As most of us are well aware, the value of the federal reserve note is falling each week and eventually that private, for-profit, debt-based monetary unit will tank. Eleven or more states are considering an alternative currency program for their states, to be implemented as quickly as possible, in order to avert disaster when the fed "dollar" loses significant value. If these states have an alternative currency in operation when this happens, then, the economic impact upon these states will likely be minimal, while other states without an alternative currency will be financially devastated.
The problem we see with most, if not all, of these proposals is that the proposed alternative currencies are based in gold and/or silver. Utah is in the process of adopting a currency along these lines, but apparently is still looking at other ideas, too. Our full alternative currency proposal can be found on our website. Just go to our site, www.
In the first place, any state that wanted to do this would have to purchase either gold or silver to back the currency, and as things now stand, no state in this Union has the funds to do so. Secondly, if any state were to attempt to borrow funds for this purpose, no bank in the United States, as part of the federal reserve system, would lend an un-creditworthy state funds to buy gold or silver to back a currency to compete with the federal reserve currency, and the same is true with the bond markets.
However, let us say some foreign investment group were by some miracle to lend funds to a state to accomplish this purpose. In this situation, the gold or silver purchased would be the collateral for the loan and could not be used to back the currency, so the entire position presented to the public would be a fraud and the people of that state would be further indebted. This is a ridiculous scenario that could not work under any purposes, and no one who is advocating gold or silver as a backing for a currency has explained, step by step, exactly how this could be accomplished. The reason for this is that such a backing is totally and completely impossible.
If the people understand our idea and demand that their legislators pass a bill as we propose, then, that particular state would charter a public bank, owned and operated by the people, as a lawful authority to issue currency based, again, upon the substance of the labor and productivity of the people, businesses and industries, as above stated. The government of the state would have zero to do with the bank, once it is chartered as an authority. This bank would be a direct lender and also issue grants to various organizations, including governments in that state. Direct loans would be made to credit worthy borrowers on normal banking procedures and would be repaid without interest. Large loans, such as home mortgages and/or business loans could be repaid over a period of up to 50 years.
The only way governments could obtain funds to operate to serve the people, would be through grants, issued by the committee for government grants in the public bank. Since these are grants and not loans, thus, require no repayment, no public debt is incurred by the people of that state. Since no public debt exists, there is no reason for taxation, and the first state that does this would do away with all taxation. Other states would quickly follow this example.
It is insane that the American people have allowed and then accepted an unconstitutional private bank to be ruler of their monetary system, continuously since the first Washington administration. Why anyone would allow a private, for-profit bank to print money, lend it to the government, thus, indebt the American people, when the Constitution authorizes congress to create a public money system, without debt, is sheer insanity. If we allow this insanity to continue, then, we are part of the problem, not the solution, and part of the dark and not the Light. With all the turmoil existent in this world at this time, the American people have to quickly awaken, be a lot smarter and wiser than they are now, and throw off the shackles of a tyrannical unconstitutional government and a pernicious private monetary system.
Best regards,
Jack and Margy Flynn
