Someone has a Money Problem

I’ve been in a Substack Messages conversation with someone apparently new to monetary theory, totally misunderstanding what money is. Their remarks are noted as “Q” and my replies as “A” and italics.

Q - Nothing can stop what’s coming!! Money in the banks are not safe anymore. Have you switched all your funds into the new digital currency XLM and XRP as recommended?

A - No, because you have no access to these when power is off. And all digital money follows metalist notions of money which is a serious error. For now, Cdn$100 bills are fairly safe.

Q - The whole financial institution is currently experiencing a massive financial collapse and once the 10 days blackout hits the banks will shut down and the stock markets will collapse, all paper cash dollar and euro will become worthless and have no value… Only the new digital currency XLM and XRP are going to survive the crash and become the new means of payment.

A - But you can’t access those when the electric power is off, and their block chains are also shut down. As I said, they are a metalist notion of money that just doesn’t work. When you repay a loan, that money CEASES TO EXIST. That is impossible with block-chain or other metalist nonsense such as gold. Cash ALWAYS has value in local exchange. Learning about monetary theory is essential, money is a specific form of information; tokens are not.

Q - Once you’ve switched to these recommended iso coins XLM/XRP and backup into your Nesara & Gesara account system you will have a maximum transaction security network to run your transactions purposes and keep your money safe. XLM and XRP are backed up by precious metals Gold and Silver. These two currencies are going to replace the old dollar currency immediately the reset occurs.

A - NONE of those things are currency! Gold is a Tier-1 asset and can NEVER be a Level-1 asset. And no, you can’t access ANY of those networks in power blackouts. Stop dreaming! End of topic.

Q - Banks don’t have a backup account. And you can’t have your money on one portfolio. We’re talking about crypto XRP and XLM. You’re not aware that crypto is the new financial system to hold your money? Crypto is the future

A - Crypto is a fixed supply of tokens. Most money in circulation is created ex nihil by commercial banks, they move a number from their balance sheet to your account. When you pay it back, that accounting is reversed, and that money is GONE. It does NOT remain a crypto token in a block chain, it is GONE just like it came into being. And similarly, you can’t pay interest with crypto, where do you get that increased fraction of money from? You CANNOT run an economy on a fixed number of tokens or a fixed supply of gold or any other metalist notion of money. That’s been tried and it doesn’t work, so the gold standard was abandoned. Metalist notions of money (such as crypto and gold) do not work in real life. Don’t bother me with any further ideas on money until you try to understand some things about monetary theory, and how economies actually work.

I’ve had several articles on these topics, but still don’t seem to cut through the QRM (radio code for man-made noise). Money is a specialized form of information, a form of legal information. That applies to ALL money, even cash. Money in a bank account is tied to that institution until you transmit it elsewhere, while cash is a portable form of money information, not tied to any institution but certified as being legal and not counterfeit by the government. Cash is not “real money,” it is just a portable form of legal monetary information. Don’t worship cash, or gold, or crypto!

Crypto is tied to a block chain system so that each crypto token is tracked and recorded and can only move from one person to another. By definition it cannot “disappear” when a loan is paid off, therefore it cannot be loaned out. It can only work in small areas of the economy as a barter exchange token. And it only works when both parties in the value exchange are members of the same crypto system. Cash is free of those restraints. Crypto cannot do ANY of the other functions of normal money. Crypto works like the metalist’s idea of money, such as gold, and often crypto claims to be “backed” by gold or silver. Gold and crypto are hedges, they are not investments. And what they are hedging against is determined in your mind as a figment of your imagination.

The economy was freed from this metalist theory by getting off the gold standard back in the early ‘70s. The money supply was extremely constricted. When you cannot expand the money supply, you cannot pay a new worker in the workforce, you cannot provide for new people being born, unless you distribute the fixed money supply away from others. People whine about “fiat money” as not being “real,” but you cannot operate an economy on metalist money. That is an overly simplistic concept of money, existing only in the minds of the uninformed. 73! (radio code for over & out, best wishes)

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But what is this coming collapse, and is the above writer aware of this aspect? Somewhere in the next two weeks the U.S. needs to refinance US$3T of debt. No way can they sell $3T of bonds in that time (at any discount interest rate), the rest of the world isn’t buying. They come up with those funds or they default. Yes, some people keep saying the U.S. can’t default, they are a money sovereign. Not true - they handed that power to the Creature from Jekyll Island, the Federal Reserve, a handover during the Christmas break, Dec. 23, 1913. This sounds like a federal agency, but it isn’t, it’s an independent banking organization, prevented by legislation from issuing currency without issuing an equivalent amount of debt. So they can’t just print the funds.

In the following two interviews, Col. Lawrence Wilkerson asserts that the only place in the world with enough current account balance to bail out the U.S. is China. And the President of Russia has discussed this with China, and they could have decided to just let the Empire of the West rot in its own piss, or bail them out to save the rest of the world from the fallout of American collapse. They don’t wish to be the ones having to pick up the trash resulting from American collapse. So they would consider a bailout. But in return, the Empire is FINISHED and must take a vastly diminished role in the new multi-nodal world, with the largest power shift in five hundred years, with power moving eastward. If the American regime can clean up its act geopolitically and literally go begging to Beijing for a bail out, the financial problems for the U.S. will still be the worst in modern history, but failing a Chinese bailout, it will be total economic ruin for the U.S. Note that all of this requires an American regime with a much higher intelligence than has been demonstrated for the past several decades. A failure in these efforts could result in worse conditions for the America people than the collapse of the Soviet Union, decades of conventional war, or total nuclear annihilation. Yet the foolish EU Elite and some in the U.S. admin, still consider planning for a forever-war to boost their failing economies. Sorry, wrong train, wrong track. It’s over.

Col. Larry Wilkerson: Red Alarms Everywhere - The U.S. is walking into it. On Nima’s program

Lawrence Wilkerson: Economic Collapse Will End the U.S. Empire, on Prof. Glenn Diesen’s program