Outpost of Freedom blog

An Economic Solution

Gary Hunt
Outpost of Freedom
September 17. 2010

To return to a sound economic base, primarily a free market economy, a series of steps must be taken to achieve an understanding of where “existing” money is, and how it will be accounted in the conversion to the plan proposed herein.

To initiate the plan, fractional reserve banking must cease. Usury laws shall be enacted limiting interest to 3% per annum. All outstanding obligations to any financial institution will be held in abeyance, with no accruing interest, until the redemption process (2 years) has been completed.

The plan calls for the replacement of currency in two general areas, internal money and external money. Internal being that held by citizens of the United States or corporations operating solely within the United States. External being money held by any person not a citizen of the United States and any corporation operating internationally.

The sources of obligations are of three natures. First is the money circulating within the United States, currently, which will be identified as “A”. Next will be money circulating in the international realm based upon trade or other money legitimately held. This will be referred to as “B”. Finally, there is a lot of money which is circulating internally and internationally which was acquired by means considered illegal, such as the millions of dollars stacked in closets in Mexico, which will be identified as “C”.

The money of the “A” type will be redeemed as follows All coins and currency in circulation or on deposit , of an internal nature, will be identified based upon criteria to be developed, though will not include banking reserves, or any dollars not based upon real assets.

Replacement of value for internal money will be replaced . first, with US Greenback dollars, based on the full faith and credit of the United States. All redemption will require a physical return of Federal Reserve Notes in exchange for US Greenback dollars. This will become the interim money for internal use only, until the final resolution to specie based dollars.

Redemption will be conducted over a period of one year, with an additional years in which to hear appeals to decisions regarding whether the dollars are redeemable, or not, and any other petitions for consideration of redemption, all of which can only be presented by citizens of the United States.

For the sake of discussion, we will assume that the recognized type “A” money, Greenback Dollars ($), issued over this period amounts to $4 trillion.

The gold and silver on deposit at Fort Knox is to be audited and the actual dollar value determined based upon the original value of $20 per ounce of gold and $1 per ounce of silver. This will include only the assets of the United States held at Fort Knox. We will assume, then, that the value determined by this audit comes to $80 billion.

Gold and Silver Certificates will be issued based upon the value determined by the audit. The certificates are not redeemable for gold or silver, but are value based upon the deposit at Fort Knox, which will be audited every five years to assure that the sound backing of the United States Dollar (designated by $ ) continues, and that the internal money supply is limited, and cannot be expanded by other than additional gold or silver deposits made to the Depository.

Gold and silver may circulate as specie, though the United States government will not mint, guarantee, or participate in circulation thereof. Any specie made in payment to, or bought by, the United States government will be deposited in the Depository and Certificates ($) issued into circulation.

The existing United States Greenback Dollars ($) will be redeemed for the new United States Dollars ($) based upon the ratio of recognized type “A” money ($4,000,000,000,000.00) to the United States Dollar ($80,000,000,000.00), [ $/$ = 50 ], the Greenback dollars will be redeemed at the rate of $50 for one United States Dollar ($1). This would require an adjustment of the value of goods to 1/50th of their current value. For example, if something now costs $5, the new price would be $0.10 (10¢).

The new United States Dollars would only circulate within the United States. If returned from outside of the United States, they will be redeemed for United States Trade Credits (see below), at the value at the time of redemption.

Type “B” money and any type “A” money not redeemed as aforesaid shall be redeemed by redeeming all such outstanding obligations for United States Trade Credits. A determination will be made of each application to determine the rate of redemption. For Treasury Bills (full faith and credit of the United States), redemption should be at face value. For Federal Reserve Notes and other obligations based upon Federal Reserve Notes, redemption should be based upon the ratios determined for type “A” greenback to United States Dollars.

United States Trade Credits, while determined in dollars ($), will not be on par with the United States Dollar ($). Trade Credits will be used only for international commerce, and will not be circulated within the United States. They will be converted to United States Dollars upon entry into the country, based upon the aforesaid ratio, and United States Dollars will be converted to Trade Credits (even for citizens of the United States going abroad) upon leaving the country. United States Dollars returned to the United States will be penalized and redeemed at 50% of value.

Adjustments may be made to the Dollar to Trade Credit ratio, from time to time, to assure that a beneficial to the United Sates value is attached thereto.

Outstanding obligations in Trade Credits (existing outstanding obligations) will be assured, though no timely redemption is implied.

Balance of trade, in the international market, must be pursued to extinguish the outstanding debt in Trade Credits.

Type “C” money along with any type “A”: or type “B” money not redeemed timely, or determined to be ill-gotten, will not be redeemed, and will not become an obligation on the United States. This does not preclude actions against the Federal Reserve Board, which will, upon initiation of this plan, no longer have standing within the United States.