15 November 2012

Economic Liberty

Digging further into the idea of an "economic insurgency" or individuals fighting through economic means for "economic liberty" I've started digging deeper into the American Open Currency Standard.  I've researched it before, and looked into the "Free Lakotah Bank" when it came on line a few years back (I was honestly surprised to see they are still around, and still doing good business by all reports).

The idea is simple, coin "barter medallions" that have intrinsic value in terms of a commodity metal.  Gold, silver, and copper.  It becomes a "store of wealth" against inflation as you cannot destroy the intrinsic value of a commodity, although the value of a commodity will fluctuate against other commodities based on market forces.  Don't let that scare you, the value of any currency fluctuates based on market forces.

Now the idea that communities should be able to store wealth in the form of a local currency has appeal to folks of all political stripes.  Looking at the AOCS Community Currency page, http://www.opencurrency.com/directory/currencies/community-currencies/ You'll notice that "Liberal Bastions" such as Fort Collins, CO and Cape Cod, MA are on the list.  I don't know if it gets much bluer than either of those locations in terms of a voting block.

Now those are only the local currencies using the AOCS precious metal barter concept.  When you look at the other types of currency models (such as hours banking) you get a much larger list.  https://en.wikipedia.org/wiki/List_of_community_currencies_in_the_United_States

I guess if you are in the process of trying to restore liberty it wouldn't hurt to get your local chamber of commerce to buy off on the idea of barter medallions.  A commodity currency that can be redeemed into fiat currency pretty at much any stage in the cycle of trade, which will keep wealth in the community.  Encouraging people to convert fiat currency into barter medallions for local use will gradually transition money into wealth.  It is a sound principle, and one that liberals and conservatives seem to agree on.

 What if the Fed raised or lowered interest rates, and nobody cared?  What if your local gas station started accepting barter medallions at a "spot price" and people were smart enough to turn dollars into barter medallions, and watch the price of gas go up (as the value of the dollar goes down) but see their wealth protected?  What if your local bank started offering the "spot conversion" between the barter medallion and a fiat currency?

I've talked a lot about marksmanship being just a tool, one that is largely unimportant at the strategic level (you can win without good marksmanship, you cannot win without good strategy).  But if you could take power away from the Fed simply by using an alternate currency?   It seems like getting involved with your local chamber of commerce and selling this idea is something that 20 million deer hunters could do now, today, with little to no organization to support their efforts.


Anonymous said...

The Fed would be hamstrung. Their paper would just be paper - unless they stopped debasing it - and the fate of everyone not using it (except to send worthless dollars back to Uncle Sugar every Apr. 15th) would be irrevocably decoupled from inflation.

Done nationwide, it would have the effect of disconnecting the .gov's steering wheel, since they couldn't do anything except stop printing money to change the exchange rate.

Anonymous said...

Sorry, that above was mine.


Anonymous said...

I'm definitely sold to this concept. How could something like get started at a community level? Would you just start encouraging your neighbors to start taking bullion at any chance they can?

LastBox said...

OpenTransactions / Ripple project are doing interesting things as well.

Sanders said...

You should research Norfed, the Liberty Dollar, and Wayne Hicks.

See what the feds did about folks who started to use alternate, sound currency.

Backwoods Engineer said...

Sanders, the founder of AOCS, Rob Grey, knew Hicks and knew all about the Liberty dollar. He took the mistakes to heart, and AOCS avoids those mistakes by not tying coins to a specific dollar value. There is no problem with the AOCS medallions like there was with the Liberty Dollar.

Anonymous said...

Colonial Script? Great idea if you can pull it off and defend it! :)



Anonymous said...

The first step is getting state governments to accept silver and gold as legal tender for the purposes of paying taxes, like they do in Utah. If businesses can pay their taxes directly with gold and silver with no penalty, it will become viable to state level businesses. Federal taxes are still an obstacle, but as awareness grows about Fed policy, alternative currencies are becoming more popular. If we can get enough states to pass laws allowing the use of gold and silver, it would help to collapse the Federal tax code and force them into change.

Of course, there's no guarantee that the .gov won't try to confiscate the gold again if something like this starts taking off.

Incidentally, coining alternative monies is a PATRIOT Act offense that can subject you to a loss of habeus corpus. The Fed is not interested in losing its monopoly on the American money supply.


AM said...

I was contacted by Eddie Allen. I am publishing the contents of that email here, so if anyone has any questions they have the man himself to contact.

Dear American Mercenary,

I received a heads up about your blog and thought I would drop you a line.

Thanks for your attention to the economic side of the survival equation. You carry the argument for sound money well.

For those of your readers who may come to a point of wanting to take action in creating a local honest trading system, feel free to pass along my email address: eddie@opencurrency.com.

If I can help in any other way, please let me know.

Highest Regards,
Eddie Allen
International Currency Director
American Open Currency Standard
972.816.AOCS (2627) - Mobile