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Sunday, August 19, 2007

How To Get Back To Sound Money.....Part 1

So our dollar is becoming worth less & less as every day goes by. It is important IMO to offer constructive solutions to the problem. One of the best solutions being tossed out there is by G. Ed Griffin in his book The Creature From Jekyll Island. There are sixteen steps he recommends. I'm going to post these sixteen steps as a series of posts over the next week.

A Plan For Eliminating The Fed

So much for things not to do. Now let's get down to the business at hand. To abolish the Federal Reserve System would be quite simple. All that would be required is an act of Congress consisting of one sentence: The Federal Reserve Act and all of its amendments are hereby rescinded. But that would wipe out our monetary system overnight and create such havoc in the economy that it would play right into the hands of the globalists. They would use the resulting chaos as evidence that such a move was a mistake, and the American people would likely welcome a rescue from the IMF/World Bank. We would find ourselves back in the Pessimistic Scenario even though we had done the right thing.

There are certain steps that must precede the abandonment of the Fed if we are to have safe passage. The first is to convert our present fiat money into real money. That means we must create an entirely new money supply which is 100% backed by precious metal...and we must do so within a reasonably short period of time. To that end, we must establish the true value of our present fiat money so it can be exchanged for new money on a realistic basis and phased out of circulation. Here is how it can be done:

1. Repeal the legal tender laws The federal government will continue accepting Federal Reserve Notes in the payment of taxes, but everyone else will be free to accept them, reject them, or discount them as they wish. There is no need to force people to accept honest money. Only fiat money needs the threat of imprisonment to back it up. Private institutions should be free to innovate and to compete. If people want to use Green Stamps or Disney-ride coupons or Bank of America Notes as a medium of exchange, they should be free to do so. The only requirement should be faithful fulfillment of contract. If the Green-Stamp company says it will give a crystal lamp for seven books of stamps, then it should be compelled to do so. Disney should be required to accept the coupon in exactly the manner printed on the back. And, if Bank of America tells its depositors they can have their dollars back any time they want, it should be required to keep 100% backing(coins or Treasury Certificates) in its vault at all times. In the transition to a new money, it is anticipated that the old Federal Reserve Notes will continue to be widely used.


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