What Money Should Be Called Upon to DO

by James Jaeger

A new theory of money is good, but let's not confuse theory with invention.

Money is an invention, it's not a discovery. Inventions don't require theories, such as the theory of Special Relativity or the Theory of Everything. We are only forced to theorize upon something when that something is not understood or has become/is mysterious. In the case of money and the world's financial system, these have become so complex they now descent to the level of mystery if not the total unknown, like dark matter or zero point energy. We must now concoct THEORIES about the very thing we INVENTED. Money! Money and it's role in global finance is so complex, we can now only THEORIZE about it. That's silly, if not sad, for under these circumstances, money and global finance, become a game that only a very few can play: an elite of bankers; rogue economists; the ultra rich with their $1,000-per hour lawyers; apologists/profiteers from the military-industrial complex; and corrupt "leaders" in Congress, the White House and the Supreme Court. Only these can play, because only these understand how THE MATRIX works.

Indeed the word processor is human kind's greatest enemy, for it has allowed paralegals to write 25,000-page bills that no one, not even "big-picture" attorneys or "their" congressperson can read and understand. I recommend we get back to basics so we can let the other 6.472 billion people in on the game.


I tried to address some of these basics in my paper, CITIZEN CURRENCY -- a New Monetary System to Replace the Obsolete Federal Reserve System. Few seem to be taking this paper seriously, yet no one has been able to find any serious flaws in it even though I have sent it to about 5,000 people to date.

People are correct in asking basic questions, such as WHAT is money supposed to be? Is it a thing, a medium of exchange, a relationship or a commodity? Some of this inquiry is bordering on the philosophically-psychotic however; asking if money is a "relationship" or questioning if it's a "thing." Sure, gold coins and FRNs are surely things, but maybe we should be asking what do these things DO before we ask what they are or are not. Only in answering what a thing DOES can we then assign beingness to that entity, for BEing is a summary of what was DOne.

The book, WEB OF DEBT, by Ellen Brown brings up many good points and interesting considerations about these issues and provides some historical perspective. This book, for one, caused me to take a serious look at the concept of money as a "tally." Money as a tally system makes good sense, because it's not only rational and observable, but most of all describes what money DOES: it tallies up the production of civilization. And if money is supposed to be an evolutionary step above barter, then it also REPRESENTS those tallied products, products that were previously bartered and probably unaccounted for. Thus we get the idea that money is both a TALLY and a REPRESENTATION of products. But a "medium of exchange" doesn't really tell us much more about what money DOES mechanically in a system. It represents MATTER (products) and ACTION (doingness), but so what. What's the significance of this? Why do we need representations and tallies? What does money DO ultimately?


To more deeply answer these questions, I propose something very basic as to what money is supposed to do. In the last analysis, we have money because we use it as PERMISSION SLIPS to access the world's assets (its products and services).

If you or I have a certain number of green pieces of paper ("Permission Slips") or yellow pieces of metal ("Permission Coins") we then have legal permission to CONTROL some asset on this planet. I want to move that yellow Mercedes off the lot and drive it around, but I need a bunch of Permission Slips to do that. So I give the salesman a pile of green Permission Slips and he lets me take the Mercedes off the lot without calling the cops. You want permission to go to Europe for a leisurely vacation, but before you can do that, you have to get permission from a host of people, some at the travel agency, some at the dock, some in the government, some on the boat. So you give all these people little yellow pieces of metal ("Permission Coins") and they then grant you permission to board the boat and cruise across the ocean without any cops being called.

Is this not what money DOES? One can assign all sorts of other "socially acceptable" and "PC" definitions, but in the end, money is a system that grants people PERMISSION to have things and do things.


I state in my CIT CURRENCY article:

"Basically there are three problems that need to be solved in order to create a New Monetary System that benefits the greatest number of people in the United States and/or World. They are as follows:

1. a more accurate definition of money and what it's supposed to do; 2. a determination of who has authority to create money; 3. a method by which money's creators can issue it into the economy without creating unjust enrichment.

I thus propose a more accurate definition of money:

Money is a tally of human effort (as embodied in products and services) that can ALSO be used as a medium of exchange or a store of value.

Note the emphasis has been changed from a "medium of exchange" to "the tally of human effort." This emphasis is extremely important to keep in mind as you review the balance of this paper."

Working on point 1, maybe I have to change the definition I came up with to incorporate the idea of permission; thus:

Money is a tally of human effort (as embodied in products and services) that allows humans to grant permission for the allocation and use of those products and services.

As professor Moini suggests in "Toward a General Theory of Credit and Money" in this sense money IS describing a RELATIONSHIP between humans: that relationship being MASTER and SLAVE. Thus Moini doesn't go far enough.

The professor goes on to say, as quoted in a recent article by Ellen Brown for YES magazine: " money has never actually been a "commodity" or "thing." It has always been merely a "relation," a legal agreement, a credit/debit arrangement, an acknowledgment of a debt owed and a promise to repay."

Okay, the good professor is all over the place, drowning in his own soup, so let's take these one at a time:

Money as a "commodity" really doesn't tell us much about what it's supposed to DO. So I agree, this description of money can probably be dropped. But what about money as a "thing"? We should be concerned about money as a THING because, if we are trying to engineer a system to tally and allocate human production (granting Permission Slips), we need to be able to detect fraud. In a world of real or imagined scarcity, we need to be able to detect unauthorized people who are tampering with our Permission Slips. This is probably what the U.S. Framers had in mind when they said no THING but gold and silver COIN should be a tender in the payment of obligations and debts. They knew that "bills of credit" (paper money) could be fraudulently created whereas gold could not.

Yes, back in the good old days, you and I could go out into the hills or rivers and dig up some gold Permission Coins. So could anyone, any Cit could just pack a lunch, get a pick and dig up some "honest money." But today, only elite bankers and thugs with guns can do this. But they don't use picks, they use nukes, word processors and computers. These meet in secret and heavily-guarded laboratories and use all manner of technology (provided by cit-slave taxes) to manufacture PAPER Permission Slips, slips that only they and their thug-gov cronies may use without interest or penalty.

So God forbid if "money" were a THING (Moini's covert assault on Article I of the U.S. Constitution). Golden THINGS can't be controlled by the banksters and their thugs. Such need the ability to do whatever they want (moral or otherwise) to ease their problems ("Quantitative Easing"). Of course all this at vast expense to the rest of the 6.472 Billion. So, money as a thing CAN be important as long as we have scarcity and the external morality police (governments).

Now let's look at money as a "relation". Again, the Prof is correct, money does describe a relation, the "relation" between the haves and have-nots, a euphemism for masters and slaves. You have money, hence Permission Slips; I do not. They have Permission Slips, you do not. In a world of real or imagined scarcity, money is used as the primary tool for defining relationships between who will serve who. And THIS is why it's so important for Moini's masters to maintain the illusion (meme) that there IS scarcity, scarcity in an infinite universe. For scarcity is one of the primary mechanisms for maintaining the stratification of civilization -- the haves and have-nots; the masters and salves; the elite, the masses; the Morlocks and the Eloi. Money, as used today maintains these relationships. Scarcity generates the fear (no food, no shelter, etc) that thugs with guns use to "justify" their right to govern, their right to exist in order to "protect" the people. Only under conditions of scarcity -- where the relationship has been inculcated into the child's brain from early public school years -- can elites and their thugs with guns keep the world in submission with the ruse of "providing for the greater good" or "maintaining the peace."

Yes, unconstitutional money as created and used today DO all these things.

Next the good prof says money is a "legal agreement." By this I assume he means an agreement enforced by law (thugs with word processors). Here the professor has gone crazy. Government and money have nothing to do with agreements. In his wet dreams, and the wet dreams of other statist-mentalities, it would be great if government could also fuck its way into one of the most basic of human activities: the act of making agreements. But the act of making agreements predates the invention of government. After all, governments only exist because people agree that they should exist, an idea they got from obsolete religious texts. When people no longer agree that governments, and their servo-mechanisms of money and debt, are necessary to "keep the peace" or "provide security" or "defend liberty" or "deliver justice," governments will evolve their own obsolescence. All these human crutches will no longer exist. This day is coming.

So, money is not a "legal agreement" because agreements are what people make amongst themselves: without government intervention. The idea that there must be "consideration" in a contract in order for that contract to be "enforceable," and that consideration must be "money" is simply another mechanism by which thugs with guns use banksters technology to ensnare and exploit the masses' productivity. Agreements are spiritual activities. The meeting of minds. We agree with each other because we love each other, or each other's products, so deeply we can't wait to share the experience of such mergers. Agreement, simply another word for "reality," has nothing to do governments or their stinky monetary droppings.


Now we get to the prof's best derangement, a twisting of the very temporal fabric of economic space: money as CREDIT, or it's twin evil sister, DEBT. But, before going on, I advise you to (re)read THE INVENTION OF DEBT at

As I have mentioned in dated essays, posts, emails and articles endlessly for the past 10 - 15 years, DEBT has nothing to do with MONEY, yet the perverted, mind-altered, physics-challenged Morlocks that work at underground, government-regulated, bank printing presses (i.e., the "Federal Reserve") insist that it does.(1) So shrill is their insistence, they have, since 1913, managed to get rid of all THINGS the U.S. Constitution says money is supposed to be made of and toss them out (or hide them in vaults). Now, "money" is made of less than a THING. It's made of a NEGATIVE THING, an entry on a balance sheet, a debt, or to use a kinder, more borrower-friendly word, "credit." Money is "secured" by debt, the idea that the thugs with guns will come in and blow away anyone that doesn't pay the bankers their interest "on demand" for the use of "their" money. And we print up a lot of "money" to ensure the system will keep running like this. Just look at all the people working so diligently in the military industrial complex: all these people protecting America and its money supply. Making sure the terrorists don't blow up Saudi pipelines and American citizens don't default on their mortgage payments. The debt that created the money supply must be serviced. The bankers must get paid so they can keep paying their military-industrial-complex bills.

The more we use debt, the more we inhibit the advance of civilization. Debt prolongs the advance to a future whereby money is no longer necessary to tally goods or provide permission. A future of abundance and without fear. A future without war, because it's a future without the enablers of war: governments, banks and weapons. Next to taxes, interest and premiums; governments, banks and weapons are humankind's greatest enemies. But debt, the mechanism that reverses causality, is the most nefarious invention ever created, for debt allows humans to have today, only what the universe was willing to grant tomorrow. Debt is used by the greedy and the imprudent. Debt is used by the slave master to harness the productivity of the human race. Debt was invented by the very son of Satan himself.


So here's a summary of the way the current Permission Slip-system works. Certain thugs, the ones that have descended from the most ruthless weapon dynasties, government royalties and banking elites, have figured out a way to scare the world's populations so much that these masses will do almost anything to protect themselves from the horrible scarcities they are told exist in the infinite universe. Realizing that in order to siphon off the productivity of billions of citizens, an intellectually justified economic "system" must be devised and deployed. Next to deception and brute force, the intellectual technology known as "law" is used by the most cunning thugs to place a stamp of approval on any activity that facilitates the activities of the Power Elite and punish any activity that inhibits. To accomplish these ends the Power Elite literally insulates themselves with systems known as governments, central banks and militaries. Integral to these systems are, fractional reserve banking, elastic currency, quantitative easing, derivatives, securitizing debt.

Let's continue down the yellow brick road having swallowed the blue pill.


The word "credit" comes from Latin for the action of believing, to give credence to. Thus when the term credit is used in connection with the lending or borrowing of money, what is really going on is the lender says: "I will give you the okay to use some of my Permission Slips because I believe that you will return them to me with extra Permission Slips to thank me for believing in your honesty." The borrower says: "I believe you will allow me to use your Permission Slips in order to reverse the time track and that you will not call the cops on me so long as I give them back to you with some extra ones." Again, see THE INVENTION OF DEBT at or you will not understand my allusion to the "time track." It's impossible to understand what debt IS unless one understands what the invention of debt DOES.

So, we can see that the entire idea behind DEBT is really the idea behind BELIEF. The banker believes the borrower has the ability and the willingness to repay. The borrower believes that he can use loans to manufacture enough weapons to hold off the masses before they realize what has happened. The government believes its citizens will keep working for the military industrial complex because they just want to pay their mortgage payments. The Fed believes suckers will continue to accept their bogus, debt-ridden "money" for at least 100 years before another revolt or revolution happens. The power elite profiting from all this believes that kids tend to forget how their parents and grandparents were fucked by the bankers and their thugs with guns if enough time elapses. Thus, the world's banking system, led by the Federal Reserve in partnership with thugs with guns, believes an intergenerational ponzi scheme will take hundreds of years to fully play out since the playing field has now been extended to the entire world through the ruse of globalization.


Gold has been the most stable currency for millennia. A monetary system in the peoples hands, or in no particular hands, is the most stable system possible. God help us if governments issue money. A government issuing money will be just like the Post Office and the Library of Congress: over priced and slow as shit. Government installations are no paradigms of innovation or efficiency, except when it comes to destroying things and regulating free markets. Anything that is run by a monopoly, especially the monopoly of force that is government, is doomed to failure.

Any government-run operation, having no competition, no reason to become better, will inevitably degenerate into the inefficiencies of bureaucracy. Imagine if the government were to be permitted to print all the money it wanted to fund its own inefficiencies. We would soon be paying a million dollars just to send a first class letter across town and it would take 400 days.

Using language like: "we as a community can create our own credit rather than use the impossible pyramid schemes set up by the bankers" sounds great, but is it realistic? Of course not, for the "community" is actually the government and its thugs with guns. The government is NOT run by "we," or some sweet little "community" -- at least not today. Government is run by powerful corporate interests that give millions of dollars of bogus fiat money to candidates that will do THEIR bidding no matter who or what they have to destroy. Government today is so corrupt, over blown and regulating it makes pre-Nazi Germany look like a walk through the tulip garden.

Big government and elite central banks are the LAST entities you want to give power to emit the currency to.

The only sane and rational entity that can be permitted to issue money is WE THE PEOPLE. Since the productivity of society emerges from the citizenry, it's only proper that the money supply emerge from the citizenry. Thus both banks and governments have NO right to be involved with the issuance of money.

Almost anything can be used as money. And once circulation is established, any amount of money will serve. Don't be side tracked with lies that the money supply has to keep increasing because "the economy or civilization is growing bigger." That's a crock of horseshit disseminated by those that don't understand mathematics or who want to harness and dominate your productivity through the ploy of "serving the public interest." The public interest is served by keeping predatory bankers and governments out of the equation. Gold serves this purpose just fine, and has for thousands of years.

And there is no reason why paper need be used at all. Paper redeemable for specie is always the starting point for banking and government thugs to eventually take control and debase the currency to a fiat shadow of its former self. Remember when we used to have real silver quarters, silver half dollars and silver dollars? That was when America was strong and great, because it had a strong and honest monetary system and traditional values that were not yet corrupted by cultural Marxism. Now we have worthless tokens that pass for "money". Citizens need to wake up and start encouraging their state governments to revolt against the central banks in New York City and Washington DC. The U.S. Constitution says, no STATE shall make any THING but gold and silver COIN money. This emphatically means that states SHOULD make but one THING into money: gold and silver COIN. But the states only have the right to mint these coins and assure their honest weights and measures. It is not the state's job to mine the gold and silver OR print paper money (i.e., Bills of Credit or Federal Reserve Notes). Money should originate with the CITIZEN'S commerce, certainly NOT some cartel of elite bankers that call them selves the Federal Reserve System.


Ellen Brown stated in an article created for YES magazine: "The problem with gold coins was that they could not expand to meet the needs of trade. The revolutionary advance of medieval bankers was that they succeeded in creating a flexible money supply, one that could keep pace with a vigorously expanding mercantile trade."

This is a common fallacy, that the money supply must "expand" or be "elastic." This dangerous meme, along with the idea that we must have paper money that is "redeemable" in gold or silver, are the two basic reasons the entire Keynesian global economic system is now melting down.

G. Edward Griffin, in his revolutionary book, THE CREATURE FROM JEKYLL ISLAND, states on page 141 that "The amount of gold in the world does not effect its ability to serve as money, it only affects the QUANTITY that will be used to measure any given transaction." Murray Rothbard reflects the same reality. In fact, he maintains that the money supply SHOULD be held constant. In such a system, with an increasing product supply and a constant money supply, the purchasing power of the money will increase towards infinity, hence the amount of money needed for any particular transaction will approach zero. This is not a theory, this is calculus. More importantly, this is the road to the future envisioned in STAR TREK, a future without money, where all beings are motivated not by profit, but by improving their abilities and experiencing each other and the final frontier.

Only those that overtly or covertly wish to dominate and enslave; maintain class stratification; and/or wealth diversity, want an "elastic currency." An elastic currency, by what every name, is a "justification" for manipulating the supply of money (under the false pretense of "the public good" as Auguste Comte might say) but really manipulating it for unjust enrichment.

To maintain an "elastic currency" is the mission statement of the Federal Reserve per their website. An elastic currency is a currency that can be created out of thin air through various technologies and criminal machinations. One of the earliest was simply clipping coins. Then came receipt money, whereby the receipts were fraudulently transacted as "money." The fraud occurred when the early bankers printed up more receipts than there was gold to "back" them. This criminal activity has now been "legalized" and institutionalized by the banking establishment. This is a perfect example of a special interest group -- elite New York bankers -- lobbying Congress (in 1913) to re-configure the laws to suit them at the expense of WE THE PEOPLE. In consideration for the Congressional thugs-with-guns granting this, the Thugs get unlimited amounts of bank loans from the "Federal Reserve System" to maintain their police state. Thus the exact undeclared quid pro quo is: you give us unlimited money and we will use it to EMPLOY the more mentally-challenged or desperate citizens in the country to build endless weapons with which we will protect and "legalize" your banking crimes. It's as simple as that. Thugs with guns for fiat money.

Thus, the sole purpose of today's military is to protect the elite and their stolen assets, not secure the blessings of liberty for WE THE PEOPLE. Is it any wonder the primary product of the United States is weapons manufactured for the entire world by the military-industrial-banking complex? And anyone who disagrees with this ends up in the world's largest prison system -- the U.S. prison system -- where over 2.5 million citizens are incarcerated, mostly for crimes precipitated by the government and its stupid and archaic laws relating to money and drugs. What happened to the land of the free and the home of the brave? What happened to "let the buyer beware"? What happened to the strong individual? What happened to free-enterprise capitalism? What happened to honest competition? What happened to LIMITED government? What happened to the Biblical principles upon which this nation was founded? See the movie, CULTURAL MARXISM - The Corruption of America at to find out exactly what happened. Thankfully this is changing because the American people are waking up. The TEA PARTY revolution started by Ron Paul is the proof. But this revolution will fail so long as it attempts to reform the Republican Party, for the Republican Party is beyond reform. The only solution is to by-pass the GOP by forming a new libertarian-conservative political party. See SPOiLER to find out exactly HOW and WHY this MUST and CAN be done at

Unless we see real change back to constitutional principles you can expect conditions to continue deteriorating until the worst victims of the current central banking system and the gargantuan socialist government start carting guillotines out of dusty warehouses.


As endlessly reviewed in earlier papers and articles over the years, the daily business of the fiat-fractional banker is the covert acquisition of real estate. The way this system works is this:

Bankers lend some percentage of their money to people that can't really afford the payments and then foreclose on the real estate. Of course no banker admits he's in the real estate "business," but most of them are. With their buddies in government, the bankers and their tax-sale-certificate lawyers, they endlessly machinate to acquire the civilization's prime real estate. Since only about 1 - 5 percent of the real estate is "prime," the banksters "only" steal about 1 out of 40 properties. This gives the illusion that there's nothing going on, but slowly and steadily it allows the rich to keep getting richer and the poor to keep getting poorer. People that have access to fiat money and fractional money -- mainly large corporations, banks and the government -- have a drastic advantage over those that do not. This is hardly a level playing field or a system of free-market competition envisioned by our Founders or the proponents of Austrian economics, such as Ludwig von Mises, Friedrich Hayek, Murray Rothbard and Ron Paul.

Make no mistake, almost every loan officer in the member banks of the Federal Reserve System is on the alert to take advantage of "prime" foreclosures. Of course such loan officers and their seniors are usually savvy enough to distance themselves from such transactions. They aren't the actual ones who go after the "prime" real estate; they use "straw buyers" or push the properties to their cronies via agents and attorneys. This is crony capitalism at its best: conspiring with your buddies at the office to fuck the public out of its assets. And of course all this is made "legal" by their buddies in the local township, at big corporate fundraisers or in the halls of Congress and the K-street lobby firms.

Thus today, as the fiat-fractional Ponzi continues to melt; unemployment continues to sour; and millions are in jeopardy of losing their homes -- or have already LOST their homes -- people are getting aware -- and pissed. And rightfully so, for the very house that the banksters and their thugs with guns have take away was financed with money created out of thin air. The banks create money out of thin air, lend this "money" to Mr. and Mrs. America; give them "permission" to live in their pretty little picket-fenced house for a while, and then rip the "prime" little house away. Now bankers' buddies, their sons-in-law, brother's daughter, lawyer or their client's mistress get to have and enjoy the "prime" real estate of millions of victims across the nation -- all courtesy of the special privilege of fractional reserve banking and fiat currency, money backed by nothing but BELIEF: the erroneous belief that governments are honest and bankers are safe.


This brings us back to money, and what it should DO. Allow me to leave you with this modified statement:

Money is a tally of human effort (as embodied in products and services) that allows humans to grant permission for the ETHICAL allocation and use of those products and services WITHOUT the intervention of either Government or Special Interests.

If we can agree on what money should DO, then we may be in a position to enumerate what it should NOT do. Then we may be in a position to ENGINEER its structure and a new monetary system that respects and observes the tenets of the U.S. Constitution and free-market capitalism, systems that I believe, along with responsible technology, will help accelerate the U.S. and the world into a healthy and prosperous future for all.


(1) See:




31 October 2010

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