What would you prefer your payment in sir? Federal Reserve Notes or Metal?

Posted: August 12, 2010 in Uncategorized

When gold and silver continue to behave as a direct currency in the world marketplace, you can begin to use it again as a trusted form of exchange between individuals.  If I owe a 100.00 dollar debt in modern day America and it is private in nature (not between myself and the government or myself and a corporate entity,) a payment due someone who does not take credit cards can be made the following ways;

cash- ie Federal Reserve Notes, no intrinsic value but has value in the current way we exchange goods

coin- treasury issued pieces of change with no intrinsic value other than small amounts of metal depending on the year of issuance.  Reference the Mint removing copper from the One Cent piece during the copper spike in the 1970’s.

check- Federal Reserve notes either withdrawn or deposited into a Federal Reserve System Bank account

Precious metals- ie gold and silver (outside the Federal Reserve System with intrinsic value, the material itself stores some degree of value or purchasing power)

If in 2008 I exchanged 100.00 Federal Reserve Notes for 10, 1 ounce Silver coins, I would be able to pay my current $100 Dollar private debt with 5 of my coins.  If this money was in a Federal Reserve controlled bank, I would have to write a check for $100.00

I now have paid my debt and retained 5, 1 ounce Silver coins, now valued at 100 Federal Reserve Notes.

Time and time again it is fact that when a private citizen today is given the above choices of payment and they are net SAVERS, not debtors, not in need of Federal Reserve sanctioned credit or notes, they would be more willing to receive gold and silver as form of payment.

Fiat currency or hard currency?  Gold has been on a steady incline since it became the policy of the United States to expand it’s bureaucracy and quest for global dominance at the expense of the currency that created the world we know today.

Exchanging goods and services within a community using a hard currency backing will preserve wealth and will fend off the the malinvestment of resources.  http://en.wikipedia.org/wiki/Malinvestment

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