END THE FED.... Then What? - The Transition to Sound Money

The Constitution says: { Slightly paraphrased } Nothing but Gold/Silver "coin" may be used as money.
In my opinion a one ounce Gold coin in 1792 held the same significance in that day as a $1200.00 or higher, 1 ounce Gold coin does today.
The significance is, only a very small percentage of the total population would carry cash or Gold valued at over $1200 in their pocket or purse for obvious reasons. { possible theft }

However, the intent of the Constitution was to have no central bank. { Because it would monopolize the value and amount of money in circulation }

So, local banks were a natural result of growing prosperity and free enterprise.
But, with fractional reserve practices in high gear, and usury laws all but ignored, the Fed took over most banking in the USA, by writing the rules for interlinked banking, and dis-allowing local banks to keep large amounts of Gold/Silver as collateral for the loans being made.

What is the solution for 2010 and beyond?

Well, here is something I wrote yesterday, thanks to the Edwin Vieira link provided in the Jake Towne essay:
Please picture a debit card system using fractional amounts of real physical Gold/Silver as the medium of exchange. With the invention of I-phones this could be an individual to individual or business system 24 hours a day 7 days a week.

Constitutional lawyer Edwin Vieira explains in this video what Americans should try to do, and what is Constitutionally legal, when it comes to money.

This video is over 100 minutes long so if you're pressed for time skip to minute 80 to hear about Gold/Silver monetary contracts.

Skip to minute 90 to hear how electronic transfers of money { Gold/Silver etc. } can be made.

Skip to minute 97 to see how Dr. Vieira suggests implementing a state by state plan.

http://vimeo.com/2865332

My suggestion would be for a state to set up a system whereby a secure vault was used to store Gold/Silver and use this system on a one to one electronic Gold/Silver straight exchange system that doesn't use/allow " any" borrowing or lending at all.

Eventually, the system could be similar to the debit card system currently being used, with Gold/Silver predominately used instead of federal reserve notes.

Comments welcome,
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Once the Treasury gets it hands on the keys to the counterfeiting machine, we'll play heck trying to wrest it away. The Constitution bars the states from issuing bills of credit. They are barred from making anything but gold or silver legal tender. The same restrictions should hold for the US. The US was intended to be a confederation, but it's a real state now - a mega-state. The "states" are reduced to provincial status.

The Founders knew what they were doing when they barred bills of credit. Governments, just like other persons, ought not be able to counterfeit money. Interest payments are good. The whole capitalist system, when it is allowed to function properly, revolves around interest on capital. Granting the government the power to print money with no obligation to pay it back to anyone is a horrible idea. The capitalist system is not the problem. It's irresponsible borrowing and spending in DC, facilitated by the Fed. That's the problem.

Money has never been properly defined. This is because that without an accurate definition of money, it can then be used to suit the needs and wants of those in control of money (public vs. private). The current trend or beliefs in defining the markets and money, is that it is omnipotent, a god, it is unpredictable. If this is the case, then economics is not a science.

How can you have liberty when the fundamental right of a democracy has been relinquished to the privately controlled Federal Reserve System? As you know, the people of a democracy are the government. …We the people… are the rightful owners of the money power.

It is most unfortunate that you have your wish that there is no government control of the Federal Reserve System. The Federal Reserve has been a privately owned entity since December 1913, thanks to the Wilson administration and others. It initiated the start of income taxes and is the reason that the agricultural sector does not get parity for the raw materials they produce. The agriculture sector represents 70% of all raw materials produced in this country. It is the true engine of our economy. Without this economic engine receiving parity, the turn on the dollar is less than 1 in 7. This is because of the efficiency of the farms in the US. One farm is able to keep seven families fed, and if they receive parity, then the turn on the dollar is 1 in 7. In 1942 congress passed the Steagall amendment that gave the farmers parity on a sliding scale of 90-110%. It paid for WW11 without loans, or if you will, taxes. In 1948 the Aiken bill reduced parity to a 60%-80% sliding scale. Today, the farmers are getting less than 40% parity. The start of the Federal Reserve was the start of “free trade” as we know it today and the beginning of the decline of the US.

Last year, the Federal Reserve System crashed the world banking market again. And you, the government, just bailed them out, at a tune, many times greater than 870 billion dollars. This is the only privately owned company that has the exclusive privilege of privatized profits and socialized losses. The government has no say in how they run their business, because, as you say, money is not an institution of law. Perhaps it is time to stop hypothesizing what money is, and evaluate the actual circumstances of history, and see just how money actually works in society and the world. Without laws protecting one of our most important rights of a democracy, we have no recourse and will forever be nothing more than legalized slaves. We will never have control over corporations, over healthcare, over education, over pollution.

Here are a few lines from Stephen Zarlenga’s book “The Lost Science of money”. …ARISTOTLE EXPLAINS “NOMISMA”
Money in Greece came to be known by the word NOMISMA because it attained its authority by law (or binding custom) which in Greek is “nomos.” Aristotle (384-322 BC) gave the culmination of Greek thought and experimentation on money: “all goods must therefore be measured by some one thing…now this unit is in truth, demand, which holds all things together…but money has become by convention a sort of representative of demand; and this is why it has the name nomisma – because it exists not by nature, but by law (nomos) and it is our power to change it and make it useless.” And he continues: “Now the same thing happens to money itself as to goods – it is not always worth the same; yet it tends to be steadier…money then acting as a measure makes goods commensurate and equates them…There must be a unit, and that fixed by agreement” (ethics 1133).
There is much more than meets the eye; Aristotle’s brief description has never been bettered, and is seldom equaled.

Yes, money is an institution based in law if you are a democracy. To get a more complete definition of money, uses, misuses and overall complete history, I suggest that you read the “Lost Science of Money.” As for a quick review of the nature of money, go to the website www.monetary.org and read the proposed American Monetary and Financial Security Act. It has all the answers to virtually any question that you may have about our money system.