Gregg Zegarelli Esq.
Managing Shareholder at Technology & Entrepreneurial Ventures Law Group, PC
April 4, 2024
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Following is a Chapter 1 excerpt from the Complete Article, as the Complete Article is cited as a 40+ minute read. This excerpt is edited, updated, and has differences from the chapter as first published. This excerpt contemplates reference to the Complete Article to be understood as presented.
1. Detethering from the Gold Standard.
Detethering the money supply from the Gold Standard is not inherently wrong. The problem is the implementation tendencies of weak human nature in both the controlling politicians and the electorate; that is, the failure of human discipline and endurance. [13, *1]
Let’s say we have a stagnating capitalist economy that we want to stimulate. The government can print money and inject it into banks, then the banks loan the money to build factories and hire more people, then the hired people use the wages to buy more goods, and buying more goods requires more factories, and more factories require more hiring, etc. Moreover, the dynamic re-feeds the tax base. This is economic stimulation through money supply. The system can be better defined, honed, and debated, but it’s true enough for this purpose.
As to money, we recall that, in the old days, we might trade two pigs for a cow, or a hen for fixing a fence. But equalizing the inverse half-cow to one pig to barter this “life value” was cumbersome, so we moved to a fungible divisible common unit of measure, with gold to represent the pig or cow. But, gold is itself heavy, so, instead, we traded with paper dollars to represent the gold on reserve that represented the pig and cow. You could call me to back up my paper dollar bills by the fixed amount of gold that represented the half-cow.
But, what if the government wants to print money to stimulate a stagnating economy, but it does not have enough gold to represent the life value?
What to do in such economic doldrums? Well, the captaining politicians and their academically brilliant financier advisors had a bright idea similar to bringing a fan onto a ship to blow into the sails… That is, simply “detaching” printed dollars from the gold reserve to allow printed money without gold or life value to back it up. That is, simply printing untethered money, fabricating value.
Printing paper money as a facade of life value is a formulaic false utopia.
Regression from: a) a cow that provides Mother Nature’s essential life value (milk, meat and clothing); b) to sort of an inanimate rock, being gold that represented life value; c) then to paper that represented the gold that represented the life value; d) then to untethered paper money representing nothing at all.
Life value now nothing but a brilliant financier’s utopian money game.
Even so, in the short term, everyone is ecstatic for the flowing of loose money. But, behold, printing money is like the water damage caused by putting out a fire; the solution adduces its own new damage, sometimes itself catastrophic, but only in a different way, not readily apparent in the relief of the moment.
First, the problem with access to printing untethered money is that health of the political body requires discipline. [14, *2, 15] The systemic mechanism of money supply, as an unlimited steroidic function of desire and facade, and by those who also control it, has a tendency to an inflative destructive cost, sooner or later. [16]
Second, if the cycle of this untethered money is paid back into the same closed industrial system that created it, then the economic stimulation at least serves its master; that is, when untethered American money is printed and used to stimulate and build American factories and products made in America.
But, what if American stimulus money is used to buy goods manufactured in foreign countries that stimulates their economies, and builds their factories, and hires their citizens, for their competitive success? That is, instead of Americans buying American-made items, the Americans buy foreign-made items. [40]
If stimulus dollars move out of the American system, particularly by the systemic influence of short-term Wall Street profits, it builds an economic, political, and military rival. [*14, *2]
And what does a competitive country do with all that profit from America’s stimulus money? The competitive country buys selfish influence and dependencies in poor islands and needy countries on the American borders to create geographical strategic advantages, beyond the control and regulation of America: Cuba today, Mexico tomorrow. [*2]
Wall Street doesn’t care, it will profit again from the war machinery that it induced.
Poor George Washington, dead as a doornail, who wisely advised against entangling alliances.
People who profess a world dependent debt-based economy are probably not American, or selfishly profiting from it, or work for Wall Street, or pandering selfish politicians, or are academically intellectually brilliant economists, or fools, or work for Budweiser, none of those being mutually exclusive. [*6, *7]
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Go To Complete Reference Citations Post
[20] https://www.zippia.com/advice/working-age-population; https://usafacts.org/articles/what-is-the-us-national-debt-and-how-has-it-grown-over-time/?utm_source=bing&utm_medium=cpc&utm_campaign=ND-ElectionsGov&msclkid=902217b370f613d502bb7273af761b54 [$36,000,000,000,000, divided by 207,406,609 working age is $173,572 or at two third middle and upper class feeding the system debt of 136,888,362 $262,988]
[24] ONE®: The LinkedIn Reference Set [#GRZ_183] 24.1 ONE: 1022 [T11:19] (“Wisdom Vindicated By Works“); 24.2 ONE: 1325 [T15:14] (“Blind Lead Blind-Ditch“); 24.3 ONE: 296 [L4:23] (“Physician Heal Thyself“); 24.4 ONE: 1661 [T18:6, R9:42, L17:2] (“Millstone); 24.5 ONE: 1143 [T13:13, R4:12] (“Perceive“); 24.6 ONE: 1040: [L10:27] (“Love Neighbor As Self“); 24.7 ONE: 582 [T6:24] (“Serve Two Masters“); 24.8 ONE: 635 [T7:20, L6:44] (“Tree By Its Fruit“); 24.9 ONE: 921 [T10:10] (“Workman Worthy Meat“); 24.10 ONE: 2632 [T26:50, L22:48] (“Betray With A Kiss“); 24.11 ONE: 514 [T5:30, R9:43] (“Right Hand Cause to Sin“); 24.12 ONE: 577 [T6:21] (“Heart Treasure“); 24.13 ONE: 1661 [L10:33] (“You Are Gods”); 24.14 ONE 1747 [L17:20] (“Kingdom Within“); 24.15 ONE: 799 [T9:17, R2:22, L5:37] (“New Wineskins“); 24.16 ONE: 2121 [T22:20, R12:16, L20:24] (“Caesar Coin Tax”); 24.17 ONE: 373 [J2:25] (“Human Nature“); 24.18 ONE 2211 [T23:25, L11:39] (“Inside-Out Hypocrisy“)
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A Farmer had a Goose that began to lay golden eggs.
Each day one new golden egg would be laid by the Goose, and the Farmer grew very rich. However, the Farmer was impatient and tried to get the Goose to lay more than one golden egg each day.
In desperation for even more golden eggs, the Farmer cut the Goose open to get all of eggs at once! And, when he cut the Goose open, he got only the death of his Goose, and no more golden eggs.
Moral of the Story: Unsatisfied with some, we lose all. [99, *58]
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The statements or opinions made in this article are solely the author’s own and not representative of any institution regarding which the author is affiliated.
© 2024 Gregg Zegarelli, Esq. Gregg can be contacted through LinkedIn.
“Et nunc possum mori.”-grz
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