Saturday, June 6, 2009


Here is a really good article written back in November, 2007 by Dr. Edwin Vieira, Jr., Ph.D., J.D. It's still a good read and applies to the cases below.

Dr. Edwin Vieira, Jr., Ph.D., J.D.
November 26, 2007

Edwin Vieira, Jr., holds four degrees from Harvard: A.B. (Harvard College), A.M. and Ph.D. (Harvard Graduate School of Arts and Sciences), and J.D. (Harvard Law School).

As America’s inherently self-destructive monetary and banking systems lurch from crisis to crisis—and one foreign country after another announces its intention to reduce its reliance on Federal Reserve Notes as a “reserve” currency, and perhaps soon as any currency at all—I am tempted to say, “I told you so!”

America needs to take action to replace the Federal Reserve System and its rotting paper currency before the System’s house of cards finally collapses on her head. Because, when the roof does fall in, a plethora of other very nasty events will follow very soon thereafter. Therefore, before means now.

So what is to be done? The solution to the problems the Federal Reserve System poses is to set up a system of competing currencies: Federal Reserve Notes and base-metallic Treasury coinage on one side, silver and gold coin on the other. Actually, America already has all the necessary elements to put such a system into operation: FULL STORY.

Everybody is in Debt and lives on Credit!
A example that I received today that I thought was very good.

It is the month of August, on the shores of the Black Sea. It is raining, and the little town looks totally deserted. It is tough
times, everybody is in debt, and everybody lives on credit. Suddenly, a rich tourist comes to town.

He enters the only hotel, lays a 100 Euro note on the reception counter, and goes to inspect the rooms upstairs in order to pick one. The hotel proprietor takes the 100 Euro note and runs to pay his debt to the butcher. The butcher takes the 100 Euro note, and runs to pay his debt to the pig grower. The pig grower takes the 100 Euro note, and runs to pay his debt to the supplier of his feed and fuel. The supplier of feed and fuel takes the 100 Euro note and runs to pay his debt to the town’s prostitute that in these hard times, gave her “services” on credit. The hooker runs to the hotel, and pays off her debt with the 100 Euro note to the hotel proprietor to pay for the rooms that she rented when she brought her clients there. The hotel proprietor then lays the 100 Euro note back on the counter so that the rich tourist will not suspect anything. At that moment, the rich tourist comes down stairs after inspecting the rooms, and takes his 100 Euro note, after saying that he did not like any of the rooms, and leaves town.

No one earned anything. However, the whole town is now without debt, and looks to the future with a lot of optimism….

1 comment:

wraft said...

The bankers are engineering a deflation. Prices will fall, unemployment will skyrocket because of a liquidity shortage.

The state of Michigan should issue scrip against future tax obligations.
Because it would be a local currency, it would circulate only in Michigan and provide much relief in a cash starved economy. I explain the idea in more detail at my blog. Google 'Raftshol for Governor'