The Wonder Springs Chronicle

You can’t buy creativity!

27 October 2010

Volume 12, Issue 42

Access now the fresh insights of “The Wonder Springs Chronicle” Front Page. Be sure to check out the grizzly times wisdom and fresh insights of Brute’ Griz every Friday and our Monday Cult Football series article was “Worship of Money” This column also now appears each Wednesday on Deep Woods Moola and Redux Rendezvous.

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The greatest mistake made by the United States in the last generation was the false belief that material prosperity was a renewable resource. If you just attempted to keep interest rates low and the money supply increasing at just a few basis points less than inflation — economic growth would continue forever.

How wrong that turned out to be. In the process we changed the American culture from one where it was the greatest producer of new wealth in the history of mankind, unto a nation of debt consumers. This was based upon the presupposition that instead of being a country of entrepreneurs and small business people, we could shift the country to where the American Dream would consist of a job where you could make payments on a house and you could borrow for your consumption against an ever increasing home value appreciation.

Needless to say, a balance sheet readjustment was and is the overriding cause of this mess that goes back to when Barak Obama was a kid and George W. Bush was a partying Ivy League frat brat. This systemic problem, so twentieth century in scope, is still the basis of the midterm election just a week away. If you believe that those results will truly bring some change you can believe in, this reality check will shortly resume again, after a bit of gloom or euphoria, depending upon your politics.

What is totally missing from our discussion is the inalienable right of human creativity. You can’t buy creativity; you really can’t manage it either, especially in the traditional sense. The main reason is that creativity is the fruit of failure. If you are afraid to lose, it is a natural law reality that you can never really win, but you still can’t quit the game.

In 2001 Barack Obama spoke about the U S Constitution being a charter of negative liberties that equates to restrictions on governments at all levels, to be restrained from essentially messing with the folks. From the context of that interview and subsequent events, it seems a self-evident truth that the president believes that the founders of the American Republic got it wrong. That foundational American error also seems to find substance in the dream that Barak received from his vision quest trek to find identity in his father’s drunken stupor.

If we are however to learn from our mistakes, we must not remain within the limitations of the end of the progressive era, that our president is doing a great job of implementing, but rather move forward into a new frontier where individual creativity is the basis of positive change in the future. In religious evangelistic jargon we need to repent from our sinful ways and get right with Jesus!

Of course Jesus is the ultimate Creator, but in reality what is now required in the world is to take repentance, because of past failures, and built upon it in the context of not only the specific Christian revelations of the gospel of grace, but also of similar importance, is to commonly build again American Dreams that allow for failure to be the measure of future success.

To be honest, I never have been comfortable being a contemporary American, though my American heritage on my mother’s side of the family goes back to the Carolina’s before the American Revolution and from Denmark over 120 years ago. On my dad’s side of the family we left Ireland and Germany before the American Civil War.

In the context of my life and this article, I guess I have never been really comfortable with success measured solely in terms of the sum of your stuff. A now dead uncle was fond of saying, “We don’t make much money here but we sure have a lot of fun.” Sadly his fun seemed to flow from his Danish grandfather who apparently had some problems with alcohol also.

In the family context maybe I am the hybrid fruit of the American spirit, expressed in the reality of an ever-changing frontier of human opportunity. Perhaps it also includes something to do with the natural landscape? That American spirit is however the same reality that almost immediately after president Obama began his reign, decided that a Taxed Enough Already Party was needed. The taxed emphasis falsely focusing on monetary taxes, when in reality TEA Parties were protesting the financial limitation that increased taxes were going to cause in our creative self-determined lifestyle.

The current polarization of the country is really, in the broadest terms, just divergent views between the spirit of true Americans and a contingent of immigrants from foreign lands.

On Monday in the Cult Football article we wrote about the religion or “Worship of Money.” In that article we looked at the definitions of money as either just a medium of exchange to facilitate commerce, or an arm of government to essentially provide for domestic tranquility. We reported how the American Monetary Institute (AMI) stated the American founders never really addressed this divergent issue. When you look at the current state of affairs, you see that this American conundrum is really also a world problem. This is further complicated by the fact that the world’s monetary affairs are basically controlled by parties; external to national monetary sovereignty.

Whether international money should be debt based, as is now the way the world runs, or based upon debt free money of national supremacy is beyond the scope of this article. If you would like to look at this discussion in an academic context read the following: “On the Liquidation of Government Debt under A Debt-Free Money System — Modeling the American Monetary Act —.” That should give you some ammunition to dazzle your status-quo friends.

However for the remainder of this article we would like to focus upon another new creative definition of money, here to for completely absent from the discussions of the role or even the worship of money. This new role for money, the most definite need in the United States and the world today, is money for the role of new wealth creation, especially as it is geared or targeted toward individual wealth creation through risk and reward, failure and success.

The founding of the American republic and Adam Smith’s “Wealth of Nations” both are financial products of the late eighteenth century. The economic American revolt focused upon basically individual opportunity. Smith as his title indicates, focused upon nation states, specifically Great Britain, within the construct of the British Isles as the world’s foremost colonial power.

These English capital reforms basically entered the mainstream of the United Kingdom under the influence of Smith and other Scottish enterprise advocates, essentially because they worked. Scots in religious terms were nonconformist Calvinists with religious doctrines that easily allow for creation of a Shining City on the Hill, the New Jerusalem, and other religiously elect eschatological, but common manifestations of the Kingdom of God. Hence developing capitalism had no trouble morphing Augustine’s City of God into the Nation of God.

Even though today, the concept of a Sovereign God — Invisible Hand, has been replaced with a totally secular religious god of money, only satisfied by self-righteous greed, capitalism remains the only tested successful method for creating wealth. That will not change by attempts to enforce human benevolence, or true charity, through what we are now defining as progressive social justice.

If we change the emphasis of enterprise from national wealth and essentially collective colonial or anti-colonial salvation and prosperity, and again focus those opportunities upon producing wealth through individuals, as in the experiment of the American Republic, we have a chance to redux the nation and the world, peacefully, in short order.

To do that however, we need to change the definition of money to include the concept of money, or liquidity, for individual wealth creation. Within that economic paradigm we shall find a way to creatively create wealth, outside our historical definitions of money for goods and services, or as an instrument of national policy.

The American Monetary Act as outlined on the AMI website basically replaces over time, the FED’s debt instruments with debt free money issued by the United States through focused investments in decaying infrastructure.

At Wonder Springs we believe that existing infrastructure needs to be continually maintained, but that is a far different strategy than what we see today as truly a failed $800 billion government stimulus program. As we move into this new century, replacing twentieth century infrastructure with more twentieth century infrastructure gets us nowhere. New creative capital wealth creation can create the infrastructure of this century better and cheaper than any bureaucratic government or crony capitalist special interest.

In economic terms the Keynesian multiplier does not create wealth, it is simply a mechanism in which money trickles down, somewhat more efficiently and more targeted than through a crony capitalist enterprise. Trickle down as we have seen in the last generation, much to the financial benefit of those at the top of the economic pyramid, and to the chagrin of everyone else, is truly and outdated form of wealth redistribution, properly defined by George H. W. Bush as Voodoo Economics.

The AMI, in its other means to change to a debt free monetary system, also uses similar multiplier techniques for education, healthcare and other such current economic disasters, for other Keynesian effects.

But not to throw the baby out with the bath water, if we really think creatively, by using our new concept of money as a means to create new real wealth through individuals, it is not all that hard to understand that we don’t have to change the existing world in order to make it happen. What we really need to do is to create and individual economic frontier, or Wild West, just like the real frontier created true American exceptionalism, before the age of progressive enlightenment.

To make this happen, we have to move this new wealth and new money outside the world of debt and the current legal tort processes. What we need to create is a world of private entrepreneurial adventure exchanges. Definitely this is not a place where you want to put much of your 401k, or your revamped Social Security funds. To use the slogan from our Deep Woods Moola website we need to begin, “Innovatively Creating Sustaining Wealth.”

The premise of this virtual reality frontier is very similar to C. S. Lewis’ Narnia, “What happens in Narnia stays in Narnia.” The exception being that this adventure land, which for this and further discussion we will call Deep Woods Moola, (Moola Land?) has a mechanism to interact with the real world through real world economic development, and if successful within the Moola Adventure Equity Exchange, this new wealth can and must transfer to the real world of rules and regulations once certain standards of financial respectability are met.

What separates Moola Land is that the moola, just as with the American Monetary Act, is created as debt free equity money. That essentially means if you want to be successful with your Moola Land investments you better do your due diligence, because if your specific investment goes away, your only recourse is to deduct it from your ever rising real government income tax, you have no traditional shareholder legal rights of recourse.

I suppose in the real world of Securities Regulations at the state and federal level, Deep Woods Moola opportunities would be exempt securities with capital limitations of a million and five million dollar capital investment limits, with purchase and sale requirements to be created within the virtual infrastructure of the Deep Woods. In other words there would be some type of cooperative marketplace where you could by and sell shares of various companies under somewhat Wild West conditions.

The goal of your adventure in the Deep Woods could be quite varied, from raising investment capital for a local Main Street small business or franchise, allowing local people to help you become a success, to the first seed money investments in the twenty-first century versions of Apple, Amazon, Microsoft, Cisco and others that began before the effects of low marginal tax rates killed, essentially tax flight money in the United States. The unintended consequences of low marginal taxes truly brought about the demise of American wealth creation and accelerated the liquidation of historic American wealth.

We are in the process of putting together a Private Placement for PREFER Ltd to those whom we have a significant pre-existing business or personal relationship, to begin to implement right after the midterm elections some of these ideas and construct our new generation of precious metal air concentrators and refining equipment. At that time we will have some concept of the enterprise environment for the next couple of years. This is of course not an advertisement for the sale of any securities to the public, just a an announcement of our the Wonder Springs continuing efforts to create a world in which people matter more than money.

Most of my advanced mathematical training is in statistics. As Americans, for the next week we will be continually bombarded with statistics, most of which are based upon what is called the statistical normal distribution. This is not a normal distribution election, simply because the people are sick and tired of being treated like they are a statistic. In that regard next Tuesday is not an end, but really a beginning, of the awakening of the power of the individual in a post-modern world.

Statisticians don’t ask the question, “If you were given a million or five million dollars to invest in your future, what would you do with that money?” Actually, as I wrote that question, I realized I have asked a very similar question many times before, in the context of teaching the Biblical parable of the talents. The results were totally depressing not only for me, but also for the respondents.

Deep in the soul of all humans is the belief that we are put here for a purpose. That belief transcends all religions; it is what separates us from the animal world. There are doors to express that reality that are beginning to open. I for one want to see that happen for me and for you, because that is what I have been trained to do. God is real, because he doesn’t make junk, even if you have been treated like junk for your whole life.

That no junk law is the human condition that is awakening in not only the United States, but around the world. The suppressive junk depression so surrounds us, occurs slowly, depending how you look at it over generations, lifetimes, and even centuries. We are at the beginning of a reformational redux to change you from junk to a real person, and you can’t get out of the game. The question is will you play your part, or will you be a spectator? Your answer makes all the difference; for it separates humans from our statistics.