‘What’s Love go to do, got to do with it?’
You have probably have, or will have a reason at some time in your life to ponder the question:
What is love?
And of course you will come to the conclusion that there are as many different definitions of love as there are sentient people on the planet.
So the question might be more usefully asked:
What is the value of any particular love?
In other words, if we accept that if someone proclaims love, then it is love, the real defining difference is that the love from a self obsessed alcoholic is worth a lot less than the love from a kind thoughtful person. Someone might genuinely offer you their love, but that does not mean that love is worth anything to you.
Which brings us to money.
There has been a largely fruitless debate over what money actually is between Gold Bugs, Bitcoiners, and the mainstream.
It is much more useful to accept that if someone says something is money, then to all intents and purposes it is money and instead ask the question; What is the value of this money?
So we need a useful definition of the value of any particular money. The only definition of money value that does not rely on relative values is how acceptable it is.
In other words the power of any currency rests on how many people use and accept it. In fact you could argue that any given society is more usefully defined by the currency it uses than anything else. After all, the national boundaries of a nation can be violated by an immigrant hiding in a lorry, but that same immigrant cannot spend his home currency in the place he has penetrated. You can think of currency as a little national flag that you carry around in your pocket. National territory, it’s political and economic norms are defined by currency.
So if there were to be more than one currency operating in any given territory that would cause some interesting consequences.
It has been the policy of governments in the Saxon Axis to allow the creation of NGM (Non-Governmental Money) for over a decade. The Credit Crunch and the reconstruction we have experienced are all direct results of the operation of the NGM (Democratised Money).
Since it is the purpose of governments in the Saxon Axis to encourage the use of NGM they wish to make it as valuable as possible. How is this to be achieved? by maximising the number of people who use NGM, to maximise the territory it covers. How is this being achieved? By swapping state currency for NGM, in other words Quantitive Easing. By purchasing Mortgage bonds, with freshly printed state currency, governments explicitly back the value of mortgage derivatives. By purchasing Government debt with freshly printed state currency governments explicitly devalue their own currency.
More importantly this increases the territory covered by NGM. Up until Q.E., NGM was limited to the financial sector, accepted and traded nowhere else, (most people did not even know it existed!). Now NGM is held and traded by your Government. Ideally, the proponents of NGM want it to be held and traded by you but in order for that to happen there has to be a number of further modifications to the system.
At the moment, NGM is traded at 1:1 with state issued currency. The state purchases NGM at its nominal value. But in order for it to be a truly sovereign currency, it has to have a floating exchange rate. How can this be achieved?
The purchasers will have to pick one. They have to break the existing link between the amount of mortgage NGM they purchase and what they pay for it. The difficulty is that they have no idea how much of this paper is actually out there, so they cannot assign it a value based on how much there is. What they can do is maximise the territory it covers by mixing the national money economy as thoroughly as they can with the NGM money economy before they are stopped.
Notice I say before they are stopped.
So who is going to stop them?
You can refer to Crackernomics for a fuller list of those who will lose out as a result of NGM but for the moment I want to concentrate on national governments. It has been pointed out that debasing national currencies in the Saxon Axis has led to debasement of foreign held debt and manipulation of exchange rates. This is the basis for the idea of ongoing ‘Currency Wars’. ‘Abenomics’ in Japan in cited as an example. After implementing Crackernomics to the power of ten in Japan in order to ‘stimulate’ the economy, it is anticipated that Japan will have to go even further to offset the fact that the Fed failed to taper last week. This in turn will cause other players to devalue their national currencies and this is a ‘ currency war.’ This, in turn, is taken as an indicator that things are getting out of hand. But if every nation state continues to devalue and QE then cumulatively it becomes a war on state currency itself! This plays directly into the hands of those who want to devalue the very idea of state currency and to promote the idea of NGM!
In other words those who promote NGM are more than happy to see a head fake national state currency war in the same way that Israel is happy to see the two sides tear each other to pieces in the Syrian national war.
Let your enemies fight till you are the last one standing
My friend, you would not tell with such high zest
To children ardent) for some desperate glory,
The old Lie; Dulce et Decorum est
Pro patria mori.
8 October 1917 – March, 1918