Digging Up the Money Root
May 30, 2012 in Finance, Opinion, World
This article is part three of a five-part series on how we can make a peaceful transition into a peaceful world.
For the purposes of this discussion, I am using this definition.
A peaceful world is one where each person is free to experience life and liberty without depriving another person of these attributes.
This link takes you to an article where I introduce this series and explain my definition.
This link takes you to part one of the series.
This link takes you to part two of the series.
Life and liberty includes a fair, asset-based method of trade. The barrier to this is the current debt-based method of trade.
I have always been fascinated with the topic of money. I enjoy mathematics, even algebra. I started preparing my own tax returns while I was in high school. I did other people’s tax returns as a favor while going through college, getting a degree in music education, and teaching private music lessons. I even approach music mathematically.
One day, I had an epiphany.
I could use my fascination with numbers to help other people manage their finances. I changed professions.
Since then, I’ve prepared tax returns, done accounting work, and provided business coaching services.
Through doing this work, I began to notice how people struggle with Peace of Mind. My observation is that people worry more about money than anything else. In fact, even when they are focused on something else like health or relationships, money always plays a role in those situations. They worry about how to pay for medical care or how a partner is using money.
I wrote a couple days ago that part of this problem has to do with our ideas of ownership.
The other part of this problem is directly related to our current debt-based method of trade.
This system, which started in its current form in 1913 with the creation of The Federal Reserve, has come to symbolize everything that is wrong with today’s economy. It allows bankers to control the money supply through the printing of currency. It is the root of the problem that has brought us to the edge of financial catastrophe.
This debt-based method of trade cannot continue without growth of the money supply. When every dollar created comes from debt, interest must be paid on the debt. The money to pay the interest isn’t created with the original debt. Therefore, it must come from future dollars, which are created from more debt, which require more interest, which must come from future dollars.
As a result of this method of trade, we are faced with three choices:
- Massively print more money and create additional inflation.
- Fall into a global depression as debt goes unpaid.
- Reboot of the whole global monetary system.
Since World War II, The Fed has chosen to print more money to prevent global depression. This is why a gallon of gas, that I watched my parents pay twenty-six cents for, is now almost four dollars. It is the same gallon of gas today as it was forty years ago. However, the value of the dollar relative to that gallon of gas has decreased fifteen times during since then.
This inflation is, in effect, an additional tax that we pay each time we purchase something. It exists because it is needed to pay the interest on the national debt.
Speaking of taxes, it is interesting to note that the Internal Revenue Service, which started using Form 1040 in the same year the Fed began (1913), is now considered to be nothing more than a collections agency for The Fed.
Some writers say this was the original design. While I have not yet found any “official documentation” for this, it is obvious that since all tax dollars are going to pay the interest on the national debt, collecting for The Fed has become the effective role of the IRS.
Those who, like me, have taken the time to study this situation have concluded that the only long-term solution is the reboot of the whole global monetary system.
This means we do away with a debt-based currency that uses notes (debt instruments) as cash and we go to a system based on assets, including gold, silver, and commodities.
This means the end of The Fed and the IRS as we currently know it.
It means a complete jubilee that includes the forgiveness of all debt. (Numerous people have asked me if all debt has to be forgiven before we begin the new system. As an accountant, I can assure you that it does if we are going to practice integrity. Debt is the root of the money problem.)
This idea of a financial reboot has been bantered about quite a bit over the past several months. However, those in the positions of power have not yet demonstrated the courage to step forth and implement it.
Therefore, we teeter on the edge, waiting to see what is next.
What can we do to help this process along?
Some people are espousing the idea of creating a global shutdown starting June 18. Their idea is to stop paying all bills. I understand the logic. However, I’m not convinced it is the peaceful response.
I believe the peaceful response is as follows.
- Practice the philosophy of Living Within The Gift. I explain that idea on this page with a free video and an eBook.
- Understand the current financial system is debt-based and is, therefore, unsustainable. It must change to an asset-based system to become sustainable.
- Selectively share this information with other people so that when the change takes place, and it will happen, either through the system imploding or a proactive change, those people will be prepared to transition peacefully.
Tomorrow, I will continue this series by looking at how accurate information is important for a peaceful transition.
