The Engine that burns water

When I was a boy, I remember being told that someone had invented an engine that would run on water. The story was that the oil companies had bought up the patent and was keeping it a secret so that they could make profit on selling gas.

I knew this was untrue because engines depended on combustion and water is already burned hydrogen + oxygen [H2O]. Then I figured out that the engine burned hydrogen and the product was water. The oil companies did not need to hide the water engine. It was cheaper to make gasoline than hydrogen.

I tell you this story because it is a Bankers tale. They want you to believe that the economic engine will not run without their fuel [money]. They want you to pay them profit for their fuel. Money is not a thing. It is a process. Money is the bringing together of Hydrogen [Labor] and oxygen [raw material] in the engine [economy] and producing a product [good & service]. Money is nothing more than ignition.
Then when the product is made by those who run the productive capacity machine, it then serves as the gatekeeper for the transfer of those Goods & Service. The Consumer of the product uses money to have the ownership of the product transferred to him. That money is then held in a bank account to be used at a later time by the producer of Goods & Service to produce more product.  Money is not a real thing. It is a contractual agreement for the transfer of goods & service over time. The sovereign power of the Government enforces the power of money to create and trade those things we use or own. 


Bankers are just record keepers. They are the score-keepers of the game and have no right to be paid like a player. In a Sovereign Nation with a Sovereign fiat currency, it is the Nation that owns the spark plug. It is the Nation that ignites the economic engine. There is a reason that interest has been viewed as morally wrong. Interest is a way of stealing using the Government gun.

Debt Limits are Illegal

 

Fourteenth Amendment to the United States Constitution

SECTION 4.

The validity of the public debt of the United States, authorized by law, including debts incurred for payment of pensions and bounties for services in suppressing insurrection or rebellion, shall not be questioned.

When the Congress passes spending bills it not only authorizes the spending but the borrowing of money to accomplish the necessary spending if necessary. For the President not to spend the money as Congress has demanded by law is to fail to uphold his oath of office.

If Congress then passes a law limiting spending with a Debt limit, it has passed a law that will not meet the muster of Constitutionality.  If Congress does not raise the limit or pass a new law that removes the original requirement to spend, the President is required by Law to create enough funding to meet the law. The Debt limit becomes null & void.         

Government moves the Economy

There are two kinds of needs. One involves individual consumption and  business productive capacity.  These needs are met out of earnings and borrowing.  They will inevitable create a bubble if they exceed the capacity to repay what is borrowed.

The other kind of need is Community.  That includes infrastructure and general welfare expenditures among others.  If these needs are met by interest bearing debt the result will also be the creation a bubble when the interest on the debt is an excessive component of public spending. 

The difference between Government  and the private component of the economy is the a Sovereign Government with a Sovereign currency has the legal capacity to set the interest it pays on its debt at zero if Congress wishes to do so.  The private sector and non-sovereign States cannot do this.  

The Federal Reserve System has shown this to be true under the Quantitative Easing programs that it has used in this Great Recession.  Similar methods were used during World War II to finance the greatest debt to GDP ratio in the History of the Nation.

This method does not become problematic until there is a shortage of Labor or productive capacity or input material. Government first needs to maintain a safety net floor to prevent extreme poverty and spend on protecting the Nation  It then must build a modern infrastructure and education system limited only by the capacity to provide the labor, production capacity and available raw materials. There is no limit on the interest free money it can create.    

Growing Money for everything

Furnishing food for everyone in the world is already technologically possible.   It would only take a small  % of the available labor to accomplish that. The problem is distribution.  If the goal of the distributors is to maximize profit, then many people will be left by the wayside.  


A great many people don't have  money to buy on the market.  They can't get money by working if there is no work available.  They can't create local growing with their personal labor without the money to sustain their labor to harvest.  So the problem is having money to create local distribution of both food and labor. 


So the solution is two fold.  The first involves growing money.  Every Sovereign Nation has the power to create money, and bypass International Debt. Every Nation has the power to create an effective tax system that will make their money valuable to pay taxes.  A Sovereign Nation can create a low or no-interest loan program with Government grown money to create local production of the essentials of life.


The second step is to use the home grown money to build home grown infrastructure and local distribution systems, not only for food but for clothes and shelter and  teaching basic skills.  


The biggest fault in the modern world is the belief that money only comes from Banks and must cost interest that the poor person cannot pay even if the banker were willing to loan.  The truth is that money is the right of Sovereign nations to create for themselves and distribute that money virtually free of charge into projects that create independence of the people to sustain themselves without being wage-slaves to the Corporate Masters of the World.


Of course none of this is new. It is in fact becoming a world movement of DIY greening of a sustainable world.  It is difficult in many places because the only money resource is charity and that is simply a very limited supply of change.  


The key comes with the understanding that there is always enough money available to the Nation that understand that it is the creator of its own currency.  It does not have to sell out its people to the Money-Changers of the World.  If we learn that money without interest is an act of legal will, we will also learn that it is the hammer that breaks the chain of greed.  There will be enough money to pay for the food. 

The Human Community

Quotation by Tom Paine:

"When shall it be said in any

country of the world, my poor are

happy; neither ignorance or distress

is to be found among them; my jails

are empty of prisoners, my streets

of beggars; the aged are not in

want, the taxes are not

oppressive...when these things can

be said, then may that country

boast of its constitution and

government."

~ Thomas Paine     

MONEY POWER

Democracy will rise superior to the money power.

Posted on May 18, 2012

by William Finnerty  

                          

no copyright claimed

United States President Abraham Lincoln’s MONETARY POLICY

“Money is the creature of law, and the creation of the original issue of money should be maintained asthe exclusive monopoly of national government. Money possesses no value to the state other than that given to it by circulation. Capital has its proper place and is entitled to every protection. The wages of men should be recognized in the structure of and in the social order as more important than the wages of money [interest]. ……………….

No duty is more imperative for the government than the duty it owes the people to furnish them with a sound and uniform currency, and of regulating the circulation of the medium of exchange so that labour will be protected from a vicious currency [private bank-created, interest-bearing debt], and commerce will be facilitated by cheap and safe exchanges…………..

The available supply of gold and silver being wholly inadequate to permit the issuance of coins of intrinsic value or paper currency convertible into coin in the volume required to serve the needs of the People, some other basis for the issue of currency must be developed, and some means other than that of convertibility into coin must be developed to prevent undue fluctuation in the value of paper currency or any other substitute for money of intrinsic value that may come into use……………..

The monetary needs of increasing numbers of people advancing towards higher standards of living can and should be met by the government. Such needs can be met by the issue of national currency and credit through the operation of a national banking system. The circulation of a medium of exchange issued and backed by the government can be properly regulated and redundancy of issue avoided by withdrawing from circulation such amounts as may be necessary by taxation, re-deposit and otherwise. Government has the power to regulate the currency and credit of the nation………………..

Government should stand behind its currency and credit and the bank deposits of the nation. No individual should suffer a loss of money through depreciation or inflated currency or Bank bankruptcy………………

Government, possessing the power to create and issue currency and credit as money and enjoying the right to withdraw both currency and credit from circulation by taxation and otherwise, need not andshould not borrow capital at interest [from the private banking system or their affiliates] as a means of financing government work and public enterprise. The government should create issue and circulate all the currency and credit needed to satisfy the spending power of the government and the buying power of consumers. The privilege of creating and issuing money is not only the supreme prerogative of government, but it is the government’s greatest creative opportunity……………………

By the adoption of these principles, the long-felt want for a uniform medium will be satisfied. The taxpayers will be saved immense sums of interest, discounts, and exchanges. The financing of all public enterprises, the maintenance of stable government and ordered progress, and the conduct of the Treasury will become matters of practical administration. The people can and will be furnished with a currency as safe as their own government. Money will cease to be the master and become the servant of humanity. Democracy will rise superior to the money power.” [1]

http://news-beacon-ireland.info/?p=5389

Purpose in Government

United States of America

We the people of the United States, in order to form a more perfect union, establish justice, insure domestic tranquility, provide for the common defense, promote the general welfare, and secure the blessings of liberty to ourselves and our posterity, do ordain and establish this Constitution for the United States of America.


When the newly free Colonies called for a convention that ended up writing a Constitution for a new Government, we alread had a Government. It operated under the Articles of Confederation. Why did we decide we need a new Government.

It's simple.  The first try was not working.  The Colonies were acting like 13 Nations and were constantly fighting. We had just created a new Europe.  And most of the countries of old Europe were stronger than us.  We need to work together or end up as colonies again.  We needed to "form a more perfect union.".

We need to be sure that everyone was treating everyone else with fairness.  We need to be sure that people and the laws of one state were treated with respect in each of the other states.  We needed to "establish justice".

We needed to be sure special interest groups did not take up violence against others with whom they had disagreements.  We need to be sure that there was no armed resistance to law and order.  We needed  "insure domestic tranquility".

We also were in danger from outsiders who wanted to use our land for their purposes.  We need to be aware of danger from the outside.   We needed to "provide for the common defense".

We need to try to see that our citizens did not starve, or go homeless or suffer unduly  in sickness or be unnecessarily ignorant. After all, in a democratic society the government is the institution of the people. We needed to "promote the general welfare".

And lastly we need to have control over our individual lives and we need this freedom of choice to be guaranteed to our descendants.  We needed to "secure the blessing of  liberty to ourselves and our posterity.

So this Convention proposed, voted on and wrote down the ways they thought we could best make these things happen. They call it the Constitution.  After the appropriate number of free colonies voted to accept this  document as our governing covenant the people had agreed to  "ordain and establish this Constitution for the United States of America.

It has take more than 200 years and a bloody Civil War and a lot of other bloodshed to make us the Greatest Nation on Earth.  There is a lot more to do to make it "Perfect"  As long as the People  make sure that it is their Government and working for their interest we still have a chance  to secure the blessings of Liberty to our posterity.  In the words of Abraham Lincoln it is up to us to make sure  "that government of the people, by the people, for the people, shall not perish from the earth." 


Copyright © William Hodge 2012