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Governor Perdue,
Lt. Governor Taylor,
State Senator Balfour,
State Representative Cox,
Other Georgia and Gwinnett Leaders
Thomas Jefferson - “If Americans ever allow banks to control the issue of their currency, first by inflation and then by deflation, the banks will deprive the people of all property until their children wake up homeless.”
Georgia, we have a problem. The problem is money and the lack of self discipline in Washington. Our nation, most of the western world, China, and Japan are increasingly faced with a slow motion financial train wreck. The fiat dollar dominated world is becoming more unstable each month of every year.
There is a way individual states can protect their citizens and financial processes in the event of an international or U.S. financial crisis. Such a crisis sounds far-fetched, but it has happened before to individual countries and it will happen again. As nations have become more interconnected by dependency on the U.S. dollar for international exchange it becomes more likely that such a financial crisis would impact multiple nations and trading blocks. The history of fiat currencies is one that—ALWAYS—has the same negative outcome.
First, I will give you a tiny fraction of the information that points toward a growing financial crisis. I will follow this with information on how Georgia can avoid being sucked into an economic black hole.
U.S. currency milestones since 1913
1913 – The U.S. Federal Reserve is created. It is a privately owned bank that all other banks are subordinate to.
1917 - The Federal Reserve Act prohibits banks from using gold as a reserve. All gold must be stored at the Federal Reserve.
1933 - The U.S. government outlaws (defaults) domestic ownership of gold. Citizens are required to exchange privately held gold for $20.67. Gold can only be used for international settlements with other central banks.
1934 – U.S. Treasury devalues the dollar 69% by raising gold’s U.S. exchange rate to $35 an ounce.
1944 – The U.S. and other nations meet at Bretton Woods NH and agree to settle international accounts with dollars instead of gold. Foreign central banks can still exchange dollars for U.S. gold U.S.; but must use dollars when settling accounts with other foreign central banks.
1968-71 – The U.S. government stops (defaults) exchanging gold for dollars in international settlements
Excerpts from The Coming Collapse of the Dollar by James Turk and John Rubino
“For the last 3,000 or so years of human history, gold was, for a variety of still-valid reasons, humanity’s money of choice. As recently as 1970 it was the anchor of the global financial system. And since the world’s economies severed their links to the metal in 1971, it has acted as a kind of shadow currency, rising when the dollar is weak and falling when the dollar is strong. Not surprisingly, gold languished during the 80s and 90s, drifting lower as the dollar soared, and being supplanted by the greenback as the standard against which all things financial are measured. But not those roles are about to reverse once again”.
Excerpts from Inflation and the FED by Tony Allison
The Silent Tax
“Throughout the history of nations, inflation has been a time-honored and subtle method for governments to plunder its citizenry. Inflation is a silent tax, which allows increased government spending without overt tax increases. The gold standard is a bit like the NFL salary cap. It’s a self-disciplining mechanism. When the cap limit is reached, no more spending. The salary cap essentially saves the NFL owners from themselves. As for governments, when you print promissory notes that are not tied to anything tangible, the urge to print more notes is overwhelming”.
“The creation of the Federal Reserve and its monopoly printing powers has allowed government spending to become a larger and larger part of the economy. Government spending does not create wealth or prosperity, but it can certainly create debt”.
Federal Debt Acceleration
“Our federal debt obligation is so big that it is hard to fathom. From the beginning of our nation in the late 18th century until the mid 1970’s, roughly 200 years, our accumulated National Debt was less than one trillion dollars. This takes into account the Revolutionary War, the Civil War, two World Wars, the Great Depression, the Korean War and Vietnam. Today our federal debt is now over $7.5 trillion, over half of which has been borrowed in the last dozen years”.
“The proverbial bottom line is that inflation has been eroding the value of the dollar for nearly a century. But because of the unprecedented money and credit creation of the past five years, the ‘quiescent’ CPI inflation of recent years will soon begin to accelerate. Massive credit creation can ‘paper over’ societal ills short term, but more and more money chasing the same amount of goods and services means only one thing long term: higher inflation. Notice how the costs of fuel, utilities, food, medical care, insurance, college tuition, etc. have risen in recent years without a similar rise in national income”.
Excerpts from The Goldbug, Variations II by Antal E. Fekete
“Check kiting is a conspiracy, generally between two banks. They are issuing checks which they haven't got the means or the intention to cover. That is to say, the checks are issued fraudulently. They issue them with the criminal intent to tap the float, the mass of checks in the process of clearing, and so to defraud the public. The checks issued by Bank A are cleared at the clearinghouse through earmarking the checks issued by Bank B, and vice versa. In more details, the first un-backed check is ‘backed’ by an infinite string of subsequent un-backed checks”.
“The gold standard makes check-kiting highly unlikely to succeed. That is one of its chief merits”.
“To the best of my knowledge no one before has pointed out that the origin of Federal Reserve notes and deposits, as they are presently issued, is fraud and conspiracy that goes by the popular name of check-kiting. I want you to know that I am not making this charge frivolously, and I stake my professional reputation in support of it”.
“People in the United States are inclined to believe that it is not possible to cover up theft, fraud, and conspiracy by legislation. But it is”.
“The Federal Reserve banks” (were able to) “conspire with the U.S. Treasury to start a gigantic check-kiting scheme to defraud the public. The Treasury could sell bonds in the open market which it had neither the resources nor the intention to honor. The Federal Reserve banks could then purchase these bonds in the open market paying for them with newly issued currency which, likewise, they had neither the resources nor the intention to honor”.
“Guess what, this is exactly what happened once gold was eased out of the system. The proportion of required gold reserves was reduced from 40 to 25 percent of liabilities, first for Federal Reserve deposits, and then for Federal Reserve notes as well. Then gold reserves were eliminated altogether, first for Federal Reserve deposits and then, in 1968, for Federal Reserve notes as well. It was done in carefully staggered stages, through four or five separate amendments to the Federal Reserve Act”.
“There is no valid argument why the Treasury or the Federal Reserve banks should be given the privilege to issue liabilities which they had neither the means nor the intention to honor while the same, if committed by private parties, is treated as a serious crime punishable by severe penalties as specified by the Criminal Code”.
Excerpts from The Econo Matrix by Alex Wallenwein
“As long as central planners determine the nature, the amount, the value, and the design of the currency we all are required to earn, spend, and save, we do not live in economic reality. There is an easy, very visual way to get an idea how out of whack the world is that these central planners have created, and that is to look at a chart of just about any economic parameter showing how it behaved before and after the world's reserve currency was decoupled from real money – gold”.
Look at the difference in the several charts between the periods before 1971 and after 1971:
“If the various lines are seen as symbolizing the heartbeat of the US economy, you can see that this ‘patient’ is suffering a heart attack. What you are looking at is a picture-book example of unmanageable, formerly un-imaginable imbalances being created - imbalances which will soon kill this patient dead”.
“What our leaders did to the world economy by taking all currencies off gold is akin to taking a passenger jetliner off the ‘autopilot’ and letting a twelve-year old, adrenaline-crazed video game junkie take control of the cockpit”!
Excerpts from The Goldbug, Variations III by Antal E. Fekete
“The Founding Fathers did not establish a central bank for the United States. They established the U.S. Mint, and opened it to silver and gold. In doing so, they elevated the principle of free coinage to the level of basic human rights. The power to create or to extinguish money was reserved for the people themselves by the Constitution. It was not delegated to the representatives of the people, nor to so-called experts hired by them”.
Excerpts from The Goldbug, Variations IV by Antal E. Fekete
“The Constitution of the United States was born of the ashes left behind a runaway inflation, that of the Continental Dollar, although it is not considered polite behavior to mention this bit of history.”
“What the United States did in 1971 was default on its gold obligations to foreign creditors, the biggest act of bad faith in history theretofore. This default, and the making of the dishonored debt money, was the cause of the destabilization of interest rates, as well as the explosive growth in the volatility of prices that have been plaguing the world ever since and causing ever greater economic distress”.
“We must remember that the financial annals do not record a single case in which a default has not been followed by a progressive increase in the discount on the paper of the defaulting banker, until it reached 100 percent — possibly several years or even decades later. Obviously, the defaulting banker would try to slow down the process by hook or crook. However, ultimately economic law was to prevail and the remaining value of the dishonored paper would be wiped out”.
“There is no reason to believe that the dollar default will end differently. Suppose that the price of gold is $420. Let us calculate the discount on the dollar. The gold value of the dollar has been reduced from 1/35 to 1/420 = 1/12×35. Therefore the loss is 1/12) =!(1/35)(1 (1/35)(11/12) = (1/35)0.9166..”.
“In percentage terms the loss, also known as discount, is 91.66 percent. Not yet 100, but close enough. Small comfort, as the last 8.33 percent of the loss, coincident with the death-throes of the dollar, is likely to be most violent and painful, revealing the full extent of the devastation. Remember, the loss affects not only cash holdings, but all dollar-denominated assets, including bonds, annuities, pensions, insurances, endowments, etc. To assert that the dollar is going to escape this fate is tantamount to asserting that the laws of economics and logic have been turned upside down, and the penalty for default has been replaced by reward in perpetuity”.
Excerpts from What Has Government Done to Our Money by Murray Rothbard (this was written in 1980)
IV The Monetary Breakdown of the West
Chapter 9: Phase IX: Fluctuating Fiat Currencies, March 1973 -?
“With the dollar breaking apart, the world shifted again, to a system of fluctuating fiat currencies. Within the West European block, exchange rates were tied to one another, and the U.S. again devalued the official dollar rate by a token amount, to $42 an ounce. As the dollar plunged in foreign exchange from day to day, and the West German mark, the Swiss franc, and the Japanese yen hurtled upward, the American authorities, backed by the Friedmanite economists, began to think that this was the monetary ideal”.
“Since the U.S. went completely off gold in August 1971 and established the Friedmanite fluctuating fiat system in March 1973, the United States and the world have suffered the most intense and most sustained bout of peacetime inflation in the history of the world. It should be clear by now that this is scarcely a coincidence. Before the dollar was cut loose from gold, Keynesians and Friedmanites, each in their own way devoted to fiat paper money, confidently predicted that when fiat money was established, the market price of gold would fall promptly to its non-monetary level, then estimated at about $8 an ounce. In their scorn of gold, both groups maintained that the mighty dollar was propping up the price of gold, and not vice versa. Since 1971, the market price of gold has never been below the old fixed price of $35 an ounce. When, during the 1950s and 1960s, economists such as Jacques Rueff were calling for a gold standard at a price of $70 an ounce, the price was considered absurdly high. It is now even more absurdly low. The far higher gold price is an indication of the calamitous deterioration of the dollar since ‘modern’ economists had their way and all gold backing was removed”.
“It is now all too clear that unprecedented inflation, in the U.S. and throughout the world has been sparked by the fluctuating fiat currency era inaugurated in 1973. We are also weary of the extreme volatility and unpredictability of currency exchange rates. This volatility is the consequence of the national fiat money system, which fragmented the world's money and added artificial political instability to the natural uncertainty in the free market price system. The Friedmanite dream of fluctuating fiat money lies in ashes, and there is an understandable yearning to return to an international money with fixed exchange rates”.
“Unfortunately, the classical gold standard lies forgotten, and the ultimate goal of most American and world leaders is the old Keynesian vision of a one-world fiat paper standard, a new currency unit issued by a World Reserve Bank (WRB). The WRB could and would subject the world to what it believes will be a wisely controlled inflation. Unfortunately, there would then be nothing standing in the way of the unimaginably catastrophic economic holocaust of worldwide runaway inflation, nothing, that is, except the dubious capacity of the WRB to fine-tune the world economy”.
“While a worldwide paper unit and central bank remain the ultimate goal of the world's Keynesian-oriented leaders, the more realistic and proximate goal is a return to a glorified Bretton Woods scheme, except this time without the check of any backing in gold. Already the world's major central banks are attempting to ‘coordinate’ monetary and economic policies, harmonize rates of inflation, and fix exchange rates. The militant drive for a European paper currency issued by a European central bank seems on the verge of success” (now known as the EURO). “This goal is being sold to the gullible public by the fallacious claim that a free-trade European Economic Community (EEC) necessarily requires an overarching European bureaucracy, a uniformity of taxation throughout the EEC, and, in particular, a European central bank and paper unit. Once that is achieved, closer coordination with the Federal Reserve and other major central banks will follow immediately. And then, could a World Central Bank be far behind? Short of that ultimate goal, however, we may soon be plunged into yet another Bretton Woods, with all the attendant crises of the balance-of-payments and Gresham's Law that follow from fixed exchange rates in a world of fiat moneys”.
“As we face the future, the prognosis for the dollar and for the international monetary system is grim indeed. Until and unless we return to the classical gold standard at a realistic gold price, the international money system is fated to shift back and forth between fixed and fluctuating exchange rates with each system posing unsolved problems, working badly, and finally disintegrating. Fueling this disintegration will be the continued inflation of the supply of dollars and hence of American prices which show no sign of abating. The prospect for the future is accelerating and eventually runaway inflation at home, accompanied by monetary breakdown and economic warfare abroad. This prognosis can only be changed by a drastic alteration of the American and world monetary system: by the return to a free market commodity money such as gold, and by removing government totally from the monetary scene”.
Just as Rothbard and others predicted, the lack of fiscal discipline by national governments; especially the U.S. government, continues to lead to a growing instability. Fiat currencies ALWAYS collapse due to lack of fiscal discipline and theft. Government’s inability to contain its own greed is no different than what exists in the general population.
What Can Individual States Do?
Dr. Edwin Vieira, Jr. has come up with a way individual states can provide a sound financial footing for themselves and their citizens should our nation and the world fall into a financial black hole. The plan involves a new medium of exchange based on private electronic units of gold or silver grams.
Mr. Vieira, holds four degrees from Harvard: A.B. (Harvard College), A.M. and Ph.D. (Harvard Graduate School of Arts and Sciences), and J.D. (Harvard Law School). For more than thirty years, he has practiced law, with emphasis on constitutional issues. In the Supreme Court of the United States he successfully argued or briefed the cases leading to the landmark decisions Abood v. Detroit Board of Education, Chicago Teachers Union v. Hudson, and Communications Workers of America v. Beck, which established constitutional and statutory limitations on the uses to which labor unions, in both the private and the public sectors, may apply fees extracted from nonunion workers as a condition of their employment.
He has written numerous monographs and articles in scholarly journals, and lectured throughout the county. His most recent work on money and banking is the two-volume “Pieces of Eight: The Monetary Powers and Disabilities of the United States Constitution (2002)”, the most comprehensive study in existence of American monetary law and history viewed from a constitutional perspective.
Excerpts from The State Electronic Gold Currency Plan by Edwin Vieira
“This country cannot expect either the General Government or Americans as isolated individuals to solve the monetary and banking problems the Establishment has caused. Rather, America needs to find a workable mechanism that can:
return a significant part of this country to sound money and honest banking whether or not a monetary crisis ever occurs, before a crisis breaks out, and surely in case a crisis flares up;
educate Americans--economically, politically, and in particular constitutionally--about the use of gold and silver as media of exchange;
encourage, empower, and enable Americans to use gold, silver, or both as their preferred media of exchange;
provide a nonpolitical--that is, private, free-market--medium of exchange actually consisting of (not just "backed" by) gold, silver, or both, but that government at every level can use for all public purposes, too;
create open competition in both private commerce and public finance between gold and silver commodity moneys, on the one side, and fiat Federal Reserve Notes and base-metallic coinage, on the other; an
offer an alternative to fractional-reserve banking”
“The ‘goldgram’ is a fixed weight of actual gold, but divisible electronically into very small amounts (0.001 part of a ‘goldgram’, or a "mil"), so that transactions of almost any size can be easily and expeditiously carried out. The ‘goldgram’ is transferable anywhere over the Internet, making it a truly global currency”.
“Being entirely private in origin and operation, it is immune from the systematic political manipulations that commonly affect currencies emitted by governmental treasuries or central banks. Because it is a completely private currency, the ‘goldgram’ is protected by better safeguards than either the Treasury's coins or the Federal Reserve System's notes can claim”.
“First, the ‘goldgram’ is a fixed unit of weight of pure gold, with no arbitrary ‘dollar’ denomination. This is quite distinguishable from the Treasury's gold, silver, and base-metallic coins that are all denominated in numbers of ‘dollars’ which are not only largely fanciful in constitutional terms, but also exhibit no rational relationship among themselves in the economic terms of their various purchasing powers in the free market”.
“Second, a holder of ‘goldgrams’ owns a fixed amount of gold, itself a valuable commodity; whereas the holder of Federal Reserve Notes owns nothing but the Notes themselves, at best a political debt. True, a holder of Federal Reserve Notes has a legal right to their redemption ‘in lawful money’. But no statute mandates the redemption of Federal Reserve Notes ‘in lawful money’ containing any permanently fixed amount of any specific commodity. At best, a holder of those notes is entitled only to their face value in United States base-metallic coins, which can contain whatever slivers of junkyard scrap Congress and the Treasury decide to stamp as ‘money’ from time to time--and which specifically at this time cannot include either gold or silver”.
“Third, because each ‘goldgram’ is the depositor's own private property--not a debt owed to him--the electronic gold currency system avoids all the problems of Ponzification inherent in fractional-reserve banks”.
“Yet, although they are held and transferred outside the established banking system, ‘goldgrams’ are freely exchangeable with Federal Reserve Notes and base-metallic coinage, and vice versa. This provides users of ‘goldgrams’ with outstanding protection, flexibility, convenience, and efficiency for all their monetary transactions. ‘goldgrams’ can function as a truly parallel currency, because any contract can be made, and paid, in ‘goldgrams’ or fiat currency, as suits the parties' needs”.
“The widespread introduction and use of ‘goldgrams’ in America's economy can cause neither a depression nor an hyperinflation, either. A depression will not occur, because extensive use of ‘goldgrams’ will actually increase the supply of true, commodity money by remonetizing gold (and silver, too, when an equivalent system for ‘digitizing’ that metal appears). So, even to the extent that ‘goldgrams’ may displace Federal Reserve Notes and base-metallic currency from use, the economy will suffer no destabilization. A more sound currency will simply supplant a less sound currency, by operation of the free market”.
“No hyperinflation will occur, either, because the supply of monetary gold is incapable of huge, arbitrary, and especially politically driven increases. Rather, it is fixed by physical availability, and the free market's control over its production. Conceivably, Federal Reserve Notes and base-metallic currencies may depreciate against gold; but, as they do, gold will appreciate against them”.
“Of great importance, too, is that ‘goldgrams’ are freely convertible into standard gold and silver coins and bullion. This qualifies ‘goldgrams’ for use in all public functions by States and localities that must satisfy the requirement of Article I, Section 10, Clause 1 of the Constitution that ‘No State shall…make any Thing but gold and silver Coin a Tender in Payment of Debts’.”
“In selecting ‘goldgrams’ as her medium of exchange, a State is not ‘coin[ing] Money’ (which that Clause prohibits her from doing), merely employing a private gold currency over which she has no control. Neither is the State ‘emit[ting] Bills of Credit’ (which that Clause also prohibits her from doing), because ‘goldgrams’ are not anyone's ‘Bills of Credit’ that only promise to pay, but actual gold that is the very stuff of payment”.
“And when the State offers ‘goldgrams’ ‘in Payment of [her] Debts’, she ‘Tender[s]’ such ‘gold and silver Coin’ as her creditors may desire to receive by automatic conversion of their ‘goldgrams’ into coinage--so that the creditors, not the State, fix what shall be the form of the gold (or silver) that functions as the final ‘Tender’ for the transactions”.
Are Electronic Gold Grams Practical?
A gold gram exchange already exists. The company name is
GoldMoney.
I encourage you to visit their site and especially read their “What is Gold Money” and “Storage” FAQ pages.
Excerpts from The State Electronic Gold Currency Plan - part 2 by Edwin Vieira
“To implement these principles, I have drafted a proposed statute for the State of New Hampshire that can serve as a prototype for legislation in States throughout the country”.
“The New Hampshire bill deals with the most important of these functions: namely,
taxation;
borrowing by the State;
payment of State legislators, officials, employees, contractors, suppliers, and so on;
payment for takings of private property through the State's power of eminent domain; and
satisfaction of judgments, fines, penalties, and other monetary awards in the State's courts of justice”.
“Therefore, in empowering and enabling New Hampshire's citizens to choose gold and silver as their media of exchange, even to the exclusion of Federal Reserve Notes and base-metallic coinage, this bill implements the rule of law the Supreme Court has approved--and thereby in its operation enjoys complete immunity from interference by the General Government and the Federal Reserve System”.
“Interestingly, in this bill for the first time a State will fulfill the General Government's monetary policy. Today, all United States coins and currencies, whenever minted or issued, are declared to be equally ‘legal tender’. The law makes no preferences among them. Anyone may choose one form of legal tender (or even some currency not designated a legal tender) as his medium of exchange, to the exclusion of any or all other currencies. And the courts must honor and enforce such choices”.
“So the New Hampshire bill aids that State’s citizens in doing what the General Government recognizes as everyone’s statutory rights”.
“The route to monetary reform proposed in the New Hampshire bill offers an outcome in which no one can lose--other than those intent on exploiting the American people politically and economically through fiat currency, central banking, and the endless monetization of public debt. If the proponents of electronic gold currency prove prophetic, and the present monetary and banking systems continue to deteriorate, or even collapse entirely, the New Hampshire model will offer a method for rapid, salvific change throughout the country. If those proponents prove overly pessimistic, and the monetary and banking systems continue to muddle through, the New Hampshire model will at least provide inexpensive insurance and peace of mind for the people who put it to work”.
“The New Hampshire electronic gold currency plan proves that Americans do not have to depend upon the likes of Chairman Greenspan, or the denizens of Congress and the Department of the Treasury, to bring about real monetary reform in the foreseeable future. Americans can do that for themselves and by themselves--if they want to”.
Excerpts from The State Electronic Gold Currency Plan - part 3 by Edwin Vieira
Some Particulars of the New Hampshire bill
“Section 6-D:4 Electronic Gold Currency Payment Providers establishes strict qualifications and standards of operations for the private firms that will supply electronic gold currency for the State's use. This weeds out any ‘fly-by-night operators’, particularly those who might attempt to employ a fractional-reserve scheme in their issuance of gold currency units. An important goal of the bill is to insulate the State herself from the dangers inherent in the present Ponzified regime of fiat currency and fractional-reserve central banking. This purpose would be defeated if the firms supplying electronic gold currency were permitted to function in that unsound manner”.
“Section 6-D:5 Independent Specie Vaults establishes qualifications and standards of operations for the private firms that will hold in safekeeping the actual gold on the basis of which the Electronic Gold Currency Payment Providers will furnish electronic gold currency. This eliminates any and all fractional-reserve practices, guaranteeing instead that the system operates exclusively on the safe principle of ‘bailment’--whereby the depositaries hold their customers' gold or silver not as the depositaries' property, to which the depositors have only a claim for the payment of a debt, but as the depositors' property, in which the depositaries can assert no proprietary interest whatsoever”.
“Section 6-D:6 Specie Exchanges establishes qualifications and standards for the private firms that will engage in free-market exchanges of electronic gold currency for gold and silver coin, or Federal Reserve Notes. This makes gold and silver coin the ultimate media of payment into or out of the system. Thus, electronic gold currency units can be created from, and converted into, gold and silver coin--and while those units are in existence, they will represent an exact, insured equivalent of actual gold bullion held in safekeeping”.
“Section 6-D:7 Use of Gold and Silver establishes the State's policy of not requiring any person or enterprise that deals with the State to use anything but electronic gold currency as a medium of exchange; lists the State's essential sovereign functions as to which such currency will be employed; and offers to enter into ‘gold-clause contracts’ with all creditors of the State to the extent the Treasury holds sufficient gold to pay out at that time. This takes the State out from under the national legal-tender law, and empowers her people, to the degree they desire to exercise that power, effectively to ‘demonetize’ Federal Reserve Notes and base-metallic coinage in their financial transactions with the State”.
“Section 6-D:8 Use of Gold and Silver; Taxes and Other Public Charges requires that State tobacco taxes be paid in electronic gold currency. Although tobacco taxes are relatively small in amount (estimated to be somewhat less than 10% of New Hampshire's annual revenue) they will provide the State with a regular income in gold that will enable her to pay the first creditors who desire to receive gold. If, on the one hand, more creditors request payment in gold than the tobacco taxes can satisfy, the Treasurer may convert holdings of Federal Reserve Notes into electronic gold currency, or advise New Hampshire's Legislature to mandate that other taxes or public charges be made payable in gold. If, on the other hand, tobacco taxes prove more than sufficient to satisfy creditors' requests, the residual amount of gold held by the State can be treated as an investment, or can be converted into Federal Reserve Notes or other assets as necessary”.
“Section 6-D:9 Use of Gold and Silver; Loans, Bonds, and Notes allows for State debt to be denominated and paid in electronic gold currency. Use of gold as the guaranteed medium for payment of her bonds will enable New Hampshire to borrow at low interest rates for long periods, stabilize her long-term indebtedness, and increase her credit rating”.
“Section 6-D:10 Use of Gold and Silver; Purchase and Sale of Property by the State permits the State to buy and sell property of all kinds for electronic gold currency. As the process of governmental purchase and sale sets prices in gold for various types of property, it will assist in expanding the use of electronic gold currency in similar private commerce throughout the State, by providing the base on which a general structure of prices denominated in gold can be built”.
“Section 6-D:11 Use of Gold and Silver; Expropriated Property allows payment in electronic gold currency for property taken by the State through exercise of her power of eminent domain. This will eliminate the incremental confiscation that can occur when ‘fair market value’ for such property is purportedly paid in a chronically depreciating currency such as Federal Reserve Notes. Full payment of ‘fair market value’ for any property requires payment with a truly free-market, not a political, currency”.
“Section 6-D:12 Use of Gold and Silver; Damages, Fines, and Penalties allows, and in some cases requires, judicial damages, fines, and penalties to be paid in electronic gold currency. This curtails the ability of judges arbitrarily to decide what shall be the tender for these payments on the basis of their erroneous interpretations of monetary law, either requiring that the tender be gold, or leaving that choice to the private parties involved”.
“Section 6-D:13 Use of Gold and Silver; Contracts, Wages, and Fees allows public employees and public contractors to be paid in electronic gold currency. This will assist in further expanding the use of such currency in private commerce throughout the State, by providing more foundational blocks upon which a general structure of prices denominated in gold can be erected”.
“Section 6-D:14 Notification of Choice of Medium of Payment and Section 6-D:15 Limitations on Payments of Gold and Silver by the State require persons or enterprises desiring payment in electronic gold currency to elect such payment on a timely basis, and limit total payments of that currency to the amounts the State holds at that time. This is necessary because, when the statute is first implemented, the State's only gold income will be relatively small, deriving solely from tobacco taxes and judicially imposed fines and penalties. The State cannot be required to convert its larger holdings of Federal Reserve Notes into gold in order to pay its creditors in the latter medium of exchange--for that would be to compel New Hampshire to redeem in gold the very notes the Federal Reserve System and the Department of the Treasury have refused to redeem since the 1930s. As more creditors of the State request payment in gold beyond the amounts collected through tobacco taxes and fines, however, public pressure will compel New Hampshire's Legislature to designate more taxes and other forms of State income payable exclusively in gold, until eventually the State, her debtors, and her creditors will deal solely in that medium of exchange”.
“To be sure, the New Hampshire electronic currency bill is long and somewhat involved, because it tries to foresee and address every problematic contingency, leaving as little as possible to chance. In principle, though, the bill is very simple, because it promotes monetary freedom and the honesty such freedom imposes on the government in the most straightforward manner possible: free competition among media of exchange in the open market. That alone should be enough to warrant its support by every patriot”.
WBA’s Challenge
Please do not dismiss the very real danger we face. Falling back to barter will be so much more than inconvenient. We cannot stop the world financial system from imploding; but we can take action now to create a framework that allows Georgians to work through such a crisis. Figuring out how to incorporate an electronic gold and silver exchange in our daily lives will be tough when the financial crisis is upon us. Now is the time to put such an infrastructure in place.
Now is the time for strong men and women of principle to stand up and face the growing financial threat to Georgia, our nation, our economic prosperity and posterity. Our very future requires something that is exceedingly rare. That "something" is your political backbone and the courage to admit that our national government is not omnipotent, that it is morally weak, prone to theft, and increasingly ignorant of liberty.
Thank you and know, my humble assistance is available should you need it.
Sincerely,
Wes Alexander
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