Tuesday, February 15, 2011

Economic Equality of Opportunity

Capital: Cash or goods used to generate income either by investing in a business or diferrent income property. (e.g. leveraging money to make more money)

Capitalism: An economic system which promotes the use of
cash or goods to generate income either by investing in a business or diferrent income property.

On another thread, some where debating whether Cleon Skousen ever bashed Capitalism. I don't know that he did. But I have no problem doing it. I do not favor Capitalism. But that doesn't mean I am for Communism. This is an obvious false dichotomy. What I favor is Free Enterprise, which is essentially Capitalism without the Usury. Free Enterprise recognizes property rights, individual liberty and self-determination. Free Enterprise provides equality of opportunity but not necessarily equality of result.

The Constitution calls for FREE ENTERPRISE not CAPITALISM. Are you brave enough to break your mind-control and admit it? Some how we've been programmed to associate Capitalism with freedom and even the gospel of Jesus Christ. Capitalism isn't free, Capitalism produces a Corporatocracy that is unelected, self-interested, and oppressive. Capitalism little better than Communism or Socialism. Free Enterprise means equal opportunity and equal opportunity equals true freedom.

The half-truth of Capitalism is that we should let the free market decide what to invest in and where to take the economy and not the government. Letting the markets decide where to take the economy is Free Enterprise. But Capitalism is not the way to do it. The half-lie part of capitalism is that society needs to be dependent upon an ultra-elite, ultra-wealthy, economic ruling class.

Capitalism is inherently unequal because it requires that certain people in the society amass more wealth than others. Then those people with the massive wealth, have unrivaled, unelected Machiavellian power to decide what they will or will not invest in, to leverage that capital to make more money, to make other people their economic surfs and sharecroppers via usury, and to influence law makers via campaign contributions.

So, in an egalitarian society where there is freedom of opportunity and not freedom of results, is that no man would be enslaved to another. That applies to economic enslavement as well. In an egalitarian economy, the wealthy would not leverage wealth to create more wealth. The scriptures command, "by the sweat of thy face shalt thou eat thy bread all the days of thy life." It does not say, "by the sweat of thy neighbor face. . ." (Gen 3:19).

Mos 2:13 Neither have I suffered that ye should be confined in dungeons, nor that ye should make slaves one of another, . . . And even I, myself, have labored with mine own hands that I might serve you, nd that ye should not be laden with taxes,

D&C 101:79 Therefore, it is not right that any man should be in bondage one to another.

Deut 23:19 Thou shalt not lend upon usury to thy brother; usury of money, usury of victuals, usury of any thing that is lent upon usury:

In a FREE ENTERPRISE system the US Treasury creates all the money (Article 1, Sec 8), and local banks issue "fee-based", no-interest loans to individuals, groups, and communities who are credit worthy. The rules that determine credit worthiness would be uniform. No loop holes. No exemptions. The problem with our current system is that many of the wealthy are "above the law" and they operate under and different set of rules than the rest of us.

In a True Fee Enterprise system, credit would be freely available based on uniform criteria. Therefore, if someone were to gain wealth by his skill and labor, He wouldn't be tempted to use that wealth to economically enslave others by issuing credit with usury (except for the specific case of venture capital where there is no proven market or collateral).

A Constitutional Republic which supports the Free Enterprise economic system with truly free markets, would support local banking institutions that we could name Safety Societies. These local and state institutions could determine credit-worthiness, and administer "fee-based", no-interest loans using money created by the US Treasury for non-depreciating real assets. In this way, this money that is created doesn't have to be backed by gold or silver, or anything, because the asset itself is the backing for the loan. Such real assets would include land, real estate, and even some well-made heirloom furniture.

These Safety Societies would never speculate. That is, they would never invest their reserves in stock or derivatives. Safety Societies would be non-profit and charge loan origination fees and monthly service charges to cover the cost of business. However, since the capital for the loans they issue is coming from the US Treasury, they don't need to make profits to make more loans. Safety Societies would also practice Full Reserve Banking. That is, they never loan what they don't have, since they get 100% from the US Treasury, and they never lend out deposits. Therefore, all deposits are kept at the bank, ready for immediate withdrawal at any moment. Therefore, the Safety Society would never be threatened by a bank run.

Today's banks operate on Fractional Reserves. Fed-member Mega-banks can lend 10x what they themselves borrow from the FED. However, because of inflation due to Amortized loans, they must hold reserves as stock, bonds, and derivatives because we have been continually devaluing our currency. And these banks are continually threatened by a bank run because they only ever have less than 10% of reserves on hand. If withdrawals or a stock market crash destroy that 10%, then the bank becomes insolvent, and goes bust. Safety Societies are immune to all of this.

Isa 10:13-14 For he saith, By the strength of my hand I have done it, and by my wisdom; for I am prudent: and I have removed the bounds of the people, and have robbed their treasures, and I have put down the inhabitants like a valiant man: And my hand hath found as a nest the riches of the people: and as one gathereth eggs that are left, have I gathered all the earth; and there was none that moved the wing, or opened the mouth, or peeped.

Isa 65:21-22 And they shall build houses, and inhabit them; and they shall plant vineyards, and eat the fruit of them. They shall not build, and another inhabit; they shall not plant, and another eat: . . . and mine elect shall long enjoy the work of their hands. They shall not labour in vain,

Finally, I only recently realized, you don't necessarily need the Federal Government to institute this Safety Society, Free Enterprise system. Any group of people could do it who were not constrained to the US Constitution which reserves this right to the Federal Government. However, in another circumstance, a group could select a treasurer who would create money which the community bank would extend at no-interest to other group members to purchase non-depreciating goods like furniture, homes, and land. These real assets serve as the backing for the money creation, and could be repossessed and re-sold by the bank. Otherwise, money created from the treasury and extended by the bank would go to craftsman who are building the homes and heirloom quality furniture and return to the bank in repayment for the no-interest loans. As much money could be created as needed. When not needed, monthly payments return excess money to the bank, and new money is not created; which prevents inflation.

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