Theme: Institution

NO. NUMERIC ACCOUNTS DO NOT CONTAIN MONEY

(everything you need to know about money but were too ignorant to ask)

All credit-money consists entirely of promises – not reserves not assets – just promises. Promises are made using presumptions about the future. If the future that those promises were envisioned in, disappears, then those promises CANNOT be fulfilled. People with ‘accounts’ never had ‘money’ – they had ‘promises of possible money’. All credit money consists of nothing but promises of possible money. period. end of story.

So when some vast number of promise-money disappears, that means that the possible future disappeared. The money never existed. The money never had the opportunity to exist. The promises cannot be fulfilled.

This is why the entire economic system is confusing to ordinary people. The only money you have is the money that you could use if the government disappeared tomorrow for good. Everything else is just a stock certificate for an investment in a company that is fully leveraged, and has only a little cash, but can issue new stock certificates at will, diluting the value of each previous stock certificate.

The US government is a highly leveraged corporation and each dollar bill is a stock certificate, and each dollar of credit money is a promise of future stock certificates if you can fulfill you promises.

THIS DESCRIBES THE TRUE (SCIENTIFIC) CONTENT OF WHAT YOU CONSIDER MONEY.

1 – Money-Proper (commodity money).

2 – Note-Money (notes issued against 100% reserve deposits)

3 – Fractional-Reserve-Money (notes issued against x% reserve deposits) (promises)

4 – Credit Money (stock certificates issued against promises of future money) (promises)

5 – Fiat Money (Stock certificates in the tax returns on a state, as a monopoly, and enforced by law.) (more reliable promises)

6 – Debt Instruments (too many to list – all sorts of debt) (less reliable promises)

7 – Debt Default (insurance) Instruments (too many to list) (insurance against failed promises)

8 – Shares of common stock with mandatory dividends (gambling on performance) (somewhat reliable promises)

9 – Shares of Common Stock, in public companies (gambling on gullibility of other gamblers). (totally unreliable promises)

Money is money. Everything else is just a promise. Promises are only as good as the people promising them’s ability to predict the future.

And we know how good we are at predicting the future: foolishly optimistic.

The western miracle is largely the result of conquering and selling off the American continent, the benefits of burning off stored petroleum products, and a three thousand five hundred years of evolving the technology we call accounting, empirical science, and the natural common law of contract.

You are, we are, I am, heavily invested in a highly leveraged corporation under the assumption that we can continue to out-invent competing nations, in the next generation as successfully as we have out-invented them in the past 500 years, since we invented the technology of empiricism, and conquered the American continent.

The entire ‘progressive’ program hinges on the assumption that we can continue to *invent* marginal differences in technology faster than competitors do – despite the fact that we no longer hold a monopoly on the technology that makes rapid invention possible: accounting, empiricism, and empirical contract law.

So for example, just as Apple is making almost all its money on an iPhone, but if the iPhone era ends, the apple stock (and income) will crash; we Americans and Europeans, are heavily invested in stock certificates and promises of future stock certificates if we are able to continue to invent new technologies (in all their forms) faster than our competitors who now possess our same technologies.

This is the basic argument conservatives have been unable to make over the past century. And you (we) were told that the source of our prosperity was democracy. This is false. Democracy is a useful means of distributing the windfall profits from 3500 years of western evolution of the technology of empiricism (truth telling) and the conquest and sale of a continent. We call that the cultural equivalent of winning the lottery. And the American system of government and our entire economy, are based on the likelihood that we will win another lottery. Despite the fact that we have only won three of them in 3500 years:

1) the combination of wheel, horse, and bronze enabled us to conquer Eurasia, because of the technology of mobility and armor.

2) the Greek invention of truth, reason, and proto-science combined with the discovery of local silver mines.

3) the English invention of empiricism and science, combined with the discovery of a continent of primitives.

That’s it. It’s not more complicated than that.

Progressives are always wrong. Conservatives are always incompetent at communication. Together it’s been a catastrophe.

Curt Doolittle

The Propertarian Institute

Kiev, Ukraine.