I believe our present efforts to end the Federal Reserve's choke hold on America are largely ineffective and even if successful, will take too long to avoid the catastrophe that looms on the horizon. The plan I propose is based on the proposition that money is anything that has value. Further, based on this idea, it isn't too hard to see the different forms of money that currently circulate in our economy. Corporations issue money in the form of coupons that offer discounts on a variety of consumer goods. What qualifies these certificates as money is simply that they are accepted by the issuing agency in exchange for goods. You have a coupon for 50 cents off a certain brand of dish washing liquid; present the coupon for that product and you get the discount. Take a good look at a coupon and ask yourself what it is?
It's a piece of paper, denominated in dollars or fractions thereof, that may be used in exchange for goods and services. This is a very important point, and it forms the basis for the plan I propose. For the next step let's go to California.
Awhile back California was experiencing a budget shortfall and opted to pay some of its obligations in the form of IOUs. What is an IOU?
It's apiece of paper, denominated in dollars, and created by debt. In other words: cash. But wait! you say; how can an IOU be considered cash? You mean like Federal Reserve Notes? That is exactly what I mean! What is a Federal Reserve Note?
It's a piece of paper, denominated in dollars, that is created by debt.
If states can create IOUs then they can create their own currencies. If backed by the states these instruments can be used for commerce within the boundaries of said states. These state notes would be debt-free and accepted by the states in satisfaction of taxes and other obligations. Efforts at localized currency development already exist: one form is Time-dollars. Just expand the idea statewide. States could authorize merchants and retail outlets to accept these state notes in exchange for goods and services; once in circulation these notes could be freely exchanged. As an inducement to adopt this currency, states could sell state currency notes to citizens for Federal Reserve Notes at an exchange rate of, say three to one. Small businesses willing to accept these notes would attract business that would otherwise go to corporate superstores. In time these mega stores would come around and accept this currency when they start losing business. People would have access to both State Notes and Federal Reserve Notes to use as they see fit, but in time the latter would be phased out in favor of a debt free currency.
Bottom Line: If the people pay the bill, they should have control of the money. It can be done.