This has been written so much better in thousands of articles on the web (including GP). Wasn’t going to write this one but have included it for completeness. Very short and to the many points.
Fraud of fiat lending – banking
If I need money – I can borrow some coins, and say promise to give an extra 10% back. All well and good as long as the coins are worth the value stamped on them. If that entity gives me a piece of paper, that is all that has been lent – a piece of paper.
If I go to a supermarket and give a pound of silver for some bananas, and the supermarket gives me a piece of paper saying it represents half a dozen bananas I am going to go hungry as the supermarket has only sold me a piece of paper, which it could do even if it had no bananas.
Yet the bank is allowed to give you a piece of paper, despite not having anything to lend. Out and out fraud (and not uncommon) in any other time in history from before 1900.
The idea that in the case of a mortgage the house goes on a ledger is bunk. Otherwise why can’t I do that for myself and print off some notes at home? A government is a legal identity – just as we are, if it is a fraud for us to use monopoly money, then so must it be for them.
Cryptocurrencies are fair game to those that want to use them, they look more like a speculative asset than a currency at the current time. But it is not the government’s role to decide means of exchange. But has the law to uphold defrauding of standards – i.e sterling silver.
Fiat currency has allowed the rich to gain a massive competitive advantage and they have used it to gain the vast majority of assets.
Electronic moving of money
One advantage of electronic moving of money is that it is far more difficult to lose money, unlike notes that would leave someone unable to claim what is rightfully theirs in a vault, if they lost them. (An end to notes?). However, fraud is a much bigger risk.
A gold coin is £1500. Probably far easier to conceal than its equivalent in paper.
Not against all banking
Banking provides services in moving money & documents – along with many other services in arranging credit etc. It’s just that they should have the physical money to 100% back it with.
Self Help Groups
With a hard currency, it could again make sense to develop friendly societies, such as insurers, pension providers, building societies, and savings societies. In fact unions could be instrumental in redeveloping some of these for their members. Profits/surpluses would stay within the people in these groups and not some shareholder on the other side of the planet. Not against for-profit companies in principle, but hopefully it wouldn’t be easy to make money against these self-help groups.
Policy Ideas
These are very self-explanatory.
- Silver for day to day currency – and the legal tender for paying taxes.
- Gold primarily as storage currency, rate to silver not fixed. Can be used to pay taxes based on the exchange rate to silver at the time.
- Gold and silver to meet well recognised standards. Maybe copper too? Anyone (that produces to said standards) can produce coins/trinkets.
- Fiat will be illegal for governments & banks. Credit will be at the creditor’s risk.
- People can exchange goods & services however they wish.
- Up to people themselves to set up self-help groups – current laws around them should suffice.
Next up – Ensuring life carries on regardless: Part 7 – Welfare
© Jerry Mandarin 2022
