Your new bank?

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WhoKnew's picture
WhoKnew
Status: Bronze Member (Offline)
Joined: Dec 11 2008
Posts: 41
Your new bank?

 

Source Baltimore Chronicle

November 2008 

"People of Lakota Launch Private Bank for Only Silver and Gold Currencies." All deposits are "liquid, meaning they can be withdrawn at any time in minted rounds. Some may confuse our economic system with isolationism....which it is not. Since we currently produce much more than we consume, we have the right to decide what medium of exchange to accept for our effort. And so we accept only value for value. Across our great land, over thousands of tribes and merchants participate in our system of trade. We invite others to trade with us and bring value back into our transactions."

This is the world's first non-reserve, non-fractional bank that accepts only silver and gold currencies for deposit. The Lakotas "invite people of any creed, faith or heritage to unite in an effort to reclaim control of wealth. It is our hope that other tribal nations and American citizens recognize the importance of silver and gold as currency and decide to mirror our system of honest trade."

The bank states that it issues, circulates and accepts for deposit "only AOCS - Approved silver and gold currencies." It calls paper not real money but "merely a promise to pay - a mortgage on wealth that does not exist, backed by a gun aimed at those who are expected to produce it. Since we deal only in real money, we do not participate in any central bank looting schemes." When corruption is rewarded and "honesty becom(es) self-sacrifice....you may know that your society is doomed." Even as victims of adversity, Lakotas are working to prevent it.

 

Sounds like my kind of bank.

Golden Age's picture
Golden Age
Status: Bronze Member (Offline)
Joined: Aug 2 2008
Posts: 61
Re: Your new bank?

Sounds like a good start.  Where are the Lakota tribe located?  Are they located on Lakota land that is not subject to the U.S. govt regulations of banks?  What security do they offer as to the availability to withdraw the gold/silver currency?  What are their assets that would back the security of deposits?  Do they value deposits at the daily spot rate?  If I deposit gold that has a spot rate of $850 and the price goes up to $875, has the value of my deposit appreciated also?  Lots of questions to be answered before this even gets off the ground.

drb's picture
drb
Status: Bronze Member (Offline)
Joined: Oct 11 2008
Posts: 95
Re: Your new bank?

Similar questions were previously raised in this forum.

jrf29's picture
jrf29
Status: Gold Member (Offline)
Joined: Apr 18 2008
Posts: 453
Re: Your new bank?

If the bank is a "non-reserve, non-fractional bank" then that would mean that 100% of all deposits are kept on hand at all times in cash or coin.  All banks must loan out at least some percentage of total deposits in order to make a profit.  Since the bank also has overhead costs and operating expenses, this means that without a fractional reserve policy it would, in practice, be necessary for the depositor to pay a fee to the bank for storage of their deposits.

If this bank offers any kind of an interest rate, then the operation must be a sham, since without lending out a portion of deposits, no interest could possibly be generated.  And a depositor always deserves at least some interest, as compensation to them for assuming the basic risk of putting money in the possession of another person.

Therefore, if the description was accurate, this bank must either be an authentic scam operation, or simply a dumb idea.

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