Establishing the SilverBack Repository can safely repair our Free Market & replace the Federal Reserve & the I.R.S.
Flashing back to 1840 - when fractional coins didn't exist(nickels/dimes/quarters/half-dollars). Neither gold nor fiat monetary inflation had arrived yet to debase silver as a currency. This was a time when a Free Market existed. Originally, silver was the currency of choice because it had intrinsic value. Nobody needed the government to "tell" them that silver was valuable!
As of 03DEC2010 - Our purchasing power continues to wither away alongside of us. Americans think that drowning in debt is acceptable!
We must bring the Silver Standard back!
I like to call this new silver-backed currency,"SILVERBACKS". We begin by accepting that 1 Silverback is equal to 1 gram of silver. America had foolishly demonetized silver back in 1873. We can begin to right a wrong by establishing a Silverback Repository that can free us from the monopoly being afflicted upon us by the Federal Reserve.
Any business or person who wishes to be part of a silver-backed monetary system are welcome to join! Silverback Repository Members can deposit US Dollars, silver or gold and have it converted into Silverbacks. 1 Silverback dollar shall be pegged to 1 gram of silver;while the silver price remains floating against a basket of other currencies. The only reason why silver-backed money failed in the past was because the price of silver was being manipulated("fixed"). There cannot be a Free Market if the price of silver is not allowed to float. Exchange rates will vary daily: but the value of 1 Silverback can be displayed electronically in US Dollars instantly.
Each Silverback Repository member would have 1 Checking & 1 Savings Account. Providing an interest-bearing Savings Account would also give our fellow members an incentive to save! Early withdrawal from any Savings Account would be self-punitive because members would no longer be rewarded with a monthly dividend payout!
The Silverback Repository can issue loans("extend credit") against all member Savings Accounts. Silverbacks kept inside all Checking accounts cannot be loaned out; it is used solely by each member as currency. Members can write "checks" against their Silverback checking accounts. Checks are the same as Money. Electronic Visa Check Cards would work also. Silverback Paper Money("Checks") can compete with the US Dollar!
The Silverback Repository shall derive profits solely from a 1% rake from every financial withdrawal or payment. Deposits are waived from any transaction fee.
Generally, Americans spend far more than they save - so there would be enough profits made from 1% transaction & payment fees to issue 1% dividends to all Savings Accounts. Earning only 1% interest from a Savings Account might not sound like much - it's still better to earn interest from silver instead of fiat money! Members who choose to bank with Silverback Repository do so because they want to prevent their purchasing power from eroding. Members realize that silver has intrinsic value that is already built-in. Silver can never lose its worth in a Free Market.
Any member who wishes for a zero-interest loan must keep at least 20% of the principle in Savings as a "downpayment". This clever method still allows the grantee to earn 1% interest off that "downpayment". Interestingly, the concept of zero-interest loans date back to the invention of banking itself! The Silverback Repository Bank itself cannot issue more credit than the total amount of silver kept inside all the Savings Accounts combined.
Silverbacks can be expressed in other forms:
- 1 Silverback = 1 gram of silver
- 1 gram of silver = $1 US Dollar
- $100 Silverback = $100 Federal Reserve Note
- Why not also have lower denominations? Think: Halfbacks, Quarterbacks, Dimebacks, Nicklebacks & Centerbacks.
- Reasons why? Fiat money nowadays require it. Our govts have printed so much monetary inflation; Silverbacks require fractional denominations of the Dollar.
- These silver-backed denominations could be in the form of copper, brass or aluminum coins. Hopefully, there won't be a need to attach a unique silver certificate number to them.
- In case your currency gets lost or stolen: your silver bullion would still be safe & protected inside the Silverback Repository! Each of your lost paper money would have a unique silver certificate number.
- Your ATM would track which silver certificate numbers get issued to you that day. Lost money would be reported to a "lost & found" Silverback Repository Database. This Database shall void those serial numbers and prevent anyone from spending it.
- This kind of protection would virtually eliminate most forms of theft-related crimes. It can even prevent another Hitler from rising to power! Of course, the safest way to carry money is electronically via a Visa Check Card or something rather!
- There must also always be full transparency. Always. To preserve our democracy; we must always demand full-disclosure.
Unlike all fractional reserves - the Silverback Repository System will auto-correct itself within a Free Market. No need for price pegging. No manipulative checks & balances required.
The Silverback Repository would preferably be a non-profit entity and be sanctioned by Congress. Elect Ron Paul like-minded Jeffersonians to preserve our nation's financial integrity. If the Silverback Repository remains non-profit;our government can retrieve governmental funds from other sources such as from: sales/property/use taxes.
The govt ideally should never be fueled by "credit" because foolish reliance on credit leads to deficits; deficits leads to bankruptcy. There is no need for an I.R.S. nor a Federal Reserve for that matter.
Nations are no longer defined by boundaries alone - it is language and currency that binds us.
Conclusion: Throughout history, silver has proven to be the safest & most secure store of value. Remain safe & sound with silver...
Cheers,
Mark Magill/Jeffersonian
magill702@gmail.com
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