Announcing a Project to Modify or Replace the US Monetary System

VERY INTERESTING SUGGESTION!

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David Redick
Activist Post

The US Dollar (USD) has been the world’s primary reserve currency (used for most international transactions, even when the US is not a party, and for bank reserves in all nations) since 1920, which has helped support its value due to high demand. The use of the USD for most oil sales since 1973 (the ‘Petrodollar’) has also brought helpful demand, but that is fading.

Due to excessive creation of new money (‘traditional’ monetary inflation, plus the Bernanke ‘spike’ in 2008 and recent QE activity), the USD has lost over 95% of its purchasing power (PP) since the Federal Reserve System (the ‘Fed’, our central bank) was created in 1913.

The rate of decline worsened with the end of gold ‘backing’ in 1971. To prevent losses, many nations now avoid owning or using the USD (or other assets denominated in USD), and instead trade with each other using their own currencies (led by the BRICS – Brazil, Russia, India, China, and S. Africa, plus Japan and Australia). This could lead to a major reduction in the USD role as a world reserve currency, and cause a 50% to 90% crash in value (PP) due to reduced demand. Such a crash could happen soon, and would cause; 1) Large losses for all holders (persons, firms, governments) of dollar-denominated assets (cash, CDs, bonds, annuities, life insurance, equities, real estate, etc.), and 2) A major increase in interest rates, which would blow-up the US budget and business loan rates! Thus, we must consider changes that will prevent the crash.

I hereby volunteer to be the collector of ideas, and use this input to write a draft plan, seek approval from contributors, then publish a comprehensive final plan for a modification of the current US Monetary System. The system includes the Fed and its ‘Fed Notes’, Treasury Dept. bonds and policies, legal tender laws, the FDIC, mints, banks and various banking laws and regulations.

The Initial Plan

Subject to modification, and with further definition below, the initial plan is; 1) Terminate the Federal Reserve System, 2) Make existing ‘Fed Notes’, deposits and bonds (M3) immediately redeemable for gold by any bearer on demand (100% backing will deter a ‘run’ to redeem for gold), 3) Require that all ‘Fed Note’ denominated cash and instruments be converted to the new ‘gold money’ (see plan below) by a certain date, 4) Terminate legal tender and many banking laws to allow private mints and ‘free banking’ without licenses (but with full disclosure of mint gold reserves, bank loans, etc. required by law), 5) Create a new system of gold coins, and redeemable notes and token coins, to replace the current ‘Fed Note’ currency, with ‘weight of 24 carat gold’ (or more weight for lesser carats) as the unit of account (no ‘Dollar’ or ‘price’ of gold), and 6) Design and implement the plan without formal agreements with other nations (this would just dilute and delay the new plan), but seek their ideas and keep them informed of the US plan and schedule so they can make compatible plans (or be left out!). This plan is documented in detail in Chapter 4 of my book Monetary Revolution USA, and posted at part 2 in the left margin ofForward-USA.org.

CONTINUE READING HERE!