Culturalism · Economic History · Federal Government

What The State Could Do

If one thing is consistent, it would be the general atmosphere of dislike for the State in circles of the Right. One could spend hours parsing up the backstory and justifications, but such a practice fails to crystallize exactly what the future holds. Our reasonable guarantee holds that governments will continue to exist, and thus financial corruption shall abound. All else is fantasy.

With said negativity considered, we might consider exactly how the State might alleviate the suffering of countless Americans with a handful of small moves. Healthcare has already been discussed, although the government-run model falls under harsh modes of criticism. Federalized educational payments are similarly fraught with peril, at least insofar as they become breeding grounds of progressive lunacy and degree value inflation. So what else can we hope for? Government-funded groceries?

Not so much, but has anyone considered the question of usury? The term is controversial in modern days due to our obsession with debt-financed economics, but would it really be so bad to leave that category to the rich and empowered? After all we’ve heard about how “every man can be a king” with deregulatory policies, the powers that be still go about trying to blame poor people for financial collapses which their own foolish behaviors instigated.  If we take them seriously for a second, how could this downside be avoided in the future?

Simple, by smashing the concept of interest on home loans. A certain figure who will go unmentioned launched his very successful program on these terms decades ago, specifically oriented around building up the family. The program he promulgated allowed couples to attain interest-free loans which could go towards the purchase of a new house, along with furnishings. Instead of being mortgaged to interest payments, the newlyweds had merely to repay the principal, giving them a massive shelter against debt slavery in a world where the percentage charges often eclipse what has been borrowed.

When we account for the reality of Adjustable (Variable) mortgages, and how they threw countless Americans to the curb during the 2007-2008 collapse, the aforementioned plan sounds intriguing. Even a non-gambler would be inclined to wager that families who only had to pay their principle back without interest might well have avoided losing their homes when things went belly up, even if a job loss occurred. Furthermore, nothing prevents the State from extending grace periods in case the person is unemployed so they do not immediately fall into destitution due to vibrations beyond their control.

Obviously such a proposal must be crafted to avoid exploitation by real estate investors. Consequently, the applicants would need to prove they are in a committed marriage with intentions of having children. Allowing only one application per family would also stand to cut down on fraud, as might requiring them to live in the house for a certain number of years. The latter component has the potential to preserve communities as well, which is attractive.

Maybe the hammer to usury would backfire, turning into another predictable creation of the federal behemoth and pushing us closer to fiscal insanity. At the same time, it could be the solution to most national problems, and those facing the children of tomorrow. Debt is a scourge which conquers nations, so why not set our people free?

Economic History · Federal Government · investing · Personal Finance

What Happens To Bitcoin Post-Dollar?

This is more of a thought piece than anything else, though I’m sure it will rile up a lot of Bitcoin HODLs and “technical analysts.” Much as I own (not enough) of the shiny algorithm coin,  the entire way we go about perceiving future currency seems rather warped. It’s a question requiring a bit beyond the typical wide-eyed enthusiasm of liberty advocates and the general freedom rabble.

For a long time, the theory of Bitcoin promoters has been that its limited cap of 21 million units serves as a safe store of value versus the highly-inflated dollar, which shows no signs of stopping its brrr-a-thon. Coin baggers predict that their currency will continue to rise as governments spend and borrow, perhaps at some point replacing the classical concept of “fiat” or paper money. Folks who have bought or continue to purchase before Bitcoin’s rise to a dominant financial position will be rich, while others are left with largely worthless investments.

But there’s one problem of sorts. These Bitcoin pumpers are basing their wealth and success on its exchange rate with the U.S. Dollar. In other words, to be a Bitcoin “millionaire,” you must assess its value in accordance with the same fiat currency that is supposedly unstable. Selling out of Bitcoin to realize some of this wealth means holding large amounts of an inflationary currency which continues to rise along with the president’s signature on spending bills.

Now, a skeptic could argue he will buy gold with his Bitcoin, but this is highly inconvenient for global transfer and transactions where the price point is less than a full ounce of yellow metal. Furthermore, gold itself is giddily valued in line with the dollar, despite the fact that its supporters believe fiat to be unstable and inflationary. A goldbug I knew even tried to diminish the validity of S&P 500 returns by claiming they were based in dollars instead of gold, despite arguing for gold on the basis of dollars.

This brings us to an important query: what happens if the dollar actually collapses, or ceases to exist? Does gold continue to “store” value? Is Bitcoin still worth a lot of money relatively, or does it adopt a dominant position attune to the dollar, albeit with less inflationary tendencies? And what happens to the people who failed to purchase crypto when it was cheaper in dollar terms? Are they doomed to scraping out an existence with whichever fiat currencies remain, or trying to collect a monthly check of 0.00000000001 BTC to afford the good consumerist lifestyle?

No one can really know. The future might be crypto, but that scenario could end up being unpleasant, depending on who possesses a bigger account.   

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.