competing currency

[sickmint79]

i believe the hard asset backed standard introduction would be made through allowing a competing monetary system. however isn't there a law that states bad money will drive out good money? replacing it with a silver standard, where some live today, would not the silver (or good money) be held, and just converted to FRN's for payment once needed?

[fsk]

The problem with alternative monetary systems is that income taxes still must be paid in Federal Reserve Notes. Even if you set up an alternate monetary system, you still have to use Federal Reserve Notes for income taxes.

Anyone who tries to set up an alternate monetary system gets harassed by the IRS.

Why are income taxes legitimate? Why not use a private monetary system, trade in private, and don't report your transactions to the government?

My solution is the "Social Credit Monetary System", a decentralized alternative monetary system. An alternate monetary system has to be decentralized, so the IRS can't easily shut it down. You can read that on my blog?

[sickmint79]

i get the feeling from your blog that you don't like the federal reserve.

;)

[Cowlesy]

Schrute Bucks.

1,000 Schrute Bucks are Redeemable for Five Extra Minutes of Lunch Break.

Not equal to the ratio of unicorns to leprechauns.

[lcjtsd]

To start using a competing currency is easy. This is how you do it from http://www.independentamerican.org/2008/09/17/a-solution-to-the-money-problem/

My wife’s current gripe about all the issues talked about here, and on other websites, is that everyone talks about the problems but no one is doing/offering any realistic solutions to the problems. She just can’t understand why we all don’t get together, pull our resources, and DO SOMETHING. I agree with her.

We The People currently have, in our hands, lawful, legal tender, American Eagle Silver and Gold Coin. We need to start using them as money! Even though we do not have half-dollar, quarters, etc. of equal weights and measure to the American Eagle Silver Dollar, there is a way to use these, today, for all our everyday transactions. Here is my plan:

WHEREAS: The United States Constitution is the Supreme Law Of The Land.

WHEREAS: Article I, Section 8 (Powers of Congress) states: Only Congress has the power “To coin Money, regulate the Value thereof, and of foreign Coin, and fix the Standard of Weights and Measures”.

WHEREAS: Article 1, Section 10 (Powers prohibited of States) states: “No State shall… ..make any Thing but gold and silver Coin a Tender in Payment of Debts”.

WHEREAS: Ling Su Fan v. U.S., 218 US 302 (1910) establishes the legal distinction of a coin bearing the “impress” of the sovereign:

“These limitations are due to the fact that public law gives to such coinage a value which does not attach as a mere consequence of intrinsic value. Their quality as a legal tender is an attribute of law aside from their bullion value. They bear, therefore, the impress of sovereign power which fixes value and authorizes their use in exchange.”

WHEREAS: Thompson v. Butler, 95 US 694 (1877), establishes that the law makes no legal distinction between the values of coin and paper money used as legal tender:

“A coin dollar is worth no more for the purposes of tender in payment of an ordinary debt than a note dollar. The law has not made the note a standard of value any more than coin. It is true that in the market, as an article of merchandise, one is of greater value than the other; but as money, that is to say, as a medium of exchange, the law knows no difference between them.”

WHEREAS: Congress has authorized the minting of silver and gold coin per the requirements of the US Constitution. The silver American Eagle is legal tender and has a face value of “ONE DOLLAR” and is money.

WHEREAS: The United States currently has a dual monetary system consisting of Federal Reserve Notes printed by the Federal Reserve Bank and gold and silver coin minted by the US Treasury as authorized by Congress.

WHEREAS: Congress has failed to coin half-dollars, quarters, etc. of equal weights and measure to the American Eagle Silver Dollar.

THEREFORE: There is currently no way to use American Eagle coin as money as there is no way to a business owner to make ’change’.

In order to use American Eagle silver and gold coin as “Money”, there needs to be put in place a separate banking system which uses American Eagle silver and gold coin exclusively. This would enable anyone to open an American Eagle account and write a check in the appropriate amount of coin. Should a business owner accept an actual American Eagle Dollar as money, he could also write a check in the appropriate amount for ‘change’.

This banking system, completely separate from the current Federal Reserve system, would provide economic stability, freedom from inflation, greater financial privacy, enhance local self-reliance, profitability for the people (not banks), and protect a community against a manipulated monetary system to name a few.

With this banking system, all deposits and withdrawals would be made in American Eagle Silver & Gold coin. There will be no exchanges of American Eagles to FRN’s, and vice versa. Should a depositor wish to withdraw any American Eagles from his account, he would receive actual American Eagle coin and can go to any coin dealer or currency exchange service to convert the American Eagle into FRN’s, Euros, etc.

Business owners would be able to independently determine their ‘base’ rate of pricing by using the current equivalent rate of exchange if these “DOLLARS” in relation to the FRN. The consumer would be able to use the American Eagle Legal Tender coin at it’s true value with businesses and the business owner would have the benefit in having their products/services paid for in real, not fiat, money.

As the value of the American Eagle increases or decreases, the business owner could instantly adjust his ‘base’ up or down accordingly. To price any product/service in American Eagle coin, all the business owner needs to do is divide the retail price in FRN’s by the “base” to get the price in American Eagle coin. Should the value of the American Eagle increase due to the FRN value decrease, the consumer would not lose any of his purchasing power caused by inflation.
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Get together with others who feel the same on this issue and Start Your Own American Eagle Bank!

[FreeMarketEconomy]

i believe the hard asset backed standard introduction would be made through allowing a competing monetary system. however isn't there a law that states bad money will drive out good money? replacing it with a silver standard, where some live today, would not the silver (or good money) be held, and just converted to FRN's for payment once needed?

Anything can be a competing currency. Why force the world currency to be gold? Why not just let the market decide?

[Dsylexic]

Anything can be a competing currency. Why force the world currency to be gold? Why not just let the market decide?

i have news for you. the free market decided that gold was the most suitable item to used for this purpose -since over 6000 years.