From: "John Zube" To: "Thomas H. Greco, Jr." References: <01f701c234f3$9f144c00$d650c043@v4dq1> Subject: 020827 Thomas H. Greco Re: WIR & FB writing collaboration Date: Tue, 27 Aug 2002 20:05:00 +1000 MIME-Version: 1.0 Content-Type: multipart/mixed; boundary="----=_NextPart_000_0004_01C24E05.061A8700" X-Priority: 3 X-MSMail-Priority: Normal X-Mailer: Microsoft Outlook Express 6.00.2600.0000 X-MimeOLE: Produced By Microsoft MimeOLE V6.00.2600.0000 This is a multi-part message in MIME format. ------=_NextPart_000_0004_01C24E05.061A8700 Content-Type: text/plain; charset="iso-8859-1" Content-Transfer-Encoding: 7bit Dear Thomas, sorry, but I seem to have only some German writings on WIR. My father, according to himself one of the main initiators of WIR, was edged out of the project, mainly, according to him, by Werner Zimmerman. For this he had, probably, largely himself to blame for he had a demoneering nature and always pretended that his ideas and his knowledge was greater and more relevant than that of others. Perhaps, unconsciously or unintentionally, in my own wordings, the same impression may come across to others. I am not sufficiently polished in my utterances and behavior by enough social intercourse with like-interested other people, with other ideas and opinions. By now I am probably too old and too busy with other projects, more important to me, to change. Sorry also for my long silence. I was busy getting another batch of PEACE PLANS ready, doing some searches, printing out, adding to my list for the CD-ROM project etc. Numerous other projects remain neglected. My second son, also a Thomas, often asks me whether I have finally managed to clean up one square meter, the first one, in my house! I always seem to have another project that is more accute and interesting to me. The verandah remains unfinished. The roof still leaks sometimes. The ditch for a new water pipe remains to be completely dug, etc., etc. There are also some health problems and I have to wait ca. 2 months even for the mere tests to be done. But what long needed doing was the transcription of some accumulated notes on free banking, which I offer now, with still all too many flaws, as work in progress, in the attachment, in RTF. It comes to ca. 20 pages. Now, I could keep working on expanding this compilation for weeks, months, even years, without being able to reach, on my own, a satisfactory completion, by my own standards. Thus I offer this merely as an initial contribution towards possible collaboration between us, rather than continuing my long silence. More work will be done on this rather soon. but I cannot promise that I will manage another batch of 10 to 20 pages every week, regularly. An extension of these notes to about at least tenfold this volume would be likely, after a prolonged effort, including material from the sources I mentioned in my introduction. Whether it is suitable to be added to and corrected by you, for your purposes, has to be judged by you. For my own purposes alphabetized notes are helpful and will be extended. You may freely use it as raw material, as you like. I have not even listed my two peace books as possible sources for further entries of this kind. The earlier one, in its German version, is likely to finally appear in abbreviated and edited form through 2 German and a US classical liberals. Only 40 years late! I rather place my bets on finally offering it complete on a website and on CD-ROM, together with much else. But I do not expect much if anything in effects from just another one or two books, even if they are my own. Also, books that are published only with minimum investment and only upon demand, do not get the benefit of extensive and expensive advertising by a publisher who has invested much and wants to cover at least his considerable expenses, including the advertising costs. But the conventional publishing of such books in considerable impressions is a rather risky enterprise. Thus on-demand publishing is much more sensible. I renounced any royalty claims but reserved the right to publish the book complete, as I already do, in PP 399-401 on microfiche and also via e-mail, floppy, website and on CD. All relevant literature should be finally made cheaply and permanently accessible, together with all discussions of it. For now just the attachment in RTF. The best wish of all: PIOT, John ========================================================================= ----- Original Message ----- From: "Thomas H. Greco, Jr." To: "Zube John" Sent: Saturday, July 27, 2002 8:27 AM Subject: WIR > John, > When I visited the Schumacher Society a few weeks ago, I copied an excellent > report on WIR written in 1971 by Erick Hansch. > Searching you index, I do not find it listed, nor anything else in English. > I'm surprised you did not acquire a copy of it when you visited there. Do > you have anything else on it in English? > > WIR, despite its shortcomings and limitations, still looks like the best > working prototype of a credit clearing system. I'd like to know how much it > has had to change in recent yours in order to adapt to changing conditions > and to government demands. > > When I am able to get some help, I'll have this paper typed up and I hope to > post it on my new website. > > Tom > ------=_NextPart_000_0004_01C24E05.061A8700 Content-Type: application/msword; name="FBNotesAug02SortedRTF.rtf" Content-Transfer-Encoding: quoted-printable Content-Disposition: attachment; filename="FBNotesAug02SortedRTF.rtf" {\rtf1\ansi\ansicpg1252\uc1 = \deff0\deflang1033\deflangfe1033{\fonttbl{\f0\froman\fcharset0\fprq2{\*\p= anose 02020603050405020304}Times New = Roman;}{\f123\froman\fcharset238\fprq2 Times New Roman = CE;}{\f124\froman\fcharset204\fprq2 Times New Roman Cyr;} {\f126\froman\fcharset161\fprq2 Times New Roman = Greek;}{\f127\froman\fcharset162\fprq2 Times New Roman = Tur;}{\f128\froman\fcharset186\fprq2 Times New Roman = Baltic;}}{\colortbl;\red0\green0\blue0;\red0\green0\blue255;\red0\green25= 5\blue255; \red0\green255\blue0;\red255\green0\blue255;\red255\green0\blue0;\red255\= green255\blue0;\red255\green255\blue255;\red0\green0\blue128;\red0\green1= 28\blue128;\red0\green128\blue0;\red128\green0\blue128;\red128\green0\blu= e0;\red128\green128\blue0; \red128\green128\blue128;\red192\green192\blue192;}{\stylesheet{\nowidctl= par\widctlpar\adjustright \fs20\lang2057\cgrid \snext0 Normal;}{\*\cs10 = \additive Default Paragraph Font;}{\*\cs15 \additive \ul\cf2 \sbasedon10 = Hyperlink;}}{\info {\title FBNotesAug02Sorted}{\author John Zube}{\operator John = Zube}{\creatim\yr2002\mo8\dy27\hr19\min32}{\revtim\yr2002\mo8\dy27\hr19\m= in32}{\version2}{\edmins1}{\nofpages22}{\nofwords17843}{\nofchars101706}{= \*\company Libertarian Microfiche Publ.} {\nofcharsws124902}{\vern71}}\paperw11906\paperh16838\margl397\margr397\m= argt397\margb397 = \widowctrl\ftnbj\aenddoc\makebackup\formshade\viewkind4\viewscale97\viewz= k2\pgbrdrhead\pgbrdrfoot \fet0\sectd = \linex0\headery1440\footery1440\colsx709\sectdefaultcl=20 {\*\pnseclvl1\pnucrm\pnstart1\pnindent720\pnhang{\pntxta = .}}{\*\pnseclvl2\pnucltr\pnstart1\pnindent720\pnhang{\pntxta = .}}{\*\pnseclvl3\pndec\pnstart1\pnindent720\pnhang{\pntxta = .}}{\*\pnseclvl4\pnlcltr\pnstart1\pnindent720\pnhang{\pntxta = )}}{\*\pnseclvl5 \pndec\pnstart1\pnindent720\pnhang{\pntxtb (}{\pntxta = )}}{\*\pnseclvl6\pnlcltr\pnstart1\pnindent720\pnhang{\pntxtb (}{\pntxta = )}}{\*\pnseclvl7\pnlcrm\pnstart1\pnindent720\pnhang{\pntxtb (}{\pntxta = )}}{\*\pnseclvl8\pnlcltr\pnstart1\pnindent720\pnhang {\pntxtb (}{\pntxta = )}}{\*\pnseclvl9\pnlcrm\pnstart1\pnindent720\pnhang{\pntxtb (}{\pntxta = )}}\pard\plain \qj\nowidctlpar\widctlpar\adjustright = \fs20\lang2057\cgrid {\fs24\lang1033 FBNotesAug02Sorted \par=20 \par }{\fs24\lang1033 The following are some notes lately = accumulated}{\fs24\lang1033 ,}{\fs24\lang1033 over a = period}{\fs24\lang1033 ,}{\fs24\lang1033 and here transcribed, with = some re-writing and additions. \par They are later to be integrated with previous alphabetized notes on = free banking. \par=20 \par The whole topic is too large for a systematized treatment in a = single volume and such a volume would either remain largely unread or = lead to more misunderstandings than comprehension. \par=20 \par It can and should be broken up into manageable alphabetized = segments with cross references.=20 \par A number of handbooks on banking have attempted to do so - but, = most of them, without including the ideas, terms, practices and = experiences of free banking. \par=20 \par The final aim is an alphabetized encyclopedia on free banking, a = comprehensive bibliography, abstracts and rev iew collection, with many different contributions on the same subject by = various contributors and based on full and permanent publishing of all = relevant texts, cheaply and permanently, in an alternative medium. \par=20 \par Open entry for all kinds of well reasoned co ntributions on any related subject is one of the conditions to attain = this publishing aim. Microfiche, floppy disks and, more so, CD-ROMs, = DVDs & the upcoming Blue Light CDs, with 27 Gbs each side, have more = than enough space for this, even if websides ha ve not. - J.Z., 25.8.02. \par=20 \par For collaboration with Thomas Greco it is to be considered whether = multiple files are to be kept: \par 1. His version of explaining terms, \par 2. My own version of FB terms \par 3. One version we both can agree upon \par 4. An open input version in which all such explanations or comments = are included, from anyone. \par On the other hand and at least initially, not separation might be = made or intended. - J.Z., 26.8.02. \par=20 \par The length of several entries shows that for each term perhaps at = least three different explanations should be given: A very short one, a = more detailed one and a lengthly explanation. Also: Sufficient cross = references should be added. \par=20 \par To be included or extracted for this compilation:=20 \par=20 \par 1) Comments added in all PP cover sheets. \par 2) Comments made in letters and articles in digitized FB files on = disks. \par 3) Comments in Beckerath's books, drafts and correspondence. \par 4) Comments in manila folders on fb subjects. \par 5) Relevant entries from the Slogans for Liberty files. \par 6) Translation of a previous German A-Z compilation \par 7) Previous English A-Z compilations on free banking. \par=20 \par These notes are so far quite insufficiently proof-read and edited, = sorted out, cross-referenced and not indexed at all. No attempt has been = made to eliminate repetitions and flawed terms. \par=20 \par = =3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D= =3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D= =3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D= =3D=3D=3D=3D=3D=3D \par }\pard \nowidctlpar\widctlpar\adjustright { \par }\pard \qj\sb120\sa120\nowidctlpar\widctlpar\adjustright = {\fs24\lang1033 ANONYMOUS MONEY, CENTRAL BANK MONEY, PUBLICITY ON = ISSUERS & THEIR READINESS TO ACCEPT FOUNDATION, LOCAL MONEY VS. = CENTRALIZED OR WORLD MONEY: If I had a choice, I would not readily trust and accept any money of which the issuers or acceptors remain = anonymous or remote (like money of a central bank) and which relies upon = compulsory acceptance and compulsory value, in combination with a = monopoly for its issue. Such monies deserve, in s tead, extreme distrust and refusal to accept them whenever possible and = other and better payment arrangements can be achieved. Central banks do = not provide the goods and services consumers need. So why should they be = entitled to issue claims to them? Any=20 e lectronic currency has purchasing power towards those of the local = suppliers who do accept them in payment or, for supplies from distant = places, only to the extent that the additional transport costs and = delays are considered to be acceptable. But for the =20 required supplies from local suppliers it would be much more sensible to = accept a local currency issued by them. For these neither a central bank = currency nor an electronic world currency is required. The currency = issues of distant issuers, which only the y and their distant debtors have to accept, both of them unknown to me, = have some value to me only if I can exchange them, at an acceptable = rate, at a local money exchange bureau. They are not ready cash for me. = The real backers of any sound local currency =20 tokens are the local providers of goods and services, who have issued = these tokens. Their readiness to accept them would also be sufficiently = publicized. Acceptance in distant localities, by suppliers unknown to = me, would not be good enough for me for mos t purchases. What value have "tickets" to performances for me when = issuers, times of performances, their kinds and their locations are not = known to me or too far away from me? Who in the world or in a country = can rightly issue liquid claims to all the good s and services of a country or the world? The very concept is absurd. = What can I know about the soundness of the issues of the central bank of = a country or of the issues of a world bank or European Bank issuing = notes? Historical experience rather teaches t heir unsoundness, at least in the long run. But I can easily become = familiar with the soundness of the notes of a local shopping centre. - = J.Z., 17.6.01, 26.8.02. \par BILL DISCOUNT, SOUND COMMERCIAL BILLS VS. UNSOUND "FINANCIAL" = BILLS, REAL BILLS DOCTRINE, BANK ING PRINCIPLE, CIRCULATION CIRCLES, LEGAL & JURIDICAL "RIGHT" OF = CREDITORS TO DEMAND PAYMENT IN RARE METALS OR OTHER CASH: For a long = time the payment of sound commercial bills, was ultimately enforceable = in gold or silver coins, although, in most cases t h ey were rather settled by clearing or payment in bank notes for which = they had become the common basis for issues. Banknotes, under the real = bills doctrine or banking principle are nothing but cut-up sound = commercial bills, in standardized, easily recogni z able and convenient denominations, that can circulate easier than the = commercial bills themselves (which are largely acceptable only among = merchants and bankers) and these small and even bills are finally used = to redeem them. For all too long it was ignor e d that the right of creditors to have commercial bills redeemed in gold = is quite unnecessary to preserve their value and that of the bank notes = issued upon them. Their redeemability in banknotes and the short term = debts that are involved, are quite suffic i ent to assure a corresponding reflux of banknotes from the short term = debtors of the commercial bills. The bills were usually issued by = wholesalers to employers, their suppliers, in payment for goods already = produced and sold to them and on the road to th e retailers. The employers, paid by the wholesalers with commercial = bills, got these bills discounted into banknotes at a bank of issue. = With these notes they paid their workers, suppliers and profits and then = the notes streamed to the shops for goods and=20 s ervices and from them to their suppliers, largely the wholesalers, who = redeemed their bills with the notes thus received. The whole is easier = to describe and comprehend graphically, than in words. I have done that = in PEACE PLANS 41. Still better charts of =20 this payment circle would be welcomed by me. The right of creditors to = demand payment in rare metals or rare legal tender paper money has done = much more harm than good and has only secured recurrent payment crises. = That right should be confined to quite o p tional contracts and even then, seeing that dealings in futures and = their risks are involved, withdrawal premiums for the withdrawal from = such obligations should also be agreed upon. Only then will the risk of = such claims be reduced to acceptable proporti o ns. It this risk remains quite unrestricted by withdrawal premiums and = competition from suppliers of alternative exchange media and value = standards, then it can lead to the rapid and prolonged collapse of the = non-cash transactions, all dependent upon a mi n imum but quite regular and always available supply of cash. If cash = supply sinks below this minimum, then numerous non-cash transactions are = no longer possible and lead thus to a much larger demand for cash and = this precisely when cash is already in short =20 supply. Then some cash can only be attained by postponing the payment of = bills and by dismissing workers and by ruthlessly collecting debts, = payable in cash, even if that leads to the bankruptcy of the debtors and = to emergency sales prices. Only the quite =20 competitive supply of cash, in all its possible and desired forms, can = prevent and end such money shortages, which, by the way, also lead to a = collapse of the prices of capital securities because fewer shares etc. = are bought and enterprises that can no lo n ger easily sell their goods and services are reduced in their market = values and cannot pay dividends or interest or only much less. Thus the = right to demand rare metals or other exclusive currency from a debtor = must be replaced, in the general economy (ap a rt from some payment communities which religiously adhere to the cash = payment obligation voluntarily, at their own risk and expense), by the = right to demand clearing, in stated value standards, but accepting any = kind of usable exchange medium or clearing=20 c ertificate - but only at its market rated value expressed in the agreed = upon value standard. To my knowledge Ulrich von Beckerath, 1882 - 1969, = was the only economist and writer who clearly saw and described this = problem and its solution. If you know of o thers and their writings, please let me know about them. - J.Z., = 27.9.02.=20 \par CANCELLATION OF SHOP CURRENCY OR OTHER CURRENCIES THAT HAVE = RETURNED TO THE ISSUERS: Sound money would rather oscillate than = circulate permanently. (Rare metal coins and some cheap m etal money substitutes excepted, for purpose of small change.) It would = be issued, frequently or constantly, as required, and frequently to = constantly return in payment to the issuer. As turnover-credit money, = not intended to be hoarded but to be spent, i n its reflux, it might have only a limited "circulation" or oscillation = period. As such, upon return it should be cancelled, rather than issued = again, for the still remaining stretch of that period. To replace it by = newly issued other paper currency is eas y and cheap enough. This would also facilitate the control of the reflux = of each series and quantity of such money that is issued. To prevent = forgery (a risk greatly reduced for oscillating money with a limited = circulation period and circulation are and ac c eptance foundation) these competing notes, too, would be consecutively = numbered. The return of all numbers of a series could then be easily = checked - and forged notes rapidly discovered. Whatever current issue = and reflux details the issuer may want to pub l icize, also whatever special advertisement, he could include on each new = batch of notes issued. The frequent renewal of notes would also be more = hygienic than notes that have been in the hands of hundreds or thousands = of people. And their texts would be m ore legible than that of much handled notes. For savings purposes notes = with a limited circulation period could be exchanged into wanted = securities. - J.Z., 27.8.02. \par CENTRAL BANKING & COMMUNISM, EAST & WEST: Totalitarian communism in = East and West, go on a nd on, at least in the following forms: the monetary despotism of = central banking (See point 5 of the platform of the Communist = Manifesto), territorialism, taxation, welfare statism, collective = decision-making on war and peace, armament and disarmament, i n ternational treaties, economic policies, migration and trade, labor, = housing, roads, transport, buildings, libraries, postal services, = policing, research and education. Collectivist mass murder preparations = are also very much "scientifically advanced." T h eir targets: the masses of the people, rather than their Big Brothers = and "statesmen". (By comparison the mass murder camps of the Nazi = regime were primitive.) Dozens to hundreds of millions of people can now = be murdered by "great leaders" and button pus h ers in minutes to hours, largely in automated ways. And such powers are = hardly questioned at all . To that extent communism hasn't fallen but = gained an almost universal victory over public opinion, public actions = and public institutions. Naturally, all th e problems inevitably associated with these communistic institutions go = on and on. - J.Z., 26.8.91, 24.8.02. \par CENTRAL BANKING & LEGAL TENDER, FORCED CURRENCY, MONEY MONOPOLY: By = legalizing the monopoly and coercive powers of the central bank we have = given th e government a blank cheque drawn on our earnings and our property, in = form of its legal tender (compulsory acceptance and compulsory value) = paper money or requisitioning certificates or forced currency. It = amounts to a camouflaged tribute system because=20 it is not recognized as such by the majority of the population, = persuaded that the central bank would be for the common good.=20 \par CENTRAL BANKING DECENTRALIZATION: Somewhat decentralized central = banking is still central banking and not free banking. - J.Z., 26 .8.91. - Classical instance: The Federal Reserve System of the U.S. - = Some have misread the FED so far that they think it is a private & = capitalistic bank. Some still remain unaware of its legal tender and of = its monopoly power, although they have handled =20 its money often enough and have experienced the result of its actions. = The Federal Reserve Act of 1913 and all its amendments, is so badly = publicized that I have come across a copy of it only once, in the hands = of a Social Credit advocate. The issue monop oly clause of it was so well hidden that I could not find it in a hurry. = That may have been intentional or the result of the usual bureaucratic = bungling even in drafting legislation. - J.Z., 26.8.02. \par CENTRAL BANKING, COMMUNISM, VOLUNTARISM, PANARCHISM, MONE TARY FREEDOM: The communist central banking system, as well as the = communist system as a whole, like any other system or belief-construct, = should be confined to volunteers only and that requires exterritorial = autonomy or experimental freedom for all commu nities. - J.Z., 23.9.99, 24.8.02. \par CENTRAL BANKING, INFLATION, PAPER MONEY, RESERVE BANK OF AUSTRALIA, = AUSTRALIAN DOLLAR AGAINST US DOLLAR: How much longer will it take "our" = official "guardian" of "our" currency to reduce the value of the A $ to = 1 cents in=20 U.S. currency? It has already brought the value of the Australian dollar = down to 47 US cents. And that comparison does not even take into account = how much the US $ has been depreciated in the meantime, by the same = method and kind of institution. Against t he former value of the US $ the A $ may already be down to 1 US cent! - = J.Z,, 1/10/01, 27.8.02. \par CENTRAL BANKING, INFLATIONS & PRICE DEVELOPMENTS: Central banks are = destroyers of the values of their currencies. Just compare the price = history. - J.Z., 31.3.02. \par CENTRAL BANKING, MONEY DEPRECIATION, "GUARDIANS" OF THE CURRENCY: = Central banks are not "guarding" their nationalized paper money currency = against depreciation but, thanks to their monopoly and legal tender = coercive power, they are systematically and reg ularly depreciating them - while suppressing any competition against = their misrule and abuses. - J.Z., 28.4.02. \par CENTRAL BANKS & COMMUNISM, CENTRAL COMMITTEES OF DIRIGISM OR THE = CENTRALLY PLANNED & MISMANAGED ECONOMY: Economically, the central banks = are the worst central committees of the communist movement. - J.Z., = 5.8.91. \par CENTRAL BANKS AS "GUARDIANS" OF GOVERNMENTAL PAPER CURRENCIES: The = governments' central banks are reducing the value of their paper = currencies almost all the time (at different rates), al though they are supposed to guard their currencies against depreciation. = - J.Z., 20.12.01. - As usual, governments achieve the opposite of what = they aimed to achieve by their legislation, "measures" and "policies". = In addition, central banking has achieve d and maintained large degrees of involuntary unemployment over long = periods and the persistence of some involuntary unemployment even during = its "boom" periods. It has made all economic crises worse. It has also = prevented the ending and prevention of depr e ssions, deflations and inflations by the self-help methods of monetary = freedom. Regarding financial freedom and at least in countries like = Germany, it has also outlawed value-preserving clauses or made them = conditional upon permissions granted by the cent r al bank, which are almost never granted. However, the customary, = traditional or legislated exclusive currency condition of metallic = currencies, and of metallic redemption currencies and lack of clearing = knowledge, techniques and facilities, had also cause d frequent and persistent deflations before central banking arose to its = present dominant position. - J.Z., 26.8.02. \par CENTRAL BANKS, UNEMPLOYMENT, SALES DIFFICULTIES, DEPRESSIONS: The = central banks are so useless that they cannot even make use of all = willing and available labor and skills, of all the services and goods offered = for sale, of all the machines, workshops and offices available for = productive efforts, not even for 8 hours a day, far less for 24 hours a = day. - Instead, in their helplessness, ignora n ce and prejudices, the juggle with interest rates, play with selling or = buying securities and offer promises, while almost continuously, apart = from their credit restrictions, depreciating their paper money currency. = In the absence of free market rating fo r their paper money against a sound value standard, of well run tax = foundation for their cash and of and optional acceptance and of = competing internal currencies, they do not know how much more or less to = issue of their forced currency and where and when t h ey ought to do so. - Nor are they able and willing to systematically = study the alternatives to their own rule, although, surprisingly, some = of their employees have managed to publish some papers on free banking = in some of their periodicals. So, at least , not all of them do systematically suppress all freedom of expression = and information in this sphere. But under the present conditions of = monetary immaturity, from top to bottom, they do not have to do so, = either, to maintain themselves in power. - Howev er, one can also charge most opponents central banking with having = insufficiently studied the alternatives to it. - J.Z., 22.4.01, = 24.8.02.=20 \par CENTRAL BANKS: Central banks for communists and other central bank = adherents only: They deserve to get what they want, in self-inflicted = punishment. - J.Z., 27.5.01, 26.8.02. \par CLEARING & COVER, LIQUIDITY VES. SECURITIES, CASH VS. CAPITAL: To = the extent that any kind of money is a clearing medium (Actually any = kind of money is basically a clearing medium, a counting toke n, whether its material is cheap, expensive or electronic, for a = multilateral and anonymous and automated clearing process.) it does not = need a "cover" at all. It either represents a debt or a credit and all = of these cancel each other out, at least over a =20 period. However, instantly or soon clearable debts and credits should be = distinguished from those settled only over medium to long term periods. = For instantly or soon clearable debts and credits money tokens and = accounts are suitable. For medium to long t e rm debts and credits capital securities are the suitable issues. In any = somewhat free economy some cash exchange media (or non-cash payment = accounts) are all the time turned into capital securities or capital = securities into cash or bank accounts, but onl y to a limited extent, one voluntarily determined by savers and = investors. Capital securities are not suitable "covers" for cash nor is = cash a suitable cover for securities. Most cash is needed to buy goods = and services, not capital securities and capital=20 s ecurities do represent real productive capital & future earnings = opportunities and, as such, do not need a cash cover but merely some = cash operating funds. Their main purpose is not to represent cash but to = earn cash by the production of wanted goods or s e rvices. The fact that most of the time sound capital securities can be = relatively easily turned into cash does not make them equal to cash. = Sometimes, for instance, they are hard to sell or only at a loss. With = sound cash it is different in normal times,=20 o nly emergency situations excepted, when real goods and services are = often preferred to cash. Both are valuable in their spheres, promoting = the transfer of values, but that does not make them identical or = sufficiently interchangeable for all purposes. The=20 m ain purpose of cash, or corresponding liquid bank accounts, is to pay = for daily living expenditures and frequently occurring minor debts. Try = to pay for them with shares, bonds, treasury notes or mortgage letters! = In a perfect clearing system we would not =20 need any physical or electronic money tokens at all. All debts and = credits could be cancelled without them. Only some suitable value = standards would have to be agreed upon by the participants. Bad debts = would have to be born as losses by some - and unearn ed gains by others - or would be covered by insurance premiums that had = been paid by the traders. - J.Z., 13.3.02, 24.8.02. \par COMMUNISM, COLLECTIVISM, MONETARY DESPOTISM, CENTRAL BANKING, STATE = SOCIALISM, RUSSIA & THE "FREE WORLD": The institutions and condit ions of Russia as well as those of the supposedly free Western world = will remain largely collectivistic and communistic as long as the = coercive and monopolistic central banking system and its monetary = despotism are upheld. - J.Z., 26.8.91. \par COMPUTERIZED MON EY SYSTEM: Can any electronic system, no matter how extensive, and how = often it is changed or reformed, but a full substitute for the = inventiveness, creativeness and ingenuity of free participants in a free = market for exchange media, value standards, foun d ations, clearing and credit methods etc. and the subjectivity of values = for different people or is it merely another instance of the "one size = or one utopia fits all" notion? Especially libertarians should be wary = of computerizing all their transactions,=20 m aking them thus more or less open to government snooping with the most = expensive and extensive decoding equipment, software and manpower = resource for that purpose. While in a quite free market computerization = would offer many advantages, under the rule of =20 territorial governments it also offers many disadvantages. Computers, = software and their networks are not and may never the panacea that many = people expect them to be. I find that indicated by the way libertarian = computer users neglected and still neglect e.g. their microfiche, floppy disk and CD-ROM publishing options for = libertarian literature. -J.Z., 27.8.02. \par CPI & INFLATION: The official CPI (Consumer Price Index) is = intentionally full of misleading figures, because the government has a = vested interest=20 in not letting it represent the real and much higher inflation rate. It = is obliged to pay CPI-indexed pensions and the real inflation rate would = make a bad impression high during elections. - It also has largely = pre-empted the market for other price-index =20 calculations. If they are compiled at all, by compilers not salaried or = subsidized by the government for their labors, then the government = largely sees to it that their divergent figures are not widely enough = publicized. The mass media do not want to offe n d the government, which is one of their biggest advertisers. I would = like to see a tabulation of the official CPI rises over the last few = decades, side by side with the real prices of some of the standard = consumer goods and services for the same periods.=20 N ot even the rise in the A $ note and coin circulation is regularly = announced, nor are the rising figures for both, for the last few = decades, put together and published. It is much easier to defraud people = who are kept in ignorance. - J.Z., 23.1.01, 27.8.0 2. \par CURRENCY REFORM OF THE GERMAN UNIFICATION: The one on one exchange = rate of one West Mark for one Ost Mark was absurdly wrong and false. The = wages thus paid in the same amounts in West Marks were no longer earned = by the sale of goods and services. Most pe ople in the West and in other countries refused to buy these goods and = services, as being of inferior quality, while the wage and salary = earners spent their West Marks, no earned by them but credited to them, = not for the goods and services of Eastern Germ a ny but large on those of Western Germany. With many less sales for their = own goods and services, many to most employees had to be dismissed. The = unemployment benefits working couples got, in West Marks, made them = economically much better off than they wer e before, when earning only East Marks and so they did not mind becoming = unemployed but rather went on an extended holiday through Europe. By = rights they should only have been paid with claims upon the goods and = services they had produced. That would have=20 b een a strong incentive to produce more and better goods and would have = largely solved the sales problem for their output. As it was, they were, = to a large extent, made unemployed and turned into welfare recipients. = To the extent that their wages were thus =20 subsidized and the production of largely unwanted goods and services = went on, the collapse of the enterprises they worked in was only = postponed. Their goods and services could only be sold at emergency = sales prices. Moreover, for decades, the work ethics=20 i n Eastern Germany was largely absent. For instance, bookshops that were = run in West Germany by 1-3 people, were run in East Germany by ca. = 12-20. Inefficiencies in other jobs was probably corresponding. After = all, all of production and exchange was bureau c ratically run. This change-over was not a change over from a state = socialist economy to a market economy but from one kind of state = socialist economy to another kind of state socialism, although not as = totalitarian. But in one respect statist centralism w a s even worsened: The former two central banks became one. The very = limited currency competition between East Mark and West Mark was = eliminated. The natural connection between earnings and labor was even = more separated than it was before. Those employees,=20 w ho continued "working", did no longer work to satisfy consumers among = their countrymen but to receive hand-outs from the West instead of = earned wages and salaries. Moreover, these additional payments in West = Marks, also legal tender monopoly money, as rec o mmended by the Communist Manifesto, led to an accelerated inflation of = the West Mark. Could their products and services still be sold to = anybody in the world market? Possibly to people in underdeveloped = countries, if claims upon these goods and services h a d been issued and utilized, at free-market exchange rates, to purchase = goods from underdeveloped countries, that could not afford the quality = goods of West Germany and did not have the purchasing power in their own = currency, at free -market rates, to buy=20 t hese goods in West Germany, not had they earned enough West Marks by = sales the West Germany, to pay for imports from West Germany in West = Marks. However, if they had been paid in East Marks, redeemable only in = East German goods and services, and this at a n exchange rate favorable to them, then they could have become customers = for East German goods and services, leading to corresponding exports. = These goods and services could have been sold - even if only at = emergency or low quality prices, instead of remai n ing largely unsold. And the earnings thus achieved should have been = shared as wages, salaries, returns upon capital and for suppliers. = Productivity and earned wages and salaries would have fast risen from = low levels to higher and higher levels. Capital co u ld have been obtained in sufficient quantities with e.g. gold clause = guaranties and tax and regulation exemptions, to utilize the numerous = productivity increase opportunities from a low level of output to a = standard high level of output. And employees wou l d have had to pull their socks up, with the elimination of most = bureaucratic featherbedding for them. Then they would soon have become = as productive as the employees in West Germany. The "currency reform", = as practised, prevented the natural adaption and=20 development of the East German economy. It amounted to State socialism, = the mixed economy type, of the Western model. - J.Z., 1990, 27.8.02. \par DEBTS & MONEY: Many people are strongly and at great length opposed = to "money based upon debt". But there are hardly any other foundations possible for most kinds of money, Even gold coins = or gold bullion owe much of their supposedly inherent values to the = debts that had to be paid in finding, extracting, melting, refining and = shaping them. Sound money is a convenient=20 m edium to pay debts with. Contrary to the opinions it cannot be = arbitrarily "created" out of thin air. Its issuer owes the holder = something, legally or contractually. Thus money based on debt is not a = curse or an abomination but rightful and a necessity. W h at must be conceded, though, that not all kinds of debts are suitable = for transformation into money. Obviously, bad debts are not. Secondly, = debts expressed in an unsuitable value standard are not. Debts that = impose too difficult payment conditions are no t , including really usurious interest charges, based upon an artificially = and legally created money shortage. Debts that can be repaid with = inflated money are not a sufficient foundation, nor are "asset = currencies" that are supposedly "covered" by capital=20 s ecurities. The kinds of debt certificates that are suitable to base = money issues upon, in combination with the inherently required "shop = foundation", i.e., readiness to accept notes for daily needed and wanted = consumer goods and services, is rather limite d , to e.g., commercial bills or equivalent short term promises to pay for = goods already produced and sold. The debt involved in tax foundation is = also a rather doubtful debt, one based on the imposition of tributes or = tax slavery. So there is some sense to =20 the objection - if only it is not generalized but sufficiently = specified. - How many transactions would take place if the debts = involved in them would always have to be paid immediately and in full in = some form of cash? And do not most forms of cash invo l ve in their issue and reflux and in their real cover, debt-relationships = and contracts? Long term debts are unsuitable as a cover for currency = but at most can provide note holders some guaranties in case a = note-issuing bank fails. Debts are required to ac h ieve the counter-part to issues, namely a sufficient reflux for the = issued currencies, a demand for them that reduces their quantity in = accordance with the reduced availability of goods and services, which = their payment for them has caused. A wide enough=20 a cceptance for an exchange medium can only be achieved if there are = sufficient suppliers under obligation to accept it, i.e., who owe its = acceptance and debtors are free to pay them their debts to them with the = exchange medium at par or close enough to par . To want to eliminate all debts from all money and clearing = transactions is as wrong and irrational as wanting to abolish all money = and all clearing as well as all credits, which always and obviously = involve their counterparts in debts. - J.Z., 12.12.90. \par E -GOLD & SHOP FOUNDATION AND SHOP CURRENCIES: To the extent that = redemption by the issuer is chosen, the value standard and the exchange = medium functions are unnecessarily mixed up. (With legal tender paper = money they are not only unnecessarily but injustl y and despotically mixed up.) The essential cover for all currencies is = not a stock of gold held somewhere and offered for redemption but their = convertibility into goods and services. Shops can offer this much more = directly and naturally for shop currencie s issued by them and their associations than can bankers who have only = gold stocks to offer for their notes. Moreover, no one else, unless he = has contracted this with the shops, can rightly issue claims upon their = goods and services. Shop currencies, issue d by shop associations, do automatically stream back shortly after their = issues, especially when they have only a predetermined and short term = validity. Gold certificates stream back only partly and occasionally, in = case of distrust or when metallic gold i s needed, i.e., relatively rarely. That led to wide-spread fraud. Shop = currency can also be denominated in gold weight value units - but = without offering gold weight units as redemption goods. Only the = redemption in goods and services would be promised tha t are priced in gold weight units and the issuers will always be obliged = to accept their notes at par, regardless of their rating in the general = market. That acceptance obligation for their own issues will keep their = issues at or close enough to par with t h eir nominal gold weight value - and would allow them to expand the issue = of their sound currencies in proportion to their ready for sale goods = and services, thus always keeping a balance between the goods and = services they offer and the volume of their cu r rency in circulation. Any small excess issues will lead to a temporary = discount in general circulation and wide-spread refusals to accept them, = while the issuers would still be obliged to accept notes at par which, = at the same time, they could only issue=20 a t a discount. Thus they would soon stop issues. They would also want to = preserve their business reputation and potential circulation sphere for = their notes, which they could lose if they were careless in their = issues. The reflux of their notes would be au t omatic, in payment for their the goods and services. They could issue = them in payment of the own wage bill and other debts and also in short = term loans, especially to factories and others suppliers, for their wage = and salary bills, in the discount of thei r short term debt certificates and also in payments to wholesalers for = restocking. See under BANKING PRINCIPLE & REAL BILLS DOCTRINE & SOUND = COMMERCIAL BILLS. All exclusive and forced currencies and gold = redemption notes ignore the natural cover, issue an d reflux options for currencies that are truly current for consumer = requirements, for their daily needs. The value preservation function of = notes can be secured otherwise, better and cheaper than by gold = redemption. Competitive notes can be kept at par wit h their nominal gold weight value, redeemed in gold-weight priced goods = and services, and used in payment of other debts so measured. Moreover, = on a free gold market they can be converted into metallic gold - from = the largest redemption fund of all, namely all the gold that is available on a free and world-wide gold market. = But at any time only a few people are likely to make use of this = opportunity, those who really need the metallic gold. - j.z., 9.12.00, = 25.8.02. \par EMPLOYERS & UNEMPLOYMENT: Under monetary d espotism and its mass unemployment caused by its deflations and = inflations, "employers" have, to a large extent, ceased to be employers = - with regard to the unemployed and under-employed and those paid = subsidies to remain out of the job market. But the be l ief exists that a special group of people exists that somehow, = miraculously, can provide employment to others. That these employers, in = their turn, depend largely of a sufficient supply of sound exchange = media is largely ignored. Animosities and coercion=20 are directed against the employers rather than against the real culprit: = the coercive and monopolistic central bank behind them, instituting and = maintaining a system of monetary despotism and also largely of financial = despotism. - J.Z., 24.8.02. \par EMPLOYMENT, JOBS, WORK, LABOR, FULL EMPLOYMENT, EMPLOYEES: The number of jobs is = not limited in a free economy, because the needs and desires of = consumers are practically unlimited. But under monetary despotism the = job numbers are limited by the effective, i.e., mon e tary demand for labor, goods and services, under that monopolistic and = coercive system, which can never work as well as a free market system = for money: monetary freedom. Under full monetary freedom, well enough = known and consistently practised, the number =20 of workers offering their services is easily exceeded by the monetary = demand for workers, which would not only lead to full employment but = also better paid employment, paid in sound currency. Then over-work will = become a problem rather than under-employme nt or unemployment. But freedom of contract can cope with that, too, = because unemployment is not to be feared by those who refuse to work = overtime for still higher earnings. - J.Z., 24.4.02, 27.8.02. \par EURO & CENTRAL BANKING: The Euro represents a still worse central = banking and monetary despotism system because it is still larger than = the various central banks it replaced. - J.Z., 3.4.02, 26.8.02.=20 \par FREE BANKING & "GOLD BUGS", GOLD CLEARING STANDARD VS. GOLD COVER = AND GOLD REDEMPTION STANDARD: Some see it only as an obligatory tie of all exchange media to metallic gold, as the = only option for supposedly free and honest money. Others see the = possibility that issues need merely be confined to the ready and = available cover of ready for sale consumer goods and ser v ices. Others want to over-extend the issue option to include the = monetization of all capital assets, including all capital securities, = perhaps out of the vague notions that they, too, represent "values" or = "money" in a free market or are, relatively easil y , most of the time, convertible into one or the other form of cash. = Tickets or claims to metallic gold are certainly not the only option but = they are, certainly, more liquid than are most shares and bonds, unless = the possession of gold and trade in it has =20 become legally criminalized or "regulated". Adherents of "the" gold = standard also manage, in most cases, the overlook the various forms = which it had taken in practices. Some classified 7 variations. Offhand I = can think only of the following: 1.) 100 % red e mption obligation in metallic gold. 2) Fractional redemption obligation = in metallic gold, made usually practicable because sufficient other = reflux arrangements were made, but exposed to the risk of "runs" in case = of distrust. 3.) Option notes, which postp o ned gold redemption for a period. 4.) Redemption only at a fluctuating = "gold price". (The Henry Meulen system, in which the paper pound is the = "real" value standard rather than a certain gold weight unit.) 5.) Mere = gold cover, complete, but without redemp t ion for the note holder. The hoarded gold becomes available only upon = liquidation of the bank of issue. 6.) A "gold standard" at which the = issuer merely accepts gold at a fixed rate for its currency, but is not = prepared to supply gold at this fixed rate.=20 7 .) A "gold standard" in which the cover consists merely in various = securities which do have a gold clause. 8.) A "gold standard" in which = the cover consists in "foreign exchange" which are fully or somewhat = redeemable in gold. 9.) It appears that some of=20 t he e-gold electronic currencies not offered on the Internet are merely = declaratory: They do not represent an accumulated metallic gold cover = but merely the promises of the issuers and the hopes and expectations of = the acceptors. 10.) Gold for clearing or=20 g old-for account gold standard. It does not promise redemption upon = demand by the issuer but merely convertibility, at the market rate of a = currency, in the free gold market, into gold, with the exchange media = concerned, in the interest of the issuers and=20 a cceptors, being kept at par or as close as possible to par, via a = sufficient other kind of "reflux" or "acceptance" or "debt" foundation. = There may be quite a number of other versions of "the"gold standard, = which might have to be added gradually by those =20 who think of them and want to add them. Any gold standard, whatever its = honesty and advantages or disadvantages, will work best only under free = choice of value standards. This kind of reduction of its power, from an = exclusive to an optional currency, will =20 limit the abuses that otherwise would tend to follow from its = realization as an exclusive and forced currency. Even gold is not good = and sufficient to be turned into an exclusive and forced currency. It = insufficiency becomes clear when one considers the s h eer volume and number of all the other goods and services that are to be = traded exclusively through the bottleneck channel of the availability, = for the exchangers, of corresponding quantities of gold, even when = neither side has any interest in acquiring a n y metallic gold. While as a redemption obligation for every transaction, = an exchange medium for all exchanges, the available gold is quite = insufficient, as a mere value standard, as determined by the rating of a = gold weight unit on a free market, it can, =20 without any redemption obligation by the issuer, and without being = depreciated, serve for an unlimited number of possible and wanted = exchanges, without leading to any "gold shortages" or "runs". This = gold-clearing or gold-for-accounting-only-standard" mak es, in practices, all the marketed gold in the world available for those = desiring to exchange their exchange media into gold. And it can lead to = the sound and continuous market rating of all currencies against a = weight unit of gold. - J.Z., 26.8.02.=20 \par FREE B ANKING, FREE EXCHANGE, FREE MARKETS, LAWS, CONSTITUTIONS, REGULATIONS, = CUSTOMS, TRADITIONS: The issue and reflux, acceptance and refusal, = discounting and discount rate (against sound alternative and optional = value standards), value-standard, foundation, c o ver and redemption of any competing private or cooperative currency = should neither be regulated by constitutions, laws, regulations, = government jurisdictions, pressure groups like unions or employer = associations, groups of debtors or creditors, customs or traditions but, rather, by free and voluntary contracts, i.e., = free-market relationships. - J.Z., 10.7.02, 24.8.02.=20 \par FREE BANKING, MONETARY FREEDOM & FINANCIAL FREEDOM: Unrestricted = competition & publicity is to be applied to exchange media and value = stand ards, clearing and credit and their institutions. - J.Z., 20.6.01. No = territorial government is to be granted any constitutional, legal, = juridical and administrative powers and privileges in this sphere any = longer, because all they amount to is monetary a nd financial despotism, with inevitable, large and persistent = catastrophical consequences. If you need any proof for this demand just = consider the history of governmental monetary and financial policies. - = J.Z., 27.8.02. \par FREE MARKET & MONETARY FREEDOM: Without monetary freedom the "free = market" isn't a FREE market. - J.Z., 4.8.01. \par GOLD COINS AS MEANS OF PAYMENT, GOLD MARKET, GOLD PRICING, GOLD = WAGES, LAW OF FLUCTUATING GOLD QUANTITIES, INSISTENCE UPON BEING PAID IN = GOLD: If you insist on being paid in gold c oins, for your internal and external transactions, then, in the medium = and long run you would be paid in gold - but only by those able and = willing to do so. Which means that the monetary demand for your services = would decline and you would be paid less th a n others, who only insisted upon being paid E.G. in gold weight values = (or other value standards acceptable to them and their trading partners) = with whatever exchange media are suitable locally and only at their = exchange rate against the gold weight unit=20 c hosen, either at par or close to par. But you should not expect to able = to be paid in gold immediately or in the very short term future by most = of the potential customers for your goods or services, within your = country or in other countries. They simply a r en't sufficiently supplied with gold coins. You would also be burdened = by the extra charges involved in building up, storing, transporting and = insuring gold coin payments. Moreover, you should become aware that the = value of every gold coin spent by you, i n all cases that you find ready acceptors for it, will not with certainty = or soon enough return to you, in form of other gold coins paid for your = goods and services. Only your own goods and service warrants or = clearinghouse certificates, when made out in g o ld weight clearing or accounting units, are bound to return to you, in = payment of debts owed to you or for your goods and services, and this = rather fast and with great certainty. And they would not limit you to = the amount of gold coins you can manage to a c cumulate as means of payment or that you currently receive in your = sales. Then only your own productive capacity would limit your spending. = You would be independent of your own gold hoard and that of others. If = you made yourself dependent upon what has be e n called, for the trade between countries, "the law of fluctuating gold = quantities", which, over periods, sometimes extended periods, tends to = balance out the spending of gold coins with the receipt of gold coins, = then you might have to wait for a conside r able time - and in the meantime you might get broke or unemployed. - = However, you should be free to choose the exchange medium and value = standard that you do prefer for yourself. But beware, you might get = them, with all their inherent limitations! - J.Z., 28.7.91, 27.8.02. \par GOLD STANDARD, "THE", FREE GOLD MARKET, GOLD COVER, GOLD = REDEMPTION: Free exchange and free clearing via the tokens (exchange = media) and value standards of monetary freedom do not require a = metallic cover for their debts or accounts but merely soundly administered issues of exchange media that are using a = sound value standard, acceptable to issuers and acceptors alike. And = sound value standards do not require a gold reserve by the issuer or by = a central bank - in case a gold weight unit =20 has been accepted as a value standard, but merely a free gold market. = The free gold market can make much more gold available than can the = largest gold hoard of a central bank to those who want to convert their = exchange media into gold. - J.Z., 8.4.01, 26. 8.02. \par GOLD STANDARD, GOLD REDEMPTIONISM, GOLD RESERVES, GOLD COVER, GOLD = CERTIFICATES: It is neither necessary nor advantageous that banknotes = are convertible upon demand by the issuer into either gold coins or gold = bullion, although such banks have been se t up and could be set up again. - Firstly, such a provision of exchange = media is expensive. Secondly, by limiting exchange media thus to the = availability of a single product for all exchanges of millions of = different products and services, an unnecessary=20 a nd unjustified bottleneck is established, one that will prevent many = exchanges or it might make the sales of goods, labor and services = possible only at emergency prices. - It does not sufficiently = distinguish between value standard and exchange media and=20 l imits the exchange media supply to the supply of the value standard = medium. It does not take note of the facts that numerous exchanges took = place in the past and take place now without such gold cover, = furthermore, that clearing transactions, i.e. the mut u al cancellation of debts, does not require any physical exchange media = at all, not even paper money cash. Theoretically, the number of = exchanges is unlimited - except for the productive and service capacity = of people and their willingness to produce and c o nsume. Most of them do not want to produce, sell and buy gold but, = instead, goods and services. Their exchange media should represent that = reality and allow them to monetize what they have to offer in goods and = services, in optional and market rated money , whose issue is thereby self-regulated and will serve to achieve the = sale of whatever they have to offer in wanted goods and services. Beyond = that, under competitive conditions, with a free and well publicized = market for competing exchange media and their =20 value standards, they could not successfully and for long issue any = exchange media at par, no more so than a theatre could for long sell = many theatre tickets at par beyond its seating capacity. We do not need = a central bank to determine or regulate the va l ue of all tickets issued and used. Currency or cash notes are best = perceived as tickets to the goods and services offered, issued by the = providers of the ready for sale goods and services. Who else would be = rightly entitled to issue claims to what they ha v e to offer? That means shop currency, based on shop foundation. Indeed, = it is based on debt. The issuer has obliged himself by his notes. = Whoever he lends them to, has to repay him, with some interest, covering = at least the costs and risk of the process.=20 T he issuer also owes the holder of his IOU's the goods and services he = offers - up to the value of the shop currency he holds, to the extent = that it was issued by him or associates. Prices and notes are best = expressed in sound and agreed upon rather than=20 g overnment determined and mismanaged value units. Historical experience = speaks overwhelmingly for this change. Consumers are in the market, = generally, to buy consumer goods and services, not gold coins or = bullion. Their exchange media should represent that =20 fact and facilitate the turnover of goods and services rather than that = of gold coins and bullion only. Indeed, a gold certificate or gold coin = would be widely acceptable - but not universally, by all people, in all = situations. And we should never be made =20 dependent upon them as exclusive exchange media and value standards. = When monetary freedom is introduced, a few such banks will be = established - but I doubt that they will last long in free competition = with sound other exchange media providers who might e . g., use gold weight units only as their preferred value standards, = without promising redemption in them. Likewise, in clearing and in debt = contracts gold weight units might be used only as value standards or = accounting units. Issues of "shop currency" wou l d merely oblige themselves to accept their notes as if they were gold = coins. Thereby they could keep them at par or close enough at par with = their nominal gold weight value. For many purposes such notes, not only = redeemable gold certificates, would even b e preferred to payments in gold coins and in gold bullion. Independence = from gold holders, gold mines, gold coin mints and the gold stocks = accumulated by banks! Free choice of exchange media and value standards = - for the gold bugs as well. But no one shou l d have to become a gold bug or a victim of the beliefs of gold bugs. - = The gold redemption by the issuers can be replaced by the gold = redemption on a free gold market. That gold hoard embraces all the gold = that is on the market, not merely the gold that t h e gold standard banks have been able to accumulate. And it can indicate = the gold weigh value not only of classical gold standard certificates = but of all alternative currencies, even those using other than gold = weight values as their value standard. - J.Z. , n.d. & 24.8.02. \par GOLD, IN THE OPINION OF THE GOLD BUGS: \'85 people .. are asking = that gold come out of the depositories and vaults of the central banks = and return to the pockets and purses of private individuals, for gold is = the only really }{\i\fs24\lang1033=20 sound money with intrinsic value.}{\fs24\lang1033=20 The desire for a retun to gold is understandable, and we hope to see it = realized some day, although the argument in favor of the gold standard = is not always stated in a valid way. The distinctive function of gold = money does not consist in its intrinsic value or in the constancy of that value, which fluctuates = even in the absence of government intervention. The excellence of = metallic money in free circulation consists in the fact that it renders = impossible the abuse of the power of the gov ernment to dispose of the possessions of its citizens by means of its = monetary policy and thus serves as the solid foundation of economic = liberty within each country and of free trade between one country and = another. - Faustino Ballv\'e9 , Essentials of Economi cs, 1963, published by FEE, 1956, in English since 1963 - He seems = unaware that the abolition of legal tender and of the central bank's = issue monopoly would do this even better. If one can force one of the = gold standards upon the government, then one can=20 a lso force it to give up legal tender and its money monopoly and its = abstract paper value standard, leaving it to the competition between = currency producers and currency acceptors, discounters or refusers which = currencies will continue to exist. - The gold =20 bugs are right only in demanding the dissolution of the gold hoards of = the central banks, which are a great expense and do not fulfil any sound = economic function there. But they manage to insist on gold hoards for = note-issuing banks, which is also an auth o ritarian imposition. Without a monopoly or oligopoly for such banks they = could not persist for long. Their issue costs would be too high and they = would reach their inbuilt issue limits all too soon, without being able = to supply all the exchange media whic h free markets need. They would have to transform their redemption gold = standard into a gold clearing or gold-accounting standard to become = competitive. - J.Z., 27.8.02. \par INFLATION & OVERSPENDING: Is inflation due to "overspending"? What = does "overspending"=20 mean? Without legal tender, i.e., compulsory value and compulsory = acceptance for a monopolistic currency, no government or its central = bank could over-spend, in an inflationary way, unless it first extracted = this purchasing power via taxes or loans, which =20 would correspondingly reduce the purchasing power of others and even, = sometimes for considerable periods, leave the thus extracted monies = unprofitably in accounts, thus making sales for the rest of the economy = even more difficult. Any spending by any gove r nment may be considered to be "over-spending", like the spending of any = bank robber or mugger or thief or anyone who forged cheques upon your = account or who had stolen and used your credit card. What is probably = meant is "deficit-spending" or use of the n o te-printing press for legal tender money. If a government had to depend = upon tax foundation for soundly constructed tax foundation money of its = own, its voluntary acceptance in general circulation, its value rating = against a sound value standard, upon ful l publicity for all its issues, on the refusal option of potential = acceptors, on competition with alternative and freely issued currencies = and on voluntary membership of its taxpayers - would much "overspending" = opportunity remain for it? All thought model s that take for granted monetary and financial despotism, as well as = territorial sovereignty over tax slaves and subjects to its other laws, = imposed by the minority which rules, in effect, are all too limited in = understanding the present and alternatives t o it. Take an ordinary citizen who tries to "overspend" by trying to take = up more credit than he can expect to repay or tries to issue uncovered = cheques. His cheques, although made out to legal tender, are not legal = tender themselves and thus can be refuse d . Moreover, his bank will charge him highly for overdrafts and for = uncovered cheques not accepted by it in advance. In the absence of legal = tender and a means of payment monopoly for him, he cannot over-issue or = over-spend without rapidly reaching his lim i ts, getting into debt and bankruptcy and perhaps losing all he had = accumulated. Why should we grant such privileges to governments, who = almost never failed to abuse them? If a government, due to monetary = freedom, could only issue its tax foundation money=20 a t 10% discount, it would immediately have to accept it at par, at 100%, = from all who still owed it taxes, i.e., it would have given them a 10% = tax discount. Its self-interest would prevent such issues. And others = would largely refuse to accept government =20 money at all, if it had such a discount on a free money market and would = rather arrange for payments in alternative exchange media that stand at = par with their nominal value and thus could readily be passed on in = payment to others. Monetary despotism lead s inevitably to many and large abuses. Monetary freedom ends them, to a = large extent, although it could not prevent all kinds of frauds and = deceptions. - J.Z., 16.8.91, 26.8.02. \par INFLATION, CENTRAL BANKING, FREE BANKING & MONETARY FREEDOM: Fully = freed compet ition against central banks is the only way to rapidly stop inflation, = stagflation, depressions, credit restrictions and involuntary mass = unemployment. - J.Z., 31.10.01, 26.8.02.=20 \par INFLATION, DEPRESSIONS, UNEMPLOYMENT, CRISES, & MONOPOLIZED = DECISION-MAKING=20 ON MONETARY MATTERS, COMBINED WITH GREAT ECONOMIC IGNORANCE & NUMEROUS = WRONGFUL PREMISES, MYTHS & PREJUDICES, CENTRAL BANKING, MONETARY = DESPOTISM, MONETARY POWERS, MONETARY MISMANAGEMENT, CENTRAL BANKING, = MONEY MONOPOLY, LEGAL TENDER, ISSUE MONOPOLY: By=20 t heir utterances and actions the few who now can legally cause inflations = and deflations as well as stagflations and their involuntary mass = unemployment, do not know that they cause them and how they do so and, = consequently, do not know how to stop the con s equences of their own decisions and actions. They have often enough = admitted their ignorance in this respect - and their inability to cope = with the problems they have created is rather obvious, too. Required is = the repeal of their corresponding laws and p owers and they are not even aware of how wrongful and harmful these are. = - J.Z., 14.1.02, 27.8.02. \par INTEREST RATES ARE PRICES: Interest rates are just prices, = indicating, like all other prices, supply and demand conditions. They = are determined for short-term turn-over credits by monopolies like the note issue monopoly of the = central bank and the degrees of its abuses of its monetary powers and = for medium and long term credits for conditions on the capital market. = And these, in their turn, are influenced by t a xation, regulations, protectionism etc. and also by monetary conditions = like deflation, inflation and stagflation, i.e., symptoms generally = associated with monetary despotism, which greatly influence the = availability of capital and the ability of debtors=20 t o repay, as well as the interest rates. Monetary despotism, legislative = interventions, protectionism, taxation, regulations, prohibitions and = their degrees and risks influence profit and interest rates and the = readiness to accumulate and make available or =20 to seek and accept capital investments. And no capital investments can = be regularly profitable if the sale of the services, goods or = information that they supply is not assured because of the absence of = monetary freedom. And the arbitrary nature, i.e., th e non-market nature of interventionism cannot always be sufficiently = calculated or estimated and certainly increases the risk factor part of = all interest rates. An unqualified opposition to all interest rates or = their regulation just indicates economic bli n dness and is as absurd as are price-, wage- and rent controls. Once = markets and contracts are all set free then we would only get = competitive free market rates (prices) in all spheres and these, by = their nature, will be optimal for all traders and exchan g ers, as are free prices in all other spheres. For competitive note = issues or turn-over credits granted via clearing or non-cash payments, = the interest rates could come close to the administrative costs only, = like with the issuance of tickets for the atten d ance to various performances. In spheres with high returns for capital = investments (especially when no longer subjected to regulations, = prohibitions and tributes) they might rise as justified shares in the = additional productivity and profits achieved thro u gh an investment. Those who want to assure the supply of exchange media = by the acceleration of the existing monopoly exchange media, do only = think in terms of monetary despotism, with its limited, exclusive and = forced exchange media and value standard, of =20 monopoly money that is usually centrally mismanaged by the central bank, = according to its dogmas and wrong assumptions, remaining blind to the = free note issue options and possibilities, blind to sound alternative = value standards, blind to free market rati n g and voluntary acceptance for both, blind to the sound tax foundation = options for "fiat" money and to the right of free choice of value = standards and the right of banking, including the issue of banknotes and = clearing house certificates. The wrong defini t ions and notions about "capitalism", "profit" and "interest" go on and = on. All economic systems are capitalistic, from the stone hammer to = automatic factories. The all require capital, at least that of living = and all-purpose as well as conscious and self- d etermining robots, existing in self-ownership and constituting, in = somewhat developed countries, over a normal working-life, a large = productive capital. They are all the less capitalistic the more they are = monopolized, regulated and legislated about, away =20 from free contracts, free exchanges, property rights and free market and = free trade conditions. The only rightful actions for dissenters are = tolerant and free experiments among them, practising their beliefs among = themselves, at their own expense and risk . Even when such experiments are successful, they should not be adopted = and imposed by any territorial State against those who still disagree = with them. - J.Z., 21.8.02. \par INVENTIVENESS, REFORMS, INITIATIVE, CREATIVENESS, HONESTY, FREEDOM = OF CONTRACT & SELF-O BLIGATION SHOULD NOT BE OUTLAWED, RESTRICTED OR REGULATED IN THE SPHERES = OF ALTERNATIVE MONEY ISSUES, REFLUX, ACCEPTANCE, MARKET RATING, = REFUSALS, USAGE & VALUE STANDARDS, FINANCE, CLEARING, INSURANCE & = GUARANTEES, EITHER: One size fits all is no more apt =20 here than it is in other spheres. We need no more a standardized and = uniform means of exchange and value standard for all than we need a = single and standardized kind of tooth brush, tennis racket, head cover = or pair of shoes. On the contrary, the supply o f needed and wanted exchange media and value standards as well as the = refusal of unnecessary and unwanted exchange media and value standards, = should be as free as possible. Money is much too important to be left to = the ignorance, prejudices and vested inte r ests of politicians, bureaucrats and their "expert" advisors. History = has supplied more than enough proofs for that. Neither money, nor peace = nor the provision of capital, of roads, research, education, health = services, postal services, defence forces, li b eration or revolution or the defeat of terrorism can be confidently left = to the knowledge and abilities of governments. Indeed, there is nothing = that territorial governments have proven they are quite able and = efficient to supply as cheaply and well as po ssible. - J.Z., 27.8.02. \par ISSUE PRINCIPLE: The issue of sound exchange media by the providers = of daily wanted consumer goods and services, ought to be done in = accordance with sound banking principles, to productive debtors only, = who can shortly expect to be=20 paid for what they have already produced, but are, until then, in = liquidity difficulties. They may already have been paid with short term = promises to pay, e.g., as was traditional for a long time, with a sound = commercial bill. With that they could, indeed , pay their suppliers e.g. of raw materials, but hardly their wage, = salary and tax bill. For that purpose, under the soundest form of the = "banking principle", they have simply to get this large bill "cut up" or = temporarily replaced by small bills or notes=20 i n standardized money denominations, with sufficient shop foundation. = This a note-issuing bank or shop association can do, by either buying = the commercial bill or lending upon it as a security. When the short = term security falls due, it can then be redeeme d with the notes issued. To that extent it acts as a vacuum cleaner for = them, achieving a reflux of them or exerting a demand for them that is = corresponding to the quantity that was issued for the bill (including = the commission of the bank, expressed in th e bill discount, which the bank will spend for its expenditures and = profit in its own bills). The issue principle is balanced by the reflux = principle, the inherent cover, security and redemption in the banking = principle practice. It does not require rare m e tal redemption by the issuer. Redeemability on the free gold market = would be even better but only shop foundation i.e. goods and service = redeemability would be essential. All money is used to pay debts and to = that extent it can be and should be based on a =20 debt foundation or obligation foundation or readiness to accept or shop = foundation or tax foundation. Whatever is acceptable in a payment = community as a means of payment or clearing or settlement is suitable = for it as at least one form of its kind of mone y. As such it can be issued by suitable members of that community of = their association or by an outside agency hired for this purpose. - = J.Z., 27.8.02. \par LEGAL TENDER, INFLATION, UNEMPLOYMENT, DEPRESSIONS, BLACK MARKETS, = MONETARY REVOLUTION: The very passing of legal tender laws is an admission by governments that they are aware = that citizens are not so foolish to indefinitely continue to accept the = government's paper money at par with any stable value standard. Thus, = from the point of view of governments, t h ey must be forced to do so, the more so, the more rapidly and obviously = the government, or its central bank, deteriorates its paper money. In = the German Banking Enquete of 1908 it was freely admitted that the = government did not expect to be able to financ e the next war without legal tender for its paper money. So legal tender = was introduced, effectively from 1.1. 1910. And it helped to finance two = wrongful and extensive wars for two German governments and to achieve = its greatest inflation ever, and its gre a test depression, each of which cost the German economy, as much as did = WW I. Moreover, this monetary despotism and its consequences did lead to = the rise of the Nazi regime and to WWII and their consequences. Legal = tender leaves the recipients of it only o n e defensive step, namely to raise the price of the goods and of their = labor. Under price and wage controls, combined with force labor and = compulsory quota deliveries, even this defence option is largely = abolished. Black market dealings can supply some sub s titutes but bring their own inherent problems. Illegal or black market = monetary actions must also be engaged in, in something like a monetary = revolution, using the monetary freedom options, to rapidly and fully = overcome monetary despotism. But this requir e s sufficient interest in this liberation and security option among the = victims of monetary despotism. They are certainly not taught their = monetary freedom rights and liberties, and their potentials, in = government-run or regulated schools and universities. J.Z., 1.8.91, 27.8.02. \par LEGAL TENDER, PAPER MONEY, MONETARY DESPOTISM, CENTRAL BANKING, = GOVERNMENT, RIGHTS VS. POWER: I deny the power of the general government = to make paper money, or anything else a legal tender. - Thomas = Jefferson. - He should have repl aced "power" by "right", for, as monetary history has shown all too = often, governments have, indeed, usurped the power to make their paper = money legal tender, often with sudden and catastrophic results, = including galloping inflations and mass unemployment =20 and their consequences: tyrannies, wars and civil wars. Even if they = inflated only slowly, they largely expropriated all creditors in the = long run, including all wage and salary recipients and pensioners, apart = from all the other damages their inflations=20 c aused. Without legal tender no government could inflate all prices and = wages, not even with the worst intentions. People would remain free to = accept its currency only at its market value or to refuse it and to = trade with each other using sound alternative =20 currencies, value standards and clearing avenues. Legal tender, i.e., = compulsory acceptance and compulsory value and, usually also an = exclusive currency, means monetary despotism and leads to other forms of = despotism. It expropriates and impoverishes. Onl y a few benefit from it - at the expense of all others. - This power is = based on monetary ignorance, prejudices and lack of interest in monetary = matters. The "experts" of legal tender, paper value standards and = central banking are the priests of the popula r religion on money, as Ulrich von Beckerath used to say. J.Z., n.d. & = 24.8.02. \par MACHINES & UNEMPLOYMENT: Do machines in your house make you = unemployed or do they merely allow you to do more, faster, better and = easier? - J.Z., 21.4.01. - If you think that th ey make you unemployed, why not try to cut your lawn with nail scissors? = - J.Z., 21.4.01. \par MONETARY & FINANCIAL FREEDOM, VS. CENTRAL BANKING & CENTRAL = BANKERS, INDEPENDENCE: Among other things, it will mean the independence = of the American and thereby large ly also the world economy, from central bankers like Alan Greenspan and = his errors, prejudices, dogmas, policies and decrees - and those of = other central bankers in other countries. - J.Z., 26.8.02. \par MONETARY DESPOTISM, MONETARY FREEDOM REVOLUTION: But if w e beat this think, public opinion will crucify anyone who tries to = punish us. - F. M. Busby, The Breeds of Man, 65. - In such a situation, = requiring considerable monetary enlightenment, one can break the laws of = monetary despotism and get away with it. - J.Z., 24.8.02. \par MONETARY FREEDOM & THEREBY AN END TO INFLATION, DEFLATION, = DEPRESSIONS, STAGFLATIONS & MASS UNEMPLOYMENT: Full monetary freedom for = all, fully recognized and utilized by all potential and suitable issuers = and acceptors for alternative curren cies, could very rapidly end mass unemployment, deflations, sales = difficulties, inflations and stagflations. It would include freedom to = clear, freedom to choose a value standard for one's contract, the = freedom to clear and to make voluntary credit arrang e ments suitable for creditors as well as debtors. It would require the = freedom to refuse or discount any exchange medium or value standard that = one distrusts or suspects for any reason - if one has not issued it = oneself. It would establish, for the first t i me, full freedom of exchange, full freedom of contract in the monetary = sphere and to that extent it would be a pre-condition for a fully free = market. In the widest sense it, or free banking, must also be associated = with full financial freedom for the issu e and acceptance of financial or capital securities under conditions that = are mutually acceptable. Monetary as well as financial freedom require = full publicity for all details which are relevant for their issue, = reflux, amortization, interest rates and oth e r conditions. In the absence of an issue monopoly and legal tender, the = good monies would drive out the bad ones, i.e. potential acceptors would = be free to accept or to discount the bad money and would always prefer = the best or sufficiently good monies to =20 inferior ones. Competitive supply would mean that sufficient but no more = than sufficient exchange media would be supplied, enough to achieve the = turnover of all ready for sale and wanted goods and services and with = them assure full employment for the good s and service providers. Only the issuers would have to accept their own = currencies at any time at par from anyone, at least all those of their = certificates which are tendered in payment during their stated = circulation period. }{\fs24\lang1033=20 All able and willing to work could be paid at least in one or the other = money of monetary freedom, the kind that is acceptable to them. For all = those unable to work there would be, primarily, insurance and credit = arrangements and only=20 as a last resort the voluntary charity options. - J.Z., 2.5.01, 26.8.02. = \par }{\fs24\lang1033 MONETARY FREEDOM OR FREE BANKI NG & FINANCIAL FREEDOM VS. MONETARY & FINANCIAL DESPOTISM: Competing = sound value standards and exchange media rather than monopolistic, = centralized, coercive and mismanaged paper value standards and forced = and exclusive (legal tender: compulsory acceptanc e and compulsory value) paper exchange media. Likewise full freedom and = publicity for the issue and acceptance of financial securities, provided = they do not carry an inbuilt timing risk, like short term deposits do, = which are used by banks for long-term in vestments, thus making their immediate or rapid repayment impossible. - = J.Z., 4.4.01, 27.8.02.=20 \par MONETARY FREEDOM, CLEARING & BARTER: Monetary freedom can make = exchanges as unlimited as barter exchanges can be - but can do this = without the inconveniences=20 and difficulties of barter. Monetary exchanges merely facilitate, as a = helpful and intermediate stage, barter by turning it into a form of = anonymous and multilateral barter of goods and services, whose prices = and values are cleared against each other, wit h the aid of suitable tokens and value standards for this purpose. The = production of optional and sound money can be as unlimited as the = production of goods for barter and the offer of labor for barter. It is = ultimately redeemable mainly only in daily want e d consumer goods and labor, represents goods and labor, pays for goods = and labors and thus facilitates the exchange of goods and labor. - The = essence of any money function, except that of a value storage unit, is = its clearing function, so much so, that th e oretically all money tokens could be replaced by a comprehensive = clearing system, made up of local, regional, national and international = clearing facilities. The mutual setting off or canceling of all credits = and debt does not absolutely require money tok e ns but merely value standards or their symbols and figures on paper or = corresponding electronic signals. All debts are equal to all credits. = (Those not mutually cancelled, can be covered by insurance charges, in = which premiums and pay-outs do again balanc e each other.) Over their periods even medium and long term debts and = credits are cancelled out. But future goods cannot be easily exchanged = for present goods, with the means of currency, liquid and competitively = issued cash, but only via capital securitie s , bought with cash and, ultimately, sold for cash and returning, if = sound, some cash interest in the meantime. - If one realized the barter = and clearing nature of money then one will see that the "Quantity theory = of money" has only a rather limited validi t y, e.g. for exclusive legal tender currency. Free money issues are = self-limiting and their optional and sound standards prevent price and = wage rises from the monetary side. Market-rated sound monies are not = driven out by market-rated unsound monies. Only=20 bad legal tender monies have the power to drive out sound alternative = currencies. Under monetary freedom Gresham's Law is reversed: The good = money drives out the bad. - J.Z., 27.8.02. \par MONETARY FREEDOM, FREE BANKING, REPEAL OF LEGAL TENDER: "4. = Monetary free dom, which includes that any money issued by the State not be designated = "legal tender", which one is obliged to accept. One should be able to = choose the currency, metal, etc. that one prefers for transactions." - = Alberto Mansueli, in FREEDOM NETWORK NEWS , March 01, page 16. He is co-founder of the classical-liberal think = tank in Venezuela called "La Salida" (The Way Out).=20 \par MONETIZATION, COMPETIVE, OF ALL SUITABLE COVERS FOR SOUND EXCHANGE = MEDIA, FREE BANKING VS. CENTRAL BANKING: In all somewhat developed c ountries, apart from periods of natural catastrophes, wars and = revolutions, there are huge accumulations of ready for sale goods and = services that would be suitable to cover and redeem exchange media = competitively issued by the providers of these goods an d services in short term loans, e.g. for wage and salary payments. These = issues of optional money could assure the sale of these goods and = services, and with them the demand for labor and services to provide = more goods and services. - Try to envision or ca lculate the ready for sale values existing in all the shopping centres = and shops! - Presently their turnover is dependent upon monopoly money = which is often badly administered and which has flaws even under the = best administrators. - J.Z., 24.8.02. \par MONEY & THE LACK OF MONEY: Lack of money is the root of all evil. - = George Bernard Shaw. - Alas, he never stood up for the competitive = supply of sound currencies. - J.Z., 27.8.02.=20 \par MONEY SUBSTITUTES: Banknotes issued under the best form of the = banking principle ar e merely temporary and efficient substitutes for large commercial bills, = not substitutes for rare metal coins. Their backing is made up of both, = the commercial bill and the shop foundation that serves as the immediate = redemption fund for all the notes iss u ed. A gold-weight unit as a clearing or accounting standard is an = excellent, even a superior substitute for the promise and ability of the = issuer to redeem his notes at any time and upon demand 100% in gold = coins. For this kind of clearing gold standard c a n mediate an unlimited number of transactions, not only as many as can = be managed by exchange media 100% redeemable in gold. A rare commodity = like gold, even though very highly valued, cannot be an always and = readily available as well as sufficient equiva l ent for all transactions in all other commodities and services and for = all other debt payments regardless of the volume and number of such = transactions, at any time multi-millions of them. It would limit their = quantity to these redemption funds and to the =20 extent that they would be able to mediate several transactions before = the rare metal redemption is insisted upon by the current note holder. = It was long thought that this redemption obligation would be necessary = to limit the volume of issuers, to achieve=20 a sufficient guaranty, trust and confidence as well as security and to = prevent abuses. But there are other and better and more natural = limitations - without the inherent limitations of the rare metal = redemptionism, be it 100% or fractional or optionally po stponable or discountable (as in Meulen's scheme). - J.Z., 27.8.02. \par MONEY, IMPORTANCE, LOGIC, ARGUMENTS, REASONING, PERSUASION, MAN: = Among mankind money is far more persuasive than logical argument. - = Euripides. - This is obviously more true of sound money=20 than of highly inflated money that has little to no purchasing power on = the official market and that can purchase at uncontrolled prices, on the = black market, only according to the inflation rate and the limitations = and risks involved in black market trad ing. In these cases bribes with goods and services are often more = persuasive than "golden" handshakes. - J.Z., 27.8.02.=20 \par NATIONAL DEBT, TAX SLAVERY, INVESTMENT IN TAX SLAVES: Is it "our" = national debt? It is your own debt and that of people, who, like you, agree to the issue of national debt certificates, i.e., to investments = in nationalized tax slaves. As a nationalized tax slave, I am under no = moral obligation to pay that imposed debt or any imposed taxes. - Full = emancipation means also: voluntary taxati on and voluntary State membership as well as personal instead of = territorial constitutions, laws and jurisdictions. - J.Z., 5.8.91, = 27.8.02.=20 \par PAPER MONEY, GOVERNMENT MONEY, MONOPOLY MONEY, INFLATION, = DEPRECIATION OF MONEY, FORCED & EXCLUSIVE CURRENCY: Gover nments with their "monetary policies" and "monetary powers" make the = value of government paper money and coins melt away in your hands and = pockets, a little bit at a time, but to a large degree for prolonged = periods. Instead of guaranteeing the value of a =20 currency, the governments' central banks make it worth less and less, = almost continuously. So why leave the power to issue currency in the = hands of governments or their central banks? Allow anyone to try to = offer better monies, if he can and every potenti al acceptor to refuse or discount money any money issued by others and = offered to him. No more compulsory acceptance and compulsory values = (legal tender) for anyone's currency, least of all any government. - = J.Z., 17.7.01, 26.9.02. \par PAYMENT SPHERES: Each di fferent payment sphere could and in some cases should establish its own = suitable and competitive as well as sound exchange medium, as well as = using a sound value standard. No payment sphere should be under the = obligation to supply not only exchange media=20 f or its own transactions but also for the transactions of other payment = spheres. Any attempt to do so will lead to liquidity difficulties, to = over- and under-issues. Any payment sphere must be largely = self-liquidating. It cannot systematically subsidize ot h ers without running into difficulties. Money issues for e.g. the = transport sphere, should not be utilized largely to achieve the = turnovers in the entertainment or education spheres or for the purchase = of foods or other consumer services. An exclusive gene r al currency, intended for and monopolized for general circulation, will = firstly be wrong, because it cannot rightly represent all the goods and = services provided by others than the issuer. Secondly, it will not be = evenly distributed through an economy but =20 run stronger through some channels than through others. Thirdly, its = quantity will tend to be either larger or smaller than is required, at = least in certain spheres. It is not regulated by the price mechanism, = i.e., by voluntary acceptance or refusal and=20 m arket rating. In essence, it is as absurd as a ticket to all = performances and an invitation to all parties. Free and voluntary = exchanges or trades require free and voluntary exchange media, supplied = and accepted, rated or refused by the participants in th ese exchanges, as well as sound value standards that are acceptable to = them. Without this freedom there are no fully free exchanges, contracts = and markets, prices, rents, interest rates or fees. - J.Z., 24.8.02. \par PHYSICAL FORM FOR EXCHANGE MEDIA OR AVAILABIL ITY OF VALUE STANDARDS IN PHYSICAL FORM, FOR EACH TRANSACTION? TRUST OR = CONFIDENCE REQUIRED? Obviously, in clearing and other non-cash = transactions physical forms of exchange media, paper notes or coins, are = not required. Figures on paper or electronic im p ulses are sufficient. Nor is the presence of e.g. 100 ozs of gold = required among 2 traders, who want to trade the equivalence of the value = of 100 ozs of metallic gold - not in gold but in goods and services. = They might merely use the gold value of 100 ozs =20 of gold on a free gold market as the value standard to measure the goods = or services that they do exchange as well as the value of the exchange = media or clearing certificates they use for their transactions. No one = would deny that a gold cover is not need e d for any barter transactions that do not involve metallic gold. Nor, = also quite obviously, is it required for the offsetting, canceling or = clearing of mutual debts. Furthermore, while government paper money is = mostly and considerably being deteriorated b y over-issues, it remains clear that it still, most of the time, retains = SOME value and this value is not established by the availability of gold = to the note holder. Nor is it, altogether, only due to its legal tender, = its "fiat money" aspect. Much of its=20 r emaining value is merely due to the fact that in a developed economy, = with a great division of labor and, consequently, a great need for = exchange, some form of exchange medium is needed and even a bad and = unreliable and constantly or frequently depreciate d or deflated one - is better than none, although not as good as they = could all be under free competition between potential issuers and = acceptors of exchange media and providers or definers of value = standards. - Gold, silver or platinum in metallic form ar e not required for issuers or acceptors in consumer transactions or in = capital value transactions. Nor are "trust" or "confidence" sufficient = for sound issues and value reckoning. Trust and confidence are = maximized, almost turned into certainty, for "ticke t money" or "shop foundation" money. One knows that department stores = like Woolworth or Coles/Meyer, or Waltons etc., would be ready to accept = their own shop currency in full, in payment for their goods and = services. If one or the other branch would go up=20 in smoke, others, among hundreds, would still accept these notes. - = J.Z., 26.8.02. \par PUMP PRIMING WITH EXCLUSIVE & FORCED CURRENCY: It is the issue of = the worst kind of money, without a foundation, cover & reflux, forcing = it into circulation, merely upon the=20 opinion that it is needed. Monetary despotism does, indeed, frequently = and severely under-supply an economy with its kind of forced and = exclusive currency. Then the further issue of it might alleviate the = deflation, come temporarily as close to supplying=20 a s much money in some spheres as the exclusive use of this kind of money = can come and further issues will act inflationary upon prices, wages and = other contracts. It is a primitive way of trying to improve upon a = primitive, despotic and monopolistic money=20 s ystem. It cannot be a sound substitute for the competitive supply of = sound exchange media using optional value standards, which would tend to = supply just as much sound currency at any particular time and place, = under current conditions, as is needed then=20 and there. - 26.9.01, 26.8.02. \par REDEMPTIONISM FUNDAMENTALLY CHANGED BY THE BEST OF THE "BANKING = PRINCIPLES" FOR NOTE ISSUES: The notes issued should not be obligations = for the issuer to deliver gold or silver for his certificates upon their = representation. ( Except for voluntary arrangements among gold bugs etc.) Instead, the = issuers, mainly the providers of daily wanted consumer goods and = services, and their centre of issue, should only promise what they can = and want to deliver immediately, the sooner the be t ter, the more the better, namely the redemption in their ready-for-sale = goods and services. This kind of cover or redemption fund is almost as = unlimited, as unlimited as the production capacity for such goods and = the storage and immediate supply facilitie s for them. It seems obvious that to oblige oneself to thus supply wanted = goods and services should not and need not be limited, no more so than = the supply of theatre or cinema tickets. Instead of the old image of a = note issue as a loan taken up from the p u blic, the issuer would provide loans with his obligations to deliver his = goods and service upon demand. But they would be only short-timed loans. = And the recipients would get them only in exchange for their securities = (commercial bills for goods sold or o t her short term promises to pay for them), the employees would get them = only in return for having invested their labor for a day, week or month, = the individual retailer only in return for their goods or services and = the wholesalers only in return for the d elivery of further supplies to restock the retailers. And the = wholesalers could mainly use them only to redeem their commercial bills = or other short term promises to pay. - J.Z., 27.8.02. \par REDEMPTIONISM: The goods and service providers, mainly of consumer = go ods and services that are in daily demand, are the natural and main = redemptionists for any currency, especially the sound and competitive = currencies issued by themselves. Even 100% gold covered gold = certificates would suffer a great discount if the seller s of goods and services refused to give them their backing, as they = might, in times of great goods and service shortages, e.g. during wars, = revolutions and natural catastrophes. - J.Z., 27.8.02. \par REFLUX OF MEANS OF EXCHANGE, ACCEPTANCE FOUNDATION OR READINES S-TO-ACCEPT - FOUNDATION, SHOP FOUNDATION, TAX FOUNDATION, DEBT = FOUNDATION, CLEARING FOUNDATION: Reflux or return is the other side of = the coin of money issue and of preserving its value. A mere fiat is not = enough - except to expropriate creditors corres p ondingly. Nor is a monopoly for an exchange medium for a whole territory = and its population. Again and again have forced currencies been = over-issued and largely or completely destroyed in their value. Legal = tender and monopoly currencies are rather typica l examples for currencies without sufficient reflux or readiness and = obligation to accept foundation. Reflux means a strong, regular, = sufficient and short term reflux, one that suffices to keep exchange = media at par or close to par (most of the time) with=20 t heir nominal values, expressed in sound value standards acceptable to = the members of a payment community. Usually, the reflux has to occur = within 3 months or less, to keep them at par, i.e., prevent a discount = of them on the open market. But historically=20 t here were some examples that kept exchange media at par for a whole = year, even notes of "bankrupt" banks (declared bankrupt merely for not = being able to redeem in gold), because there were still enough debtors = of the bank, under a corresponding contract w i th the bank, who had to accept its notes at par in payment and then = could offer them at par to the bank or its liquidator. But normally, for = all notes issued in "turnover-credits", or sound commercial bill = discounting ("real bills doctrine" or the soundes t , most free and extended version of the "banking principle"), the = "circulation period" was to be only 3 months or less. The inherent = combination between "issue" of exchange media and their "reflux" = indicates that they are not permanently circulating. The=20 n otes are rather oscillating, streaming out from the issuer and soon = returning to him, being all the time replaced by new issues, soon = likewise returning, so that only different note issues, in their = combination, do make up a "circulation". The issues and =20 the reflux must be in balance and normally are. If an attempt is made to = issue more than will stream back within a short period, then they will = encounter refusals to accept as well as a discount. If not enough are = issued to represent all payments due to t h e issuer, then they could even acquire an "agio", as opposed to a = "disagio", i.e. get a market value somewhat above their par value. For = instance, the issuers, to make sure that they do achieve a sufficient = reflux, may, like Prussian tax foundation money=20 i ssues, impose a small monetary penalty for payments in other exchange = media. The "reflux" or "readiness and obligation to accept foundation" = keeps the notes in balance with the real goods and service exchanges for = which they have been issued and which the y do facilitate as turnover credits or "exchange media". The "reflux" = represents the "demand for exchange media" as opposed to the "supply of = exchange media" (the issue, which always should require voluntary = acceptance, optimally at par), in the monetary e q uivalent to the usual concept of "demand and supply" balances for the = pricing of goods and services. The reflux to the issuer must be at par = with the nominal value of the exchange media, on the principle, that = each must fully accept the IOUs (or tickets o r promises to deliver or exchange, his standardized and typified goods or = service vouchers or clearing certificates etc.), immediately, for all = payments due to him. Otherwise the issues are not current, i.e., cannot = become a local "currency". For instance, =20 shares, bonds and other securities cannot become a currency when the = market for the supply of more suitable exchange media is quite free. = There are not sufficient daily wanted goods and services that one can = buy with them and that the issuer is able and w i lling to immediately supply. That means, in practice, that while "legal = tender" in general or local circulation is abolished for competitively = issued exchange media, the legal tender right and obligation remains for = the issuer. The note holder can juridic a lly demand that the issuer accepts his own notes in payment and the = issuer is juridically obliged to so accept them. If he refused them, = then the debt owed to him would be juridically considered as paid or = cancelled, anyhow. The reflux must occur at par t o preserve and maintain the par value of the notes. To accept them only = at their market rating, when it has fallen under the par value, would be = an extreme act of dishonesty - but this has happened in the past as = well, like many other crimes. But such dish o nest issuers, when in competition with honest ones, would have = difficulties in getting further issues accepted and they would leave = themselves open to suits against them for fraud. To facilitate and also = assure the reflux the most suitable means would be=20 t o give the exchange media only a limited circulation period. For no = longer valid notes the issuer might not be obliged to offer anything in = return or only a very limited range of goods and services which, = otherwise, he had found hard to sell. Tax foundati o n, as well as railway money, gas and electricity money, bus- and tramway = money are typical instances for reflux-money. "Monies" without a = sufficient reflux have been aptly termed: "fiat money", or, better = still: "requisitioning certificates". But even for m ally termed "tax foundation money" has often been unsoundly issued, = without a sound value standard and without acceptance at par by the = issuer but with general legal tender, although its value standard was = very unsound and almost constantly deteriorated b y over-issues. Under legal tender and a monopoly for the issue, i.e., = forced acceptance and forced value, it cannot operate satisfactorily and = without friction but, instead, leads almost always to great abuses with = severe consequences, not only economic on es.=20 \par SELF-INTEREST AND PUBLICITY AS GUARANTORS FOR PRIVATE CURRENCY = ISSUES, PAR VALUE DISCOUNT: The reputation as well as the profitability = of an issuer depend upon keeping his notes at par or close to par with = their nominal value. To this must be added ma ximum publicity for all his issues and their reflux. These factors are = helped by voluntary acceptance or refusals as well as automatic = discounting by potential acceptors who are rightly or wrongly somewhat = suspicious of the value of the notes they accept, =20 so that they do not accept them as par. As long as notes remain at par, = under full publicity for their issue and reflux, the issuer can continue = to issue more of his notes. As soon as they suffer more than a small and = very temporary discount, further issu e s, in his own interest, will be discontinued until the par value is = reached again. The self-interest of issuers will then prevent them from = over-issues, at a discount, because they would have to accept the notes = immediately again, from any debtor, at par=20 a nd their reputation would suffer as well. Moreover, even at a discount = and because of the discount, the number of potential acceptors would = shrink, largely down towards the number of his debtors, while the number = of those who altogether refuse his current =20 issues and who would be likely to refuse many to all of his future = issues, would tend to grow rapidly. Obviously, the self-interest of the = potential acceptors would be to accept only notes at par or notes they = can immediately return to the issuer because=20 they are his debtors. Otherwise, they do know that they can easily pass = on only those notes which do stand at par with their nominal value. - = J.Z., 26.8.02. \par SHORT TERM LOANS ONLY TO BE GRANTED IN COMPETITIVELY ISSUED SHOP = CURRENCIES ETC.: They are not inves tment securities but exchange media meant to achieve turnovers. Thus = they should only be granted in turn-over credits for short term = securities, based on already produced and sold goods, whose cash payment = is not immediately due but soon. To that extent t h e notes would represent what is otherwise known as a bridging loan. In = other terms, less liquid because large bills, are temporarily = transformed into more liquid because smaller and standardized bills in = suitable denominations - which, lastly, serve to re deem the large bills they were issued for. - J.Z., 27.8.02.=20 \par SUBJECTIVE VALUE THEORY APPLIED TO MONEY, MONETARY FREEDOM, FREEDOM = TO ISSUE NOTES, CHOOSE VALUE STANDARDS, ISSUE CAPITAL SECURITIES - & TO = REFUSE OR DISCOUNT THEM: Governments cannot supply objec tive values in the monetary and financial sphere, either. Their attempts = in this direction are indicated by numerous inflations, deflations, = stagflations, by tributes and investments in tax slaves. Honest = government actions in these spheres are either inh e rently impossible or even more rare than they are in other spheres. = Here, too, oppression, fraud, lies, exploitation, confiscation, = dishonesty, prohibitions and fetters are the rule rather than the = exception. Creative energies are not released by its mone tary despotism but, rather, enchained. Objective values are neither = clearly defined nor are their flawed values and supplies sufficiently = maintained. - J.Z., 27.8.02.=20 \par TICKET MONEY: It is not limited to the amount of gold or government = guaranties or capital securities but only to the available and wanted as well as ready for = sale consumer goods and services. Like tickets of other kinds, very = widely used, it does not need legal tender, a monopoly or regulations or = legislation to be widely accepted as useful=20 b y voluntary acceptors. It would, by its very nature, keep goods and = services in balance with the means to pay for them, provided the issues = are done, at a free market rate, and refusable by potential acceptors, = by those who have wanted consumer goods and=20 services to offer, or their associations, combined to make their issues = at least locally more widely acceptable. See under SHOP CURRENCIES, SHOP = FOUNDATION, GOODS WARRANTS, PURCHASING CERTIFICATES. - J.Z., 26.8.02. \par UNEMPLOYMENT & ECONOMIC, ESPECIALLY MONETA RY & FINANCIAL SECESSIONISM, PERSONAL LAWS FOR THE UNEMPLOYED: The = present economy, largely due to monetary despotism, has no ready and = official work places for masses of unemployed. These millions should be = freed, or allowed to free themselves, from all=20 r estrictions upon their basic right to supply themselves with paid work, = without depriving anybody of his job, by taking all the monetary, = financial and organizations measures required for this purpose, quite = independent of present constitutions, laws, reg u lations and jurisdictions. If these millions to dozens of millions are = freed to produce and exchange, then, like an independent country with a = considerable to large population, they could all be gainfully employed, = in division of labor and free exchange a n d would constitute a market for their products and services. Apart from = their self-help money and capital issues, credit and clearing = arrangements and organizations, they need not constitute a separate = community but merely could exist largely as a separat e and much more free payment, production and trade community. Towards the = remaining population in a country and in the world they would need = "protectionism" but rather free trade and could institute it and = maintain it largely by unilateral action - to the=20 o wn advantage and that of their outside trading partners as well. Under = this freedom they would come to renounce their claims to "unemployment = benefits" and "social services" but also to renounce the general tax = burden. Since they would have opted out of t h e restricted other economy, this other economy would not be under any = obligation to provide them with tax-based services. And, to a large = extent, under full monetary and economic freedom, they would not need = them at all or could provide them better for th e mselves, largely by credit and insurance arrangements and, if needed, by = voluntary charity or mutual aid organizations. They would no longer = appear as hand-out recipients but as paying customers towards the rump = economy from which they had seceded. Their=20 m eans of payment could easily become more sound "foreign exchange" than = any country provides today. Their self-help example would demonstrate = monetary and financial freedom options which would soon begin to = penetrate the economies from which they had seced e d. They would introduce freedom to experiment, freedom to act and = freedom to demonstrate in spheres in which they had so far been = outlawed. As self-help measures, relieving the existing economy from a = Welfare State burden, they could soon gain wide-spread =20 public opinion support, which would make it difficult for governments to = suppress them. That self-help option would be even more favorably = considered today if it began e.g. among racial or ethnic minorities, = e.g. among Red Indians on reservations. And any o ne still working now, but not so sure that he will still have a job next = year, will sympathize with unemployed able and willing to supply = themselves with productive jobs and sales for their products - by the = required monetary, financial and organizational =20 self-help steps, thus becoming potential customers and ceasing to be = recipients of hand-outs at the expense of tax payers. Most of the goods = consumed have been produced during the last 12 months. The formerly = unemployed could thus rapidly go from rags to=20 r elative riches and set shiny examples to be followed, which are likely = to far exceed the "German economic miracle" or that set by Japan, by = Taiwan, South Korea, Honk Kong, Thailand etc. and most of the existing = "free harbors" and "economic development zon e s". Among their experiments will also be self-management experiments, = with partnerships, productive coops, autonomous work groups etc., which = could rapidly increase the productivity and thus the income of the = participants. Those so opting out should renou n ce all claims to welfare services but also all obligations to pay = general taxes. They should negotiate the prices or subscriptions they = ought to be charged for those services, like e.g. roads, that they are = still using. - One might object that they would=20 n ot have productive capital at their disposal. Also, it is obvious that = they should not coercively occupy or conquer or expropriate farms, = factories and business premises. But utilizing free market options, and = free of government restrictions, they would h a ve much better ways to acquire access to productive capital: 1.) By long = term purchase arrangements. 2.) By long-term leasing contracts. Under = these contracts they could offer inflation-proofing value preserving = clauses for credits and capital investment=20 w ith them. They could hire unused production capacity, which exists even = for day shifts only, and for second and third shifts in enterprises not = yet operating 24 hours a day. They could lease parts of factories and = business premises. They would not compete , like the existing enterprises, for scarce legal tender but only for the = kinds of sound exchange media that they had issued themselves. They = would sound constitute a prosperous community and trading partner for = the present economy, but one not situated ou t side its borders but within it. Freed from taxes, regulations & monetary = despotism they could advance very fast and would tend to lead the others = out of their self-imposed messes. They could gain many of the sympathies = now available for intentional commun i ty and utopian colony attempts, the sympathies for self-help among = presently backward and poor groups, moreover the sympathies for those = utopians who want to introduce even more statism, since they would show = them that they could do so, like the monetary=20 & financial freedom, free trade, capitalism and laissez-faire advocates, = voluntarily, among themselves, at their own risk and expense and for = their own benefit, if they can manage to make their experiments = profitable or at least paying their way. - 16.7.01 , 26.8.02.=20 \par UNEMPLOYMENT, DIVISION OF LABOR, FREE EXCHANGE & MONETARY FREEDOM, = JOBS UNLIMITED, EXCHANGES UNLIMITED: In a somewhat developed economy, = i.e. one based upon a large degree of division of labor and free = exchange, millions of jobs lead to each par ticular job and each particular job leads to millions of other jobs. The = "mediating means of exchange" or quality oil to achieve this process = with minimal friction, is the competitive supply of exchange media, all = with a sound, i.e. readily acceptable val u e standard. Lastly, all productive people exchange their labors, = services, products and properties for the labors, services, products and = properties of other people. Currency must be current or liquid, i.e., = immediately convertible into daily wanted consu m er goods. Shares, bonds or mortgages are not good enough for this = purpose. Obviously, this requires a sufficient supply of exchange media = and of sound value standards. (But the value standards can be expressed = and realized by a clearly defined agreement.=20 T hey do not required the accumulation, storage and redemption into a = corresponding quantity of standard value units, e.g. in rare metals or = other goods, for each transaction using a value standard. (No more so = than each meter measure requires the presence=20 o f the or a platinum meter accurately made up out of expensive platinum.) = The value carriers do not have to be made up out of intrinsically = valuable (well, even they are subject to the subjective value theory) = rare metal units. But such units can serve the m as value standards (not as redemption goods), as clearing standards or = accounting standards, without a redemption obligation for the issuer. = (Redeemability on a free gold or silver market is not only sufficient = but much superior.) The more free these sup p ly arrangements are, the easier we find it to get a job or customers, = and the goods and services we want, and to pay our other debts, i.e., = the easier we can pay our way. Our purchasing power will then be limited = only by the extent and limits that we are =20 able and willing to give wanted goods or services, at market prices, in = return for the means of payment received by us. The number and size of = exchanges of goods and services and other properties can, under this = system, grow almost without limits. We are=20 n o longer confined to the resources (still far from being fully = utilized), of this planet. And no resource gets altogether lost or = exhausted on this planet, either. (Only different distributions and = mixtures of chemicals result from our labors and energy i n puts and only energy is required to rearrange and redistribute these = chemicals. We are using only and will ever need only a tiny fraction of = the sun's nuclear reactor power.) There is no inherent and limited = number of job places. If we wanted to, under fr e e conditions, we could work ourselves to death, in prolonged, hard and = productive labors, serving the wants of others, while they would pay us = with claims to their products and services. Under present conditions = only the supply of sound exchange media is=20 l imited - and leads to a limited number of job openings and limited = sales, both at less than free market prices. We should not expect = anything else from a despotic system of monopolized exchange media and = exclusive and forced value standards. Lastly, under =20 full economic freedom or free markets, especially for exchange media, = value standards and capital securities, goods and labors could be = exchanged without limits except the productivity limits of the = participants in free exchanges. Naturally, we are induce d by a free market to produce mainly for the free market, apart from some = production only upon demand and upon orders, e.g. like the production of = ships, aircraft or locomotives. So far the "free" market was free only = in allowing us to offer our labor, goo d s and services and other property for sale but not free enough to allow = us to produce & suitably distribute, mostly in short-term and = self-liquidating loans, suitable and sound exchange media and value = standards, based upon what we have to offer, to exert =20 a monetary demand for our goods and services, thus bringing the goods = and service side in balance with the monetary demands for it. As long as = those offering wanted goods and wanted services cannot find sufficient = buyers among those who want their goods a n d services, it is obvious that there is something wrong with the supply = of sound exchange media to them. The obvious suspicion should fall upon = those who have, quite legally, monopolized the supply of exchange media = and value standards - and have, obvious l y, mismanaged their monetary monopoly, privilege or power. The abolition = of their monetary despotism would mean monetary freedom and a sufficient = and competitive supply of sound currencies - to make the exchange of all = goods, services, labor and propertie s free and easy. This would also lead to the reduction of the transaction = costs, meaning less would be required in interest, displays, = advertising, sales commissions etc. Potentially all ready for sale and = daily wanted consumer goods and services can be ea s ily transformed into ready purchasing power for them, up to the = consumption potential of the public for them - and this by the very = suppliers of these goods and services, in their own interest, as well as = that of the general economy. The more they issue t h eir shop currencies or tickets to what they have to offer, the more they = can be sure of their sales, for these tokens would have no other use = than to be redeemed by them in their goods and services. Nothing should = be allowed to stand in the way of such a=20 n atural, free, social, self-help and self-supporting exchange system. All = interferences with it are wrong, irrational and self-defeating. Such = interferences can and do lead to economic and other catastrophies, to = the closing of borders for goods and people . to civil wars, revolutions and international wars, as well as to = terrorism and poverty. - J.Z., 12.4.01, 27.8.02.=20 \par UNEMPLOYMENT, INVOLUNTARY MASS U., CENTRAL BANKING VS. MONETARY = FREEDOM: Governments have made it almost impossible to get a job without = bei ng paid in exclusive and forced government money. This is the major = cause of most involuntary mass unemployment - but it is rarely = recognized as such. It means that employers cannot employ people unless = they pay them in this way. In the all-over economy t h e demand for labor is limited to the amount of forced currency that is = made available for this purpose by the central bank. The central bank = does not know how much currency is needed for this purpose or any other = purpose. It can only guess and estimate an d will only rarely and temporarily arrive at the right amounts and these = will be unevenly distributed over the country, i.e., not quite in = accordance with local requirements. Under monetary despotism employers = have to hunt up customers able to pay and work e rs have to hunt up employers who were somewhat successful in their hunt = for paying customers. Customers depend on their supply of exchange media = ultimately likewise on the central bank - through various stages. All = exchanges for which the central bank has =20 not made sufficient exchange media and which cannot be achieved on the = basis of its limited cash supply via non-cash payments (always = interruptible via the creditor's right to demand cash) or clearing, = will not take place. All-over trading will be limite d or chained by this issue monopoly of the central bank. Under monetary = freedom the ready for sale goods and services can be turned into ready = cash demand for productive labor - by the owners and providers of these = goods and services. The total demand that =20 could be thus mobilized in sound and competitive local currencies is = enormous. Wage payments using these exchange media will be easy and = cheap - and by their very nature the will assure the sale of goods and = services equivalent to the wage and salary bill s , other expenses and the profits of enterprises. Even taxes could be = paid in this way, to the extent that sound tax foundation money has not = yet been issued. Admittedly, governments have invented and practised = numerous other deterrents for employment: Gua r anteed wages, minimum wages, unfair dismissal laws, union privileges, = prescribed interest rates, numerous regulations, compulsory licensing, = the penalties represented by taxation and the risks of ever changing = interventionist laws and ever uncertain jurid ical decisions. - J.Z., 15.4.01, 26.8.02. \par UNEMPLOYMENT, MASS UNEMPLOYMENT, INFLATION, REVOLUTION & TYRANNY: = Any unemployment rate of 20% or more brings about a situation in which = almost any spark could set of a violent revolution, one likely to make = the exi sting degrees of despotism even worse, not only in the sphere of = monetary despotism but generally. The same applies to any galloping = inflation, with its monetary expropriations, lack of investments, = malinvestments and finally also massive unemployment. -=20 J .Z., 28.7.02, 24.8.02. The town of Gori, in central Georgia, the birth = place of Stalin, according to an article in THE SYDNEY MORNING HERALD of = Sep 22/23, 01, by Ken Haley, has an unemployment rate of over 50%. The = highest that I ever heard of was, if I r emember right, 80%, in Elizabethville, in the Congo, during one of its = civil wars. That civil war might have been caused by almost as high = unemployment there and elsewhere. - J.Z., 26.8.02. \par UNEMPLOYMENT, MONETARY DESPOTISM & MONETARY FREEDOM, BALANCING THE=20 MONEY SIDE WITH THE GOODS SIDE: Allow the ready-for-sale labor, services = and consumer goods - now difficult and partly impossible to sell for the = legal tender paper money of central banks - to become expressed, by = their providers, as additional purchasing =20 power, redeemable in them, and thus a primary condition for the = balancing of supplies with purchasing power for supplies will be = achieved. - J.Z., 22.4.01. - Sales will almost become as easy and = automated as is production, at least for goods and services=20 that are daily needed or wanted. - J.Z., 26.8.02.=20 \par UNEMPLOYMENT, POLITICIANS, BUREAUCRATS & THE PEOPLE, MONETARY = DESPOTISM: Make politicians & bureaucrats unemployed rather than making = people unemployed by the millions - by legally getting in dozens of way s between potential and willing buyers of labor and services and able = and willing sellers of labor. The most significant of these barriers = amount to the monetary despotism that is expressed mainly in the money = issue monopoly of the central bank, its paper value standard and legal tender (forced acceptance and forced value) = for its paper money. - J.Z., 24.2.02, 24.8.02. \par UNEMPLOYMENT, TECHNOLOGY, AUTOMATION, MACHINES: Technology has made = the labor of most people, except the first-rank creative genius, unneces sary. This leaves the majority with a void of years to fill somehow - a = sense of uprootedness and lost self-respect - which is rather horrible. = - Poul Anderson, Cold Victory, 197. - His expression of a popular = prejudice. - (1.) Either those who own the p r oductive machinery, assuming they are a minority, and those few, who = look after and further develop automated production, will, out of the = goodness of their hearts, or out of fear of a revolution, supply the = non-working people with their needs, free of ch a rge, or requiring only some personal services in return, or they will = refuse to supply them with their needs and defend themselves = successfully against the idle masses who demand that they be supported. = Those supported without working for it will have hob b ies, crafts, arts, literature, studies, entertainment, tourism etc. to = keep them busy, in accordance with their interests. To some extent they = would live like the supposedly idle rich, whom they envied for so long. = Others may humbly or loyally serve the p e rsonal whims of their masters, who feed them. - In case the owners of = productive equipment and skills refuse to feed them etc. then they will = be thrown upon their own resources, as if automation and high skills did = not exist at all. To survive they will h a ve to work hard, in division of labor, at first for mere subsistence and = then gradually increasing their standard of living. Unemployment will = not be their problem, rather over-work, in the absence of sufficient = good tool, machines, accumulated productive =20 capital and of automated factories working for them. It would be as if = they lived primitively on another planet, with no trade relations with = the automated economy and its participants. - (2) Alternatively, all the = productive capital might be genuinely, n o t merely representatively, owned by all. Then the machines, the = automated processes and the experts would be working for them. Again, = they would have only the problems of the idle rich. They would have = almost unlimited leisure time and educational activit i es to choose for themselves. (3) If they found this kind of existence, = without highly productive work, really unbearable, then nothing would = prevent them from dropping out and starting a low standard of living, = largely based upon their own labors, produci n g as much as they could for themselves and trading scarce surpluses for = what others like them have to spare from their output. In extreme cases, = they might start clipping their lawns with nail scissors instead of a = lawn mower or an automated mower. Econom i c retreatism was long practised by self-supporting monks and nuns and = has become fashionable among some of the drop-outs and utopian commune = people. If they acted economically and worked hard, they could go from = rags to relative riches within a few years =20 or at most a generation or two. Unemployment would not be their problem. = Every product, produce and service would mean hard labor for them - = until they have produced and invested some surplus productively. (4) = They might also resort to begging, charitable =20 foundations and community hand-outs, if they are accepted in welfarist = volunteer communities. (5) If work for its own sake is important to = them, then they might start a bureaucracy and become paper shufflers and = regulated people, running from office to of f ice, filling out forms, standing in lines for permissions etc., as long = as some people are foolish enough to support them in this, as we now = support, largely involuntarily, politicians, bureaucrats and various = other subsidized parasites. (6) There is stil l almost unlimited research work to be done, in accumulating and ordering = all knowledge and adding to it, fighting all the remaining diseases, = extending life spans and intelligence, advancing into space, educating = self and others (to the extent that they w a nt to be educated), developing new senses and abilities for human beings = until, ultimately, they would become almost godlike. - What they ought = to get rid of is the notion that they do altogether and necessarily = depend upon the capital, machines & skills=20 o f others and cannot employ and support themselves, not even at a much = lower standard of living or that they are entitled to live at the = expense of the property, savings, equipment and skills of others, who = are more productive and this at the same or a "fa i r" or nearly equal standard of living, just because they are human = beings. Neither the world nor other human beings owe them a living, owe = them a job, owe the a meaning, direction and worthwhile activity for = their lives. - In short, they could still work =20 for each other, in a much more simple division of labor and free = exchange, with simpler and cheaper tools and machines, which they might = have to borrow or build for themselves. And, if they liked this, they = could stop at any level of development in their=20 productive achievements with which they are content, as some of their = ancestors have done for thousands of years. Anyhow, they would have no = right to complain if they remained too unproductive for their own = liking. - J.Z., 26.6.01 & 24.8.02. \par VALUE STANDARDS , TRUST & CONFIDENCE: Optional and agreed-upon value standards, under = fully free choice for value standards, are bound to be more trusted and = inspire more confidence than any imposed value standards, no matter how = good they are. Moreover, the resulting co mpetition between various value standards would tend to lead to the = disappearance of inferior ones and to the dominant market position of = superior ones. - J.Z., 26.8.02. \par VOLUNTARY TAXATION: It does not mean, like some Google searches = seem to indicate, that=20 just SOME taxes are to be somewhat voluntary, like taxes on those = participating in lotteries, betting, other forms of gambling or in the = consumption of alcohol, tea, or coffee, but all taxes. Some particular = taxes, involving voluntary individual participa t ion, can only serve as limited examples, especially seeing that all the = taxes accumulated in the prices of all goods and services are, to the = extent that any particular consumption is voluntary, also voluntary = taxes - but without the option to acquire the same goods or services also without their tax burden. - J.Z., 26.8.02. \par VOLUNTARY TAXATION: }{\field\flddirty{\*\fldinst {\fs24\lang1033 = HYPERLINK http://www.free-market.net/rd/121299779.html }{\fs24\lang1033 = {\*\datafield=20 00d0c9ea79f9bace118c8200aa004ba90b0200000017000000260000007700770077002e0= 066007200650065002d006d00610072006b00650074002e006e00650074002f0072006400= 2f003100320031003200390039003700370039002e00680074006d006c000000e0c9ea79f= 9bace118c8200aa004ba90b5a0000006800 7400740070003a002f002f007700770077002e0066007200650065002d006d00610072006= b00650074002e006e00650074002f00720064002f00310032003100320039003900370037= 0039002e00680074006d006c000000}}}{\fldrslt {\cs15\ul\cf2 = www.free-market.net/rd/121299779.html}}}{ \fs24\lang1033 I have not yet checked out that site but have collected = and microfi ched as many contributions on this subject as I could. It is part of the = whole concept of free exchange, which has two major aspects: monetary = and financial freedom. Seeing the numerous complaints about any taxation = system and the rate of taxation, it is=20 r eally surprising that the dissenters have not yet bothered to compile = all voluntary taxation proposals on a CD-ROM. Potentially, such a CD-ROM = could come to outsell popular music CDs. For who really loves taxation = except politicians and tax collectors and =20 their favorites? See under TAX STRIKE, INFLATION & REFUSALS TO ACCEPT = GOVERNMENT PAPER MONEY. Voluntary taxation or contributions require tax = foundation or contribution foundation for their payment spheres, as = special currencies, that are market rated and =20 optional in general circulation. Only the issuers and collectors of tax = foundation or contribution money must at anytime be ready to accept = their own notes at par with their nominal value. And that value ought to = be expressed in a sound value standard, no t a manipulated paper standard. I just searched for this site and could = not find it. Not did an internal search on }{\field\flddirty{\*\fldinst = {\fs24\lang1033 HYPERLINK http://www.free-market.net }{\fs24\lang1033 = {\*\datafield=20 00d0c9ea79f9bace118c8200aa004ba90b0200000017000000140000007700770077002e0= 066007200650065002d006d00610072006b00650074002e006e00650074000000e0c9ea79= f9bace118c8200aa004ba90b3800000068007400740070003a002f002f007700770077002= e0066007200650065002d006d0061007200 6b00650074002e006e00650074002f000000}}}{\fldrslt {\cs15\ul\cf2 = www.free-market.net}}}{\fs24\lang1033 lead me to a site that deals with = voluntary taxation in the heading of its abstr act. Many of the 162 sites provided deal with voluntarism, others with = taxation, but none with the combined concept, not even when provided in = apostrophes. - J.Z., 24.8.02. \par WAL-MART & SHOP CURRENCY: According to THE SYDNEY MORNING HERALD of = 2.4.02, Wal-Mar t Stores Inc., the discounter and dominant force in US retailing, also = the largest company in the world, is making up to US $ 1 billion a day = in turn-over, with an annual turnover of US $ 220 billion. = Nevertheless, it is still not free to issue its own s h op currency. At any time it could probably keep ca. US $ 50 billion of = its own shop currency in circulation at par with its nominal value. This = could have a considerable influence on the short term credit market for = productive enterprises, mainly for the=20 p ayment of current expenditures like wages, salaries, raw materials etc., = with these credits secured by their short term claims from the sale of = goods that are already produced and sold and are on the road to the = retailers. If it practised monetary freedom =20 then it might grow even faster than it had. By 1979 its annual turnover = was only about US 1 billion. It is still restrained, like all other = business enterprises, by the condition that it can sell its goods and = pay its debts only with government dollars. B y comparison, the two large chain stores in Australia, Woolworth and = Coles/Meyer, have an annual turnover each of only ca. A $ 25 billion. = But then their market is much smaller. What is the total value of all = the ready for sale goods in all stores, at any=20 t ime, e.g. in Australia, the US, UK, German, France, etc.? Up to those = values they could issue competing currencies and with them exert demand = for more productive labour, raw materials and services - if they were = free to do so. Obviously, they could rapidl y replace their present stocks, as sold, and since not all their issues = would immediately stream back, they could also issue somewhat beyond = their present stocks, which might be turned over within a few days to a = few weeks. Under such conditions even illeg al immigrants might be welcomed with open arms rather than feared as = competitors on an all too restricted labor market. - J.Z., 26.8.02.=20 \par }} ------=_NextPart_000_0004_01C24E05.061A8700--