Re: The question all americans should ask themselves.
Sam, Greg and Thomas:
I think money can behave just like anything else with regards to supply and demand. Since we currently operate under a monopoly and can only use FRNs, there is no choice in the money we use.
However, just like any monopoly that squanders the faith of its customers, I think the time will soon come for the opportunity to topple this monopoly. The best solution, it seems to me, would be a system whereby no one single entity, either public or private, controls the money. Even if our current FRNs are allowed to co-exist with other types of money, people can choose which one to use. The final verdict I believe would be quickly arrived at. The only time they’d really have to use FRNs would be when paying taxes. Big deal, once a year, or quarterly if you’re self-employed, you exchange some of the alternative currency into dollars and pay Uncle Sam (not you Sam, the other Sam 😉
What I am referring to are personal, electronically debit-able, gold accounts. They have been referred to on this site many times, but to the uninitiated, here are three links where you can learn about them at:
Maybe we do not necessarily need to worry about completely dismantling the Fed (though I would like nothing better). Maybe all we need is enough public demand to get more of these types of services available in the US. They are not illegal, it’s just that not enough people use them, and they currently are not sophisticated enough to say, swipe your gold card at the grocery store, have a few gold grams automatically exchanged to dollars, and have those dollars deposited into the grocery store account. However, with enough customers, it won’t be long at all before they are that sophisticated. It does not require any technology we do not currently have.
Once people start watching their FRN savings purchasing power melting, I suspect demand will go much higher, these accounts will multiply, and the services and capabilities that are included will increase dramatically.
That would push the dollar, and the people who control it, to the back seat. They could print all they want, but it wouldn’t make any difference if everyone else used gold (or silver).
I like this solution because it uses gold, allows freedom of choice, and because it doesn’t call for an end to the Fed (though that’s what it would lead to), it may actually have a chance of occurring – in fact it already has started!
Fraud, on part of the gold-account providers, could be insured against privately (that’s how the existing systems work already). Insurance providers will take care of performing adequate audits. Do not put government in charge of auditing – that I would not trust and will just put us back where we started.