Comments on: Who Owns You?-Debt Bondage and the Structure of Financial Empire

By: Thomas H. Greco

Thomas H. Greco — Fri, 15 Oct 2010 18:01:09 +0000

1. You mean as the dollar is “debased,” as its purchasing power declines.
If the exchange uses dollar equivalent units, then balances will be similarly affected, but this is an exchange system, not designed for savings or finance, so balances should always be relatively small.
Eventually, exchanges can denominate their credits in an objective, non-political unit. (I’ve written a lot about that. Find it here on my blog and in my Money and Debt book.)
The main point of a credit clearing exchange is to utilize our own credit to transact business without having to get dollars, euros, etc. first from the banks.
2. Always keep paper records as a backup. We can always revert to accounting the old fashioned way.

By: Kevin G

Kevin G — Fri, 15 Oct 2010 05:51:28 +0000

Thanks for the prompt reply, Tom, and I should now be configured for notification in the future.

Exploring the recommended “credit elearing associations” presents more than one concern:

1.) As the dollar deflates, where is the benefit of using such a dollar-based system?
2.) What is the contingency plan for the digitized currency if, God forbid, there was an electronic catastrophe that effectively wipes out the ‘memory’ of magnetized hard drives or if power was permanently interrupted?

Thank you.

Kevin

By: Mike

Mike — Mon, 11 Oct 2010 19:01:51 +0000

I agree with Mr. Greco if you have not read the above article on his assessment of the monetary mess and what to do about it. Continuing to trust the banking authorities and their (official government money and legal tender laws) is tantamount to lead the people into further economic serfdom. This is where the wisdom of the late E.C. Riegel becomes quite helpful when wrestling with this subject. He said, among other things that there should have been and that there still needs to be a total separation of money and State. Also, that money has never enjoyed a free market, because political government has always interfered with its operation.” Government should not be the source of money but they should only be able to spend money after they have earned it like the rest of us! They sure interfered with Bernard von Nothaus didn’t they?

Mike Aldana

By: Thomas H. Greco

Thomas H. Greco — Fri, 16 Jul 2010 19:10:38 +0000

Kevin, people have a right to use whatever they like as a medium of exchange. If they want to use silver rounds, that's fine, but as I've told von Nothaus, if I buy silver it is to hedge against inflation of the dollar. I prefer to hold it rather than circulate it. For the exchange of value, we can use credit clearing associations, eventually keeping our accounts in units of silver weight. I wrote about this in my book, The End of Money and the Future of Civilization.

By: Kevin G

Kevin G — Fri, 16 Jul 2010 14:36:05 +0000

Hi Tom – I heard your interview with Bill Meyer this morning, and you are definitely on to something through the introduction of alternate currencies.

Surely you’ve heard of Bernard von Nothaus at Liberty Dollar, who had a partial chance but his error was stamping a face value on his “dollars”: bad move, especially when the goal is/was to completely _separate_ from the FRN eh?

So I designed a local silver round and called it the “Jefferson Round” for local merchants to have the option of accepting them for negotiated and agreed value for Partial payment (typically up to 50%) of the purchase.

If you don’t mind, I’d greatly appreciate your feedback (http://www.jeffersonrounds.com), and I look forward to hearing you speak a week from today here in Medford, Oregon.

Best regards,

Kevin G (email given)