Unveiling Money’s ‘Magic Potion’
Draft V4.0

Passive BIBO Currency Board
(With the gratitude to all that have provided comments/suggestions reflected in the text)
Copyright © 12/2014
Reproduction expressly granted provided attribution is given and original link is provided.

 

The Dream that will wake you up

Just as when a magician unveils his trick, the magic disappears, when we analyze the true nature of money, it loses all its value as if one has awoken from what was only a dream. Just as the girl never is sawed in half, the rabbit never is pulled from the hat from nowhere and the magician doesn’t have money appear in his hand that wasn’t there before. Waking from such a dream, one realises how, when money is unveiled for what it is, it is just another sleight of hand, barren of true substance and therefore of any legitimacy.

The Message

Definitions: 

Physical support:  Any material (paper, computer memory, human memory etc.) that serves as a means to register symbols or other representations of non material data or information.
Material good: Any physically observable object or activity subject to natural/physical law and of recognised value aka as wealth.
Value:  Relative desirability, importance or usefulness.
Transaction: Acquisition of material goods
 

Money consists only of the annotation of numbers with symbols ($, £, €, etc.) without representing any material good in particular and where the same annotation on different physical supports (paper, computer memory, coins, etc...), are equivalent and interchangeable.  For example, both a cheque for $10 on a piece of ordinary paper and one on a sheet of gold, equally represent only $10.  Thus money,

  1. Is an annotation of a measure of value expressed in unit symbols ($, £, €, etc.), independent of its physical support.
  2. Does not represent any title over any particular material good.
  3. Has no independent material substance and therefore has null independent material value.
  4. Can ONLY represent the value of material goods but can never substitute these.
  5. Can only be legitimately created as a representation of the value of goods and services subsequent to transactions[1], assigning a negative sign to the account entry of the receptor of material goods and a positive sign to the account entry of the forfeiter of material goods.
  6. Each transaction of material goods has its own independent measures.
  7. Can only be legitimately cancelled through transactions of material goods between accounts with balances of opposite sign.

The following Common and Current False Claims are Identified:

I.    Money can substitute material goods (i.e. serves as payment):

Money is an annotation of a measure of value expressed in unit symbols ($, £, €, etc.). independent of its support, has no independent material substance and does not represent a title over any particular material good.

If money has no material properties and does not represent a title over any particular material good, then the claim that it can substitute material goods is false.  

II.   Money produces wealth (i.e. is required as an input to value creation):

Money has no physical properties of its own, and since money represents the measure of value of material goods in transaction, it arises subsequently to transactions.

If money has no material substance and only subsequently measures the value of material goods of each transaction, then, the claim that money can generate the material goods that give rise to wealth is false.

III.  Money is a scarce commodity and/or an industrial product:

Money has no physical properties and there are abundant alternative physical supports to annotate money. Thus money is independent of its support, as any given annotation can be annotated on multiple different supports at the same time.

If money has no physical properties and is independent of abundant alternative physical supports in order to be annotated, then, the claim that money is scarce or an industrial product is false. Although, in some cases the physical supports such as paper or computer memory can constitute industrial products.

IV.  Money is required to circulate or be supplied in order for there to be transactions:

Money can only represent measures of the value of material goods in each transaction, each of which have their own unique independent value. Therefore, each transaction is capable of generating its own representations of value. Money is created only subsequently to the wealth it represents.

If annotations of value on account (money creation) are subsequent to the transaction of goods and services, then the claim that a previous supply of money is required in order for there to be transactions is false. Therefore, if there is no need for a previous supply because the very transactions can generate their own annotations (money), then there also is no need at all for money to circulate.

V.   That money have a price (loans with charges proportional to the principal e.g. interest etc.) is legitimate.

Money has no physical properties of its own, is not scarce and is created subsequently to the transactions of material goods, the value of which it only represents.

If money is not a material good, is not scarce and only subsequently measures the value of transactions, the claim that buying, selling or renting money satisfies legitimate requirements is false, even more so when we consider that money is a unit of measure and charging a ‘price’ for money in terms of the same unit requires introducing absurd assertions such as, €1 = €1 + x€, where x ≠ 0, which is not only illegitimate but fraudulent.

Break out of  "The Money PSYOP" and give your kids

a future they can be proud of you for.


[1]Bank of England : “Money in the modern economy: an introduction” By Michael McLeay, Amar Radia and Ryland Thomas of the Bank’s Monetary Analysis Directorate. page 3 paragraph 2 , money is an IOU for material goods!.

 

 

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