant of?
-- ---------------------------------------------------------------------- Kyle Lahnakoski ky...@arcavia.com (905) 895-8467 Arcavia Software Ltd
It's simply the fact that the Queen only accepts the payment of taxes in her own money.
In addition to religious orders, mutual aid societies were entities
that, before the nationalization / corporatization of the social
safety net in the New Deal, provided such a commons of benefits,
including a form of health insurance, and have a non-profit category
for them still in the US tax code. The Amish faith(s?) act as both
religions and mutual aid societies, and are exempt from many federal
taxes, as well as from the proposed US health care legislation's
requirements.
When the government takes your national currency, it doesn't disappear down a black hole. The government spends it. The people who receive that money can then convert it back into "alt" currency if they prefer. The only question is whether they do in fact prefer the alt currency. (And if they don't, the government isn't your main problem.)
It's my fault in trying to dash off a quick email. I will sit down and write something a bit more thoughtful later today or tomorrow when I have the time. Thank you Michael.
> On Tue, Feb 16, 2010 at 8:58 PM, Anthony Schexnaildre <apsc...@gmail.com>
> wrote:
>>
>> It's simply the fact that the Queen only accepts the payment of taxes in
>> her own money.
>
> How would it work if we used an asymetrical exchange / donations based
> system, earning reputation ( and not debt ) ?
> I am not a lawyer, but my guess is that reputation units would be difficult
> to tax.
> And if it does get taxed, perhaps a solution could be to be individually
> insolvable in monetary terms,
> while having use value infrastructure to whom we contribute owned by a form
> of commons, under potentially a not for profit status ?
> Does this sound similar to the way some religious orders can operate ?
In addition to religious orders, mutual aid societies were entities
that, before the nationalization / corporatization of the social
safety net in the New Deal, provided such a commons of benefits,
including a form of health insurance, and have a non-profit category
for them still in the US tax code. The Amish faith(s?) act as both
religions and mutual aid societies, and are exempt from many federal
taxes, as well as from the proposed US health care legislation's
requirements.
This is a definite possibility (ianal either) where the moral ethical criteria can be met. As it generally is for internal transactions between departments in a corporation. But I think the IRS would be quick to come down on anything that looked like a merely expedient means to mask tax evasion.
In which country do voters directly decide monetary policy? AFAIK, monetary policy is (almost without exception) determined by private banks that benefit from the creation of new money.
> I really do not understand how the electorate in a large number of countries let the financial contagion happen, but at least the voters will learn about the negative consequences of complacency.
1) The electorate is educated by government schools (and knows little of monetary policy)
2) What motivation do they have to learn as they when they have no say in it?
3) Whatever happens will be judged by the media to be solvable via more government intervention i.e. solvable by politicians purchased by the banks.
I disagree. In order to avoid confusion I propose to follow some
common terminology:
Counterfeiting: The criminal practice of debasing the currency or
creating fraudulent money.
Publicly-Owned Money Expansion: at the knowledge and consent of
citizens, the government debases the currency as a matter of policy
for a revenue stream other than taxation, spent on legitimate
government
services.
Privately-Owned Money Expansion: without the knowledge and consent
of citizens, private bankers transform receipt money into fractional
money,
and the practice is regarded as legal by the government.
Revenue is counted as ‘profit’ by private bankers.
What a fair and sound money system really requires is scarcity
integrity.
All systems devised so far can be debased. However, debasement is not
necessarily an intrinsic property of any of them. A fair public money
system must at the very minimum be either publicly-owned fractional,
where there is legislative control over reserve requirements, or fully-
backed,
in which case ownership of the unbacked fraction is irrelevant (there
is
no unbacked fraction).
Fiat currency is unsound, but not in the sense that it will inevitably
lead to
total loss of value. Loss of value occurs at the discretion of whoever
can
effectively manipulate the reserve requirement via scarcity-unit
creation
and ownership, unilaterally and clandestinely, concealed from other
holders
(i.e. without their consent).
Privately-owned fractional banking is not a fair system because, in
short,
it facilitates private confiscation of public property, represented by
the
public money. However, it is not necessarily unsound in the sense that
it is
unstable or will always collapse.
The math analysis to support such thesis has been developed by
Vladimir Z. Nuri
on his paper, Fractional Reserve Banking as Economic Parasitism.
I come across it some years ago. I am still studying it. Maybe you
should too.
On Feb 17, 12:35�pm, Kyle Lahnakoski <k...@arcavia.com> wrote:There is no problem with current world currencies.
I disagree. In order to avoid confusion I propose to follow some common terminology: Counterfeiting: The criminal practice of debasing the currency or creating fraudulent money. Publicly-Owned Money Expansion: at the knowledge and consent of citizens, the government debases the currency as a matter of policy for a revenue stream other than taxation, spent on legitimate government services. Privately-Owned Money Expansion: without the knowledge and consent of citizens, private bankers transform receipt money into fractional money, and the practice is regarded as legal by the government. Revenue is counted as �profit� by private bankers. What a fair and sound money system really requires is scarcity integrity. All systems devised so far can be debased. However, debasement is not necessarily an intrinsic property of any of them. A fair public money system must at the very minimum be either publicly-owned fractional, where there is legislative control over reserve requirements, or fully- backed, in which case ownership of the unbacked fraction is irrelevant (there is no unbacked fraction). Fiat currency is unsound, but not in the sense that it will inevitably lead to total loss of value. Loss of value occurs at the discretion of whoever can effectively manipulate the reserve requirement via scarcity-unit creation and ownership, unilaterally and clandestinely, concealed from other holders (i.e. without their consent). Privately-owned fractional banking is not a fair system because, in short, it facilitates private confiscation of public property, represented by the public money. However, it is not necessarily unsound in the sense that it is unstable or will always collapse. The math analysis to support such thesis has been developed by Vladimir Z. Nuri on his paper, Fractional Reserve Banking as Economic Parasitism. I come across it some years ago. I am still studying it. Maybe you should too.
I am not disagreeing with your points here. My point is that an alternative currency will not solve these problems. Even if you get a government to support a new currency, the rules regarding Privately-Owned Money Expansion will be applied to the new currency and the same problems will persist.
My point was that the electorate can decide the banking rules. The electorate has allowed the government to allow private money expansion. The electorate change their mind, and demand there be rules regarding private money expansion, or even ban the practice outright. The Silent Generation did a good job at reigning in government corruption and banking parasitism because they saw what happened when the citizens did not hold their government to account.
Maybe my point is too subtle: To be blunt: Law and the Constitution, are only guiding principals and can be changed for better or for worse. I am not advocating such action, I am merely pointing out the necessity of voter involvement to enact or prevent change.
michelangelo wrote:
On Feb 17, 12:35 pm, Kyle Lahnakoski <k...@arcavia.com> wrote:There is no problem with current world currencies.
I disagree. In order to avoid confusion I propose to follow some common terminology: Counterfeiting: The criminal practice of debasing the currency or creating fraudulent money. Publicly-Owned Money Expansion: at the knowledge and consent of citizens, the government debases the currency as a matter of policy for a revenue stream other than taxation, spent on legitimate government services. Privately-Owned Money Expansion: without the knowledge and consent of citizens, private bankers transform receipt money into fractional money, and the practice is regarded as legal by the government. Revenue is counted as ‘profit’ by private bankers. What a fair and sound money system really requires is scarcity integrity. All systems devised so far can be debased. However, debasement is not necessarily an intrinsic property of any of them. A fair public money system must at the very minimum be either publicly-owned fractional, where there is legislative control over reserve requirements, or fully- backed, in which case ownership of the unbacked fraction is irrelevant (there is no unbacked fraction). Fiat currency is unsound, but not in the sense that it will inevitably lead to total loss of value. Loss of value occurs at the discretion of whoever can effectively manipulate the reserve requirement via scarcity-unit creation and ownership, unilaterally and clandestinely, concealed from other holders (i.e. without their consent). Privately-owned fractional banking is not a fair system because, in short, it facilitates private confiscation of public property, represented by the public money. However, it is not necessarily unsound in the sense that it is unstable or will always collapse. The math analysis to support such thesis has been developed by Vladimir Z. Nuri on his paper, Fractional Reserve Banking as Economic Parasitism. I come across it some years ago. I am still studying it. Maybe you should too.
--
This is why a precious metal is required - the government/banks can't print it. And the only way fractional reserve credit expansion can "work" is if the banks can effectively print.
> My point was that the electorate can decide the banking rules.
I understand your perspective. My point is that representational democracy is a fraud and the only people the representatives represent are themselves. In economics, this is known as the principal/agent problem. A direct democracy can solve this problem and until we have a direct democracy, the voters don't really decide anything.
http://www.google.com/search?q=%2Btaxation+%22trade+credit%22
but that's the body of case law your lawyers will be looking at for
guidance, I presume.
On Mon, Feb 22, 2010 at 19:03, Steven Talcott Smith