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Sunday, August 19, 2007

How To Get Back To Sound Money.....Parts 2-5

2. Freeze the present supply of Federal Reserve Notes, except for what will be needed in step number six

3. Define the "real" dollar in terms of precious metal content, preferably what it was in the past: 371.25 grains of silver. It could be another weight of silver or even another metal, but the old silver dollar is a proven winner.

4. Establish gold as an auxiliary monetary reserve which can be substituted for silver, not at a fixed price ratio, but at whatever ratio is set by the free market. Fixed ratios always become unfair over times as the prices of gold and silver drift relative to each other. Although gold may be substituted for silver at this ratio, it is only silver that is the foundation for the dollar.

5. Restore free coinage at the US Mint and issue silver "dollars" as well as gold "pieces". Both dollars and pieces will be defined by metal content, but only the coins with silver content can be called dollars, half-dollars, quarter-dollars, or tenth-dollars(dimes). At first, these coins will be derived only from metal brought into the Mint by private parties. They must not be drawn from the Treasury's supply which is reserved for use in step #6.


  • At 1:15 PM, Blogger Agent Orange said…




    Monday August 20, 10:42 pm ET

    NEW YORK (Reuters) - Billionaire investor Warren Buffett may buy parts of beleaguered mortgage lender Countrywide Financial Corp (NYSE:CFC - News), some investors are speculating, according to The Wall Street Journal.

    Countrywide's debt-servicing business and its portfolio of mortgages and mortgage-backed securities may be attractive to Buffett, the Journal reported on its Web site on Monday, citing unnamed investors.

    Like many mortgage lenders, Countrywide has struggled with rising delinquencies and foreclosures, and an unwillingness among bankers to extend credit, and among investors to buy the loans it makes.

    Countrywide, which is being closely monitored by U.S. regulators, sought to reassure investors earlier on Monday that it is safe to do business with the company.

    Buffett has been increasing his stake in financial services companies, including those with significant exposure to the mortgage market.

    Earlier this month, Buffett's investment company Berkshire Hathaway Inc (NYSE:BRK-A - News; NYSE:BRK-B - News) disclosed an investment in Bank of America Corp (NYSE:BAC - News), one of the six largest U.S. mortgage lenders, in a regulatory filing.

    Berkshire is also a long-time shareholder in Wells Fargo & Co (NYSE:WFC - News), the second largest U.S. mortgage lender after Countrywide.

    Wells Fargo has largely been spared the subprime mortgage-related woes afflicting smaller rivals, helped by its conservative underwriting standards.

    Buffett told TV network CNBC last week that the worsening credit and housing markets may present some "real" investment opportunities.

    Berkshire officials were not immediately available for comment. Buffett does not discuss what Berkshire is presently buying and selling.

    (Reporting by Anupreeta Das and Jonathan Stempel; editing by Louise Heavens)


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