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January 31, 2017 | Monetary Reform – What Does it Mean?

Donald B. Swenson: Born January 24, 1943, Roseau, Minnesota. Graduated H.S. 1961, Moorhead High, Minnesota. Graduated College 1968, Moorhead State University, Minnesota. Designated member of Appraisal Institute (MAI), 1974. Employed with Western Life Insurance Company, 1968 – 71; Iowa Securities Company, 1971 – 73; American Appraisal Company, 1974 – 81. Part-time teacher/valuation consultant/bartender, 1979 – 2008 (taught workshops at Waukesha County Technical Institute, Wi. and Madison Area Technical College, Wi.). Retired 2008 (part time teacher/blogger), AZ. Self educated economist/philosopher/theologian:


Today, we have many who desire monetary reform and social justice for citizens who are victimized by our current monetary system. The American Monetary Institute speaks for many when it comes to monetary reform. This organization has proposed legislation called the Need Act to reform our money system and to centralize money creation within the U.S. Treasury Department. One politician who was behind this legislation was former Congressman, Dennis Kucinich of Ohio.

Monetary Reform generally means that the current system will be altered so that money is created and distributed by new sources other than the Federal Reserve System. The Need Act is proposing doing away with the Federal Reserve System. This Act also means that our current system of debt based money will change so that debt is eliminated (as a concept). Today, it is our DEBT which is excessive and which corrupts the entire system. My sense is that prior to any new reforms, however, we need to understand some basic concepts of economics.

Capitalism started in America back in 1607 and 1620 with the settlements in Jamestown and Plymouth Rock. Prior to Capitalism, Americans used barter and various types of commodities, animals, farm products, or unique valuables as our money. Money is a concept which is ‘invented’ by man. But the origin of money developed because Americans desired to own their land and the output which arises from this ownership. Private property, in other words, gives rise to this philosophy which we call Capitalism.

With the ownership of land (private property) Americans started the concept of barter and centralized (neighborhood) markets for the sale and distribution of goods. Goods (such as food items, clothing items, shelter items, and transportation items) became forms of ‘wealth’ which people exchanged within a marketplace. The concept of ‘exchange’ later gave rise to this concept called ‘value’ in exchange. ‘Value’ in exchange derived from our ownership of property and then the production of goods (from one’s property) for a marketplace.

‘Value’ in exchange, however, is subjective and without any objective measurement at the start. To measure this concept called ‘value’ we invented this concept called ‘money’. What can measure ‘value’ most objectively was the question? What evolved over time were various commodities which people desired as a substitute for ‘value’. Americans chose silver as the best substitute for ‘value’ (after our Revolutionary War period). Thomas Jefferson and Alexander Hamilton then proposed the American monetary system to our Congress and the Coinage Act of 1792 started our monetary system.

The American monetary system was based on money as being this commodity called silver (Ag) and a currency (called the ‘dollar’) as being defined in terms of this money commodity. The definition was 371.25 grains of Ag. Gold was also part of this original monetary system for our new American nation. Our Congress in 1792 then defined all our monetary units (dollar, half dollar, quarter, dime, nickel, penny) using a math based logic…with silver (and copper) as the metals of choice when defining each monetary unit.

It was now possible to ‘measure’ this concept called ‘value’ within a marketplace of exchange (using money and our currency called the ‘dollar’). Price discovery emerged in each neighborhood marketplace as people negotiated prices for the various products of wealth being offered. Prices being accepted then became the reference point for further price discovery when new products were brought to the marketplace. All this was created so that ‘value’ and ‘wealth’ could be measured so that growth and prosperity could emerge for our nation.

So what is the message of these ‘first principles’ of our monetary system? The message is that private property is at the foundation of Capitalism and this reality results in the production of our goods (called ‘wealth’) which then must be ‘valued’ for exchange and distribution. Valuation is subjective until some money commodity is chosen and a currency unit is defined/developed. Wealth can then be ‘valued’ and measured and this leads to price discovery within the various marketplaces. All this evolved over time.

So where are we today with these core concepts of economics? First of all, we need to recognize that we do not have any real money commodity today as our object of value. Value can not be objectively measured given the nature of today’s cyber marketplace. What we have today are ‘mental abstractions’ (called currencies) as our ‘money’ and these units get created arbitrarily by our Central Banks and our private banking systems. Today’s ‘money’ is really NOT money in any historical sense.

Cyber units ($1.00 and multiples thereof) are now circulated within our computer screens (as a form of money/currency). These units live within cyberspace and get created ‘out-of-nothing’ by our banking system. The distribution of these units goes mostly to the wealthy elites who have control of the system. This is why the 1% acquire these units to excess and the 99% are left with the crumbs. We have created an unfair/unjust/corrupt system of money. This is why many want ‘monetary reform’ and a new system.

To create a new system, however, we need to understand all the history which has led to our current non-system. We need to understand the core concepts of economics which underlie our monetary system. The so-called Need Act of the American Monetary Institute does not provide any of this important history IMO. The AMI does give lots of information about money and its history, but the key concepts are mostly missing or confused. The concepts of ‘private property’, ‘wealth’, ‘value’, ‘money’, and ‘currency’ are not explained logically IMO.

I agree that we now need to create a New Monetary System for our planet. This must occur as our current system is becoming mostly non-functional and corrupt. To get this discussion going I am proposing that we understand the ‘first principles’ which underlie all our economic evolution. America started with Jamestown and Plymouth Rock and the experiences which emerged during and after this time period. Now is the time to reveal these experiences and the events which evolved since this beginning.

Monetary Reform means that we must get to the ‘root’ of our monetary problems and understand the core concepts of Capitalism. Capitalism has been corrupted over the years and we now live with a system which enslaves rather than a system which promotes freedom and growth. Let’s get a new discussion going on this evolution of Capitalism which started back in 1607 and 1620 and which has evolved into our current cyber (floating) corrupted non-system. I am:

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January 31st, 2017

Posted In: Kingdom Economics

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