Tag Archives: Monetary Premium

The Division of Labor Gives Rise to the Monetary Premium

2/8/2014 Portland, Oregon – Pop in your mints…

Today we find ourselves, along with the rest of the inhabitants of the Willamette Valley, enjoying what has been dubbed “Snowpocalypse 2014.”  The valley’s residents are now three days into this rare event and, while much in the way of normal transit has been disrupted (truly, it does not take much snow to paralyze Portland).  We do not have a solid measure of just how much snow has fallen and whether or not the event lives up to its name, what is unmistakable is that the snow is beautiful and is has revealed many a great sledding hill in our midst.

Some of our faithful readers will recall that back in December, we began exploring the Monetary Premium, the portion of an item’s relative value owed to the utility of an item as money (those new to The Mint can glance back at these essays for a thorough exploration of the definition of money).  In that essay, we presented the portion of the Monetary premium that arises as a result of an Imperial authority demanding tribute in said currency.  Logically, it may also be said that laws declaring what is legal tender or any law which dictates the monetary unit in which debts are to be cancelled in an economic zone will also give rise to the monetary premium.

Of Money and Metals by David MIntGiven the above example, it may appear that the primary drivers for an economic good to carry the monetary premium are related to imperial or government action.  However, this is decidedly not the case, for the ultimate origin of and primary factor contributing to the monetary premium of any economic good has nothing to do with the government or what is used as money, rather, the Monetary premium comes into being as a result of an increase in the division of labor.

For those not familiar with the term, the division of labor is what makes urban society possible.  While perhaps the most easily understood metaphor is that of the assembly line, where each individual worker dedicates him or herself to completing one facet of the production process, relying on their counterparts on either side of them to ensure that the chain of production, of which they form part of, remains unbroken.

Economic systems are, in a sense, a collection of interconnected assembly lines both large and small, with each member of the system dedicating themselves to a set of tasks; the more time and energy that each individual is allowed to dedicate to their task, the more efficient each individual generally becomes.  The fact that each individual dedicates an increased amount of time and energy to a specific task gives rise for other members of society to pitch in and specialize in tasks that others cannot do for themselves given the specific scope of their labors.

The division of labor, if allowed to rise and sort itself out on its own, is generally good for economic output, as increased efficiencies translate into increased outputs.  However, as individuals increasingly specialize in certain tasks, they increasingly rely upon other members of society to fulfill their need.  As logic would follow that the increased division of labor does not allow much time for barter transactions, an increase in the division of labor always gives rise to the need for a monetary premium to both emerge and expand, attaching itself not only to traditional transmitters but giving rise to new ones as well.

Once the monetary premium expands, it gives rise to an increase in the division of labor, and in this way the dynamic between the two drives real economic growth.

Limitations on the Division of Labor and Monetary Premium

After reading the above, it should be clear that both the division of labor and the monetary premium are generally good for humankind, and that both factors driving real economic growth, if left to operate unhindered would eventually run up against and adapt to the limitations of the natural environment.

However, today, circa 2014, both the division of labor and monetary premium are hindered not by natural limitations, but by limitations placed upon them by well meaning legislators.  While all legislation tends to have either a direct or indirect effect on economic activity, there are two kinds that are particularly harmful to economic growth as they cut off the lifeblood of economic expansion:  The dual expansion of the division of labor and the monetary premium.

The first are laws dealing with minimum wages.  While minimum wages laws strive to guarantee a living wage for all members of society, they never achieve this goal and, in the process, serve to directly hinder the expansion of the division of labor when actual wage rates for certain activities are below the minimum wage rate, and serve no purpose when wage rates are above it.

The second set of laws are those referenced above; legal tender laws.  While Legal tender laws strive to codify what serves as money in a society, they invariably serve to direct an inordinate amount of the monetary premium into instruments that are not worthy of serving as money on a grand scale.  In the process, they serve as a severe limitation on what can carry the monetary premium and, by extension, the expansion of the monetary premium and the division of labor.

We all suffer to some degree due to manmade hindrances to the expansion of either the monetary premium or the division of labor; however, it is those farthest from monetary spigots, as defined by legal tender laws, who suffer the most.  In order for peace and prosperity to accrue to the greatest possible number of persons, it is critical that we grasp the importance of encouraging the division of labor to operate unhindered.

Stay tuned and Trust Jesus.

Stay Fresh!

David Mint

Email: davidminteconomics@gmail.com

Key Indicators for February 8, 2014

Copper Price per Lb: $3.26
Oil Price per Barrel:  $99.88

Corn Price per Bushel:  $4.44
10 Yr US Treasury Bond:  2.68%
Mt Gox Bitcoin price in US:  $680.00
FED Target Rate:  0.07%  ON AUTOPILOT, THE FED IS DEAD!
Gold Price Per Ounce:  $1,267

MINT Perceived Target Rate*:  0.25%
Unemployment Rate:  6.6%
Inflation Rate (CPI):   0.3%
Dow Jones Industrial Average:  15,794
M1 Monetary Base:  $2,752,800,000,000

M2 Monetary Base:  $10,968,700,000,000

The Monetary Premium is the Fed Alternative

12/24/2013 Portland, Oregon – Pop in your mints…

Here at The Mint we are preparing for a record-breaking year in 2014.  As we look out upon the horizon, we see that the eternal tension between inflation and deflation that is the bane of the insane debt is money monetary system is beginning to subside.  While many at this point are standing on the beach watching the monetary tide recede to an unimaginable extreme, those who watch the weather know that this phenomenon is but the precursor to a tsunami.

Inflation will soon be here, and it is time to adjust revenue targets accordingly.

We make this forecast not out of any sort of clairvoyance, but largely as a hunch.  The Federal Reserve, which just passed its 100th anniversary and appears to be going strong, has no choice but to inflate, as it is their only tool and default bias.

What is changing in 2014 are the Federal Reserve’s tactics.  The FED will spend much of 2014 and beyond fighting inflation as a matter of policy.  Each coming policy, such as the recent $5 Billion/month token (or courtesy) taper that was recently announced, in theory will serve to reduce the monetary base.  What many do not realize is that the monetary base will not shrink as a result for at least three and a half years.

At this point our long-suffering readers are welcome to point out that The Mint was wrong.  We had predicted that the Fed would increase the target rate before tapering, as the target rate was more of a random subsidy while the taper recipients have come to expect it as a form of state banking welfare.  We humbly admit that, given the latest announcement, we were technically wrong.

What the taper reduction is accomplishing, in practice, is a form of marginal stimulus.  The Fed is herding the banks and other lenders out of Treasuries, as holding too many Treasuries in a taper environment is categorically inadvisable.  Some reports have the Fed representing 80-90% of the market for treasuries.  As they scale their participation rate back via the taper, Treasuries will be forced to find a market price, and if what happened to the 7 year after the announcement (a roughly 264 bp drop) is any indication, the market has an opinion of Treasuries that is quite different from those held by the Fed.

The point is that, as the banks have the spigot open at .09%, this money will, at long last, find its way into the hands of credit hungry consumers and businesses.

The giant of the US Economy is waking up.  Part of the activity can be attributed to the Christmas season, however, in early 2014, much of the initial uncertainty surrounding Obamacare will begin to sort itself out, and both businesses and consumers will find themselves both willing and, for the most part, able to do what they do best:  spend.

The Fed has worked tirelessly to shore up the monetary base for five years, and, despite what one may think of Yellen’s dovish bias, she is likely smart enough to realize that the best shot the Fed has now to stimulate the economy is to appear to head to the closet to pick up the liquidity mop.

The Importance of Tribute, and the Fed Alternative

After 100 years, the Federal Reserve has done much.  Their most amazing exploit, one that is lost on most, is that they made the US and much of the world believe that debt was money, and indeed, a great deal of the monetary premium has gravitated to Federal Reserve notes.

Clairvoyant Political Cartoon circa 2012 by Adam Crozier
Clairvoyant Political Cartoon circa 2012 by Adam Crozier

{Editor’s Note:  Click here to see more clairvoyant political cartoons circa 1912, just before the Fed was granted its monopoly on the US money supply}

In the end, what is a Federal Reserve note?  It is a Central Bank liability, which is an irredeemable hot potato that at best represents an indirect claim on wealth but in the end maintains its allure on the part of those forced to transact in it because the US Empire requires that all taxes be reported and paid in them.

Think about it, the hammerlock that any currency has on a citizenry, no matter how putrid its fundamentals may be (and they don’t get much worse than the paradox of debt based money), is that the sovereign requires tribute to be rendered in said currency.

The logical proof is this, were the US Government to require payroll and income tax remittances in Euros or corn bushels, how long is the Federal Reserve Note likely to retain its value and usefulness in trade?

The requirement to use a monetary unit or currency in rendering tribute is a important component of what we call the “monetary premium,” which is loosely defined as the portion of aggregate value that something carries related to its relative function of a transmitter of value.  It is embedded in the supply and demand dynamic of all quasi-monetary instruments, such as gold, silver, and most recently, Bitcoin and other crypto currencies.

While most fix their eyes on credit markets to determine the value of currency in trade, they would do better to observe the Monetary Premium, for it represents the collective hopes and dreams of humankind in the material world, and where it goes, relative riches follow.

For this reason, the Federal Reserve and other Central banks of the world will fight to the last (insert your preferred noun) to retain a share of the monetary premium, for it is their only value proposition in what is a terminally defective, if not purposefully fraudulent, product mix.

In 2014, the Fed will lose its iron grip on the Monetary Premium and take its place amongst currencies relegated to tax remittance and nothing more.

Bitcoin’s resilience is but one item in a long list of evidence that the monetary premium attributed to central bank notes is attaching itself to other indirect claims on wealth and items representing unencumbered claims on wealth.

The economic activity that this tacitly coordinated shift out of Federal Reserve notes will cause in 2014 and beyond will be breathtaking.  They will call it inflation, and it will be the Fed’s death knell.

Stay tuned and Trust Jesus.

Stay Fresh!

David Mint

Email: davidminteconomics@gmail.com

Key Indicators for December 24, 2013

Copper Price per Lb: $3.31
Oil Price per Barrel:  $99.21

Corn Price per Bushel:  $4.35
10 Yr US Treasury Bond:  2.98%
Mt Gox Bitcoin price in US:  $698.87
FED Target Rate:  0.09%  ON AUTOPILOT, THE FED IS DEAD!
Gold Price Per Ounce:  $1,205

MINT Perceived Target Rate*:  0.25%
Unemployment Rate:  7.0%
Inflation Rate (CPI):   0.0%
Dow Jones Industrial Average:  16,358
M1 Monetary Base:  $2,583,700,000,000

M2 Monetary Base:  $11,024,400,000,000

Jobs, Gold, and Bitcoins

4/5/2013 Portland, Oregon – Pop in your mints…

Today’s BLS jobs report was seen as an unmitigated disaster.  This should give the Federal Reserve the cover they need to turn Japanese with regards to their QE program (the BOJ came out with a QE program that is roughly 30%! of GDP over a year, by way of comparison, the FED has pumped out 15% of GDP in 5 years).

Bitcoins, gold, and silver jumped.  The management of what the world calls currencies is heading for the exits, and from the looks of things, so are many Dollar, Yen, and Euro holders.

Don’t bother to turn off the light or lock the doors, just get the heck out.  A four alarm fire coupled with an earthquake is on the verge of breaking out in the currency markets.  The monetary premium is looking for something to affix itself to, and it will trample many an asset class in search of it.

Stay tuned and Trust Jesus.

Stay Fresh!

David Mint

Email: davidminteconomics@gmail.com

Key Indicators for April 5, 2013

Copper Price per Lb: $3.38
Oil Price per Barrel:  $92.70
Corn Price per Bushel:  $6.29
10 Yr US Treasury Bond:  1.69%
Mt Gox Bitcoin price in US:  $142.88
FED Target Rate:  0.14%  ON AUTOPILOT, THE FED IS DEAD!
Gold Price Per Ounce:  $1,582 THE GOLD RUSH IS STILL ON!
MINT Perceived Target Rate*:  0.25%
Unemployment Rate:  7.6%
Inflation Rate (CPI):  0.7%
Dow Jones Industrial Average:  14,565
M1 Monetary Base:  $2,534,800,000,000 LOTS OF DOUGH ON THE STREET!
M2 Monetary Base:  $10,501,300,000,000

 

The Bitcoin crazy train, the great green wall, and are you a soldier, an athlete, or a farmer?

4/3/2013 Portland, Oregon – Pop in your mints…

In the Bitcoin/USD market, the world is getting a rare glimpse of the power of the monetary premium.  Today those who watched witnessed the Bitcoin briefly race up to $147 USD before retreating to around $115, where it stood yesterday.

Over the past few days, we have been participating in a discussion of the merits of the Bitcoin over on Google+ with the Austrian Economics group.  It has been interesting to see how we wrestle with the concept of what is money.  Trying to pin it down to one thing in the physical world.  For if money were just one thing and one thing only, one of the world’s great mysteries would be put to rest, and the rest of the mysteries may even become less mysterious.

However, the concept of money remains elusive.  It will remain elusive, and it is good.  Here is why.

For the many things that it purports to be, the Bitcoin may be best described as a decentralized digital currency.  As such, the only value that can rationally be attributed to it consists entirely of what we call a monetary premium.  In our worldview, money is a concept.  As such, there is no physical thing or concept that can claim a divine right to being money.  Not gold, silver, nor national currencies.

What fools man into clinging to these things and insisting on calling them money is the notion of a monetary premium, which we define as a set of characteristics when make something a chosen store of wealth, medium of trade, and unit of account.  For more on this, please read our eBook “What is Money?  A quest to answer the question of the ages.”

What is Money? By David MintWe return from this shameless plug to the Bitcoin.  The Bitcoin is not a physical good.  If anything, it boils down to an arbitrary string of the zeros and ones that form the basis of all computing.  However, this non-thing is beginning to absorb a portion of the monetary premium.

This partial absorption of the monetary premium by a string of digital numbers serves a proof that money is a construct of man, and for all of man’s efforts to capture it, measure it, and make it his, the concept of money, or what is better understood as the monetary premium, is a fickle and fleeting thing.

For this reason, Jesus warned us,

“No one can serve two masters, for either he will hate the one and love the other; or else he will be devoted to one and despise the other. You can’t serve both God and Mammon”

Matthew 6:24

Neither YHWH or the monetary premium can be seen, but man must choose to serve one or the other.  One is fickle and fleeting, the other faithful and constant.  One’s answer as to which is which will reveal whom they serve.

Choose wisely.

Yet the Bitcoin and the fickle and fleeting monetary premium that it is interacting with gives those of us who are paying attention a chance to examine our character.  For our reaction to the fluctuations in the Bitcoin / USD ratio may help to reveal  hat kind of man or woman we are.

Whether one finds themselves serving the monetary premium or YHWH, they are likely to find themselves identifying with one of three basic examples of behavior and motivations.

These examples were first presented to us in the summer of 2004 at a Kings Kids European summit in Tarragona.  Far from the lush EU summits which are the hallmark of today’s famous Troika mismanagement, the Kings Kids operate on a wing and, most literally, a prayer.

With our Castilian Spanish skills still lacking, we spent a mid summer’s week in tents on a high school campus (naturally, school was out) with minimal bath and shower facilities with hundreds of adolescents, young adults, and not so young adults from across Europe and the UK (indeed, we were acquainted with a long lost cousin from Wales at the event).  It is in these settings where YHWH moves and provides his most profound lessons and training.

It was in this setting, then, that the examples were presented by our Pastor Curtis Clewett of La Iglesia El Lokal in Barcelona.  Each time we recount the impact of this teaching to him, he recalls it as something that he threw together at the last minute.

So it was, on a warm summers eve on the Mediterranean coast in a place which more or less resembled a gypsy camp, we gathered to hear el Reverendo impart the three examples of what we will call spiritual maturity.  Read them carefully and please, take no offense at the blanket statements that the descriptions imply.  We understand there are many shades of the following professions, and it will quickly become clear that it is the description that matters more than the professional title:

The Soldier:  The soldier is in training.  He is fit, well equipped, and he is at the ready.  However, the soldier does not represent the ultimate in spiritual maturity, for he is lacking two things:  Initiative and autonomy.

The soldier is trained to take orders.  He does not dare act on his own for fear of retribution or failure.  He is limited by not only the rules and regulations of his trade, but also in his physical movements and the ability to act independently of the orders given by his commanders.  As such, he cannot act on his own initiative and, if he does, it is in a very small sphere of operations which is dependent upon others following similar orders.

Being a soldier is not a bad thing, indeed, it is admirable, but the path to spiritual maturity demands that he move past this necessary first jaunt down the neverending path towards spiritual maturity.

The Athlete:  Unlike the soldier, the athlete is, by definition, acting on his or her own initiative.  They may depend upon a coach for guidance and encouragement, but their motivation to obey the coach comes from a desire to improve, not fear, as was the case from time to time with the soldier.

The athlete desires to excel at a certain sport or event, and relies on set intervals of competitions or time trials by which to receive feedback and praise for his or her efforts.

Again, being an athlete is not a bad thing, and the emergence of personal initiative and the desire to train, as well as an increased degree of autonomy represent a further journey down the path to spiritual maturity, however, even if the athlete reach the pinnacle of their chosen field, they are still lacking in one very important aspect, an aspect that is fully embraced by the farmer.

The Farmer:  The farmer does not have a drill sergeant yelling at him in the morning, nor is he told what to do and when to do it.  The farmer is not restricted in his movements or daily activities.

The farmer does not train on a daily basis and is not accountable to a coach.  Indeed, the farmer takes on responsibility not only for his own training regimen, but for understanding when and where to compete.

The farmer knows exactly what to do and waits for signals from his natural surroundings to tell him when to do it.  He constantly looks after his surroundings and understands that both the land and the animals within his care have been entrusted to him.  Indeed, so have his family and his neighbors.  Even those whom he will never meet indirectly may rely upon the success of his efforts to be able to put food on their table.

The farmer’s efforts may appear volatile, oscillating between sloth and frenzies of chaotic activity.  When there is nothing to be done, the farmer drives to the café to drink coffee and play cards all day.  When there is work to be done, he awakens early and does not rest until his equipment or the lack of daylight put an end to the day’s efforts.

The farmer not only understands what needs to be done, he understands that all efforts, to be effective, must be put forth in their season.  He can prepare, and often does, but he understands that the time to exert himself will become known in its due time, but it will not happen on a schedule which he can set.

Still, he accepts the responsibility of his post, both the long days and the stinging boredom, with joy, knowing that ultimately he is doing the work of a master, and is providing for many who live well beyond the county line who he may never personally meet.  He may never be thanked by them, or recognized formally for his work, yet in the work itself, he finds life’s greatest contentment.

As you can see from the above examples, to understand one’s own character, it is as important to understand who we are serving as it is to understand how we are serving, for the key to contentment lies in choosing well on both accounts.

The monetary premium currently attributed to the Bitcoin will take wings.  If one is a soldier or an athlete, they are likely to get burned by the sudden movements.  However, the farmer, in a sloth like manner, will pick his spot and wait patiently for an opportunity to present itself.

Then, in a sudden, measured frenzy, he will then labor day and night until the work is finished.

Pastor Clewett is still in Barcelona.  In the true spirit of the farmer, he continues to pastor in addition to his duties at Planting Together, where he is on the Executive team.  Planting Together is an organization which organizes tree planting and pruning excursions, where they partner with the government of Senegal and many others to help build up the Great Green Wall, a wall of trees and foliage which is successfully fighting back the encroachment of the Sahara in northwestern Africa.

Thank you, Curtis!  Many blessings on your head.  May we all learn to sow and reap as you have.

Stay tuned and Trust Jesus.

Stay Fresh!

David Mint

Email: davidminteconomics@gmail.com

Key Indicators for April 3, 2013

Copper Price per Lb: $3.34
Oil Price per Barrel:  $94.45
Corn Price per Bushel:  $6.41
10 Yr US Treasury Bond:  1.81%
Mt Gox Bitcoin price in US:  $115.20
FED Target Rate:  0.15%  ON AUTOPILOT, THE FED IS DEAD!
Gold Price Per Ounce:  $1,558 THE GOLD RUSH IS STILL ON!
MINT Perceived Target Rate*:  0.25%
Unemployment Rate:  7.7%
Inflation Rate (CPI):  0.7%
Dow Jones Industrial Average:  14,550
M1 Monetary Base:  $2,425,000,000,000 LOTS OF DOUGH ON THE STREET!
M2 Monetary Base:  $10,547,600,000,000

Why the monetary premium must be attributed to a tangible good – To Build up the Land – Part IV

4/1/2013 Portland, Oregon – Pop in your mints…

On this April fool’s day we will attempt to lay out yet another premise.  It is the underlying premise and our ultimate contribution to man’s understanding of monetary theory.

Our choice to present the premise today may mean one of three things:

1.  If it is so absurd as not to be accepted by any thinking human being, we may attribute it to a cruel April fool’s joke.

2.  It may be received as such a revelation that mankind will take what they have assumed to be money for a cruel April fool’s joke.

3.  It just happens to be April 1st as we are writing.

We can assure you of that the third reason is absolutely true, as for which of the first two may be valid, we leave the decision up to you, fellow taxpayer.

The premise is the following:  The monetary premium, which is the increase in the value of an object owed to its usefulness as a store of value, medium of exchange, and/or unit of account, must be primarily attached to a tangible good for the activities which mankind carries out to be in balance with the resources that exist in natural world.

The world has operated on a system of fiat currency, or currency by decree, on and off for as long as there has been an Empire capable of dictating what its subjects must use as money in settlement of debts.  Fiat currency is not harmful in and of itself.  In fact, given enough time, any fiat currency which is not flexible enough to change with the needs of the economic activity which it is intended to aid will either self destruct on its own, owed to it being eschewed in favor of a more suitable currency, or, if its use is rigidly enforced, cause the underlying economic activity to self destruct or cease, causing another form of fiat collapse.

To control what is used as money and the monetary premium represents the ultimate power in the material world.  As such, such control can never be gained by force.  Rather, it must be created by a great many deceptions which cause otherwise rational persons to hand over control over this most important of decisions.

For over 40 years now, much of the world has not only subjugated itself to accepting a form of fiat, it has come to accept as money the worst form of fiat, a fiat currency that comes into being as a debt instrument.  As a result, mankind has attached this precious monetary premium to credit, which is not dependant upon the production of goods in the real world, nor on existing property, rather, it is primarily dependent upon the character of a man.

Today we read a list of quotations compiled by Frederick Sheehan which came to us via Credit Writedowns.  Two of the quotes speak directly to the nature of credit, which will help to underscore our premise:

“Credit is not money.  Credit is trust. Trust can vanish in an instant.” – Frederick J. Sheehan, March 25, 2013

In response to questioning by Samuel Untermeyer during the Pujo Committee hearings, J.P. Morgan famously made the following observations on money and credit:  {Editor’s note: You may read the Pujo Committee, formally known as the Money Trust Investigation, testimonies here via the St. Louis Fed.

Untermyer: ‘The basis of banking is credit, is it not?”

Morgan:  “Not always. That is evidence of banking, but it is not the money itself.  Money is gold, and nothing else.”

Then, during the same lime of testimony:

Untermyer: “Is not commercial credit based primarily on money or property?

Morgan: “No sir, the first thing is character.

Untermyer: “Before money or property?

Morgan: “Before money or property or anything else.  Money cannot buy it”

Both Sheehan and Morgan’s observations on credit are sufficient to gain an understanding of what credit really is.  Most persons are conditioned to assume that credit is backed by collateral.  However, were credit backed by collateral, it would cease to be credit.

The essence of credit is trust.  Trust, by definition, is created by the belief in an inherently uncertain future outcome.  Again, by definition, trust may not always be well placed.  The plans upon which the credit and underlying trust are built may just as well not turn out as planned.

Money cannot be destroyed, it can only change hands.  Credit and trust, however, can be destroyed in an instant, for they are subject to the fickle decisions and imperfect plans of men.

When money is based on trust, the world moves to a very dangerous place with regards to the planning of daily activities.  This is where the world is today, circa 2013, after 40 years of what we refer to as the insane debt is money financial system.

Trust is good and necessary to a point, however, it can vanish in an instant.  When there is an excess amount of trust, or promises to pay, circulating in relationship to a finite number of money, goods, and capital in the real world, there are bound to be a few broken promises.

If kept to a minimum, the economic systems which are organically created by man to trade and deal with scarcity, a state of being that we call True Capitalism, will correct the errors that result from misplaced trust which manifests itself by credits which are defaulted on.  The activities of men will then return to balance with the underlying natural resources which the earth affords him.

Forest Clearing in Cameroon, and example of man's imbalance with nature? Photo credits:  © Greenpeace / Alex Yallop
Forest Clearing in Cameroon, and example of man’s imbalance with nature?
Photo credits: © Greenpeace / Alex Yallop

However, if misplaced trust in the form of bad credits are allowed to perpetuate themselves, men will have no incentive to investigate whom amongst them is worthily of the trust that credit represents.  This state of being will, and indeed does, cause much of the earth’s natural resources to fall into unproductive hands where it will ultimately be squandered.

Meanwhile, those who are capable will not be able to coordinate their efforts with their fellow men in any meaningful way.  Indeed, the capable ones will simply learn how to take advantage of the over abundance of trust which is being created in the world.

This proliferation and misallocation, if we can call it that, of trust has two real world consequences:

1.  Natural resources are wasted at an alarming rate.  For this reason we believe that the placement of the monetary premium on credits has lead to the crisis that most people have come to call “Climate Change.”  It was previously known as “Global warming.”  This represents a myriad of symptoms whose root cause is that man’s activities are severely out of balance.  The cause of this imbalance in the current situation is that man’s activities, both those worth of trust that have succeeded and those that have failed miserably, have been greatly accelerated by the dangerous mix of credit and the monetary premium that circulates as currency.

Man is in a desperate race to meet a timetable that the earth’s resources cannot provide for.  The result is the severe imbalances which we are now observing.  It is this, and not the industrial revolution, fossil fuels, or any of the other symptoms that is the root cause of climate change.

2.  While there are a great deal of men who are busy scorching the earth with their activities, the wise have learned to concentrate their efforts not on the productive activities to which they would otherwise dedicate themselves, but to profiting from the explosion of trust and credit, from the misjudgments and miscalculations or their fellow men.

The land is either laying fallow or being scorched by the misguided activities of men, rather than being built up, as Old Jules encouraged.

However, it is not man himself or any of his inventions which constitute the root cause of the problem.  Rather, it is the simple misplacement of the monetary premium on credit instruments which emits the false signals that we all either follow or are forced to follow in the planning and execution of our daily activities.

This is our premise.  If one man in a million will grasp it, we can change the world.  Will it be you?

Stay tuned and Trust Jesus.

Stay Fresh!

David Mint

Email: davidminteconomics@gmail.com

Key Indicators for April 1, 2013

Copper Price per Lb: $3.40
Oil Price per Barrel:  $97.07
Corn Price per Bushel:  $6.42
10 Yr US Treasury Bond:  1.84%
FED Target Rate:  0.13%  ON AUTOPILOT, THE FED IS DEAD!
Gold Price Per Ounce:  $1,599 THE GOLD RUSH IS STILL ON!
MINT Perceived Target Rate*:  0.25%
Unemployment Rate:  7.7%
Inflation Rate (CPI):  0.7%
Dow Jones Industrial Average:  14,573
M1 Monetary Base:  $2,425,000,000,000 LOTS OF DOUGH ON THE STREET!
M2 Monetary Base:  $10,547,600,000,000