A Viable Monetary System With Gold, Silver And Trust As Its Foundations
1) Gold and silver circulating as two independent forms of money without fixed, but (truly free) market-determined ratios to each other. Plus; 2) Currency redeemable in gold and silver at non-fixed fluctuating rates, circulating alongside, and competing with, precious metal money. 3) A nonprofit national bank that issues gold- and silver-backed currency only, but NOT debt- or credit-generated money. 4) A private for-profit banking sector that can issue loans for productive enterprise or sensible purchases or even speculation purposes. NO reserve requirements and FRACTIONAL banking is permitted. But; credit, scrip, funds or capital based on, or generated through, these loans are not legal tender nor payment in full for any good or service. Any such loans must be repaid in gold-backed legal tender, or gold, or actual material items or valuable services or intellectual property, as specified in the contract between lender and borrower. This ensures that the banker is only somebody trustworthy who is actually capable of providing a valuable service to the community by virtue of introducing business partners to each other and facilitating their business with liquidity or credit, in the form of loans that people have confidence in. Essentially, the private banker's capital is his reputation and the trust that people place in him. However, NO FDIC, i.e., NO arrangements or institutions that permit the socialization of losses and the privatization of profits. The National Bank does not guarantee private currency, scrip, funds, nor private loans. You gamble, you may lose. The banker gambles, he can lose. The banker cheats, he faces justice.
This monetary system represents the best compromise between individual freedom and social justice, and a viable foundation for our civilization.