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Don’t hoard the Means of Exchange! (Part 3)

by on July 5, 2012
moe

“Panta Rhei” Heraclitus

“Lay not up for yourselves treasures upon earth, where moth and rust doth corrupt, and where thieves break through and steal” Yeshua

As we have been discussing extensively on these pages recently, money is a means of exchange, and not a store of value. But there is the age old human desire to maintain wealth for future use, instead of current consumption. So how should we go about it? And is storing wealth a good idea to begin with?

It’s useful to note that there is a profound difference between a good investment and a good store of value. A good store will maintain value, a good investment is expected to generate value.

There are two kind of investments. One is productive, the other is ‘financial’. The productive kind is using some of our wealth to cut costs, or increase productivity. By buying machines. Or improving our education. Not only our own wealth increases, but also that of the community that we belong to as a whole.

The financial kind is exploitative. It does not create wealth, it redistributes wealth. To the community it is a zero sum game. The basic driver of ‘financial investments’ is the lack of cash of the multitude. Financial ‘services’ and ‘investments’ exist to ‘help out’ those who are strapped for cash. With a loan, for instance. Or ‘insurance’.

Economists call this ‘the optimal allocation of capital’. But a cursory glance shows that it really reallocates capital from the non-haves to the haves. Many of the 99% are often busy looking to share in the proceeds of this  rigged game or they try to explain it is all normal and desirable. But they shouldn’t, since they’re the ones providing the return that ‘capital’ is so eager to obtain.

By far the majority of people would be served best by an immediate end of all financial ‘services’, but clearly this is not a popular proposition. Most people still hope to beat the casino at some point and strike it rich themselves. And the Money Power has always been very apt at swinging the carrot in the face of the many, which are called ‘unsophisticated investors’ by the insiders. A recent example was the Facebook IPO. Banks have a long tradition of floating much overvalued stock, it goes back centuries, but still many people fall for it and still the con men behind these schemes are on the A-list of metropolitan society.

The blinding glitter of gold
Another example is gold. By selling a few ounces to those realizing something is brewing, the Money Power not only creates momentum for the coming Gold Standard, it also disables potential opposition by buying them off with a small part of the massive windfall it stands to gain when gold becomes money again.

Gold, of course, is plugged as the ultimate store of value. That’s why our misguided brethren of the Austrian persuasion believe it is the only ‘Real Currency’.

Nowadays the Gold dealers will tell us gold was only at $200 per ounce a decade ago while currently at $1600. “Now that is storing value!” they will exclaim.

Clearly it is not: if it were a good store of value, it would buy the equivalent of $200 2002 dollars. In reality gold has been a good ‘financial investment’. And who have been paying for the gains of the gold owners? Well…….those that didn’t buy gold. Or better: that only just bought some.

Gold is not a good store of value. Simply because it’s value is not stable. It rises and declines. It has been appreciating over the last decade because of broad speculation, fueled by the Money Power itself, that it will be money again. More and more countries non-aligned with the American Empire are looking to gain independence from the dollar by creating gold based units. Even America itself seems to be moving toward a Gold Standard of some sorts.

This won’t last long. A Gold Standard will create the deflation the Banking Fraternity seems to want. And when the masses will have risen, creating the havoc our masters seem to be aiming for, and do away with the horribly deflationary Gold Standard, killing economic growth and horribly raping debtors, gold will be relegated to the 2002 $200 dollar per ounce territory once more. Sure, this is still quite some time off, and it will go up before it goes down. Way up, actually, if this scenario indeed comes to fruition.

“But gold still buys the same amount of wheat as 5000 years ago!”, we hear the gold dealers clamor. Sure, in the long run gold has shown to be reasonably stable. But, as it has been said: “in the long run, we’re all dead”. Meanwhile, people buying gold on the top of its price, hoping to ‘store wealth’ will be holding the bag when it comes down to its natural price again.

If not gold, then what?
So if storing cash is not the way and buying gold is not saving, but an exploitative ‘financial investment’, then what?

The crucial thing to understand is that storing wealth is not about ‘liquidity’, but about ‘net asset position’. It’s not about the cash in one’s pocket (or bank account), it’s about the assets on the balance sheet. For millionaires this is a total no brainer but most people are financially illiterate, so it’s worth while mentioning this.

Another thing, cliche or not, to keep in mind is, that it’s always good to have more than one egg in the basket.

The first thing I’d suggest is to pay off debt. The financial wizards have skewed the system so badly that they can nowadays somewhat plausibly claim debt is actually favorable in many cases. Forget about that. The least we can say is that being in debt increases the wealth transfer to the Money Power through interest. It’s a bind that makes us vulnerable to all kinds of shocks. Dump all your cash in paying off debt, it saves interest payments too, so in terms of your net asset position and net income stream it is always a decent proposition.

Investing in local businesses, your own perhaps, or your education, new tools, new skills. These are all very worthy ways of disposing of cash while improving one’s net asset position.

If there is no debt left, or investments are available, start paying in advance. Our local shopkeeper certainly will be interested, as it constitutes an interest free loan to him. He might even give a discount in return. This is a serious mutual win-win. In fact, local business men should be far more proactive in developing such schemes. It allows them access to capital they desperately need and it also is an excellent way of committing their customers to their business.

To local people it is beneficial, because it strengthens their local economy tremendously, in this way a fist can be made against the combined onslaught of Wal Mart and non-lending banks.

The spiritual laws governing this issue
But even paying your taxes in advance is better than sitting on your cash. Money must flow, it must circulate. Even if it is not directly beneficial to one’s self, it still is a wise way of dealing with money. It makes you tap into the abundance of Providence.

As is written in ‘God Calling‘, January 5th:
“Do not be afraid of poverty. Let money flow freely. I will let it flow in but you must let it flow out. I never send money to stagnate – only to those who pass it on.  Keep nothing for yourself. Hoard nothing. Only have what you need and use. This is My Law of Discipleship.”

Saving money stagnates the flow of abundance. I know this is hard to digest for many people, but it is worth mentioning nonetheless.

And the final issue is this: storing wealth, accumulating wealth is vastly overrated. In fact, it is highly risky. Jesus was not kidding when He warned us we cannot serve two masters. Accumulating wealth leads to poverty of the Spirit. This is a Law of Nature.

We can own what we need and use, all the rest is simply a hindrance. It requires care and attention. It must be maintained. It can be stolen. We become defensive (because) of it. It distracts us from our main priorities in life. Long before Jesus, Buddha was already explaining this.

First and foremost: the desire to store wealth is a sign of fear. Fear for the future. Fear of want. Anything driven by fear leads us astray. It is uncalled for. Providence provides. We can really trust on that. We must shed the fear of want and we must shed our desire to measure our ‘standard of living’ by the norms of our neighbors. We should not be working hard to create wealth, but to learn how to live in tune with the One Volition, to do His will, because that is the real source of everything.

Yes, the Old Testament tells us to be frugal, work hard and create wealth. But that is the Old Covenant. That is Law. Christ brought the New Covenant, based on Grace. The gospels clearly are very outspoken on hoarding and wealth accumulation. Most (but certainly not all) people will agree wealth is of lesser import than family, let alone our own life, but Christ implores us to even shed the fear of losing them:
“If any man come to me, and hate not his father, and mother, and wife, and children, and brethren, and sisters, yea, and his own life also, he cannot be my disciple.” (Luke 14:26)
So we can hardly be surprised to read a few verses later:
So likewise, whosoever he be of you that forsaketh not all that he hath, he cannot be my disciple. (Luke 14:33)

Conclusion
To many people these matters may seem abstract. They are not. They are fundamental, simple and to the point. All they require is a little contemplation and appreciation.

Hoarding cash is obstructing the flow of life itself. Wealth accumulation is a very low priority and can easily overwhelm our perception of our real priorities.

Economics, if it is to be a sacred science once more, must be in accordance with the simple laws of the Spirit.

Related:

Don’t hoard the Means of Exchange! (part 2)
Don’t hoard the Means of Exchange! (Part 1)
How about Wealth Preservation?
Phoenix Rising, the Return of the Gold Standard

I highly recommend two little books:
God Calling
God at Eventide
They are two wonderful, inspired texts that provide essential keys to living in and with the Spirit, including the matters we have been discussing here.

The full texts can be found at:
http://www.twolisteners.org

here’s Lori Harfenist saying it all in two minutes:

9 Comments
  1. tammuz permalink

    @ Larry from Pittsburgh

    “…if usury (interest) were eliminated and government did their job in issuing an adequate amount of money – some of it debt free – then a demurrage or “holding tax” would be unescicary. Unfortunately, I can’t think of a time in modern history when this actually happened so I have no empirical evidence.

    There was a time in modern history when this actually happened and a government did their job and issued an adequate amount of money, debt-free, successfully for 40 years until the corrupt politicians caved in under pressures from the international private banking cartel, the same cartel that put an end to all similar experiments that threatened their monopoly on money. That government was the Canadian government and they executed that job through the Bank of Canada.

    The Bank of Canada was truly a unique experiment and merits looking into. It was the result of the initiatives of Gerald Gratton McGeer (known as the Father of the Bank of Canada) he was a Canadian lawyer, politician and monetary reform advocate, twice served as the mayor of Vancouver and was a mortal enemy to the international bankers.

    Here’s a link for future reading to one of his works titled “The Conquest of Poverty”
    http://inquiringminds.cc/yamaguchy_mirror/www.yamaguchy.netfirms.com/7897401/mcgeer/mcgeer.htm

    And you may also want to view this short video segment titled, “Canada’s Great Experiment: 1935-1974”

    In Summary:

    Bank of Canada was created in 1934 via the Bank of Canada Act in the midst of the Great Depression and it was given the right to create the money for Canada. Over the next 10 years the money that was being created by the private banks was phased out.

    The Act legislates the Bank of Canada to spend debt-free money into existence for public projects and services. The Act is still in effect today but our Canadian politicians will not enforce it under directions from the international bankers.

    The Bank opened its doors March 11, 1935. The bank started printing debt-free real legal tender on behalf of the people and they started ending the depression by sending out checks to farmers and workers across the west. As a result Canada was coming out of the depression while other parts of the world were still burdened.

    Canada created the 3rd largest navy in the world with this debt free money. During the war the government was producing all the money that was needed to build the factories to build the airplanes and the ships. Once the war ended the soldiers were all put to work, free university education, free tuition, or a veterans land grant to go into business or start a farm. This was money given to the Canadian people on behalf of the Canadian people through the Bank of Canada. Debt free money was used to build the St Lawrence Seaway, the Trans Canada Highway and the Canadian National Railway (CNR).

    37% of the money was spent on infrastructure and social services. Using this debt free money there was the introduction of family allowance for children, colleges were built, old age pensions and medicare.

    From 1935 till 1974 the equipment needed for war plus all these services came into existence using public money from that Bank of Canada at low or no interest. The national debt by 1974 stood at a mere $18 billion. Then the international bankers (B.I.S, IMF, the World Bank) put the squeeze on the politicians saying they were encroaching on the services provided by the private banks.

    Immediately after 1974 the national debt started to soar as the government started borrowing money from the private banks. From 1981 to 1995 the Federal government collected $619.2 billion in income tax and 70% of that income tax or $428.2 billion went to pay just the interest on the debt. Most of that 70% of the tax on labor went directly into the coffers of private banks. One of the casualties was the Canadian National Railway, once publicly funded it became privately owned.

    There is NOTHING more threatening to this evil banking cartel then debt-free (and holding tax-free) fiat money managed through a publicly owned central bank. As far as I’m concerned all of these modern economic theories are just smokescreens coming from the same perpetrators to hide the commoners from similar debt-free, user tax-free, Rothschild banking cartel gold standard free solutions.

    • Tammuz, both Larry and I are well and fully aware of the idea of debt free money printed by the state. I’m also aware of the Canadian experience and the vid (which is on the resource page too).

      I understand completely everything you are saying.

      Are you sure it’s the same the other way around?

      • Tammuz permalink

        I’m not sure what you mean, Anthony, by “the other way around”. I’m not surprised that you already new of Canada’s Great Experiment. We agree that humanity must get the control of money out of the hands of the private banking cartel. But I find most of these theories to be cleverly deceptive and actually support the interests of the banking cartel. They either directly or indirectly blame the public institution of government which is the only proven defense societies have. The fault is not the public institution of government but the banking cartel agents who have usurped those institutions. The banking cartel hates public institution of government… the people’s power.

        I believe that they are the source of these cleverly devised theories so that the only alternative left, no matter how it gets disguised, is private institutions of government which will only serve special interests.

        • let’s forget about all the inanities of Babylon’s mysteries and talk Ishtar Tammuz!

    • Bourchakoun permalink

      Excellent example of what is possible with a free money system – even one, which still had a fractional reserve system in place for the advantage of the banks – Canada probably had strong reserve restrictions like in the US as well, which curtailed a lot of leveraged buyouts and speculations. Even with that it worked admirably well!

  2. We seem to be mixing two separate monetary reform concepts which may be confusing the issue. Anthony has discussed the Worgl “experiment” and the approach by Silvio Gesell – “demurrage” (a tax or interest on holding money).

    In this scenario, a “complimentary” (parallel) means of exchange was implemented to facilitate trade and commerce. The second means of exchange was in response to a failed monetary system that was too scarce to provide the sinews of full employment and a truly productive economy.

    The gyrations needed to keep the second system operational are a reflection of the failed underlying debt system rather than being part and parcel of a good monetary system. I think this is an important distinction.

    For example, if usury (interest) were eliminated and government did their job in issuing an adequate amount of money – some of it debt free – then a demurrage or “holding tax” would be unescicary. Unfortunately, I can’t think of a time in modern history when this actually happened so I have no empirical evidence. Maybe Germany came close in the 1930’s.

    Lincoln’s greenbacks you say? Well, yes they were issued by the government but they were instruments of debt that the U.S. paid dearly for; in fact, the U.S. economy collapsed in debt shortly after the Civil War. All so wealthy, mostly European, families could clip the interest coupons and compound their return on the backs of hard working people.

    Humanity direly needs an equitable and plentiful means of exchange but until more people figure out that a sustainable economy requires a sustainable monetary system, we will continue to be enslaved.

  3. Tammuz permalink

    The purpose of all this is to make central planning look kooky in order to lend support to the other kooky idea… no planning at all. The end result is a confused commoner as to the true and simple nature of money. Confused commoners are easier to rob

  4. Abu Aardvark permalink

    Anthony Migchels says: “To many people these matters may seem abstract. They are not. They are fundamental, simple and to the point.”

    ——————-

    That’s right. And what is it, exactly, you’re promoting here?

    Central planning – which never works, since it cannot, never has, never
    will, and outright theft – via intentional devaluation of the means of exchange.

    Simple and to the point, indeed.

  5. Bourchakoun permalink

    Dear Anthony!
    Accumulation of wealth in itself is probably not such a bad idea in this world or – at least – knowing the ins and outs of the process and the scams itself, so to be able to navigate best for yourself and your family. You are right saying, that fear and the so-female desire for security drives a lot of the actions today.
    However avoiding the insurance- and finance- and partly mortgage-scams of today while knowing what to do with surplus money and how to invest it wisely in education or a business you know is not such a bad idea. The spiritually highest wealth-accumulation book I know is The RICHEST MAN OF BABYLON by George Samuel Clayson. I recommend it to all, who would like this to become their game.

    Nevertheless as with all things – there is always a higher viewpoint. But is mankind truly ready for a money-free system? There is even one that has been working in this world for thousands of years in the form of certain monasteries – Christian and Buddhist – maybe other dominations. In those monasteries all the monks – whether the managing abbot or the lowly monk sweeping the floors – enjoy the same standard of living. In Zen-Buddhist monasteries in Asia monks can even have families and the monastery provides for the upkeep of the family, a larger appartment and education for the kids. Of course the monasteries have been given property and have to reinvent themselves in time in order to survive financially. However it works only when all of the monks keep a high state of consciousness.

    Maybe in future times when all menial work can be done by technology mankind will shed the money game and give everyone just a house, a garden and all the things that you might want and you just go to work for the fun of it as an artist, engineer, teacher, scientist, explorer. Who knows – maybe this could be even possible with all the withheld technologies out there.

    But let us not kid ourselves – we are governed by black-arts practicing bunch who have worked for so long ammassing most power and wealth all the while brainwashing and dumbing down the masses in order for us to never find out – they even manipulate the “alternative” opposition as much as possible. If the people ever did find out what transpires behind the scenes in this “open” conspiracy then I doubt that they are likely to let it go and have judgment be spoken by the Divine Hierarchy – as I would recommend.

    Now we are in this dark state. However the Illuminati have also done a few useful things like breaking up the mental hold of the church which was rather science- and social-mobility-stifling. They also actively encouraged science. And as far as our opportunities go – in 1850 wealth and power has not been accumulated by them as much, but most people were absolutely powerless to know anything about the true workings of this world. The labor unions, the workers uprisings, and yes also the world wars (which made them back off a little) and finally the internet now has given us an enormous opportunity. This is still a golden time – too bad it is right before the big culling, but still maybe we can pull it off in time.

    And even if not – you are right – it is better to have lived an intensive life filled with the most meaningful experiences than to waste the life in activities that will not be remember by your true being. A wise man once said, that people mostly become rich because they use their superior intellect in better way (sometimes not so superior, but just cunning) in order to exploit and take advantage of other people. Unfortunately that is true for most activities in this Capitalist system – with Communism being no better of course.

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