Culturalism · Economic History · investing · Personal Finance

What Value Money Really Has

One of the most annoying aspects of reading historical texts involves being exposed to concepts which are simultaneously exciting and depressing, on the latter point because you realize the information will likely never have widespread acknowledgement. Such truths remain distant and untouched, at best exposed on occasion by the lone examiner to his motley crew, who may not actually be interested. But still he must do so, because otherwise the wisdom will be lost to a larger portion of the population.

I admit to feeling this way following my run through several political works by Feder. Although somewhat dogmatic at times, he manages to break down the question of currency and usury in a manner which countless lolbertarians and Marxists fail to do, despite their public acceptability. What’s more, the discourse doesn’t demand an excessively unmerciful slog through the miseries of Das Kapital, or any “free market” equivalent.

At the heart of Feder’s advocacy is the notion that debt-financed capitalism (which he calls Mammonism) creates slaves out of people and destroys nations. Folks are tethered to their debtors and spend long swaths of life attempting to serve the objectives of the banker class, in many cases falling into utter destitution during the process. Even traditional socialism is blamed for this, insofar as Marxists make deals with private corporations to issue interest-paying loans for state projects.  Thus the outcome remains subservience and poverty on the leftist front as well.

In contrast, Feder demands the eradication of all interest on loans, replacing such private measures with offerings by the State, with only the principle to be repaid. The implications of such policy are substantial, even in the context of our modern age. If the government cannot borrow on interest, it seems probably that our debt would be much lower, as U.S. interest on liabilities alone was $404 billion last year. Furthermore, interest-free loans by the government would have certainly softened the 2008 crisis, when many people lost their homes due to the machinations of the Adjustable Rate Mortgage.

On money itself, he describes paper currency as essentially a voucher representing – but not holding within – the value of what labor has been performed. So in effect a person who pays for their car to be washed is actually purchasing the value innate in the service, which can then be exchanged by the washer for other goods or services. The result is more of a barter system than the “money is money” arguments we see strewn across popular discourse. From here we get to the nationalist concept of a currency being backed by labor or productivity, as opposed to gold or merely the printing press.

Towards the end of his tract, Feder endorses a wealth tax, and makes an interesting argument about inheritances. He dismisses the concerns of those who might not be able to pass on wealth by suggesting what they should care about is raising their children well enough to live successfully in the world. Taken in the context of the “Affluenza ” case some years back, his logic is quite interesting.

Because the info is unique, I may find a way of including it in the possibly upcoming book on Rightist socialism. Time will tell.