Wednesday, July 21, 2010


I'm all for this but I can't see the Federal Reserve or the Treasury allowing it to go on. We used to have local currencies, issued by local banks with gold to back it. But that was before Woodrow Wilson created the Federal Reserve and everyone was forced to use reserve notes and coins from the treasury as currency. The part of the coinage act that is referenced may or may not apply. My guess is that it was geared more towards denominations of reserve notes or credit.

The main problem that I see is that, since this local currency isn't acceptable to pay state and federal taxes with, there has to be some way to cover that cost. Perhaps people are paying the taxes in reserve notes while paying for the goods or services in local currency. Maybe some way to exchange one for the other has been developed.

Anyway, this is about as clear a sign as you're going to get about the perceived and most likely real value of the dollar among the people. It is going to fail and we know it. Just like any other preparation, it's good to start early and get ahead of the curve.

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