17 votes

Alternative Currency Ideas Are Going Global

World wide action supports Dr. Paul's ideas. May the FED be warned.

http://www.thenewamerican.com/world-news/europe/item/13032-b...




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Cyril's picture

Well, the Fed & Printer-In-Chief Bernanke think they're smarter

... than anybody, and than History :

Hyperinflation Around the Globe

http://www.dailypaul.com/144648/saudi-markets-fall-over-6-go...

Or, shortcut :

http://lewrockwell.com/orig13/hewitt-m1.1.1.html

Also, excerpt of a Ben Bernanke-Ron Paul conversation :

[...]
BEN BERNANKE: "The Federal Reserve is committed to maintaining low and stable inflation and I'm very confident that we'll be able to do that."

RON PAUL: "You're not answering whether or not you're anticipating a problem like '79-'80."

BEN BERNANKE: "I'm not anticipating a problem like '79-'80."

RON PAUL: "With your fingers crossed, I guess. Okay. Thank you."

"Apparently, the fingers crossing didn't work. Several times in the above exchange, Bernanke says that he expects a bright future of a growing economy with no apparent problem on the way. Keep in mind that this was two weeks before the collapse of the Bear Stearns hedge funds, and one year ahead of the wholesale crumbling of the American financial system. All problems, he says, will be cured about our liquid financial markets. Why anyone takes his view seriously today is a mystery.[...]"

in Chapter 7, page 103 of Ron Paul's End The Fed book

(bold emphasis mine)

Date of the above Ben Bernanke-Ron Paul conversation :

July 20, 2006

"Cyril" pronounced "see real". I code stuff.

http://Laissez-Faire.Me/Liberty

"To study and not think is a waste. To think and not study is dangerous." -- Confucius

it's all about acceptance vs. expression

If a currency is naturally expressed and sustained only through exchange it is genuine.

If a currency is artificially derived from printing and pegging and sustained only through acceptance it is fraudulent.

Whether you think you can or you can't, you're right. -Henry Ford

here's an alternative, silver, or here's another, hemp seed.

currency is a product of a free market, so any particular bio-region should come with it a particular currency expressing the aspects of that bioregion. Currency should be local only.

Whether you think you can or you can't, you're right. -Henry Ford

Subject to weather/weather

Subject to weather/weather warfare? No thanks.

you are saying that a fixed principle subject to flexible events

is better off not existing at all.

the same logic comes into play when legalizing all drugs one assume everyone will become a heroin addict because it is dangerous to anyone.

the point being, currency can change accordingly to adapt the liquidity preference of bio-regions to the human action taken to sustain the balance of trade

Whether you think you can or you can't, you're right. -Henry Ford

I see your point. It's just

I see your point. It's just that personally I prefer silver/gold. I don't think I would ever be comfortable using a currency who's value could be exponentially strengthened or weakened because of a storm/drought/tornado/hurricane/haarp.

well you are more conventional and practical, but here's my i.e.

say, where hemp seeds only set south of central florida and a hurricane shrinks seed supply,the value of the seed would therefore go up relative to currencies (say wood chips) in north florida. If the value rises and south florida trade slows, then what will happen is the North Florida wood chips would become cheaper than south florida seeds, allowing the north florida currency to be used temporarily as a medium for the most liquid markets until seeds bounce back in south florida.

That would mean North Florida would benefit from rising demand for woodchips and south florida would benefit from rising supply of woodchips. If South Florida accepted wood chips as the medium of exchange, it would overvalue all south florida resources now pegged to the price of woodchips (this would increase velocity of trade). Now, when the hemp seeds come back and set the following year the woodchips would drop in value and hemp seeds would once again sustain the balance of trade.

So, if the wood chips can sustain south florida's fungibility as to currency, it will in the end reach a mutually efficient result for both regions as long as there is no interference on market forces.

silver and gold is a way to standardize biological forces mechanically to achieve the same result... but with the gold standard there lies the vehicle for money manipulation

Whether you think you can or you can't, you're right. -Henry Ford

Hmmm..

"The Bristol pounds are anchored to [FIAT] sterling and for every Bristol pound that's in circulation there's a sterling sitting in a trust fund account.” “So it's not inflationary at all. We're not doing any sort of quantitative easing or anything that's against the financial regulations,”

Does this strike anybody else as nonsense?

So, they print 250,000 additional paper notes, link it's value to the existing FIAT currency (the Pound, which they have the audacity to STILL call Sterling [as though it is as good as silver]), put them into circulation and consider them none inflationary?

Am I missing something?

lindalsalisbury's picture

Only Decentralization

Spending your money in your own community, keeps the money in the community. Let me give you an example of the days before great highways, bridges, numerous cars, and TV's

Every Saturday afternoon/evening their were about 200 people milling around on mainstreet. Everybody knew everybody in town.

The town began to die as young people had to leave to find work. There were 11 entries (my relatives) with my last name in the phone book. Now, my mother is the only one left. The money left town with the people, and now, the schools are being operated essentially for young Mexicans.

Now you have to drive 10 miles to spend all your money at Walmart, and the money is not filtered back into the community. It is a lose/lose situation.

In the 50's in my home town. In 2012 in my home town.

5 gas stations 2 Quick Stops
2 grocery stores 1 resturant
4 mechanic shops 1 newspaper office
1 ice house 1 elevator
1 railroad depot 1 auto shop
1 grain elevator 1 nursing home
2 beer joints 1 lumber yard (very small)
1 domino parlor 1 bank
1 dance hall 2 very bad motels
1 lumber yard 1 dairy queen
1 variety store 1 city hall
1 drug store
2 beauty shops
2 barber shops
1 parts store (misc. auto-home etc.)
1 cleaners
1 dentist office
1 hospital with 4 Drs.
1 nursing home
3 resturants
1 movie theater
1 creamery
2 motel
2 schools
1 feed store
1 newspaper
6 churches
2 lodge halls
1 post office
1 telephone office
1 city hall
1 bank
1 dairy queen
2 dairys

Yes but...

Who gets to print this paper and hand it out?

If the new Bristol notes are linked to the FIAT Pound, this means the value of the Bristol note will diminish along with the quantitative dilution of the pound.

How can you link a new paper FIAT note to the FIAT pound "sterling" and call it an "alternative"?

All it does for decentralization is transfer the twisted idea that money can be created out of thin air to a local level.

But the value of these new notes has to come from somewhere...

By linking them to the pound they effectively draw their value from the pound (and every other community that uses them), if the pound loses value, so does the Bristol note.

Those in the local community who are politically connected to the distribution of these freshly printed notes will get a boom, but unfortunately as the process of inflation works it's way through the market, it will be at the expense of those who receive the notes (after the initial injection) later on in the market process.

Lord Mayor Peter Main of Bristol seems awfully keen on this project, could it be that he will get to direct it?

Yes, "Spending your money in your own community, keeps the money in the community".

But freshly printed notes are not your money, they (and the NEW value they represent) belong to those who have the power to create them and guide their distribution.

Allowing an obscure entity to increase (out of thin air) the amount of units (measured in FIAT notes) the community uses for accounting will only localize the transfer of wealth it represents.

The Cantillon Effect.
http://www.economictheories.org/2008/08/effect-of-changes-in...

Austrian Business Cycle Theory: A Brief Explanation:
http://mises.org/daily/672

lindalsalisbury's picture

No Bristol notes

will not be sent to the EU as Britian sends 50 million pounds a day. These notes will remain in Bristol, stimulating the Bristol economy. Every pound paid to Walmart or spent on the internet, etc. leaves town, never to be spent in Bristol again. Profits leaving town, is hard on small businesses (the job creaters), and on the towns via taxes, etc.

It is simular to the export/import theory. Goods coming in, money going out - wages paid to foreigners.

In this case, it will not curb inflation, but it will help stimulate the local economy, without printing new money. A step in the right direction.

lindalsalisbury's picture

Misprint

The 2012 did not print as a second colume for some reason:
Anyway, now there is:

1 resturant(closes at 2pm
2 quick stops
1 auto shop
3 churches
1 beauty shop
1 nursing home
1 bank
1 elevator
1 very small lumber yard

The article states, "As the

The article states, "As the Federal Reserve continues to print money to prop up the ever-growing government and to fund the multitude of foreign armed interventions, it is likely that more cities, states, and nations will scramble to find room on the alternative currency lifeboat as it sails away from the sinking ship of central banks and fiat money."

I'm sure that the 'goldbugs', backed by information from those "in the know", who are nothing more than talking heads for the elite (who have planned for the coming downfall for decades), are relieved to see that the fall of the Fed is at hand. But unfortunately for them, what they do not know is that the alternative currency will not be backed by precious metals. The people will rise up with a form of exchange of their own - beginning with a system of barter that will lead to an exchange of scripts, or points earned for work performed. This system will have absolutely nothing to do with the elite's hoarded supplies of precious metals. It has been prophecized.

"I'm as mad as hell, and I'm not going to take this any more!"
- Howard Beale

Did you ever read the story

And Then There Were None? Where everything is paid for in obs (obligations). Fast fun read about just this topic. I think it was posted here on the DP not too long ago. Invaders visit a libertarian planet or something like that.

reedr3v's picture

The story can be found on the internet;

it is the final chapter of The Great Explosion by Eric Frank Russell. It is one of my all-time favorites.

Thanks

I'll check it out.

"I'm as mad as hell, and I'm not going to take this any more!"
- Howard Beale

Thanks again!

According to Wikipedia:
The Great Explosion is a satirical science fiction novel by Eric Frank Russell, first published in 1962. The story is divided into three sections. The final section is based on Russell's famous 1951 short story "...And Then There Were None." Twenty-three years after the novel was published, it won a Prometheus Hall of Fame Award.

The story is set within a society with a moneyless gift economy based on barter and favor-exchange, using "obs" (obligations). To perform a service for somebody "lays an ob" on them; they can then "kill the ob" by returning the favor. An excellent model of anarchy in action! Thanks again! :)

"I'm as mad as hell, and I'm not going to take this any more!"
- Howard Beale

While I see logic

in a trade system based on product and services (we vendors already do this in the small markets) as a form of payment, PM's will always have a place as source of 'value'. There are too many industrial uses for them to become obsolete or valueless.

That means that your prophecy (like most prophecies) are a little right and a little wrong.

Kinda like educated guessing, I suppose. :)

In a way it's ALSO like betting black and red on a roulette table and when one or the other hit saying "SEE! I was right!"

Prophecy is based on the same principle.

just sayin

Hmmm

You said, "There are too many industrial uses for them (PM's) to become obsolete or valueless."

I agree. I'm sure that's why the propheciezed system of barter will lead to an exchange of scripts, or points earned for work performed. The fact remains that this system will have absolutely nothing to do with the elite's hoarded supplies of precious metals, a fact that you have conveniently ignored in your response, though you seem to be one to promote a gold standard in other posts.

I guess that means your response here is a little right and a little wrong, as well. :) (Kinda like educated guessing.)

ALSO like betting black and red on a roulette table and when one or the other hit saying "SEE! I was right!"

just sayin

"I'm as mad as hell, and I'm not going to take this any more!"
- Howard Beale

The "fact" remains that this system will have nothing

to do with the elite's hoarded supplies. a "fact" that you've conveniently ignored in your post."

That's because "a future prophecy" is not "fact" until it happens, therefore you sound ridiculous.

As far as the future of precious metals, whether it's the elite's hoard, or the guy down the block, industry and technology will put it to use no matter where it comes from.

If you believe in free markets, that is

Exchange of scripts? Points

Exchange of scripts? Points earned? So we go from fiat money, with no inherent value, to.... fiat money, with no inherent value?

I'll stick to silver, thanks.

Simple Facts and Plain Arguments
A common sense take on politics and current events.

http://simplefactsplainarguments.blogspot.com

Good point

.