Until 1968, the 'Silver Certificate' shown above was redeemable in silver coin or bullion, as printed above and below Washington's head. It is from 'Series 1935 C'. Since 1968 they have been redeemable only in Federal Reserve Notes and are thus obsolete, but are still valid legal tender. The 'Gold Certificate' and coins are examples of how the proposed gold money may appear.

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Chapter 4: Use of Gold as Money

Why Gold?

All forms of money serve as a ‘medium of exchange’, and ‘unit of account’, which is convenient and flexible compared to barter. Note that when a valuable commodity (such as gold) is used as money (‘monetization’), the money is worth as much as the goods or services in the transaction. Two more benefits of using commodity money are to; 1. Limit excess expansion of the money supply (inflation; loss of value) by the government, and 2. Provide a market-based, and stable, store of value. This system needs no government controls except inspections (which could be by a private org) to verify mints indeed have the gold reserves they claim to for redeemability. The commodity could be (and has been) wheat, iron, diamonds, notched sticks, or pearls, but the market (users of money) usually chooses gold because it works best for the reasons shown in ‘Redick’s First Monetary Rule’ on page 85. Thus, it will be used as the ‘presumed market choice’ in this book. Silver and copper supplies and costs are more volatile than gold (more new production, are consumed for industrial use, etc.), so are less attractive, but useable. As also discussed on page 85, paper ‘money certificates’ and token coins (base metal) can be used as a convenience (cheap to make, light weight, avoid loss of gold due to wear, etc.) but users of this ‘representative money’ will insist the money must be marked on its face as to how much gold it represents (weight and fineness) and be redeemable for that amount on demand by any bearer at the issuing bank or mint. Further, users will insist the bank or mint must disclose to the public (via lobby poster, mail to depositors, Internet web site, etc.) the weight and purity of gold it has on hand (physically; no encumbering liens or leases) for redemption, and the amount of ‘representative money’ currently issued. Without these conditions, and in the absence of legal tender laws, people (the ‘market’) will not use such representative money, and will seek better money from another mint. Competition will produce good money!

When gold is used as money, it has no ‘price’ in dollars, yen, etc. Weight is the unit of account (such as milligrams). Sellers will set prices in weight of gold. There will be prices IN gold, but not OF gold! This will take some getting used to as we evolve to pricing in weight of gold.  History shows us that when countries use sound money (such as gold coins, or paper and tokens as receipts for gold) they have zero or low inflation, zero or minor 'cycles' of economic panic or depression, and more peace, liberty, and prosperity (smaller governments). For example, the number of grams of gold needed to buy a barrel of oil has been very steady over the years. Thus, we would expect all countries to use sound money, except the leaders want more money than they can get by just taxing, especially for wars. They want a way to create money ‘out of thin air’. Fiat paper money (not redeemable for gold; we call ours ‘Federal Reserve Notes’) serves this purpose. Even when some level of redeemability exists, governments often 'suspend' it before, during, and after wars (the US did for the Revolutionary, 1812, and Civil wars), and then must be pushed to restore it (often with less value).  The US ended the right for other nations (FDR took it from mere people in 1933) to redeem paper dollars for gold when Nixon abrogated the Bretton Woods Agreement on August 15, 1971 due to our serious financial problems such as; a. We were running out of gold; France and others were redeeming their 'Euro-Dollars' to gold (US$s accumulated in Europe due to our postwar spending and loans there); b. The US was poor after spending on Vietnam and LBJ's 'Great Society'. Under this pressure, Nixon illegally 'floated' the US$ (no fixed-price for gold; no fixed exchange rates with foreign currency), and ended redeemability to gold by any person or government. This meant the US could make dollars out of thin air at will, and did we ever! Do to this increase in the money supply, the dollar’s value has fallen by 82% since 1971 (5 to 1; per CPI by Bureaus of Labor Statistics), and over 98% since the Fed started in 1913 (50 to 1); Thus prices are higher. This is a ripoff of most people because their savings and incomes do not increase as fast as price inflation. As a result, more wives are working, spending and debt replace saving, and speculative, leveraged, buying of homes and securities increases. Again, the main purpose using gold as money (‘notes’ and base-metal tokens are not money, but just claim checks, or receipts, for gold held by the mint who issued them) is to prevent excess expansion of the money supply ('monetary inflation') by the government or private mints, and thus reduction in purchasing power. Without redeemability for gold, this 'fiat money' is an unlimited 'piggy-bank' and credit card for the government or mints. History and logic shows the government cannot be trusted to not abuse money creation. The excess money has allowed damaging, unconstitutional, corrupting, massive increases in government spending for wars, welfare, and pork. It has also created the growth in the number of lobbyists seeking favors. Prices started to rise a few years after 1971 as the effect of excess money and spending trickled to the US economy, and most increased by a factor of 5 to 8 by 2011. By 1975, all nations worldwide ceased redeemability, even the prudent Swiss floated the Swiss franc (SF) in 2000, but have been less abusive than others. Hence while 1 US$ = about 4 SF in 1961, it is now about 1 US = 1 SF, so they only inflated by 2.5 while by 2008 the US inflated by 10; four times more!  The US has been the worst abuser among developed nations (older countries remembered their lessons from past monetary failures). Again, the US has created so much new 'free, fake money' since 1971 that the US$ has lost 80% of its purchasing power since then (this excess expansion of the money supply is called ‘monetary inflation', like a balloon) with its consequent price increases (due to loss of the Dollars’ purchasing power) called ‘price inflation’. Check prices of common 'commodity' items (that are not imported, subsidized, cheaper due to new technology, or under price control), such as a pizza, a restaurant meal, or even a car. Good examples are: 1. A room at a 'Motel 6' cost $6 in the 1950s but is now in the $50 range in 2010 (same type of room and service), and 2. A family car cost about $2,000 in the ’60s but is now about $20,000 in 2010. There is your 8 to 10X loss of US$ value since the late 1940’s (when the post-war big-spending started)! This goes along with a 98% loss since the Federal Reserve monopoly was created in 1913! The only reason we can get away with this is because the US$ is the world's primary 'reserve currency' (any person, firm, or bank will take and keep it as if 'good as gold'), because it is viewed as a share in 'USA, Inc.', the world's strongest economy, which sadly is fading (faster since 2007) as we continue the long abuse of our economy (by spending, taxing, and harmful intervention 'management' by the Fed and government) and money (by excess expansion of the supply). The era of US world dominance is ending, as it does with all empires. History shows us that the use of 'real money' (made of a commodity with market value such as gold, with its ‘representative’ paper ‘notes’ or base-metal tokens redeemable for gold by bearer, on demand) is fundamental to the long-term success and survival of a nation. 'Fake Money', paper and base-metal coins created and 'managed' by a central bank (ours is the Federal Reserve System; ‘the Fed’) is what allows the massive spending and debt for wars and domestic pork and welfare. The pork and grants have corrupted the ethics of our federal government ('Here's some pork, vote for me.'), and the citizens, business, universities, and academics, etc. who happily accept it. Congresspersons brag on their web sites about how much pork they have obtained for their districts or states. This 2-way corruption is a fatal sign of a failing Empire.

Redick’s Four Monetary Rules

I offer below, ‘Redick’s Four Monetary Rules’ to describe the requirements for a monetary system using ‘real money’ (money made of a valuable commodity). The market has historically chosen the commodity based on the 9 characteristics shown below (in Rule 1) which are best satisfied by a valuable metallic commodity such as gold, silver, or copper. Hence, this book uses them for discussion and examples. However, private mints could offer any commodity as money, and let the market (money users) decide what they want.

First Rule: Money can be in any form, but this analysis will discuss coins and paper notes

A. Coins, which can be of two types; 1. ‘Commodity’, where they are partly or wholly made of a commodity such as gold or silver. Various coin values would have different amounts. For example, a small, round, gold disc could be forged into a hole in the center of a coin. This would allow testing to assure its purity and weight. The balance of the coin would be hard base metal or alloy, with the weight of precious metal the coin contains marked on it, or 2. ‘Representative’ (or ‘Token’), where they are made of base metals such as copper, aluminum, zinc, nickel, steel, and alloys thereof, and are marked as redeemable to a certain weight and purity of a commodity such as gold or silver. These are useful for lower values. To achieve broad use, commodity coins must be made of, or contain, a material that is: 1) Rare, with a low amount in existence now, and limited new supply, 2) Malleable, so can be made into coins, 3) Stable physically and chemically; doesn't break, rust, or rot (can be stored; lasts through much handling), 4) Easy to identify, and determine purity and amount/weight, 5) Difficult or impossible to counterfeit, 6) Homogeneous in content (a melted chunk is the same throughout), 7) Divisible into pieces (diamonds and pearls aren’t), 8) High value per ounce (not bulky to handle or store), and 9) Acceptable to most Sellers (familiar and recognizable). The ‘market’ (users of money) has decided that gold fits these requirements best, but silver and copper can have a role in parallel, with no fixed ratios set as to value per gram (i.e., no bi-metallic standard). The coins must be valued and marked by weight of their precious metal content (such as ‘milligrams’), or the amount they can be redeemed for. It is interesting to note that gold is not ‘consumed’ as other commodities, including silver and copper, are. Thus except for wear, over 90% of all gold mined in history still exists (even if buried in a tomb).Approximately 160,000 metric tonnes of gold have been mined in all history. The aggregate un-mined known reserves of all the world's gold mining companies is approximately 45,000 tonnes. Gold is being mined at about 2,600 tonnes a year, so the above-ground supply is expanding at 1.6% per annum. A ‘best estimate’ of gold ownership by major nations and consortiums (all need audit) through Sep-2011 is; 13 nations in Table 3 below, plus the IMF 2,847 (they have sold some), China 1,054 , Russia 775, Japan 765, India 615 (up from 550, which included their 200 tonne purchase in Nov-2009), European Community Bank 10.8, and the Eurozone countries 10,793, plus 102 other nations for a total of 30,563 tonnes (data from www.marketoracleco.uk). For more info, go to www.resourceinvestor.com . If the IMF is dissolved, one would assume its gold would be distributed to its 186 shareholders, of which the US is by far the largest with 16.79 percent of the votes (Japan is #2 at only 6.02 %). On this basis, the US could own another 478.3 tonnes.

There is always ‘enough’ gold, because if a nation’s economy (GDP) grows faster than its gold supply, their gold for domestic transactions will APPRECIATE in purchasing power. The same logic applies to the world economy. It is self-adjusting and needs no government meddling or abuse!

B. Paper: A ‘representative’ note is just a ‘receipt’ or ‘claim check’ for precious metal, and must be; 1) Valued and marked by the weight or amount of the commodity it represents. No ‘name’, such as ‘dollar’, is needed, and 2) Redeemable for such commodity by the Bearer upon a demand to the Issuer (mint or bank) of the paper at Issuer’s various premises, with such locations publicized (via Internet web site, sales literature, etc.).

Second Rule: No government laws shall apply to control the Issuers, foreign or domestic, of coins and paper currency, except to assure full disclosure of percent content of precious and base metal (hard metals may be included to decrease wear) of issued coins, and ready access for inspection of the amount, purity, and legal status (owned, not leased, or encumbered) of precious metal on deposit to redeem notes.

Third Rule: Money issued by the government, if any, shall have no special status, or privilege, over money issued by persons, or privately owned firms. Such money would be issued by the nation’s Treasury Department, and there would be no ‘central bank’.

Fourth Rule: There will be no designated ‘world reserve currency’, set by agreement between nations, but such status might exist de facto due to free market usage. Thus, buyers and sellers will decide which are the ‘preferred’ currencies, and fake or debased money will be avoided. Examples of former primary world reserve currencies are the French franc, British pound, and now the US dollar (which is approaching ‘former’ status).

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In the US, the above rules would require abolition of the legal tender laws (as a start), and curtailment or elimination of fractional-reserve banking to ensure adequate gold for redemption of representative money, and refund of deposits. I recommend that ‘demand deposits’ (checking) have 100% reserves, and ‘time deposits’ have reserve ratios (40 to 60%?) based on prudence of the bank managers and approval of their customers (or they will withdraw their funds or sell the stock). Banks would be free of government control (including foreign bank branches in the U.S., starting a new bank, and multi-state banking), but would be required to publicly disclose their reserves, loan amounts, and other obligations that affect solvency. State-owned banks offer an interesting step away from the Fed. North Dakota has had a successful one since 1919, and others states are considering having one (and using gold and silver coins; check Utah). The goal is to engage in a transition to real money in the US, then promote the same transition worldwide. This is likely to work, because fake money, or money from issuers with inadequate reserves of gold for redeemability, will, 1. soon be refused as payment, 2. be discounted (or the Seller will ask a higher price to accept it), or 3. not be held as savings or investments. This shows the error in Gresham’s Law which states ‘bad money drives out good’. It does not consider 1, 2 and 3 above, because it only applies where the exchange rate between currencies is fixed by law, and legal tender laws exist.

Results from the Rules
Some of the results of using these Rules are;

A. Stable Purchasing Power: Purchasing Power will be stable, or increase, in the long-term (hundreds of years), with; 1) possible minor and gradual decreases as new gold is mined, or 2) increases (appreciation) if some of the existing supply is taken out of circulation, or as economic activity grows, causing an increase in demand for the existing supply of gold. The appreciation is a positive incentive to save, and avoid debt. For example, gold is now (Nov-2011) worth near $1,700 per oz., so it would take about 10 oz. to buy a modest car (with current ‘dollar’ pricing). Maybe after 20 years on the gold standard, it will take only 6 oz. to buy a car (we hope things are priced in ‘weight of gold’ by then, not ‘dollars’). This subject is discussed in depth in Nobel Laureate F. A. Hayek's 'Denationalization of Money: The Argument Refined', 1976, which puts forth the case to; 1) end the government monopoly on money creation, 2) let anyone create money, and 3) let the free market determine which type of money is used (just as I suggest in ‘Monetary Rules’ above). The point is to end government politicalization, abuse, and fraud in creation of money. Remember, the plan is to get rid of currency ‘names’, and just label them as to the weight of gold. The sooner we change, the better.

B. Reduction of Excess Spending, and Its Damage: With real money, people, firms and governments will not be able to engage in excessive spending very long because they will run out of money. This gives incentive for them to engage in honest, rational, positive acts such as; spend carefully, save, and plan ahead. As a result there will be; 1) fewer and smaller wars; 2) no major bubbles in housing, Silicon Valley, or Wall Street; 3) less welfare, pork, subsidies, etc. which make people, schools and firms dependent on DC money, and attract lobbyist to ‘buy’ legislators so they can get favors. A nice side-effect is that most lobbyists will go out of business because their will be little or no pork and subsidies available from DC; also, when the ‘paybacks’ get low, campaign funding will be less, so campaigns will be cheaper, and more ‘normal’ people will be able to run for office; and 4) no excess imports, and resultant ‘off-shoring’ of US jobs, factories, and professionals, because there will be no unlimited supply of fake money, injected into the economy by the Fed, to fund these payments to foreign suppliers! Again, this can only be carried to extremes by the issuer of the world’s primary reserve currency; for now the USA. These limits will be automatic. Some will say, this is a loss of needed ‘liquidity’ and ‘flexibility’, but I say it is a good brake on unfettered (dare I use the Liberal’s pejorative?) spending.

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The result is a positive incentive to save, and avoid debt, due to APPRECIATION of purchasing power of the money, a concept that people today have never seen because all nations use fiat money. Econ 101 tells us that a commodity (such as gold) in limited supply, and with increasing demand for it (growth of the economy), will APPRECIATE in value. This has huge importance because it kills the ‘not enough gold’ argument!! Appreciation of value is ignored by most economists and b. suppressed, or unknown to, all politicians (they love paying debts and avoiding taxation by expanding the money supply with fake money -- monetary inflation – and paying debts with low value money). Notice that part ‘B-4)’ above solves the problem of excess imports causing loss of jobs due to off-shoring of factories. With the finite supply of real money, US importers will find themselves, and their banks, getting short of money, and import less. Demand will increase for domestic producers, and the money will stay in the same country. Free trade is good, unless importing is taken to extremes by the use of fake money. Note again, this can only happen if the fake money is also the world’s reserve currency (until demoted!). Poor citizens in third-world countries who have little ‘real money’ to buy imports, will have incentive to work hard, innovate, and earn gold from exports. Many articles have been written about causes and cures of the current economic crash since it started in late 2007. Politicians want various versions of ‘stimulus’ (more spending) to fix a problem caused by too much money in the economy. This will make things worse after a few months of fun spending. What they should do is cut taxes, end wars and empire, end all subsidies, end the Dept. of Education, Homeland Security, Commerce, Agriculture, and others, and take broad measures to reduce government spending. Free-market capitalism will rise from the ashes, and produce honest, sustainable, jobs, peace, and prosperity. Pres. Obama, N. Klein, R. Reich, P. Krugman, and others whine that ‘capitalism was tried and failed’. What a joke! The US economy has had a declining percent of capitalism since fake money was started in 1913, and the above positive benefits of capitalism have fallen even faster since the end of partial-gold backing of our money in 1971. It is Socialism that has harmed us most since 1913. I don’t underestimate the difficulty of, and opposition to, a transition to gold as money. Some will say we should set less ambitious goals, but I say these lesser goals are just steps along the way and we must never stop striving for the ultimate goal of eradicating the government from our monetary system. Maybe if we hit bottom hard enough (2015, 2020?) in the current depression people and the government will start to listen to us ‘real money’ folks, and go for the gold. Rep. Ron Paul has been a leader for many years in the fight for ‘sound money’ and compliance with the Constitution as to reduced spending and intervention at home and abroad. Former U.S. Sen. Chuck Hagel issued warnings in 2004 and 2005 about impending trouble at the GSEs, but was ignored. Bravo to these leaders, plus P. C. Roberts Ph. D., and others shown on the list of recommended authors starting on page 111. Because the Fed gives it an unlimited supply of funding, the U.S. Federal government has become an arrogant master that dominates and abuses its citizens, the U.S. States, and other countries (by jerking the purse strings), while providing big incomes and privileges to those people and firms that have ready access to it. Our national disease is that it is deemed ‘normal’ to have the government supply whatever is ‘nice’, ‘good’, ‘needed’, or ‘wanted’, and most people want/expect ‘somebody else’ to pay for it (‘the rich’). This parasitic mode of living is immoral and unsustainable, and reveals the classic signs of decadence in a failing empire. Fighting the system is hard, but I predict Ghandhi's aphorism will prevail: "First they ignore you, then they ridicule you, then they fight you, then you win."

A Six-Step Plan to Convert to Gold Money

This plan, first published in Jan-2010, has my original ideas, but builds on the work and concepts from Founder Charles H. Carroll (1794–1865, U.S. Congressman for New York); F. A. Hayek (1899-1992); Dr. Antal Fekete (1932-), www.professorfekete.com; Prof. J.Salerno (1950-) in his Sep-1982 Policy Analysis No. 16 ‘The Gold Standard: An Analysis of Some Recent Proposals’ for Cato Institute (www.Cato.org); Murray Rothbard (1926-1995) in his 1991 book ‘The Case for a 100% Gold Dollar’; U.S. Rep. Ron Paul M.D (1935- ), and his many House Resolutions, speeches, books, and essays; Lewis Lehrman’s work since he co-chaired Reagan’s ‘Gold Commission’ with Rep. Paul in 1981, his Aug-2011 book ‘The True Gold Standard’, and his site www.TheGoldStandardNow.org. Author Doug Casey has been a strong promoter of gold as money (caseyresearch.com; see page 116). There are many more supporters of gold-as-money, so please forgive the omissions. My plan ends the government and Fed monopoly on control and issuance of money, and makes ‘weight of gold’ the unit of account. Read on for more details on how to implement the transition to gold, and the benefits to expect. There have been three ‘mainstream’ (recognized by academics and the government) types of gold standards in the past; 1. Gold Specie, 2. Gold Exchange, and 3. Gold Bullion. See the Glossary on page 129 for details. I now re-introduce number 4. the ‘Private Gold Standard’. I say ‘re-introduce’ because the ‘mainstream’ academics and the government folks have ignored or ridiculed past essays on the topic. Maybe this is because the bureaucrats’ jobs and social life depend on being ‘mainstream’. Pathetic! Several versions are discussed in Salerno’s 1982 ‘Cato Analysis 16’ shown above, and a similar approach in the Paul-Lehrman report, ‘Case for Gold’, 1982. My version is based on ‘Redick’s Four Monetary Rules’ shown on page 85, and implemented by the Six-Step Plan shown below. While other private gold standards include ‘parallel government currency’ and other remnants of the monopoly and Fed system, my version has zero control by the government, the Fed, and banks. Notice that under this plan money is produced by private firms in the free market where customers (users of money) decide which source and type of money is best, and mints compete for customers by supplying a good product. There is no Fed, and government mints (run by the Treasury), if any, are optional, and have no control or privilege over the private mints. The free market is allowed to work!

The Six-Step Plan:

Step 1. Repeal: a. All legal tender laws so private firms (mints) can issue new money, b. Laws that tax increase in market value (then to be known as ‘purchasing power’) of precious-metal coins (formerly considered numismatic), and c. Any other laws that prevent, inhibit, or tax the new money. The only government role would be to prevent fraud, and to verify by physical inspection that reserves are as advertised (but with no reserve ‘requirements’). Again, I recommend that ‘demand deposits’ (checking) have 100% reserves, and ‘time deposits’ have reserve ratios based on prudence of bankers and approval of their customers (or they will withdraw their funds or sell the stock). The Federal Reserve will be abolished five years after private money becomes legal (or if Congress refuses abolishment, let it atrophy to death from lack of customers and income).

Step 2. Private mints may be created, with government licensing optional. Banks could also provide mint services. The mints would introduce new gold money labeled by law as to the weight of gold a coin contains, or that tokens or paper certificates represent (thus ‘weight’ is the unit of account). Some might offer ‘Digital Gold Currency’ (see goldmoney.com). All mints would be required by law to; 1. Publicize the weight and purity of gold they have as a reserve for redeeming paper or digital money, and the value of money issued, 2. Allow unscheduled physical inspections to confirm that the gold is in their possession, and free of encumbrances such as liens, leases, etc. The same would apply to base-metal coins. The ‘unscheduled’ requirement will prevent relocating the same gold to be put on display at different mints, or their branches, ‘just in time’ for an inspection! The results of these inspections would be published by the mint’s Internet web site, newspaper, poster in the mint, etc., and available from a government web site. The inspections would be justified as a routine function of the government to prevent fraud, but could be done by a private org. Mints with strong reserves will advertise their strength to attract customers. Customers will ‘wake up’ and pay attention to reserve status, etc., rather than assuming the government is protecting them with regulations. The free market at work!

Step 3. Require the Federal Reserve banks, the U.S. Treasury (Ft. Knox), the Exchange Stabilization Fund, and any other part of the United States government that has gold, to promptly submit to a private audit of the amount and purity of gold they own and its title status (leased?, loaned?), reveal the results to the public, and then give it all to a ‘Redeem Trust’ owned by the U.S. Treasury, to be used to redeem existing coin or paper currency, ‘digital deposits’, and bonds (such as M3, see page 41) on demand, based on a certain weight per Dollar, in accordance with the plan below. The Fed would not be involved in such conversions. Some may argue that the Fed is a private firm and owns the gold it has, but this ignores the fact that it got it from the US citizens illegally in the first place by issuing fake Fed Notes, and perhaps some from FDR’s confiscation of gold in 1933 (see page 44). If the Fed manages to win a court fight on this point, the Treasury could buy it with US bonds. The U.S. government claims to have 8,134 metric tonnes of gold in its reserves (an audit is needed). At 32,150 troy oz. per metric tonne, the US has 260.415 million troy ounces. Others say the US currently holds 261.5 mill. troy ounces, or 265 mill., but these figures are all close enough for this analysis. There is also a question as to the purity (fineness) of the US gold (debased or fake bars in storage, or gone on lease or loaned?). Only a proper audit will tell. Private sources put M3 (see definition on page 41) at about $14 trillion worldwide in Oct-2011. If 100% of the M3 Fed Note dollars and bonds were made redeemable with our 260.415 million troy ounces of gold there would be 0.0000186 oz. per dollar (about 2 ‘100 thousandths’). This means 53,763 ‘backed’ Fed Note dollars would be redeemable for one troy ounce of gold. This implies a 97% drop in the dollar's current value versus today's about $1,600 per oz.; a ‘gold value’ ratio of about 34:1. The dreaded day of reckoning! But this issue fades as all nations convert to gold money (they must or no sellers will take their trash fiat 'money' once the US dollar is redeemable) and there is no ‘price’ for gold, just its weight. It remains to be learned just how many ‘Fed Note’ dollars there are, and how much gold we have. On Aug. 25, 2010, Rep. Ron Paul (R-TX) explained why we need to audit and inspect U.S. gold reserves in the Ft. Knox and the New York Fed vaults, and whether some has been secretly removed, leased, loaned, or some bars replaced by gold-plated base metal Once the legal tender laws are repealed;a. No additional units (physical or electronic, including new credit) of the old ‘Fed Note’ money will be issued. The free market will provide new money as needed; if the Fed isn’t required to stop creating new money at first – due to politics, etc.- the new private money should proceed in parallel; let the best money win!, b. Holders of old ‘Fed Note’ physical money would be required to convert it to new private money within three years of private money becoming legal, c. The government must accept payments by ‘new private money’ if the issuing firm’s reserves are at least forty percent, and have been verified to the public and government, and d. The Federal Treasury Dept. and State governments can issue new gold money, but it would have no privileges over private issues.

Step 4. To implement the new monetary system, I propose that Congress create the ‘Currency Act of 2012’ and: a) Incorporate the ideas and requirements in ‘Redick’s Four Monetary Rules’ and this ‘Six Step Plan’, b) Set the weight and fineness of gold that each existing Fed Note (physical, bond, or digital) will represent. This will involve debate as to % reserves and how many USD - M1, M3? - are covered, and the effective date. I suggest 100% of M3 and activation of the new system within 3 to 6 mo. after the Act is passed. Reserves of 40% or 60% might be enough (to avoid redemption ‘runs’ that would destroy the new system), but it is better to be on the safe side. c) Require that new money issued by the U.S. Treasury (no Fed issues) be labeled only by weight and purity of gold (no ‘name’ or religious content) and made available on the day the new system is effective. All government transactions (fees, payments, taxes, Soc. Sec., bond principal, etc.) would be denominated by weight of gold. This will encourage public use of gold weight as the unit of account for pricing.d) Include lessons from how other nations changed money,e) Publicize the discussions leading to the definition of the Act so US citizens and firms, and other nations, are aware and can submit their ideas and make their conversion plans. I oppose multi-nation planning conferences; they would just cause delays and dilution of terms.f) The Act should include a requirement to use a certain factor (about equal to the ratio of gold price between the new and old systems; ‘34’ per Step 3 above) to adjust values in existing agreements (bonds, wages, loans, mortgages, pensions, insurance, etc.), and set new values by weight of gold. Using lower reserves would reduce this factor but increase risk of a ‘redemption run’. Pricing for new transactions or agreements would be set in the free market, and using ‘weight of gold’ as pricing would be encouraged.

Step 5. Domestic: Abolish the unconstitutional GSEs such as Fannie, Freddie, Ginnie, and Sallie Mae, FHA, Pension Benefit Guaranty Corp (PBGC), FDIC, all TARP-Like projects, the Exchange Stabilization Fund (ESF), the Export-Import Bank, etc., etc. All of these are part of the government’s counter-productive intervention in, and manipulation of, money, private business, and banking. While at it, end all unconstitutional departments and agencies!

Step 6: International: Terminate US membership in the IMF (and get our gold back), World Bank, CBGA, BIS, G-20, G-8, NATO, United Nations, and others. Free trade and embassies are adequate for contact with other nations.
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Once launched, in my above version of the Private Gold Standard, gold value is self-controlled by supply and demand, with no ‘parities’ to maintain. Gold and money ‘values’ are the same (gold IS money, and there is no ‘price’ for gold), and no ‘management’ is needed. Good!

A Review of Other Conversion Plans

The above ‘Six-Step Plan’ is unique because it cuts all mandatory ties to government (mint licenses are optional, no legal tender laws), abolishes the central bank, converts all existing money and bonds (M3) to ‘gold backed’ as a transition, and uses ‘weight of gold’ as the unit of account for all ‘new’ money. It offers more detail than any plan I am aware of. I hope somewhere Mises, Rothbard, and Hayek are smiling. Rep. Ron Paul M.D. gives a general description of his free-market monetary system on pages 203 to 207 in his 2009 book ‘End the Fed’. Key issues are; 1. End legal tender laws and allow private mints, 2. All money redeemable in gold, and 3. Termination of the Fed (of course!). He discusses how purchasing power of the gold money (when in fixed supply) rises as GDP grows (more demand for money). This is the Appreciation effect presented in this book on pages 87, 89, 90, 91, 100, and 108, which shows there is always ‘enough’ gold! On November 9, 2010, Dr. Richard Ebeling, Professor of Economics at Northwood University (Northwood.edu), posted the article ‘A Return to the Gold Standard?’ in the Daily Bell (dailybell.com) which touts a free-market system. See more on the Ebeling plan on pages 26 and 115. In an article on May 18, 2011, Robert Wenzel (economicpolicyjournal.com) wrote: ‘…The current supply of gold owned by the United Sates should be divided by the number of dollars (Some version of M1) and made fully redeemable to those holders.’ Thanks Bob! Lewis Lehrman’s book ‘The True Gold Standard’ of Aug-2011 (TheGoldStandardNow.org, or LehrmanInstitute.org), proposes conversion of the USD to gold, then gold settlements with all world currencies, so no formal reserve currency is needed. Unfortunately, he retains legal tender laws and the Fed (or an equivalent). In his Nov-2011 speech at the ‘Cato Monetary Conference’ (Cato.org) in D.C., Prof. L. White, Ph.D (economics.gmu.edu) proposed that since our banks are only required to have 20% (usually) reserves to back deposits, we only need to have gold reserves to redeem 20 percent of M1. I support his plan to make gold weight the ‘unit of account’, but I prefer use of M3 (see Step 4-b above), and fear that such low reserves would Increase the possibility of a ‘run’ by dollar and bond holders to redeem for gold before the U.S. Treasury gets low and cancels redemption, as FDR in 1933, and Nixon in 1971.On Jan. 17, 2012, presidential candidate Newt Gingrich said in a speech; “…We need to get our house in order. …Part of our approach ought to be to reestablish something Ronald Reagan did in 1981 and that is to have a Commission on Gold to look at the whole concept of how do we get back to hard money.” This puts the gold standard ‘on the table’ as a topic for mainstream discussion!Nathan Lewis (see page 117) wants use of gold, but spoils it with ‘a system to adjust the supply of base money’ to keep a parity with the currency and gold ‘values’. This is doomed to abuse and error! He likes ‘modest’ gold reserves, which I fear (again) could lead to ‘redemption runs’. Others suggest a parallel gold currency with a slow, market-based, replacement of Fed Notes. In her book ‘Fixing the Dollar Now’, Judy Shelton Ph.D. (SoundMoneyProject.org) suggests a ‘Treasury Trust Bond’, redeemable in Fed Notes or gold, to allow people to ‘get comfortable’ using gold. I fear these ‘open-ended’ parallel plans would give politicians too much time to ruin the process. I leave the above issues up to the debate during creation of the ‘Currency Act of 2012’.

How Gold Reserves Will Affect Conversion
The gold ‘per currency unit’ shown in Table 2 below, and ‘per person’ in Table 3, will have an impact when a nation converts to gold as money. Will the gold leaders ‘feel rich’, ‘live high’, and buy assets abroad from owners that need gold? For sure, the low-end nations will have new incentive to be productive and get gold by exports, or sale of assets. Table 2 below shows how nations rank in the amount of gold they have to ‘back’ their existing currencies during transition to gold as money. Data in Table 2 are for Sep.1, 2011. The gold is central bank holdings. Credits to marketoracle.co.uk and dollardaze.org with M1 data for each country converted to US Dollars (USD) to ease comparisons. Russian M1 is an estimate.

Table 2: National Gold Reserves vs $M1

Country	Gold	M1	Gold/M1
(tonnes)	(bn USD)	(tonnes/bn)
Kuwait	79.0	15.3	5.163
Swiss	1040.1	225.2	4.619
USA	8133.5	2133.8	3.812
SaudiArabia	322.0	87.9	3.663
India	614.8	233.7	2.631
Russia	775.2	300.0	2.584
Eurozone	10792.6	5165.9	2.089
Indonesia	73.1	39.7	1.841
Mexico	100.1	94.7	1.057
S. Africa	93.7	124.9	0.750
Sweden	125.7	184.2	0.682
Denmark	66.5	134.6	0.494
Australia	79.9	182.8	0.437
Brazil	33.6	84.1	0.400
China	1054.1	4175.0	0.252
Japan	765.2	3253.6	0.235
China	1054.0	4818.1	0.219
UK	310.3	1780.0	0.174
S. Korea	14.4	405.6	0.036
Canada	3.4	189.0	0.018

U.S. owners of gold will enjoy a one-time increase in value (purchasing power) when the conversion occurs. The situation will be dynamic, with many unpredictable market and government variables, including: a) How much gold the US will own once an audit is done, and b) What M3 and the price of gold will be by the time the Act is approved. Depending on how soon other countries convert to gold, there may be a rush of foreign buyers using their ‘now more valuable’ gold to acquire bargains in the US. To avoid losses, US sellers will increase prices as appropriate, per Step 4, item f), above. The free market will adjust as needed. Another way to show the gold ownership of a nation is by ‘ounces per person’, as in Table 3, where ‘person’ equals citizens plus permanent residents (not ‘illegals’

Table 3: Gold Reserves per Person

Country	Gold	US$/person	oz/person
(metric tonnes)	($1,450 oz)	(troy ounce)
Switzerland	1,040	6,100	4.207
Lebanon	287	3,300	2.276
Germany	3,401	1,900	1.310
Italy	2,452	1,800	1.241
France	2,435	1,700	1.172
Netherlands	613	1,600	1.103
Portugal	383	1,550	1.069
Austria	280	1,500	1.034
USA	8,134	1,200	0.828
Singapore	127	1,150	0.793
Kuwait	79	1,000	0.690
Belgium	228	950	0.655
Sweden	126	600	0.414

The data in Table 3 are from a chart in the Apr-2011 issue of Economist magazine (Economist.com) which showed the dollar value of gold reserves (at April’s average of $1,450 US$/ounce) that 13 leading nations owned per person. As a check, the USA number of $1,200 $/person correlates with a population of 310 million. Fortunately, the amount of gold per dollar or person is not crucial. When we start a new system of pricing by weight of gold, the market will adjust, and we will grow from there. The same applies to all nations that also convert, and they all will, or Sellers won’t accept their fake money! Central banks have acquired more gold in recent years. They often scoff at the need for gold as a ‘barbarous relic’ but in fact fear it because a rising gold price means the currency value is dropping.

Table 4 is a sample of five nations, and total world holdings for all central banks.

Table 4: World Central Bank Gold Reserves
(metric tonnes)

Year	USA	Germ	Fran	Switz	UK	Total
any	ce	erland
1850	x	x	x	x	105	109
1875	87	43	337	x	154	1089
1900	603	211	544	29	199	3175
1925	5998	432	1201	59	1046	13892
1950	20279	0	588	1306	2543	31096
1975	8584	3658	3139	2588	654	31790
2000	8137	3701	3184	2590	715	30025
2011	8134	3401	2435	1040	310	30563

                  Source: World Gold Council, Research Study 23

Notes on Table 4:
1. USA had losses after 1944 when nations converted Fed Notes to gold,
2. The UK sold about 395 tonnes from July 1999 to March 2002, at an average price of about US$275 per ounce,
3. Canada went from 1,083 tonnes in 1985 to 3.4 in 2011,
4. China and India, both persons and government, have been 52% of world buying since 2010. China’s total for 3^rd quarter 2011 was about 146 metric tonnes, compared to 120 for all of 2010!,
5. Central Banks have been net buyers since Jan-2010.

Most central banks engage in buying and selling to ‘stabilize’ the gold price (see US ‘ESF’ on page 44) to suit political goals. They scoff at gold, but show they believe it has fundamental market value since they keep it in their reserves (if they can afford to).

Nations that have low amounts of gold in their central bank reserves, usually hold USD cash or securities that they can use ‘as if gold’ after the US converts. For example, China only holds only 1.7% of its FOREX reserves in gold (most are in USD securities and US cash), Japan 3%, Russia 6.7%, Saudi Arabia 3%, India 8.1, Taiwan 4.6%, and Canada 0.2%, while the US has 74.7% in gold, Germany 71.7%, and Switzerland 16.4%. The new value of currencies and bonds in weight of gold, after the issuing nations convert and assure redeemability, will add to a nation’s public and private gold assets.

Of the 160,000 tonnes of gold mined in history, the world allocation is about 52% for jewelry (83.2 tonnes), 19% central banks (30,400 tonnes), 16% investment bars, and coins (25.6 tonnes), 12% industry (19.2 tonnes), and 2% not accounted for. About 50,000 tonnes is estimated yet unmined. As the world moves to gold-as-money, names like ‘Dollars’ can be eliminated and ‘weight’ will rule as the unit of account! Since the U.S. has trillions of fiat 'dollars' in circulation worldwide, the market value of a US$ for conversion (trade-in) purposes will be a small fraction of an ounce, as shown in ‘Step 3’ on page 95. This implies that a minimum dollar amount may be required for an owner to redeem representative money for physical gold, since the tiny physical size of gold per dollar would be a problem in handling and measuring. If it were not a secret as to how much gold the government has at Fort Knox, The IMF, and in Federal Reserve facilities, a better estimate could be made. Conversion of fiat money to gold money needs planning to avoid panic and uncertainty among current owners of fake money. Thus my Six-Step plan allows the Federal Reserve Notes to be redeemable for gold right away (but no new ones created), and used for up to three years before they must be ‘turned-in’ for new notes or coins from any mint. Since the existing Fed Notes will immediately represent gold, there will be no panic among Fed Note owners to get rid of their Notes. Once the new gold money is introduced, I predict all nations will soon follow in converting to their own gold money as their fake money is refused as payment by Sellers and Lenders. In this case, good money drives out bad; the reverse of Gresham’s Law. This would end the justification by governments for money-control schemes that central banks, the IMF, and the BIS pursue worldwide.

Key changes to expect, all based on free market reality, not laws or G-20 agreements:

1. The concept of a 'reserve currency' would no longer be needed because any gold-based money would be accepted in world trade, or for bank reserves,
2. When most nations convert to gold money, the concept of a ‘price’ for gold will vanish. The reverse will occur, as coins or notes are ‘valued’ in the weight of gold they contain or represent, and Sellers advertise ‘prices’ in grams (milli, micro?) or ounces of gold,
3. The foreign exchange business (Forex) with banks will wither and die as it becomes useless, as will government manipulation such as the U.S. ‘ESF’ (see page 44).
4. People like to give ‘names’ to money (Dollar, Franc, etc.), but these would be social terms and would not need to appear on the money (but weight of gold would), unless the minter chooses to do so. Weight of gold will be the unit of account.
5. Nations will convert to gold money on their own terms, as and when needed. There will be no need for grand conferences (G20, G100?) to set rules, although some ‘Agreements’ may occur, and then whither when the ‘rules’ become onerous and counterproductive.
6. There will be no ‘weak’ or ‘strong’ currencies or ‘pegs’, all of which were part of the manipulations in the past. Gold will be the great equalizer and honest broker. The games will be over (and most of the wars).
7. In the present system of constant inflation, borrowers have the advantage of repaying loans with depreciated (less value) money, but with gold as money (by weight) its value may increase during the term of the loan, thus giving the lender an advantage of being paid in a weight that is more valuable. I predict that loan terms will be developed to adjust for this, because both borrowers and lenders will demand it. The likelihood of appreciation will also be a positive incentive to save more, and borrow less.

Patrick Barron, an Adjunct Instructor in Austrian Economics at the University of Iowa (patrickbarron.blogspot.com), said it well in his May 16, 2009 essay ‘The World Does Not Need a Reserve Currency’:“Each country should set its own ratio of local currency to gold and settle all trades in the actual commodity. Then no country—not the U.S., not the European Community, not China, nor Japan—will be able to inflate its currency without destroying its ability to import goods. It will run out of gold for settlement purposes and be forced to deflate. No special governmental agreements are needed. Gold would settle just as checks settle today—by debiting and crediting each nation’s gold accounts wherever they may be. Just as no business can operate with zero money—it is forced to economize—no nation would be able to import continuously by papering the world with its currency, as the U.S. does today. As the profligate nation’s gold reserves dwindled, its ability to import would dry up; prices would drop, making its goods a bargain for export; its gold reserves would start to climb and all would be well.”This ties-in with my ‘5. Fewer Jobs ‘Off-Shored’ statement on page 113. As painful as the transition to ‘gold as money’ may be for some people and nations, it is better than the hyperinflation (with money values approaching zero) that is otherwise 99% likely to occur under our present worldwide fiat money, and central banking system.

Chapter 5: The New Gold Money Era

The Challenges of Introducing Gold
Some will say that this plan for new money is too simplistic, and will not work in today’s complex world. I say they are wrong, because most of the complexity is created by government manipulation of their fake money, and those problems will end when fake money ends. Most (over 95%) of today’s politicians and economists have bought the idea that; 1. the government must run the ‘economy’ and monetary system, 2. all financial activities must be tightly regulated to avoid abuse, and 3. there must be a central bank. Of course they are biased, because they want the jobs, grants, and perquisites that come with this approach, and have been so brainwashed in college and work that they truly can’t imagine another way, and they are WRONG! The new era will depend more on incentive than regulation Gold money in a free market is self-regulating. The heroin-upper effect of loose money will be gone (see Heroin Analogy on page 38). People operate differently when using limited funds, and without the perverse incentive of a bailout. A fake and excess supply of money creates a pot of honey that breeds irresponsibility and bad ethics as people scramble to get more of it. Gold money puts a damper on this frenzy because governments can’t create it out of thin-air, short of reducing reserves for paper ‘representative’ money, which has its limits too. What will other nations do? The people, merchants, and governments will prefer the new gold money, and it will prompt conversions to gold in other nations since their fake money will soon be rejected as payment by sellers and lenders worldwide. Thus, I see no long-term ‘downside’ to the future with gold as money. Of course there will be hardships during the conversion, but the alternative of a hyperinflation depression is worse. Gold money will bring a promising future, while propping-up the old system just brings more losses and war.

Bullion Coins and Private Medallions
As a partial step toward using precious metal coins again, the 1933 law that prohibited private ownership of gold coins and bullion (numismatic coins and jewelry were allowed) was repealed in 1975. Since then the US Mint (http://www.usmint.gov/) has issued a variety of gold, silver, and platinum bullion coins. As shown below, their face values are far below their market value, and thus, though they are legal tender, are not used in commerce (somewhere a bureaucrat is laughing!). They are sold at ‘spot price’ for the metal content, plus fees for production and profit. However, one businessman paid his employees with $5 gold Eagles (see Table 5 below) and they filed their income taxes based on the low face value. The IRS sued but gave up due to a hung jury. The judge said; ‘You can’t have it both ways!’ Many other nations offer bullion coins. Although some bullion coins are legal tender, due to low face values they are all viewed as investments, and are not used as money. A bonus is that they posture the owners to use them promptly if Congress ever repeals the legal tender laws (see Rep. Ron Paul’s HR-4248), and allows use of private mints and coins. They could also come into use if we have a chaotic economic crash and people start using gold, and other commodities, as money. Many US dealers sell the bullion, medallions, numismatic coins, and bars issued by various countries and private mints.

For your convenience (not as a recommendation), examples are: 1. Precious Metal Dealers; InvestmentRarities.com, europacmetals.net, caminocompany.com, monex.com, JimsCoins.net, opencurrency.com, and blanchardonline.com , and 2. Private Mints; nwtmint.com, CoinsForAnything.com, and medalcraft.com. Use an Internet search engine (Google, etc.) to find more. Many private ‘mints’ make precious metal medallions as commemorative pieces for private use (jewelry, keepsakes, etc.). The mints have die-makers (craftsmen) and presses so can quickly design and produce new pieces with any imprint. Some of the most popular government-issued gold coins are shown in Table 5. There are many silver and other metal bullion coins, and bars, in various sizes; from 1 gram to 1 kilo. Most dealers still have paper ‘silver certificate’ US money, made mostly in $1, $2, and $5 denominations (some to $1,000) from 1878 to 1964 (then Fed Notes), that sell as collectibles for $2 to $50 depending on age and condition. The certificates were redeemable in the same face value of silver dollar coins, and later in raw silver bullion, but this ended in 1968.

Table 5:    Bullion Coins Country ;   Name ; Metal; Sizes (troy oz.); Face Values ($)
USA ;   Eagle; 0.9167 Gold ; 1,1/2, 1/4, 1/10;   $50, 25, 10, 5 USA ; Silver Eagle; 0.9999 Silver;    1 ;     $1
Canada; Mapleleaf; 0.9999 Gold; 1,1/2, 1/4, 1/10; C$20,10,5,1
So. Africa;   Krugerrand ; 0.9167 Gold; 1, 1/2, 1/4, 1/10; no FV
P. R. China ; Panda   ; 0.9999 Gold ; 1, 1/2, 1/4, 1/10 ; no FV

(24 carat = 0.9999 pure gold       22 carat = 0.9167 pure)

In addition to survival gear (fire starter, water purifier, solar-powered radio, etc.), a prudent person will own an ample supply of small bullion coins (1/4 and 1/10 oz), or old legal tender coins (pre-1965 US quarters and dimes, Morgan dollars, etc.) with 0.72 oz silver content, for use as money if it becomes legal to trade at the bullion value. If gold soars to $10,000 or $50,000 per ounce after the crash, these will be useable sizes with strong purchasing power, but even lower value coins will be needed.

Benefits of a Gold-Money World
In summary, we can expect the following benefits when the new gold money becomes legal:

1. More Peace: Wars are very expensive. The absence of an unlimited supply of fake money will inhibit the starting of wars; Diplomacy will be used instead. Imperialistic aggressors will have trouble getting funded.
2. More Prosperity: Gold money will increase in purchasing power if percent economic growth exceeds the percent addition of newly mined gold. Savings will be rewarded, and more money (purchasing power) will be available for investments. Managers can plan better with stable currency.
3. Less Government: Governments need money to grow.Taxation has its limits, and in the absence of the unlimited supply of fake money, government programs, staffing, and spending will be limited. There will be less intervention in, and control of, our lives and work. More Liberty, Peace, and Prosperity will be the dividends.
4. Fewer and Smaller Business Cycles and Depressions: The ‘highs’ of major business cycles are caused by bad investments due to excess availability of money (credit and currency); too many new dollars chasing a limited number of deals, many of which are high risk. The incentive is to ‘do something’ with the excess money. When the pool of money is reduced (Fed cutbacks) the frenzy drops like a rock. With a limited supply of real gold money, any frenzies would soon run out of money to feed them, and the cycles would be small or none.
5. Fewer Jobs ‘Off-Shored’: Due major increase in US wage and benefit costs after WW2, starting in the ‘80s, factories were built in other nations where costs are lower (first Mexico, then China, India, etc.) and the jobs moved out of the US! The same applies to software since the ‘90s. In addition, there is no limit to how much a country can import when it issues the world’s reserve currency and can make it out of thin air. That’s why our imports have soared since 1971 (when Nixon ended the dollar’s tie to gold), and many of our factories have shut down. With gold as money, the importers run out of money, and local producers get the business. This is one of the self-regulating aspects of gold.
6. Fewer Sovereign Defaults and No Currency Devaluations: In the past, many nations have defaulted (stopped payments) on some or all of their debt when they became overburdened, and then devalued (reduced face value) their currency to increase exports (lower prices). This robs lenders, and holders of the currency, but lets the nation enjoy a ‘fresh-start’, hopefully with reduced government spending and fewer anti-business laws. Argentina in 2002 is a recent example. When gold is money, the devalue option ends, which should give politicians and citizens incentive to keep their laws and economy more competitive. This new attitude will also reduce the excessive spending that leads to defaults.                                    *************
We can enjoy these benefits, and avoid a crash of our economy, currency and lifestyle if we implement this plan for gold money. If we crash, meaning severe reduction in economic activity (depression), and 50% to 90% loss of purchasing power of the US dollar, we will need to rebuild from the ‘ashes’. This can be viewed as an opportunity for the people to spontaneously start using gold as money. They will see its benefits, and demand to keep it! The laws can follow. Politicians will be desperate to keep their jobs so will cooperate to pass and repeal laws as needed; otherwise they will be fired and replaced. It will require something like the above ‘crash’ circumstances, and a people-led Monetary Revolution, to take back our government from the self-serving career politicians, empire-building warmongers (neocons), and banksters. Will you help? A key purpose of this book is to build support for the conversion to gold, and be ready to act when the right time comes to push changes through Congress. In the meantime, we should be working to elect like-minded people to Congress, and educating those already there.

Contact me at Dave@Forward-USA.org and see the text of this book at parts 1 and 2 in the left margin of my site www.Forward-USA.org, or on Amazon.com.

Thanks for your interest and support, Dave Redick

                    *************** END ***************

Recommended Authors, Books, and Sources: Index: A. Authors, B. Books, C. Organizations, D. Internet Sites
                   ***********************

A. Info on Key Authors Noted in this Book. (alpha order)

1. Donlan. Thomas G.: He joined Barron's as a reporter 1979, and became its editorial page editor in 1992 (Barrons.com). His books are; "Supertech," 1991, "Don't Count On It," 1994, and "A World of Wealth: How Capitalism Turns Profit into Progress," in 2008. These books present his case on a range of topics. In his columns, he writes about the power of capitalism and how free markets and free-enterprise offer the best solutions to create more liberty, peace, prosperity, justice, and morality in a nation or society.
2. Ebeling, Richard, Ph.D., (1950- ): He received his B.A. degree in economics from California State University, Sacramento, his M.A. degree in economics from Rutgers University, and a Ph.D. in economics from Middlesex University in London, UK. He was president of the Foundation for Economic Education (FEE) from 2003 to 2008, and has written and edited numerous books and articles, including the three-volume Selected Writings of Ludwig von Mises (Liberty Fund), recovered from Russia. His most recent works are Political Economy, Public Policy, and Monetary Economics: Ludwig von Mises and the Austrian Tradition, (2010), and Austrian Economics and the Political Economy of Freedom, (2003).
3. Edwards, Michael: After graduating from Rutgers University, Michael Edwards began his career as a technical writer and editor operating freelance for trade magazines and books in a variety of areas. In early 2010, Michael founded Activist Post.com, a blog where his own writings appear, along with co-founder, Eric Blair, as well as many contributors. They post new articles daily on a broad range of issues which challenge the diluted, biased, and often false info the political ‘establishment’ and Main Stream Media offer. 4. Fekete, Antal, Ph.D.: He is an esteemed author, mathematician, monetary scientist and educator. He is a proponent of the gold standard and a critic of the current monetary system. Go to the Home page of www.professorfekete.com to see ‘Remobilize Gold to Save the World Economy’, and other writings. Also see his ‘Proposed Parallel Gold-Coin Standard to the Federal Reserve System’ at http://www.afr.org/antal.html .
5. Hagel, Chuck: A former US Senator (R-NE), he wrote 'America: The Next Chapter: Tough Questions and Straight Answers', in March-2008, which is a collection of practical-and nonpartisan-policy prescriptions on issues as diverse as healthcare and the Middle East. He is now Chairman of the ‘Atlantic Council’ (acus.org), a college professor, and serves on several corporate Boards.
6. Hayek, Frederick A., Ph.D.: Nobel Laureate. See;  'Denationalization of Money: The Argument Refined', 1976, which puts forth the case to; 1) end the government monopoly on money creation, 2) let anyone create money, and 3) let the free market determine which type of money is used.
7. Lehrman, Lewis: An ardent promoter of the benefits of the gold standard for over thirty years, he co-chaired Reagan’s ‘U.S. Gold Commission’ with Dr. Ron Paul in 1981, and co-authored their Minority Report, ‘The Case for Gold’ in 1982. His new book ‘The True Gold Standard’ (Aug-2011, published by LehrmanInstitute.org) is his latest effort.
8. McKinley, Vern: His book, ‘Financing Failure: A Century of Bailouts’, Jan-2012, shows how government meddling and fraud caused the US financial crisis in 2008. He is a Research Fellow at www.Independent.org .
9. Miller, Donald W., Jr., M.D.: He is a cardiac surgeon and Professor of Surgery at the University of Washington in Seattle,   and writes on politics, health and medicine. For a start, see his excellent ‘A Fourteen Point Plan for a Post-Wilsonian America‘ at http://www.lewrockwell.com/orig2/miller2.html, and his archives at www.lewrockwell.com. His web site is www.donaldmiller.com.
10. Mises S.J.D., Ludwig von: As the leading scholar of the ‘Austrian School’ of economics, Mises has written many books, led by ‘Human Action’ (1949), ‘Socialism’ (1922), and ‘The Theory of Money and Credit’ (1912). See more at www.mises.org.
11. Paul, Rep. Ron, MD (R-TX): He wrote 'The Revolution: A Manifesto' in Apr-2008, ‘End the Fed’ in Sep-2009, and ‘The Case for Gold’, with L. Lehrman, in 1982. A Republican candidate for President in the 2008 and 2012 primaries. Dr. Paul says we have been lied to, robbed and used by our own government.
12. Quinn, James: He is Senior Director of Strategic Planning for a major university, and author of a series of essays on world financial affairs. For more, go to http://seekingalpha.com/author/james-quinn , and his main site; http://www.theburningplatform.com/
13. Roberts Ph.D., Paul Craig; An Economist and author of eight books and many articles on economics and politics; all non-PC, based on fact and logic, and seeking the truth. He holds a Ph.D. from the University of Virginia. He a Research Fellow at the Independent Institute, a former associate editor of the Wall Street Journal, former contributing editor for National Review, a former assistant secretary of the U.S. Treasury, and Senior Research Fellow at the Hoover Institution, Stanford University. See his full story at http://en.wikipedia.org/wiki/Paul_Craig_Roberts.

14. Rothbard, Murray, Ph.D., 1926-1995, was a prominent economist of the Austrian school, Professor, and prolific author. See 'What has the Government Done to our Money?’, 1962, ‘Origins of the Federal Reserve’, ‘The Mystery of Banking’, 1983, and ‘The Case for the 100% Gold Dollar’, 1991, at http://www.lewrockwell.com/rothbard/rothbard207.html,

and more at http://www.mises.org/money.asp
15. Salerno Ph.D., Joseph, is a professor of economics at Pace University and chair of the economics graduate program. He is also a senior faculty member of the Mises Institute, for which he frequently lectures and writes about monetary policy and banking.
16. Schiff, Peter, is President of Euro Pacific Capital, and author of ‘The Little Book of Bull Moves in Bear Markets’ and ‘Crash Proof: How to Profit from the Coming Economic Collapse’. See his http://www.europac.net/, and archives at http://www.lewrockwell.com/schiff/schiff-arch.html
17. Shelton Ph.D., Judy, wrote ‘Money Meltdown’ in 1994, ‘A Guide to Sound Money, 27 pages, in 2010, and ‘Fixing the Dollar Now’, 57 pages, in 2011. She is co-Director of SoundMoneyProject.org.
18. White Ph.D., Lawrence H. (economics.gmu.edu) is author of ‘The Theory of Monetary Institutions’ (1999), ‘Free Banking in Britain’ (2nd ed., 1995), ‘Competition and Currency’ (1989), and other volumes. He specializes in the theory and history of banking and money.
19. Woods Jr., Ph.D., Thomas E.: He is a historian with focus on government, economics, and law. Of his eleven books, those that apply most here are ‘Rollback’ (2011) and ‘Meltdown’ (2009).

B. Books:
1. ‘The Blowback Triology’, a trilogy by Chalmers Johnson, 1931-2010, (Blowback-2000, Sorrows of Empire-2004, Nemesis-2007), plus Dismantling the Empire-2010. Johnson shows how our meddling, and expensive, foreign policy does harm’
2. ‘The Coming Collapse of the Dollar and How to Profit from It’, 2004, by James Turk and John Rubino. They describe how monetary systems have been abused by governments for centuries. See www.goldmoney.com ,www.dollarcollapse.com, and www.cmre.org

3. ‘The Creature from Jekyll Island: A Second Look at the Federal Reserve’, Edition #1,1994; #5, 2010, by G. Edward Griffin (realityzone.com and freedomforceinternational.org). He reveals the sinister origins and self-serving goals of the bankers who started the Fed, and publishes the FFI newsletter.

4. 'Empire of Debt', 2006, by W. Bonner and A. Wiggins. It addresses how of excess national debt and spending can drastically reduce the value of the U.S. dollar, and cause a major depression.
5. 'The Great Reckoning: How the world will change in the depression of the 1990s', 1991, by J. Davidson and Lord R. Mogg. They warn of economic collapse of the US due to overspending and Empire-style foreign policy.
6. a) ‘Index of Economic Freedom’, annual since 1994, The Heritage Foundation, charts economic success vs. freedom; www.heritage.org/research/features/index/ and b) Economic Freedom of the World: Annual report by Cato Institute,    http://www.cato.org/pubs/
7. 'A Nation of Sheep', 1961, by William Lederer (also 'The Ugly American'), is about how Americans accept abuse by the government without complaint, as long as the 'good times roll'.
8. 'A Nation of Sheep', 2007, by Andrew Napolitano, (also 'Constitutional Chaos' and ‘Lies the Government Told You’), is about how Americans accept abuse by the government without complaint or curiosity, as long as the 'good times roll'.
9. ‘Gold, The Once and Future Money’, 2007. by Nathan Lewis. An economist by trade, Lewis refers to ‘good money’ as the ‘cornerstone of good government’, and promotes the gold standard as the best system. www.newworldeconomics.com

10. Older Books that Gave Warning and Good Advice

a. ‘The Law’, 1850, by F. Bastiat. With his perspective of the French Revolution, he explains the fallacies of Socialism and how it must degenerate into Communism.
b. ‘Capitalism: The Unknown Ideal’, 1967, by Ayn Rand. Discusses both the productive and moral aspects of Capitalism. Comments by Alan Greenspan (before he joined the Fed banksters in DC)
c. ‘A Time for Truth’, 1979, by William Simon. Bill warned us of the damage being caused by excess spending, taxes, and the debasement of our currency.
d. ‘An American Renaissance’, 1979, by Rep. Jack Kemp. Jack sent an upbeat message on how less government spending and lower taxes would produce more growth, all based on his support of Austrian economics.
e. ‘Crisis Investing’, 1979, by Douglas R. Casey. Doug predicted a major depression due to government intervention. He supports sound money. His work at www.CaseyResearch.com continues. He has written eleven other books about investing.
f. ‘Restoring the American Dream’, 1979, by Robert Ringer. Robert warned us of a trend in the US to expect a ‘free lunch’, and how we can reverse the trend.
g. ‘None Dare Call It Conspiracy’, 1972, Gary Allen with Larry Abraham. Probes the secret dealings of bankers, industrialists, and politicians to distort US policy and money for their own gain.
h. ‘The Supply-Side Revolution’, 1984, by Paul Craig Roberts. This is an account of how the Reagan administration pursued tax cuts rather than increased spending to boost the economy.
i. 'The True Believer', 1951, by Eric Hoffer, a book which shows how people join a group or mass to bring a sense ‘belonging’ or ‘superiority’.

C. Organizations: They do books, blog, meetings, and courses.

1. The Cato Institute: www.cato.org
2. The Independent Institute: www.independent.org
3. The Ludwig von Mises Institute: Daily essays are at www.LewRockwell.com, plus books and articles at mises.org.
4. Reason Foundation: A magazine and www.reason.org
5. Foundation for Economic Education: www.Fee.org

D. Internet Sites:
1. For more on money, visit: TheGoldStandardNow.org, SoundMoneyProject.org, AtlasNetwork.org, en.wikipedia.org/wiki/Money_supplymises.org/freemarket_detail.aspx?control=483, history.com/minisites/money/viewPage?pageId=52498, DollarCollapse.com, goldmoney.com, cmre.org,en.wikipedia.org/wiki/History_of_money,goldismoney.info, pgpf.org, measuringworth.com , shadowstats.com/, MoneyWatch.com,transaction.net/money/lets/,professorfekete.com, xat.org/xat/moneyhistory

2. General Web Sites about Government & Economics: See a flow of essays from; LewRockwell.com, Activistpost.com, Antiwar.com, FFF.org, Truthdig.com, Alternet.org, VDare.com, reason.org, pacificreasearch.org, freedomforceinternational.org, independent.org, pacificlegal.org, cato.org, online.barrons.com, garynorth.com, dailyreckoning.com, pgpf.org, mises.org, economicpolicyjournal.com, informationclearinghouse.info

Appendices:
No.                        Title                                                         Page
1. Remobilize Gold to Save the World Economy       118
2. Wars and the Lies That Start Them                         118
3. Fake Money: Cause of Wars, Depressions             121
4. The Phases of Empire                                                   123

Appendix 1: Go to the Home page of www.professorfekete.com to see ‘Remobilize Gold to Save the World Economy’, by Dr. Antal Fekete. Here is an excerpt: ‘The debt crisis of 2008 was a dress rehearsal. It gave the world a foretaste. This crisis is a gold crisis. It is a crisis indicating the threat of a shortage of the ultimate extinguisher of debt, without which our runaway debt tower is doomed. When it topples, it will bury the world economy under the rubble, as the Twin Towers buried the people working inside in 2001.’ Dr. Fekete is an esteemed author, mathematician, monetary scientist and educator. He is a proponent of the gold standard and a critic of the current monetary system. Also see his ‘Proposed Parallel Gold-Coin Standard to the Federal Reserve System’ at http://www.afr.org/antal.html .

Appendix 2: (Note: This Op-Ed is included because all of the wars shown below were financed by fake money, Dave)

Published Mon. Sep. 10, 2007 in the Wisconsin State Journal (www.madison.com), a regional daily newspaper based in Madison, and ActivistPost.com.

‘Wars and the Lies That Start Them’

By David Redick

Our presidents, and their complicit henchmen, have lied us into every war since the revolution in 1776. Their real reasons have not been legal, constitutional, or politically acceptable, so they invent one or more false reasons that they can "sell " to the people.Sadly, most people believe the lies, and proudly support them as "wars for defense. " They can't imagine that our leaders would be so evil as to spend the lives of our troops to gain their hidden political and economic goals for Empire-USA.The secret plan of Bush and his gang was to: 1) Take over all oil in the Middle East so we don 't have to share it with China and India, 2) Land for bases, 3) Evict China from Eastern Europe and Africa, and 3) Defend Israel at any cost. Control of oil was the hidden reason for the Balkans, Afghan, and Iraq wars.Iran is their next target.The war drums are beating in Washington to justify bombing Iran, so this is a good time to consider whether our leaders are lying again. Here are the facts on how we got into a few major wars. Each one could be a book, so please forgive the brevity.War of 1812 (Madison, 1812)Lies: In 1812, Congress declared war on England based primarily on their kidnapping ("impressment ") of our sailors at sea. Truth: To drive England out of North America and get southern land. The war started with our invasion of Canada, at Detroit. We burned their Parliament buildings in York (now Toronto), so they burned DC ! The 'Star Spangled Banner' was written when British boats shelled Baltimore Harbor.
Mexican-American War (Polk, 1845)Lies: Fight to defend our Texas border with Mexico. Truth: We invaded to expand, and took the northern half of Mexico, now our entire Southwest region.Civil War (Lincoln, 1865)Lies: Fight to end slavery and preserve the union. Truth: The South seceded due to economic abuse by the North. Slavery was ended later (but only in Southern states).Spanish-American War (McKinley, 1898)Lies: Spain blew-up the U.S. battleship Maine in Cuba 's Havana harbor. Truth: The accidental explosion was used to invade Cuba, and the Philippines (for a Pacific port).World War I (Wilson, 1917)Lies: Join Europe to "Make the World Safe for Democracy. " Truth: Wilson was convinced to join by U.S. and European industrialists.World War II (FDR, 1941)Lies: Defend the United States from unprovoked attacks by Japan. Truth: FDR wanted to help his pal Winston Churchill, and preserve our oil and industrial sources and markets, so he poked Japan until he got his "incident."Korean War (Truman, 1950)Lies: Defend America. Truth: Truman and the generals wanted a reason to have troops in the Far East area of our Empire.Vietnam War (Kennedy, 1955)Lies: Johnson said Vietnam attacked our ships in the Gulf of Tonkin. Truth: The United States didn 't want to lose the southeast Asia region, and its oil, to China. Gulf War (Bush-41, 1990)Lies: To defend Kuwait from Iraq. Truth: Saddam was a threat to Israel, and we wanted his oil.Balkans (Clinton, 1998)Lies: Prevent Serb killing of Bosnians. Truth: Get the Chinese out of Eastern Europe and Caspian Sea areas so they couldn't get control of the oil.Afghanistan (Bush-43, 2001)Lies: The Taliban were hiding Osama. Truth: To access the east of Caspian oil region by building a gas/oil pipeline from Turkmenistan, thru Afghan, to a warm water port near Karachi.Iraq (Bush-43, 2003)Lies: Stop use of WMDs, or bring democracy. Truth: Oil, defense of Israel, land for permanent bases and restore oil sales in the U. S. dollar.Possible Iran WarLies: They almost have an atom bomb. Truth: Oil and defense of Israel. Fight the Bush gang to stop their plans for war against Iran.
****************
Redick, of Madison, WI, is president of Forward-USA.org.

Appendix 3: Published as the ‘Guest Column’ on Jan. 29, 2008 by the Wisconsin State Journal, a regional daily newspaper based in Madison, WI (www.madison.com), and at activistpost.com. By David Redick.

‘Fake Money: Cause of Wars, Depressions’ .

On Jan. 22, 2008, the Federal Reserve System issued an interest rate cut to "rescue the economy. " This shows how counterproductive government "management " of the economy is.

It creates problems with too much easy money (mortgages), and then tries to solve them with more of the same (a "stimulus " package). The analogy is that easy money is like a heroin high, and recessions are like withdrawal. In each case, it is better to avoid the fake highs and let the free market work.Our monetary system is very important because it affects government policy so much. Our leaders in Congress want an unlimited supply of that money so they can continue to give handouts to voters and fund wars for empire, such as Iraq.Since only the federal government can create money, we see an increase in the number of state projects funded by Washington and more pork from the Capitol.You won 't read the following analysis in the newspapers or in a college economics course. Most politicians, business leaders and professors like the current system of fake money, because their jobs, grants, and social lives depend on it.Thus they ridicule the idea of real money (redeemable for gold, by any person, on demand) as old-fashioned. However, history and logic show us that the use of real money, not subject to manipulation by government, is fundamental to the long-term success and survival of a nation. Conversely, all failing nations in history have resorted to debasement of their currency, using worthless paper and less-precious metal in coins, to fund their excess spending. Fake paper money, managed by the Federal Reserve, is what allows the massive spending and debt for wars and domestic pork and welfare that have brought the United States to the brink of economic collapse. The Fed is a private bank created in 1913, which was granted authority to produce our currency and manage our monetary system. Its mission to bring stability and maintain the dollar 's value has been a failure. The U.S. dollar has lost 95 percent of its purchasing power since 1913, and 40 percent against the Euro since 2001.The key reason to allow redeemability of paper ‘representative’ money to a commodity is to limit excess expansion of the money supply. The commodity could be wheat, iron, diamonds, or pearls, but gold works best for many practical reasons. Politicians hate real money because it limits their spending.The United States is bankrupt due to excess debt, spending and future obligations, with no cure in sight. Those countries that own a lot of U.S. dollars can 't afford to dump them as their value declines due to fear of starting worldwide panic selling.But history shows us that something always triggers panic selling and a crash. This crash could reduce the value of the U.S. dollar by 50 percent or more, and start a worldwide depression. Sadly, very few people understand or care about currency issues. Instead, they prefer our version of Roman bread and circuses as we crash. Redick of Madison is President of www.Forward-USA.org.

Appendix 4: The Phases of Empire
This analysis explains why all empires, and 'Imperial Style' governments, in history have failed, and why our 'Empire-USA' faces the same fate. See the full analysis at; 1. Part 5 in the left margin of www.Forward-USA.org and 2. www.activistpost.com.

                    ***********************

                       Dave’s Glossary:

1. Central Bank: Whether private or owned by the government, a central bank usually has certain government-bestowed duties and privileges such as; a) The sole right to issue currency and market government securities, b) Allowed to operate in almost total secrecy to supposedly avoid political influence, c) Set interest rates, d) Buy government securities to fund government expenses, e) Stabilize the value of the currency and keep unemployment low (these may be fake duties, but sound good!), f) Serves as the ‘Lender of Last Resort’ to banks short of cash (a sweet deal for casino bankers!), and g) other acts. The CB typically works closely with the Treasury Department, and key managers may be appointed by the government. In the U.S., it is the Federal Reserve System.
2. Deflation: The opposite of Monetary Inflation; a reduction in the money supply, and an increase in purchasing power of each money unit, thus lower prices. Not to be confused with ‘depression’.
3. Depression: Any economic downturn where real GDP (Gross Domestic product) declines by more than 10 percent. Also; Two or more quarters of reduced GDP. A recession is an economic downturn that is less severe.
4. Economics:
A. Operating Economics:
1) Capitalism - An ‘economic system' based on private ownership, free enterprise, and minimal regulation. It offers more than economic results, it is a moral system that depends on willing buyers and sellers within the rule of law, not coercion and control by others
2) Socialism: A ‘political system’ where most of the means of production and trade (factories, railroads, etc) are owned by the government, which sets pricing, product specs, etc. The government controls most wages, with an emphasis on ‘fairness’, need, and ‘hours worked’, rather than value of the service performed.
3) Fascism: A ‘political system’ which allows private ownership of businesses, but there is extensive government control and preeminence. Similar to ‘Crony Capitalism’, where firms seek favors from government.
4) Communism: A ‘political system’ where the government owns all housing, agriculture, industry and transportation (almost everything but your wagon and the clothes on your back). The government tells you where to live, go to college (if any), and where to work.

B. Academic Economics:
1) The ‘Austrian School’ of economic thought (led by Hayek, von Mises, Rothbard), emphasizes the spontaneous organizing power of free market pricing, decisions by individuals, gold money, and little or no government management or stimulation of the economy.
2) The ‘Keynesian Theory’ was founded by John M. Keynes in the 1930s (now led by Krugman, and Stiglitz), and depends on massive use of government fiscal (spending) and monetary (interest rates) policy, both using fake money, to try to create prosperity or avoid and end depressions. History and logic show the Keynes approach is unsustainable and never works for more than a year or two (unless supported by natural resources; oil, timber, ores, etc.).
3) ‘The Chicago School’, or ‘Monetarism’ was founded by the late Milton Friedman, and now has partial support from Volcker, Greenspan, and Bernanke. It focuses on controlling the money supply to manage the economy, and otherwise supports the free-market.

5. Fiat Money: Fiat (by decree) money it is worth whatever the government says it is (face value), although the material of which it is made may have more or less market value (examples; one ounce silver dollars and worthless paper, both declared worth $1; one ounce American Eagle gold coin with face value of $50).
6. Fiscal Policy: Management of government spending to fulfill obligations, and in some cases to ‘stimulate’, or ‘guide’, the economy.
7. Free Market: A market that is free from government intervention (i.e., regulation, subsidies, price controls, or governmental monopolies, etc.). In a free market, property rights (ownership of goods and services) are voluntarily exchanged at a price and terms arranged solely by the mutual consent of sellers and buyers/consumers, with no government control of pricing, creation of new firms, pay and benefits, hiring and firing, etc.
8. Gang Theft: This occurs when one group of people in some manner overpowers another group, and forcibly takes assets from them. Most people agree that it is immoral, and should be illegal, but oddly, most people (Liberals and Conservatives alike) believe it is OK to employ gang-theft-by-vote to tax, restrict, or control others (usually ‘the rich’), via government power as the larger group sees fit. They justify it as making their victims pay their ‘fair share’, they got rich by luck, etc. This in fact describes an immoral government.
9. Gross Domestic Product (GDP): The market value of all final goods and services made within the borders of a country in a year. Gross National Product (GNP) is GDP plus income received from other countries (notably interest and dividends), less similar payments made to other countries.
10. Inflation: 1. Monetary Inflation: A rapid and excess expansion of the money supply (such as over 5% per year; more than growth of GNP); purchasing power of a given monetary unit (Dollar, etc.) is reduced, 2. Price Inflation: Increase in current prices due to reduced purchasing power, in turn due to an increase in the money supply (or other factors such as reduced supply, increased demand, cartel pricing, etc.). ‘Nominal’ is the listed price. ‘Real’ is a past or future nominal price adjusted for price inflation.
11. Mercantilism: An economic system where the ruling government seeks wealth, especially gold or silver bullion, by playing a protectionist role in the economy, and by encouraging exports and discouraging imports, notably through the use of tariffs, subsidies, and money valuation. The opposite is a policy of laissez-faire, which says that all trade is good and that such controls are counterproductive, and usually evolve to be used as political favors.
12. Monetary Policy: Management of the monetary system including money supply, bank reserves, interest rates, etc.
13. Money: (mostly from wikipedia.org) Money is anything that is generally accepted as payment for goods and services and repayment of debts. The main functions of money are distinguished as: a medium of exchange, a unit of account, a store of value, and occasionally, a standard of deferred payment. Money originated as commodity money, then evolved to easier-to-transport representative money in which a paper certificate, or base-metal coin (a ‘token’, made of copper, zinc, nickel, or alloys with precious metal, etc.), stands for, and is marked as (‘Face Value’), the weight of a commodity (such as gold), which can be redeemed by the Bearer on demand to the Issuer (Mint). However, nearly all contemporary money systems at the national level are fiat money systems. Fiat money is without value as a physical commodity, and derives its value by being declared by a government to be legal tender; that is, it must be accepted at face value (dollar, etc.) for payments within the national boundaries of the country, for "all debts, public and private". The money supply of a country is usually held to consist of currency (paper money, and coins) and demand or time deposits or 'bank money' (the balance held in checking accounts and savings accounts). These deposits usually account for a much larger part of the money supply than currency. Bank money is intangible and exists only in the form of various bank records. ‘Currency’ is physical money in any form, coins or notes.In the new ‘gold-era’ of money recommended in this book, all ‘Face Values’ would be in the weight of the commodity they contain, or represent.
14. Principle: An underlying guide to thinking and action. A comprehensive and fundamental law, doctrine, or assumption. A rule or code of conduct. Dave’s core political principle is: ‘'The government's proper role is to protect its citizens and legal residents, as individuals, from threat to, or violation of, their personal and property rights by others”. Note that; a) ‘groups’ (by sex, ethnic, age, etc.) have no special rights or privileges, and b) legal entities (corporations, etc.) only have property rights, but their officers may represent the personal rights of shareholders.
15. Reserves: 1. Fractional Reserve Banking means the bank need only retain a certain percent of deposits on hand (typically about ten percent) and can loan the rest. In fact, this means banks can loan ten times the amount of their deposits, thereby creating new money! For example, a $1,000 deposit can back $10,000 of new loans. 2. ‘Reserve Currency’ is the money of a certain nation that by agreement or common usage; a. can be used by banks as their ‘reserve’ (‘good as gold’) which underpins their loans and obligations, and b. is acceptable for payments between other countries worldwide.
16. Standards for Gold-Based Monetary Systems The gold standard is a monetary system in which the standard economic unit of account is a fixed weight of gold.
1) The Gold Specie Standard is the system in which the monetary unit is associated with a circulating gold coin. (issuer has 100% reserves for redeemability)
2) The Gold Exchange Standard may involve only the circulation of silver coins, or coins made of other metals, but the authorities will have guaranteed a fixed exchange rate with another country that is on the gold standard, hence creating a de facto gold standard in that the value of the silver coins has a fixed external value in terms of gold that is independent of the inherent silver value
3) The Gold Bullion Standard is a system in which gold coins do not actually circulate as such, but in which the authorities have agreed to sell gold bullion on demand at a fixed price.(#16-1,2,3 from http://en.wikipedia.org/wiki/Gold_standard)4)
The Private Gold Standard version introduced here is based on ‘Redick’s Four Money Rules’ (see page 85). Under this plan, money is produced by private firms in the free market where customers (users of money) decide which type and source of money they prefer, and mints compete for customers by supplying a good product. There is no central bank (our Fed), and government mints (run by the Treasury), if any, are optional, and have no control or privilege over the private mints. The free market is allowed to work! The ‘unit of account’ may be weight of metal.

17. Table 6: Weight: Conversion: Common units for precious metals are:
1 Tonne (metric) = 2,205 pounds (Lbs) = 1,000 Kilograms (Kg)
                               = 32,150 troy oz.
1 US Ton (Short) = 2,000 Lbs advp.     =     907.2 Kg
1 UK Ton (Long) = 2,240 Lbs advp.     = 1,016.5 Kg1 gram     = 15.43 grains = 5 metric carats = 0.643 pennyweight1
Troy Ounce = 31.10 grams = 480 grains (gr)= 120 engl. carats
1 Troy Pound      = 12 Troy ounces (Oz)
1 Advoirdupois Lb= 16 advp. ounces= 453.6 grams=7,000 grains
1 Advp. ounce     = 28.35 grams (g), 437.5 grains
1 English carat    = 1.296 metric carats (for precious stones)

% Gold   Europe System    Carat System
                      Fineness
   100.0            1.000             24 carat
    91.7            0.917            22
     75.0             0.750            18
     58.5             0.585            14
    41.6             0.416            10

Notes:1. The ‘Long Ton’ is the Imperial system used in the UK
2. The ‘Short Ton’ is used in the US and Canada.
3. The IMF and all nations measure their gold in metric tonnes.
4, Gold weighs 19,320 kg per cubic meter. Tungsten is close at 19,600, so it is sometimes gold plated and used as fake gold bars and ingots. Steel is 7,850, copper 8,930, lead 11,340, and water 1,000.
5, Grains, grams, and Tonne are metric units. The Troy system was started by King Henry II of England. The Advoirdupois system evolved through common usage in Europe.
6. Fineness: The purity of a precious metal measured in 1,000 parts of an alloy: a gold bar of 0.995 fineness contains 995 parts gold and 5 parts of another metal; 0.999 means a coin is 99.9% pure.

     ************************

Biography of Dave Redick

Personal: Dave grew up with his two brothers in a middle class family near Detroit, MI. When he was 14, the family moved to an 80-acre general farm near Ann Arbor, Michigan. He has an honorable discharge from the U.S. Army Reserve. After 46 years in California, he moved to Madison, WI in 2004 to be near his family.

Education and Business: Dave won a four-year tuition scholarship to the University of Michigan, based on grades, activities (Sr. Class President, sports), and need, and started in the fall of 1953. He completed his BS Engineering in 1958.Upon graduation he worked as an aerospace engineer for 5 years (rocket engines and satellites) in California, and then started his career in telecom sales and management. In 1965 he earned an MBA in Economics from Santa Clara University in Santa Clara, CA, and after management positions in several other firms, in 1995 became VP Sales, then President, of a wireless engineering consulting firm www.hntelecom.com. He left in 2000 to be VP and cofounder of a Silicon Valley telecom startup ‘Fiberstreet’ (closed, see Google), and helped raise $6 million of venture capital. He moved to WI in 2004, and started Sustainable Energy Earth, a renewable energy engineering consulting firm. Since 2009 he has also worked as a Speaker, and Author of books, on the interaction of governments, business, people, and economics.

Political: In 1978, Dave became concerned about economic and social damage caused by government corruption, abuse, and counterproductive 'management'. He then read about and discussed this subject widely and became an activist for more cost-effective, and less abusive, government. He ran for Congress as a Libertarian in 1982 in District CA-1 (and got 3% of the vote), then returned to his Republican roots and ran again in 1984 with Reagan in the same District as a ‘Ron Paul Republican’ (and got 38%). Rep. Paul’s Campaign Manager, the late Tony Payton, was Dave’s paid Campaign Advisor. During the G. W. Bush administration, Dave became concerned about the Republican Party's departure from its core principles. In 2006 he was the Chm. of LPWI.org, and in 2007 the Wisconsin contact for The Republican Liberty Caucus (WI.RLC.org and RLC.org), which promote the principles of limited government and free enterprise. In May, 2008 Dave founded his political website www.Forward-USA.org . In 2010, Dave ran as a ‘Ron Paul Republican’ in WI State Assembly District. 77, and got 19% in a very ‘Progressive’ district where no Republican had run for over twenty years.

Contact: Dave@Forward-USA.org

                      *********************
           Index:     Pages in Glossary are in bold type
Allen, Gary 121
Bailouts 10, 27, 33, 34, 38, 45, 50, 53-55, 58, 60, 65, 74, 80, 109, 117
Banking;   Central 10-12, 15, 19-22, 27, 39, 50-54, 77-80, 87,100-105,117,128

  
                           Deposits  24, 25, 32, 41, 42, 57, 59, 60, 64, 71, 72, 88, 95,100, 132
   Fractional Reserves  59,
                           88, 132  
  
                           National  18, 20, 24, 26, 43, 56, 63     
   Reserve Currency  15,
                           29, 32, 45, 49, 50,56, 65, 67, 76, 84, 88, 90, 106, 113, 133

Bastiat, F.  120
Bernanke, Ben  25, 26, 33-38, 46, 47, 53, 69, 129Bonner, Bill  119

Buchanan, Pat  69
Canada  56, 63, 80, 101, 104, 111, 123
Casey, Douglas R. 93, 120
Cato Institute  93, 99, 116, 119, 121
CBGA  51, 99
Central Banks (also see Banking)  
    Bank of US-1, BUS-2, BUS-3  19, 20
   Bank for International Settlements (BIS)  39, 50,
                           51, 53, 69, 99, 105 
   Federal Reserve System 
                           19, 20, 23- 26, 33, 37, 41-47, 57, 62-65,  69, 70, 82, 95, 105, 116-118, 126, 123, 128
   International Monetary Fund (IMF)   39, 44,
                           45, 53-56, 69, 87, 99,     
                           105, 134
  
                           World Bank  26, 39, 45, 69, 99
Continental Dollar  17
Currency    9, 10 15-18, 29, 41-44, 50-52, (Act of 2012; 97, 101),
                           129
Davidson, James Dale  119
                           
Debt  8,10.
                           17-19, 30-33, 36-48, 50, 53-56, 72, 74, 76, 85, 89, 90, 115, 119, 122, 126, 127, 131, 132
Deflation   33, 42, 67, 107, 128
Depression  12,
                           16, 33, 34, 40, 47, 51, 67, 68, 74, 75, 82, 119 , 128
Donlan, T. G.  4, 34, 115  
Ebeling, Richard  4, 26, 27, 99, 115
Economic and Social Systems
    Capitalism  128 , 
                           Communism 128,  Fascism 128,  Socialism  128
Economic Schools of Thought (Theories); 
    Austrian
                           129   Keynesian 129   Monetarist  129
Edwards, Michael  4, 75, 115
Empire  4, 9, 12, 54, 68, 76, 84, 85, 91 93, 110,
                           114,118, 119, 122-124
Exchange
                           Stabilization Fund (ESF)  44, 51, 98, 104, 106
FEE  121
Fekete, Dr. Antal   4, 93,116, 121, 122
Fiscal Policy   130
Forex  105, 106
Free Market  35,
                           36, 40-43, 90, 94, 97, 102, 105, 122, 130
Gang-Theft  9,12, 130
Gold (see ‘Money’)
Grant, Jim   67
Greenback Dollar  42, 43
Greenspan, Allan  33,  38, 41, 47, 120, 129
Gresham’s Law  39, 89, 105
Griffin, G. Edward   119
Gross Domestic Product (GDP)  31,
                           87, 128, 130
GSEs;    Fannie (FNM) & Freddie
                           (FRE) ; 30, 47, 54, 58, 59, 62, 72, 98
   FHA  60, 63, 97; Ginnie Mae (GNMA)   63,
                           98 
  
                           Sallie Mae (SLM)  61, 98
Heroin Analogy  7, 27, 37, 39, 41, 109, 126
Hagel, Sen. T.C   41, 70, 92, 116
Hayek, F.A.  89, 93, 116, 129
Heritage Foundation  101, 119
Hoffer, Eric  120
Hultberg, Nelson  4, 26
IMF (see Central Banks)
Independent Institute, The  117, 121
Inflation;
    Monetary  16, 36, 40, 47-49,
                           74, 83, 84, 91, 128
  
                           Price  10, 15, 19, 22, 31, 34, 37,40, 49, 53, 66, 126
   Hyper
                            31, 74, 107, 110
Johnson, Chalmers 
                           118
King, Byron 
                           4, 49
Kemp, Rep. Jack 
                            120
Lederer,
                           William   119
Legal Tender  7, 11, 17-19, 39-44, 69, 70, 82, 98, 106, 108, 132
Lehrman, Lewis  4, 79, 93, 94, 100, 116, 117
Lewis, Nathan  100, 119
McKinley, Vern  74, 117
Miller, Don M.D.  4, 68, 117
Mises, Ludwig von Mises Institute  115. 117, 121, 129
Mercantilism   66,  131
Monetary Policy 
                           51, 69, 131
Money  131
     Amero 
                           80 
   
                           Appreciation of purchasing power 87, 89, 90, 91, 106
     Bancor   55 
    ‘Coin Act of 1792’  
                           16;  ‘Currency Act of 2012’  98, 99
     Commodity  16,
                           42, 50, 53, 57, 77, 81, 84, 86, 91, 127, 128, 132
     Dinar  55 
     Fiat  11, 27, 29, 31, 40, 43, 45, 49,
                           53, 79, 82, 83, 99, 105, 130
     Gold Standards  11,12, 15, 16, 18, 19, 26, 27, 45, 46, 50, 72, 78, 
        86,
                           89, 93, 94, 99,116, 119, 122, 133
    
                           ‘Redick’s Four Monetary Rules’   12, 85, 94, 97
     Representative   81-84,
                           86-88, 95, 97, 105, 123, 127, 131 
     Reserve Currency  (see Banking) 132 
     Silver  15
                           -19, 29, 43, 44, 69,76, 81, 85, 86, 89,110-112,130-133
     Special Drawing Right (SDR)  44, 53, 55, 56  
     
                           Supply; M0, M1, M2, M3; 41, 46, 81 ,97, 100, 101 
     Token  15, 37, 81-84, 91, 86, 131 
Money
                           Conferences 
    
                           Bildeberg Conference  53 ; G20   53, 101
     Bretton Woods
                           Agreement   19, 45, 46, 48, 82
Moral Hazard 34, 49, 59, 61, 65 (Perverse Incentive  54, 61, 65,105)
Murphy, Robert P.  4, 80
Napolitano. Judge Andrew  119
North, Gary  4,
                           38, 52, 79
Paul M.D., Rep. Ron 
                            25, 41, 61, 92-94, 97, 101,110, 116, 117, 135
Principles; Core  10,13,132, General; 6, 69, 115, 132
Quinn, James   4, 37, 
,Rand, Ayn  120
Reason Foundation  121
Redick’s Four Money Rules   (see Money)
Ringer, Robert  120
Roberts, P.C.  4, 67, 75, 92, 117, 120
Rockefeller  11, 20, 78
Rogers, Jim  4, 27, 38
Rothbard, Murray  93, 99, 117,
                           129
Rothschilds  
                           6, 9, 11, 21
Rubino, John 
                           119
Salerno, Joseph  
                           93, 118
Schiff, Peter 
                           4, 54, 118
Shelton, J.
                           Ph.D.  100, 118
Simon,
                           William  120
Six-Step
                           Plan  27, 93, 94, 99, 105
TARP   33, 34, 58, 73, 98
Turk, James, 119
Weight Conversion (for precious metals)   134
Wenzel, Robert 4, 100
White Ph.D., Lawrence    100,
                           118
Wiggins, Addison 
                           119 

      
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