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Natural Law and the Redemption of Notes of Debt

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  • Levi Philos
    In a reply to a GIM (Gold is Money) thread with the header line Banks Sitting On An Inventory Time Bomb I write: Quote: Originally Posted by killer2021
    Message 1 of 1 , Feb 6, 2009
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      In a reply to a GIM (Gold is Money) thread with the header line "Banks Sitting On An Inventory Time Bomb" I write:
      Quote:
      Originally Posted by killer2021 View Post
      Definitely. Just stop paying. It'll take the banks months or even a year to get you out. In the mean time, the amount you were paying on your mortgage can now go to saving up or doing whatever. It is a no brainer.
      This type of conclusion will be widely made. It is exactly what I was writing about when I wrote "search for two terms in association by using quotation marks: 'liquidity preference' + 'zero point.' "

      What it means is people will do anything to get into a position of positive liquidity and they will not borrow with terms of repayment that include interest above zero.

      Now, consider the phrase: "If you keep doing what you've been doing you will continue to get the results you have been getting." In that usage I am not referring to individuals, but rather to government and to banks in a collective fashion.

      THE MODEL IS WRONG, AND THE ONLY SOLUTION IS TO CHANGE THE MODEL.

      We are using a mutual credit money system - this fact escapes nearly everyone - but the banks are not formally in an agency position, the face value of the money (seigniorage) is not assigned to the people, and then interest is added to the money which is created through the double entry process (hypothecated debt - the Mandrake Mechanism).

      When the banks were no longer required to exchange their notes of debt for either gold or silver then all redemption of the money symbols fell upon the people who redeemed the symbols with their commodities, finished products, and intellectual and physical labor. When the debt money came into existence through the Mandrake Mechanism (double entry bookkeeping) - then if the books are ever to balance - the face value of the notes must necessarily be assigned to all of the people collectively or to producers of value individually.

      Also, please recognize that the redemption process is all about correcting the previously incorrect bookkeeping entries.

      Also recognize that in these events natural law now will take precedent over man's written law.

      This post is: http://www.goldismoney.info/forums/showthread.php?p=1553203

      Levi Philos
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