Solving the Economic Disintegration though Private, Intrinsic Currency.

If you have noticed prices steadily rising over the years you are not alone.  With our National Debt soaring to over thirteen trillion dollars, not including the nearly 100 trillion additional debt in unfunded liabilities, and our yearly deficits adding hundreds of billions and sometimes over a trillion more dollars to this already over bloated debt annually… our collective buying power is under attack.

Our tax and stimulus Keynsian economic model is deteriorating.  We are entering a phase where defaults on loans are out pacing payments; and that is with our interest rates sitting near zero.  Worse, world leaders in China, India, France, and world bodies like the IMF are pushing to remove the Dollar from its World Reserve Currency.  Meaning the debt held off shore by foreign countries is threatening to be thrust back upon us; with calamitous effects

Many experts and layman alike see the writing on the wall, but no one knows exactly when or how the disintegration will begin.  Instead of trying to put bandages on the breaking system; we must build a new one to replace it. 

A new currency that has real value by itself, instead of perceived value because the law tells us we must use it.  A currency that will vanquish across the board inflation and bring about proper price stabilization, that will not create credit squeezes, will return and create jobs across Texas while strengthening our local businesses and farms.

And getting there is easier than you think.

What is money?

To understand where we need to be, we need to understand where we are.  At the heart of this is the simple question; what is money? 

In the simplest terms, “money” is a medium of exchange that is agreed upon between two or more individuals.  Today’s this idea of something being ‘agreed upon’ is lost.  People use dollars not because they are sound and part of a solid system, but because the law demands it; and as a direct result of allowing a central private bank both have a large hand in creating money, but also profiting from the system it is trusted to preserve- currency has lost its individual value and Worth.  It has become an IOU, a debt which banks can manipulate and exponentially increase through liberal banking laws that only require them to hold a small fraction of what they are supposed to. 

This should never be the case.  Compulsory participation in any system is clear evidence that it is flawed, and likely rigged. 

Letting banks lend out 90 cents of every dollar they are trusted to hold exacerbates the situation; and when you add interest into the mix you have a debt that can literally never be paid off, and which grows upon itself in ever increasing speeds until the entire system shatters completely.

We need to return money to its roots.  Where it is an agreed upon unit of exchange because it, in itself, has Worth.  Precious metals require labor to extract from the ground, it takes manpower to mine, refine and mint.  It represents the Labor that we put forth in our daily lives because it took Labor to create. 

Labor for Labor, Worth for Worth.  It is the only way.

All precious metals work well for currency.  Though some are better then others.  Gold and silver are the two that are best; both require real effort to pull from the Earth and mint, enjoy long lasting durability, are somewhat rare to keep the money supply from arbitrarily swelling, has limited uses and are not consumed.

Silver has one major advantage over gold however; it is less valuable.  It is the people’s currency.  The most common amount spent on a single purchase in the US is $20.  One ounce of silver, as of this typing, is hovering around $18.50 spot.  Gold, however, is closer to $1250 per ounce, meaning if you wanted to buy a cup of Joe at the local coffee house you would need to break that gold ounce down to 1/100^th of an ounce to get near the amount you would need. 

This discrepancy between perceived values has another added benefit when creating the foundation for a new currency.  Right now you can get about 65 ounces of silver for the same FRN amount as a single ounce of gold.  Even though most of us live paycheck to paycheck, we all have the ability to buy silver little by little.  We all have the means to create a nest egg and build the foundation for a better future for all of us.

Many people see the use of precious metals as a means to go back to a barter system.  Barter, in local environments and in limited capacity is good; however, for the great state of Texas, barter simply will not do.  Breaking down silver coins for change is already difficult enough; now add in the complexities of buying groceries, paying bills, getting your paycheck…

We have numasticity engrained in our lives.  It makes things simpler and allows for more precise accounting.  So how can we have the best of both worlds?  How can we have the stability of silver and the convenience of numastic while avoiding the pitfalls of fractional reserve and fiat currencies?

In order to create a monetary system which we can trust; we must learn the lessons of the past.  What has caused our economic woes thus far?

When the private entity known as the Federal Reserve was created almost 100 years ago, it was under the pretense that the banking woes of the day would come to an end.  What the people did not know was those who created the new system where the same ones who were causing much of the banking problems of the time.

Literally, the foxes went from raiding the hen house, to overseeing it.

So naturally much of the original promises went out the window as people started focusing on other major world events.  One of the first promises to go was the currencies connection to intrinsic metal (gold).

Part of the reason gold was removed from the equation was because banks were, and still are, allowed to lend all but 10% of the money they were supposed to hold back out.  This literally created more money in the money supply, and caused the original ‘good as gold’ promise to go void because there was more FRN notes then what existing gold reserves could cover.

Eventually the last remaining vestiges of gold were severed from the currency in 1972 and the currency became completely fiat.  Backless, save by proxy as the world reserve currency – which is the only reason it has not collapsed already.

The Currency Revolution System

Currency controlled by a private entity which works for its own profit guarantees the people will lose out eventually.  Rule number one: The system cannot profit from itself.

When the currency is allowed to be lent out without proper backing; ie, when one piece of silver is backing several ‘one ounce’ silver certificates; the lending institution is doing so for personal gain.  This will always fractionalize the currency, create inflation and ultimately kill the monetary system.  Rule number two: The system may never issue more notes then silver it physically holds.

Anytime any business, group, or entity operates in secrecy, hides their books or disallows audits of its actions; it is working against the people.  Rule three: The system must always be transparent and openly audited.

If a system is designed to be complicated, where even well educated people have difficulty understanding what is going on, it is trying to perpetrate fraud.  Rule four: The system must be straightforward and simple.  Every Texan should understand it easily

A closer look

With these rules in place we can now look even deeper into the proposed Currency Revolution System.

-Definitions:

The Vault: The Vault is aptly named as it has no function other than holding silver and issuing TEXAS Certificates which are 100% backed.

TEXAS Certificates: TEXAS is an acronym which stands for Transferable, EXchangeable, Asset(s) of Silver.  These are Silver Certificates that are easier to use in monetary transactions then actual Silver coins.  They have a 'dollar' amount and a corresponding silver amount which is redeemable upon demand at the Vault.  At first, these amounts will be pegged to the USD for convenience and to make the transition between the two currencies as easy as possible; therefore the monetary value of each TEXAS Certificate is as follows:

Overview:  The Vault acts as a storehouse of wealth.  It holds silver and issues TEXAS Certificates to members, these certificates are the numeric components to the currency which we are used to and need.  At any time anyone can bring a TEXAS Certificate back to The Vault and get its value of silver redeemed.  This is also encouraged, as open records and the constant ability to exchange certificates for silver will build trust between Texans and our new private currency.

Duties of The Vault:

To maintain this order of respect, honor and high integrity, the Vault will adhere to the following rules; in addition to these rules anything that is not expressly allowed is thoroughly forbidden:

-The Vault is a storehouse of wealth; its sole purpose is hold silver brought by members and issue an equal amount of silver certificates to be used as our private currency for Texas; or to accept verified Certificates (known as Transferable, Exchangeable, Assets of Silver, or TEXAS) and exchange them for equal amounts of silver. 

-The Vault is not a lending institution. It is forbidden to issue loans of any sort, issue credit of any sort, and issue debt of any sort; it will not offer or charge interest on any transaction, it will not create individual accounts nor use excess funds for any purpose other then upkeep and improvement of the Vault.

-The Vault will not become indebted to any other institution and is forbidden from taking loans, grants, gifts, and bribes from any entity.  The only means that The Vault can generate revenue is by, a) annual membership dues and b) fund raisers where the amount of money to be raised and what it is for is clear, and directly related to Vault operations.

-The Vault records shall always remain public with complete transparency.

-The Vault will always honor its Silver Certificates for Silver Coin.

-Once the Vault is established there will be a one time membership fee of a single silver coin to express our currency as private. The fee stays with The Vault and covers operation cost; and to build a reserve of silver to cover people who come to The Vault to buy TEXAS Currency directly.

-The Vault actively practices the acts of 'free coinage' and 'silver coin exchange'.

--Free coinage is the act of taking non-coined silver and exchanging it (based on weight and purity) for silver certificates. The silver exchanged will ideally be smelted into fine silver coins, but if the ability to make the exchange is not yet available the silver itself will be held in its current form as a means to store the silver certificates value and worth.

--Silver coin exchange is the act of taking any silver coin, so long as its purity is .999 fine silver, and exchanging it for equal value in Texas silver certificates.

Banks which agree to create accounts that hold TEXAS Currency do so with the understanding that practicing fractional reserve banking is forbidden.  They may only lend TEXAS Currency they have on hand that is not part of another's savings account.  They shall only work with paper TEXAS Certificates and can only issue electronic versions of the currency in amounts which are completely backed by said notes.

The Vault intends to employ a total of nine people per 10,000 Members.

Administrator: Tasked to maintain all internal audits and all data public.  Also places security stickers/holograms on ‘soon to be circulated’ notes.  Pay: 500 ounces of silver annually.

Exchanger Clerks: Duties include putting security serial numbers and silver ‘bin’ numbers on TEXAS Certificates; exchanging silver for notes and notes for silver; verifying notes security numbers to database to defend against possible counterfeit turn ins.  Pay: 500 ounces of silver annually.

Volunteers in non-security stations: Those who volunteer time and effort to help The Vault run day to day operations shall have their membership dues waved.  They will only be allowed to execute the following Exchanger Clerk duties: Exchange silver for already prepped TEXAS Certificates, verifying returning notes being exchanged and, upon verification, making the exchange.

Security

All of these efforts are in vain if there is nothing keeping the system, the silver and the certificates safe and secure.  In order to maintain the highest quality of security, to protect from robbery, seizure, counterfeiting and other dastardly deeds that aim to usurp our integrity, the following measures will be in place.

Vault security

Security is paramount.  What good is a storehouse of wealth if anyone, individual or government, can come and steal it.  To maintain the highest standard of security the duties will be divided between internal and external teams.  Internal security is a payroll position requiring a background check.  Duties include overseeing all silver and all parties who have access to it. 

External security is a volunteer based position; and subject to the same reimbursement as other volunteer positions.  We encourage all Texans to participate in external security; after all, if silver is taken from the Vault, it affects us all.  External security is not allowed to conduct business inside The Vault; however, it is also the first line of defense against theft or seizure.

The Right to Bear Arms is to be supported and exercised in both aspects of security.

TEXAS Certificate security

Just like The Vault itself, our silver certificates security is also extremely important.  If notes are easily counterfeited, then The Vault can be robbed without anyone realizing it until it was too late.  In order to combat this TEXAS Certificates will have many anti-counterfeit measures in place; including, but not limited too: Specialized, non-copy-able paper; watermarks, heat marks, holograms, nano-print, serial numbers that are entered into a database and connected to a automated phone line to verify if they are legit, silver bin connection numbers (which tie notes to specific pools of silver), and unique stamps.

With these features in place, counterfeiting our currency shall be a costly and difficult process which should rarely, if ever, occur.

TEXAS/Vault Transparency:

The following will always be available online, or in person.

-Records of income

-Records of expenses

-Amount of silver in Vault and total list of enumerated TEXAS Certificates issued (this amount should always be equal).

-Savings bracket

-Future purchases listing (what the savings bracket is saving for.  The Vault will not take loans and become indebted to any other institution).

My system follows this philosophy and builds itself over the course of five basic steps.

Obviously we will not be able to suddenly roll out a new currency for all of Texas overnight.  Something of this importance and magnitude takes time and unity to grow and blossom.  We do have a map however, five general steps that will take us from the clutches of a fiat money collapse to glory of intrinsic currency which benefits us all.

Step 1: Join the club, start buying/saving Silver and enroll others

By joining this free club today you are adding yourself to the ranks of like minded individuals. Together we can build a new currency that is sound, intrinsic, and -most importantly- honest. At this beginning stage you are encouraged to not only learn more about our currency banking structure; but also to start protecting your own savings by buying Silver.

The price of Silver is up over 200% from just ten years ago. So not only are you helping build the foundation to a new sound currency; but you are protecting your savings from the hidden tax known as inflation.

As you become wise in the ways of currency; you want transform yourself from student to teacher. Help your loved ones, friends, neighbors and townsfolk understand the perils of fiat money and the importance of intrinsic wealth. Encourage them to join and save silver as you are.  After all, we cannot create a new currency for Texas without them.

Step 2: The NPO/trust is formed

At 1,000 members and $10,000 in currency reserves The Non Profit Organization is formed, The Vault will be officially established and TEXAS Certificates will begin to be designed and created.

Design of the notes will be largely member driven; after all, we should have the opinions of Texans for a new private Texas currency.

Step 3: Currency Creation

When we break the 10,000 member plain the TEXAS Certificates will go live. We will have a listing of all member businesses and members are encouraged to begin exchanging some of their Silver for TEXAS Certificates. Ideally members will find one or more member businesses which they already frequent (farmers markets and local farms being the big ones) which they can begin using TEXAS Certificates over FRN's at.

At this stage, all merchants are encouraged to start putting two price tags up; one in the usual ‘Dollar’ amount and one in the ‘TEXAS’ amount.  By doing this, you begin to set the goods at their intrinsic value.  And as inflation affects the FRN's, Our TEXAS Currency will remain largely immune and cost will remain stable in the currency.

For example:

You have a hammer that cost $20 FRN.  You, as a merchant, also mark it as a TEXAS 20 and thus set its value at one ounce of silver. 

When the FRN's buying power decreases, and the same hammer suddenly cost $30 you will find the FRN cost of silver to have also increased by a similar percentage- but the hammer is still worth the same amount silver... so the hammer would still only cost a TEXAS 20!

Now imagine the same principle being applied to a hyper-inflationary event!  

Step 4: Currency Expansion

At one million members we start to encourage Texas businesses to pay their employees in part, and eventually, completely in TEXAS Certificates.

Step 5: Currency Revolution!

This is the goal. This is the dream. To get all of Texas united through the one thing that we all can agree on: honest money. For no matter who you are and what you do, we are all bound by a destructive and manipulative currency which steals from us while we sleep and forces us as a whole to be in debt.

Is all this even legal?

Absolutely.

Article 1 Sections 10 of the US Constitution goes on to forbid the States from issuing bills of credit (I.e. fiat notes that hold value because the State says so) and coining money (i.e. minting and issuing State coin currency).  However, there is no law or statute forbidding the people from doing so.

In fact, during hard economic times, private currencies (also known as community currencies) always spring up.  And even today we have many alternate private currencies that are thriving; Ithica hours, AOCS coins, and Berkshares are just a few.  Many are barter based, others fiat; but all are legal.

Most of these alternate currencies have never been heard; save one.  The Liberty Dollar.  People know of the Liberty Dollar because it was the largest, and it was shut down by the Federal Government.  While there is a lot to this case, lets stick to what is the most relevant part: why they raided and how Currency Revolution is different.

The Liberty Dollar

The affidavit against the Liberty Dollar says they were shut down due to money laundering.  The Liberty Dollar would accept US dollars and exchange them for their own Silver coins, silver certificate ‘warehouse receipts’, and digital currency backed by silver.

This connection between Federal Reserve Notes going in, and Silver coming out apparently struck a nerve.

What we have learned

Don’t deal in dollars.

As mentioned earlier, the Vault only deals in silver.  It accepts silver from members for TEXAS Certificates; and returns Silver to those who bring TEXAS Certificates back and request it.

The exchanging of our dollars to silver is personal and done with the legal mints across Texas, The US and even the World.  After all, the picture on each coin is not important; only the weight and purity matter.

What would a state wide private currency do with regards to secession or similar separation movements?

It is difficult to say for sure.  Currency Revolution does not advocate such measures or actions, but it also does not oppose them.

Truth is, right now all of share a common bond; regardless of race, creed, background, lifestyle, or social status all of us are connect by the money we use.  Now, granted, this common bond is more like a shackle attached to a sinking ship… but it connects us nonetheless. 

What will happen when Texas has a new common bond?  When each of us has a currency of Value and we are in the midst of a stable and properly growing State economy?  Only time will tell.

Will this empower the State and People?  Absolutely. 

Many States right now are trying to step up the original intent of States Rights over Federal Power.  They are passing laws that say such as well, like the gun laws a fourth of the US has passed, or is trying to pass, that says effectively, ‘guns made here are not subject to Federal Regulation.’

This is the goal.  Texas and Texan Empowerment.  We have to stop our fighting over silly wedge issues and embrace commonality; and what better thing to do that then a common, honest, intrinsic currency for the State of Texas?

What we can do today

Today this idea of sound, honest, intrinsic private currency is merely budding.  But already there are three important things you can do to help make it a reality.

1)      Save silver.  Although it does not matter whether you find US Silver, Canadian Silver, Private Silver… Make sure it is actual coin or bars that you have physical possession over.  Banks right now are fractionally reserving their own silver certificates meaning if/when crunch time comes and people need physical silver, most of those dealing and trusting the banks will be left only holding worthless paper.

2)      Join the club.  Numbers are what make the dream come true.  We all want to have a currency that does not cause us to suffer from across the board inflation.  We all deserve a currency that is not manipulated; where ‘too big to fail banks’ can play god and the expense of our lives.  Joining the club now; and becoming a full fledge member when the time comes allows us to grow and reach more Texans. 

3)      Tell others.  Your joining is great, but helping spread the word and enrolling others to the possibility of sound currency is better.  Word of mouth is how ideas explode into reality.  And together, we can make a huge positive impact in our own lives and the well being of all Texans.