Practical
Money Mechanics
for the
New American States
by
Steve Tassio
01/01/2001
updated
07/08/2008
Introduction
This purpose of this document is to acquaint the reader with the concepts of how specie backed currency works in a society and in international trade as well. Comparisons will be made to the current use of fiat currency in these areas. Reference material for the current methods of currency issue and valuation is from the Federal Reserve Board of Chicago’s publication, ‘Modern Money Mechanics, and ‘The Creature from Jekyll Island’, by Griffin. Reference material for specie currency is from the Bible, ‘Treatise on Money’ by Oreseme, ‘The Wealth of Nations’ by Smith, ‘Commentaries on the Laws of England’, by Blackstone.
Because the nature of a society is determined by who controls the money supply there will be discussions involving politics in this document. In other words, this document is intended to show a practical application of specie-backed currency, not just an abstract, academic discussion of the mechanics of specie currency. In order to do so certain assumptions are made, hence the title ‘…New American States’.
The primary assumption made is that sufficient numbers of Americans got together to convince the federal government that certain changes to the monetary and other governmental systems were desired. Because we are dealing with men in government who do not follow the ways of God it would not be a great leap to assume such men were forced out of office, rather than them eagerly seizing the opportunity to serve the people who ‘elected’ them. To further that assumption, Congress has presented nothing to the people to change the status quo. All their proposals thus far, such as the ‘Fair Tax’ (general national retail sales and services tax), have merely shuffled the attributes of the players, the Federal Reserve and the Internal Revenue Service. In the end there is always still a central bank controlling the value and volume of the currency and a taxing authority to collect use taxes in any manner it deems expedient. Furthermore, as we proceed into the discussion of money mechanics, it will become apparent that committees wielding the power to value the purchasing power of the currency have no motivation, or desire, to relinquish that power to its proper holders, the people.
It is important for the reader to see how a specie-backed system of currency can be placed successfully into operation rapidly so that it is not perceived that this practical discussion may take 20 years to implement. Therefore, another assumption is that the several States, having regained their sovereignty, have issued a currency that replaces the current fiat currency with one that contains a promise to pay in silver. That is, it is redeemable. Upon the issuing of the States currency a narrow window of time is given to the populace to exchange Federal Reserve Notes for the new currency. This exchange is of course not one for one as the Federal Reserve Note has so inflated since its inception, thereby losing purchasing power, that it bears no relationship to an ounce of silver, despite it being called a Dollar. After this window of opportunity closes Federal Reserve Notes will no longer be legal tender or exchangeable for new currency.
Another assumption made is that the several States have re-united in a more perfect Union, and that currency from one State is accepted at par in another. The ‘New Government of the united States of America’ also issues a specie currency to use nationally for its business, and that of the holders of the currency. At the same time the New Congress has specified the accounting unit and currency for international trade. And all of the current income, corporate, death duties, capital gains and any other form of currency use taxes have been abolished.
The Basics of Money and Currency
In order to understand why one form of currency is to be desired over another, it is first necessary to understand what money actually is. That is, what role does it serve in a society. In this document, the word money is used to represent anything that can be used in exchange for labor or goods or property. This includes notes, bullion or even baseball cards. The word currency is used to represent that which is not an item of goods or services but circulates widely throughout the country with universal acceptance as money. In this document silver is used as the primary backing metal.
Paper currency is of two types, backed or un-backed. By backing it is meant that a Certificate of currency may be freely redeemed or exchanged, at the Treasury or at a bank for convenience, for a specified amount of silver. An un-backed note or fiat note is a currency that has no fixed amount of purchasing power, is of no intrinsic value and cannot be redeemed for any amount of silver, although it may be used to purchase silver at the current ratio of notes to silver. Currency in coin form is subject to the same definitions as paper currency, that is backed or fiat. A silver coin does not need to be redeemed for it is itself the silver. A coin, such as we use today, without silver in it is a fiat coin, not redeemable or of any intrinsic value.
Before the use of currency became common practice people would trade or barter for that which they desired. For example, if you plowed my field I might give you 3 chickens in exchange. Or, I might exchange a young pig for your 3 chickens. Or, if you help me plant my field, I will help you chop your firewood. In these examples the wealth of the community was increased without the use of currency at all.
When precious metals started to be used in commerce many changes in the society occurred. First, the speed at which commerce occurred accelerated. This is due to the prior acceptance of the value of the, let’s say, silver offered for 3 chickens. The person with the silver is now referred to as the buyer or purchaser and the person with the chickens is the seller. The seller will accept the silver, the buyer inspects the chickens as before and the deal is done. The seller does not have to give the pig, from the previous example, a veterinary exam. He is free to turn around and sell more chickens immediately. Also obvious from this simple example is the durability inherent in the silver. The seller can store it away for use later. With a pig as payment something must be done soon. The pig requires food and living space and eventually it will die. If too many people offer pigs for chickens the seller cannot sell as many chickens as he may wish to, and thus the purchasing power of pigs drops. So silver has increased acceptance, stability of value and durability as compared to animals, crops or leather goods etc. The fact that people desire and or need these other items from time to time notwithstanding.
From the Bible we see that Israel used silver in predefined weights such as the talent and shekel. This currency appears to have circulated around Israel more or less according to the actions of commerce. There was no central bank, even during the reigns of the kings. The people were essentially free to conduct business as they saw fit. There is one command we are interested in that God placed upon Israel concerning commerce. There must be uniformity in weights and measures. Goods did not come in jars or cans calibrated for weight or volume by its construction. The buyers silver had to be weighed, against a standard, as well as the sellers flour, for example. This form of currency and commerce suits a free people.
The Romans however, had different ideas about the structure of their society. The Emperor of Rome pretended he was God. The Roman coins carried his picture because tribute and allegiance were due to the Emperor the protector of the realm. Jesus said to give to Caesar that which is Caesar’s. This was in response to the question of the liability of the Israelites to pay taxes to Rome. Paul writes one is to pay tribute to the one to whom tribute is due, taxes to whom taxes are due. The right to taxation was inherent in Rome. The government of Rome certified their coins to be of a particular weight and quality. This further facilitated commerce because the weighing of the silver for each transaction could be dispensed with. Also as the fineness or quality of the metal was established, the concern over where the silver originated was eliminated. The price of using these certified coins in commerce was taxation. Because there was a legitimate benefit to commerce derived from the use of such coins over carrying pieces of bullion of unknown weight or fineness, or even items of barter, the Emperor could levy taxes to support the minting operation. There was no restriction on what may be used for currency in Jerusalem at that time and the Romans did charge more tax than for money use, as a conquering nation is want to do over its subjected territories. Those issues aside however, the important thing is to note how commerce is improved by the improving of the currency. At the same time we see that the people of Judea suffered, in part, for having a central bank with its foreign currency thrust upon them, even though the currency was silver.
If we go to France about A.D. 1300 we find that area prior to being a country was composed of manors, or principalities that were loosely unified. Each of these communities had a head, often known as a Prince. To the extent that each community used currency, as coins usually, it again belonged to the prince to coin, denominate and set the value. Some of these regions allowed the prince to dilute the silver in the coins. This ‘overprinting’ is called debasement. The prince was thus enabled to purchase more goods and services than the silver bullion would allow on its own. The increase in the purchasing power of the extra coins minted is called seignorage. This invisible form of taxation was preferred over direct income or sales taxes in some areas. This debasement was generally not too harmful if, the currency remained in the area controlled by the prince who coined it, and if, such debasement was minimal and publicly approved. It was said however that a prince who secretly betrayed the Public Trust and debased the currency was deserving of death. Additionally, when trade was desired between principalities difficulties arose. The condition of ‘exchange rate fluctuation’ appeared because there was a disparity of the amount of silver in coins of different regions. This was somewhat alleviated when France unified, but then almost immediately resurfaced when trade with England began.
As can be seen, having a universally accepted currency is beneficial to commerce, and hence the wealth producing ability of a country. It should also be seen that the currency is not the wealth of a country. It is a facilitator of generating wealth. People may think they are rich because they have a lot of discretionary currency on hand, in one form or another. In reality they are rich because of the goods and services they can purchase. From this you can see that a rich miser who hoards currency out of greed does not contribute to the society much more than a poor man might. Does this mean that everyone should spend all he has? It cannot, for to do so would eliminate pools of circulating capital that are needed for expansion in commerce, charity, wars etc.
Also evident is the requirement that the accounting unit device used as currency by the country be of constant purchasing power. If this purchasing power is varied, as is now the case in America, the people are robbed through inflation. For more hours of labor are required to accumulate greater numbers of the accounting unit device to purchase the same goods and services that previously took less hours to labor for. And inevitably, contracts are rarely fulfilled correctly for no man can ascertain what he has or what he owes. All of the purchasing power thus lost to the people, the seignorage, vests in the issuers and controllers of the currency as we have seen. To compound that loss is the taxation and usury imposed upon the people of America for the ‘privilege’ of using the issuer’s money. In this case the issuer is the Federal Reserve.
Therefore, a currency must have wide acceptance, be durable, and be of fixed purchasing power to be considered beneficial for the people. If the acceptance is not widespread, the currency can only benefit a limited region. If the currency is not durable then its purchasing power can vary dramatically depending upon the need for the item that is the currency, and indeed even the condition of the item can vary the purchasing power. If the issuer reduces the purchasing power of the currency, then the people are impoverished through inflation and taxation and the wealth of the nation decreases with the subsequent and unavoidable decrease in demand for goods and services.
It has also been shown that it is the people who own the currency. For the exchange of natural wealth is merely facilitated by currency. Therefore if you are able to labor for a loaf of bread and thereby own the bread, the laborer thus owns the currency he may be paid in lieu of bread. In Genesis the entire planet and all that is in it and on it was given to our father Adam, for him and his posterity. It was not given to any king or ruler to parcel out at his royal whim. The people of a community/nation own the currency as well as the wealth they produce. The prince/king/emperor was given the job of minting because he had also been given more authority than others so he could safely and correctly carry out this duty to the people, lest everyone mint their own, with predictable catastrophe following.
Likewise, in America without a king or sovereign the Coinage Act of 1792 was enacted by Congress in accordance with the duties given it by the Constitution. That Act as mentioned, defined our accounting unit device to be one ounce of pure silver having the name ‘Dollar’. For a government to charge interest or other forms of tax for the use of the nation’s currency is one of the most treacherous acts a government could perform. These behaviors of government are now plainly seen to be terminally parasitic. In fact France, the birth place of the understanding of money, since the 1700's has tried and failed disastrously to implement fiat paper money and to this day is a sinking socialist quagmire. Germany between the Wars is of course a classic example of such folly. Argentina shot itself in the foot and went from being the 8th largest economy in world to a third world country in 2001 when its paper approached its real value, zero. Finland, Norway, Turkey, Malaysia, Venezuela, the Philippines, Zimbabwe and more have all failed in recent times. The so called Federal Reserve is failing faster then a snow ball in Hell as of this writing. Such atrocities of governments are not within the dictates of God but rather satan who has come only to steal, kill and destroy. Men institute governments to protect their lives and property. Men are not selectively spawned to serve governments.
The Basics of Modern Money
Mechanics
In America today we use a fiat currency system. That is, neither the notes nor coins are redeemable for silver. The currency has no intrinsic value and its’ purchasing power is varied by committee. When you go to a bank for a loan there is no currency to loan to you. It is created out of thin air as an accounting entry. Your promissory note is the only asset in the bank, for it is the only thing that represents labor. Money markets, checks, CD’s etc. are not assets, they all represent obligations of the bank.
Because fiat currency is an unnatural thing the explanation of how it works will seem bizarre. Ostensibly, a fiat currency is given the pretense that it is meeting the demands of currency as a facilitator of commerce and therefore needs no value of its own. This is taught far and wide in schools across the country and has become drummed into so many people who paid good money for the privilege of being taught this theory that many people do indeed believe it, common sense notwithstanding. The fallacy is that somehow in a country of nearly 280 million people, and now over a large part of the world, the Federal Reserve feels it can somehow anticipate and provide for all the capital needs of all the people under all circumstances, thereby maintaining the correct volume and purchasing power of their so-called currency. This is of course a lofty, God-like, ambition indeed. Except that as we have seen previously, every fiat currency fails the constant purchasing power requirement. Another aspect of our fiat currency, although now we know that it is really not a true currency, is that it is loaned into existence from the private non-government central bank called the Federal Reserve. An organization that is neither federal nor having any reserves.
These loans to government are secured with promissory notes called bonds. The payment of usury and principle on these promissory notes is made by we the people, and was guaranteed by the income tax law signed into effect by President Woodrow Wilson, a Democrat. Thus committing we the people to Servitude to the bankers via the usury and taxes imposed by such an abominable arrangement.
In a more beneficial fiat money system, the government could print its own US Note and issue them to banks directly who then still create loans out of thin air. What is the difference? First no crushing, never ending ever increasing debt owed to a few families by hundreds of millions of people. Second the income tax could be taken away for government could print what it needed, and there is no interest to pay or volume of currency to keep under control. The dangers with this improved plan are the same as the one we now have. A committee controls the volume and hence the purchasing power of the accounting unit device, and history has shown us that our government is incapable of any form of spending discipline or restraint. However, dangers notwithstanding, such a US Note could be implemented overnight almost painlessly. In fact President John Kennedy made a tv announcement that he was going to take the gold from Fort Knox and pay off the 'national debt'. He then ordered the Treasury Department to print billions of 'US Notes' in Executive Order 11110. His 'untimely' death stopped those plans too. You must, therefore, begin to see the enormous Malice that government has towards we the people, its creators, by its steadfast refusal to alter, meaningfully, its ways and practices.
Another pitfall of the fiat currency now in use is that if everyone paid off all the debts they owed there would not be one cent left in circulation! Everything you have is a representation of debt, and is issued only upon application for a loan. This is why credit needs to be so easily available, to keep the fiat money moving. Stop borrowing as a prudent person might do and crash! ‘Our wonderful controlled economy’ is history. Wages are paid out of circulating currency or may be loaned to your company. In either event an accounting balance is taken from one bank, given to you. You will ‘spend’ it thus returning it to a bank. The so-called currency must keep moving or imbalances occur and some banks could be forced to draw on their reserve accounts thereby reducing their loan making ability.
With fiat currency, if the economy starts to pick up it’s pace, either naturally or through Fed meddling, a need for more currency is generated. This is dangerous. If the Fed meddled for some reason of it’s own and printed or issued more currency/credit then when the ‘boom’ was no longer necessary or desired there would become an excess amount of currency/credit in circulation. People would borrow less and inflation would begin. These boom and bust ‘business cycles’ are purely a creation of the Fed, an unavoidable result of their meddling in our affairs.
If you do stop some of the so-called currency along its path then you are charged for gumming up the works. This gumming up the works penalty is called tax. It is specifically called things like ‘earnings on interest tax’ or ‘capital gains tax’. In other words you are paying for the use of the so-called currency no matter what you do with it. Or in still other words you are literally renting the so-called currency for some allowed uses. If you do not pay your rent, men with guns will take it from you and maybe your property too. Imprisonment is not uncommon price to pay for failure to pay your use tax/rent.
As you might gather, in ‘our wonderful controlled economy’ your very well being and pleasure is left solely in the hands of a few men who have demonstrated their desire to impoverish and tyrannize you for the past several decades without relent or remorse. From the current size of our economy these people skim off trillions (that’s with a ‘T’) each year for their families leaving most people robbed of the fruits of their labors. There is no incentive here for government to do the right thing by the people. Hence, my assumption earlier that they would have to be deposed rather than choosing to do what might be beneficial to the people and ultimately the entire country.
What it would mean to have a specie currency in America today
Where does one start with this? Money is so intrinsic in our society that hardly any aspect of it is unaffected. So we will have to make some more assumptions and recall an earlier point or two. The first assumption is the return to private property. This is extremely important to understand. People today think because they have a house that they are either paying on or have paid off that they actually own it. This notion is of course promulgated by the banksters and is taught in schools and at home.
What is the true situation then? Anybody living in anything under any kind of agreement is renting that dwelling place. But I have a mortgage!? This is not true. Nowadays you have a deed of trust. This form of purchase funds contract places you as a ‘tenant at will’ on the property you think you own. Read it and see. A true mortgage is merely a lien upon property that you actually own. On your own land you cannot be taxed. On the governments land you pay rent called property tax on top of any finance payments. Proof of this status of feudal tenure is simple to establish. First, if property tax was actually only for the services provided by state, county and municipal governments, how come the ‘property owner’ and recipient of those services is not billed directly? How come the ‘property owner’ can be evicted for non-payment of his services bills? Does a ‘property owner’ get evicted for not paying his electric bill? Second, if you die intestate how does your land ‘revert’ to the state automatically? It cannot ‘revert’ if it did not first belong. This is why in your deed of trust you must agree to pay your land rent, so the lender/landlord can protect his interest in the property that you think is yours.
You and the lending company have only fee simple interest in the title to the land. This by definition means all the remaining interest in the property not vesting in the king or sovereign. An allodial title is one that the owner actually has 100% of the interest in the property. These types of titles do not exist because you do not have to pay rent on your land. People who upgrade their titles from fee simple to allodial find that banks refuse to deal with them. Because they cannot oust an owner at will as they can a tenant. And all the land rent collectors get extremely upset if the owners want them comply with the law and cease their rent collections.
From this we can see that having a specie currency is insufficient in itself to protect ones property and liberty. Remember, previously that the Judeans, with silver money, and presumably allodial title to their land, but a central bank were still a dominated people. The occupying Roman soldiers enforced the tax system that subsidized the lifestyle in Rome, just as the armed field agents of the IRS (Individuals Representing Satan) do for the lifestyle in Washington DC. Pontius Pilate let the Sanhedrin run Jerusalem without much interference, just as your state governor allows you to have a voice in municipal affairs. Proponents of fiat currencies/central banks cannot tolerate allodial property in the hands of the people. The reason being is that the issuers of the currency loose control of the economy. Land that is outside the feudal system is not controllable as to use and is of course not a source of rent money. How can government control a person on his own land? Suppose that freeman wanted to set up a software development company and make millions of nontaxable dollars? What could government say? You can’t do this here, or pay me my rent and other ‘corporate’ taxes?
Those who live on government controlled land must pay for the privilege of doing so. Without these extorted monies the socialists, who desire such nursemaid governments, would have to fend for themselves just as normal mature people do. We have seen in our life times that the government is more than eager to help those not desiring to help themselves, with our money and property. Even though such oppressive central systems, by their very existence, increase by orders of magnitude the numbers of the poor that they are allegedly there to help become not poor.
In a feudal system government can continuously raise the rents, take land for its or ‘public’ use or declare it unusable for any purpose other than to look at from afar. Thus in order to be a free people there must exist not only the proper form of currency to facilitate commerce and the growth of the society, but the objects and outcomes of the commerce thus facilitated must be secure to their rightful owners.
Therefore, our starting point is now a country with a specie-backed currency and an allodial title system for land and movable property. The starting point for any wealth building undertaking is labor. Under the current system if you work one hour for $10.00 you might receive $7.50 ‘take home’. In the new system you will take home $10.00. But it does not stop there. Not only do you have more disposable income, the merchant you purchase goods from has competitively lowered his prices because he is no longer required to pay the ‘matching taxes’ of his employees and his own ‘corporate taxes’ and personal income taxes.
To further the increase in prosperity of the country, a larger percentage of most peoples’ income becomes more discretionary than at present allowing some to be set aside for future use, if desired. For those who do not wish to gamble on Wall Street putting money away even in a tin can now becomes a viable plan. With no inflation to eat away the purchasing power of the specie backed currency earned by labor it is reasonably safe in that tin can for decades. With no ever increasing land rent to pay a homeowner can labor, put away his desired amount of savings, pay off his house and be secure in it for his life, and even his children’s. Under our current system the land rent is constantly increased so that people who have paid off their usurious compound interest mortgage/lease find themselves at the end of the day with an annual rent bill greater than the purchase price of the house and are eventually forced out on the streets.
Going beyond ones generation to that of your children’s you can see that even a blue collar worker who has put aside, on his own initiative, earnings for the future finds himself able to leave behind a substantial amount. Imagine if your parents had left you a paid off house, perhaps a car or two and cash to pay for university and your support while attending school and some spending money? With this modest, although rarely attained today, head start how much would the grandchildren of the original worker benefit? The grandchildren have educated parents and chances are they would go to university also, without the need for loans. The parents perhaps started a small business that grew not even explosively but absent all the current currency’s use taxes was extremely profitable. The potential circumstances of the grandchildren seems like a fairy tale to us today under our current system.
This scenario of course represents opportunity. The Bible says there will always be poor people. But an environment that allows all those who so desire to ‘get ahead’, not just a select few, is the type that creates the strongest society. A country is the people living within its exterior boundaries. It is not the land or the gold under the land and it is most certainly not the government, the vain imaginations of despots notwithstanding. The stronger the people the stronger the country. A people who own what they purchase and can safely set aside earnings during their youth for their old age, on their own, are invincible. Such people have something worth fighting for and only a fool would dare antagonize them. But a socialist or ‘welfare’ state of cowardly trained fleas led by their host rat is fair game for all takers. One has only to note the stateless terrorists who destroy our country and illegal immigrants who bring disease and crime to this country to see that the socialists have created a nation not worth respecting or fearing.
On an international basis life is also simplified, at least in America. As other countries may choose to keep their dictatorial socialist governments with their central banks and fiat currencies a new set of trading rules must be developed. The first thing that comes to mind is that some country will demand American silver for its goods, although it expects America to accept its worthless notes for American goods. Obviously this unjust enrichment of some countries leaders private bank account cannot occur.
To counteract this inevitable scenario the New Congress will create a ‘Trade Dollar’ as it has done in the past. Although this new Trade Dollar is a Certificate, it will not be redeemable. It is however denominated to be equivalent to an ounce of silver in purchasing power. Foreign recipients of the Trade Dollar can turn around and purchase American goods with it at par or use it anywhere it is accepted. Militia or State Payment Certificates and the US New Dollars cannot be sent overseas to purchase foreign goods nor return to America for the purchase of American goods, and they cannot be redeemed by anyone who is not a State Citizen. Remember, the currency belongs to the people who are members of the community the currency serves and no others.
It is up to the New Customs Bureau to catch smugglers of bullion or coins leaving the country. With horrific penalties for such acts there should be little of this type of ‘shrinkage’ of the currency. Undermining the currency is really an Act of War and such measures are not only justifiable, but they are required as a duty to the people of America. Remember this is now a currency owned by the holder, not a central bank, and the owner has designated certain rules for its use to stabilize his, the American, economy. We have seen how the Fed has its own rules for using the ‘Federal Reserve Note’. The goals of the Fed though are not the goals of the American people, so the rules are different.
The next step for a country desiring to purchase American goods is to make them pay in silver or gold. This is how it used to be and how it needs to be again. Until the physical accounts are re-established commerce will slow down causing much hand wringing over quarterly reports, but as neither the market nor the manufacturing processes of the goods are extinguished by a temporary slowdown, the profit takers will have to endure this price of past crimes of indulging in fiat currencies. It is unlikely that any government forcing fiat notes on its people will be able to create confidence in its own trade dollar in America. We already have that scenario and all that happens is constant hand wringing over exchange rates as someone tries to value this or that fiat note against another. But an ounce of pure silver is an ounce of pure silver. No exchange rate variations exist.
Implementation of the specie currency
The question by now should be ‘How do we change to this beneficial economy?’ This is important if we are going to meet the goal of a practical plan. Earlier we established the criteria that a change in government and the central bank had occurred. At the same time it was postulated that government and its cohorts were ousted from power, by either elections, in the courts or in the streets. This was due to their easily demonstrable lack of incentive to do the right thing by the people. This portion of the document portrays the time that the aforesaid change is occurring.
The people have assembled in sufficient numbers and preparations to cause government to be inclined to listen to their demands. Prior to this assembling government repeatedly made it clear that the people’s demands were but requests not needing or worthy of a response. After the assembling of the people government treated the people’s requests as demands. Whether government capitulated to the demands and became instrumental in the implementation of the new plans or they were subjugated by the courts or force of arms is immaterial because either way the status quo will be changed to one that benefits the people. There is in reality little difference between the methods. The difference of course is shooting and bloodshed. However, compared to the priceless value of true liberty neither avenue produces an undesirable ‘Return On Investment’. However, it is always far preferable to try and convince government to obtain reason and even be instrumental in the restoration of liberty.
However sovereignty is regained for the people and the several States only affects the changeover slightly, with regards to currency. In the event of an armed conflict the militias, who are the people, will be in direct control of the country. If the government is reasonable things stay more like they are now except that the banks become independent businesses rather than the government instrumentalities they now are. This means the existing mechanisms for clearing checks stay operable. Whereas in the event the militias are in control it is unlikely the existing check clearing mechanism will remain operable.
In either event, each State must then issue its own specie-backed Militia or State Payment Certificates as circumstances dictate. An exchange period, for a limited amount of time, must occur to allow the people to get rid of their worthless fiat currency, both notes and coins, and replace it with the new. After this period expires the Federal Reserve Note is not legal tender. In other words it has finally reached its true value, zero. New ‘coins’ are temporarily Certificates known as ‘fractional currency’ denominated in fractions of a Dollar, i.e. quarter Dollar etc.
As this changeover occurs one very desirable side effect is that every debt to any institution is voided and as a nullity. This means home loans, credit cards, personal loans, overdrafts etc anything and everything, and of course the so-called ‘national debt’ is repudiated in full. No one is any longer required to be a slave to nothing, or to anyone, and especially not to the government. This means all those countries we are screwing to death with loans are set free from our government also. And likewise those countries we owe are left holding the bag. That is the price they pay for being co-conspirators in our governments acts of treachery. Cowardly people who side with the bully fall when he does.
The way a specie-backed currency can be introduced so rapidly is by placing a promise to pay in silver in the future on every Militia or State Payment Certificate. This was done by the Confederacy during the time of the War between the States and worked quite well. The promise to pay establishes the confidence needed by the currency to work and sets its value for all time. As silver is mined and placed into circulation the Militia or State Payment Certificates can be redeemed by those State Citizens desiring to do so. As in the past people will probably prefer Certificates to metal for convenience so there should not be huge demands for redemption at all times.
After acceptance and durability we must talk about purchasing power of the accounting unit named the ‘US New Dollar’. It will be restored to the original 1792 Act of one ounce of pure silver. To make silver profitable to mine as currency again all the inflation of the Federal Reserve Note must be factored out. The exchange factor rate must be about 40:1. Shocking, but that’s how much we have been ripped off. Smart people might want buy silver and gold now. The major banks are currently the largest holders of gold.
As for gold and platinum these metals must be coined or denominated on Certificates by weight. That is, a coin or Certificate would say ‘One Ounce Gold’. Not $20 Dollars as in the past. This bi-metalism as it is called allows for manipulation of the purchasing power by skewing the market price of one of the metals. The new way will simply refer to the weight of the precious metal in the coin. The market will determine the it's value in ounces of silver, i.e.; US New Dollars. In this way labor can be stored safely in different metals.
If somehow after all of the circulating Militia or State Payment Certificates and US New Dollars are backed and more silver than even a rapidly expanding economy (remember no use taxes) can consume is produced the first thing to happen will be interest rates will drop. This will speed up business expansion thereby placing a requirement for more currency. Interest rates will start to go back up as the excess is consumed. If expansion of the currency continues at an unimaginable and un-consumable rate its value will start to drop making the mining of silver and gold unprofitable for some. As the supply starts to diminish its value will come back up. This almost should never happen as our economy is so throttled back by taxes and inflation that just ‘catching up’ (everybody obtaining the true rewards of their labor) could take decades.
Only by returning to private property and private money (the holder is the owner) can a people be free from all of the current well-documented schemes of ambitious men. And only by making every male Citizen a soldier, as does Switzerland, can ambitious men be deterred from concocting even more schemes to set themselves up like gods over a sovereign people. Such a free people are then able establish a government that they do indeed control and limit and no longer need fear for their capital, their property, their liberty and even their very lives.
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