[mandalisj]

Originally Posted by farmer_giles_of_ham

today, every 42 or so bux is worth about 6% of one ounce, and thats dropping mightily fast, headed for no more than 2%.

Congratulations, you know the secret.

But we do get some value, like the ability to exchange.

Correct, we do get SOME value. However SOME VALUE is not PAR VALUE and hence if the lender has notice of that fact (the price of gold in the paper) they cannot be a holder of due course.

The credit-reserves are just a monetized representation of the economy.The only real problem,as I see it, is amortization.

I am not exactly sure what you mean by amortization. I would assume you are referring to how all currency is loaned into circulation so the principal is created but never the interest forcing foreclosures. The bankers will tell you it's fine because there is always new currency being loaned into circulation to service the old debts, however this inflation in the quantity of circulation causes price inflation ... what the Federal Reserve calls 'targeted inflation' ... I do agree that this is a significant point and the other big secret about the financial industry along with gold par value and inland admiralty. Nevertheless, it is not exactly the topic of this thread and I want to keep on point so things don't get confusing. The major point I wanted to make was, that because CREDIT is not loaned FOR VALUE, the lender can never be a holder of due course.

On the broad, general level, the volume of debt/credit always grows, by at least as much as any interest and costs.

Theoretically, if 'targeted inflation' is successful. Right now however the world is facing the largest deflationary threat ever, one that encompasses the entire world financial system and not just a single country or trading bloc like in historical deflationary collapses.

So in reality, things are staying even-the money issued represents whatever it can buy, subject to float.

About six cents on the par dollar worth, as you said above?

Technically, because there is not enough gold 'all the goods and services in the economy' what is legally called the 'faith and credit' of the country backs the currency. However, based on the par value of the gold dollar, it's drastically overvalued.

Re-payment/amortization is just very cumbersome extra-pointless wheel-spinning. The bigger picture is that we are in an increasingly advanced, social economy, but we still consume and do business like early capitalists, personal credit, individual taxation, employment, etc.

I wouldn't use commie terms like 'social' or 'capitalist' ... As a descendant of English ancestry, I would say that the modern system with the pledge of 'faith and credit' to the central bank is more of a modern feudal system. The parents pledge their child to the state (and it's owners) with the affidavit (trust declaration) they sign for the birth certificate. The adult pledges the legal right to the rewards of their labor earned by working for companies chartered under the bankrupt state with their application for a taxpayer identification number. Everything 'modern' is really all based on the feudal system, except now corporations both for profit and governmental have lordship over the serfs and vassals.

The average real property is about 10% title-value, and about 90% equity. How many goods and services naturally lend themselves to be secured against the value of real estate? All utilities and public services, infrastructure, communications, transportation, to begin with.

Banks will only lend against real estate which is part of why it is now overvalued. Property prices cannot increase unless incomes increase, and that causes increases in price inflation.

A good house, with all the amenities described above, should cost maybe 10% of what it does today. This used to be called "quit-rent", where a new tenant would take possession of a land that bore a fixed yearly tax (which ate up most of the total value anyway), paying the difference in market-price to the previous holder.

Americans cannot buy property, they buy a pin number that gives them EQUITABLE TITLE allowing beneficial use while LEGAL TITLE remains held by the county. The English would call it a one year lease hold. Go ahead and stop paying your taxes (rent) and you will see who really owns the property. Again, while relevant, it's distracting from the topic of the par value of money and I am happy to discuss the issue in another thread.

Many have had many successes regarding their mortgages. Nevertheless, the 'why' behind it that is usually never understood is that the lender must be able to prove that it lent 'valuable consideration' based on the par value of dollars at $42.2222 per ounce of gold. Also, because nobody can be compelled to repay debts in gold coin, they have to accept YOUR CREDIT AGAIN since they already did before.