The ‘People’s Gold Money Commission’ is a project of the Forward USA Foundation. The Commission is a grass roots organization aimed at implementing a Private Gold Standard in the USA as defined in chapter 4 of Dave’s book ‘Monetary Revolution USA’.
Key provisions of the Plan are:
a) The government would have no role in owning or managing the monetary system, except its proper legal role to verify/audit reserves that mints claim to hold for redemption of ‘representative’ money (per item c). This could be done by private firms also.
b) Private mints would be allowed, and would issue both gold coins (perhaps just a gold disk in the center), and ‘representative’ paper notes and token coins (per item c below) redeemable for gold. They would be required inform the public of the amount of gold they physically possess (not just a certificate for an ‘unallocated’ share of gold held by a third party) for redemption of notes and tokens. Minting by the government Treasury would be optional and have no privileges over private mints, thus allowing competing currencies. Other precious metals (such as silver) could be used, but gold has usually been preferred by the free market (users of money; see ‘Monetary Rules’ in chapter 4 of Dave’s book). The private mints will decide which metals to use, based on market demand, which will vary by geographical area. Market demand will also determine the value of gold relative to other metals.
c) ‘Representative money’ such as paper notes and base-metal ‘token’ coins could be used (they are just ‘receipts’ for the real money, which is gold), but by law would be subject to redemption for gold by bearer on demand. No specific percent of reserves for money issued would be required. If users of a mint’s money were not confident of adequate gold reserves for redemption, they would use money from another mint. This gives incentive for mints to be honest and provide a good product. The Free Market at work!
d) There would be no central bank and multi-state branch banking would be allowed,
e) ‘Weight of gold’ would be the unit of account. This means prices would be set as a weight of gold (with stated fineness, such as 14 carat). The weight and fineness would appear on the coin, and no ‘name’ such as ‘dollar’ would be used. Names make it too easy for governments to change the amount of gold they represent.Gold will have no ‘price’ (in ‘dollars’, etc.), and is not ‘backing’ for ‘money’, because it IS money. It is also a store of value.
f) The conversion of the US Monetary System to using gold as money would follow the ‘Six-Step Plan’ shown in chapter 4 of Dave’s Monetary book. Note that M3 is used as the amount funded by our supply of gold, with 100% reserves for redemption, which means all holders of US cash and Treasuries are funded (‘Federal Reserve Notes’ would be redeemable, but would be converted to ‘new’ money within two years). Other plans have used M1, and as low as 20% reserves, which amounts to the repudiation of long-term debt, and increases the risk of a ‘redemption run’. Other nations would be informed of US plans, but no international planning conferences would be held (they would just slow the process and dilute the gold content). Once the US (or maybe Germany first !) converts to gold, I predict all other nations will have to or Sellers will not accept their trash fiat paper! As gold money becomes dominate, no ‘reserve currency’ system will be needed, then currency manipulation (pegs, monetary inflation, etc.) and the foreign exchange industry will end. Good!
The primary benefit of using gold is to end the government’s ability to create money ‘out of thin air’ to fund its excessive spending for wars (all US wars since the Revolution have been for political and economic goals, not homeland defense), welfare, and subsidies to get votes. It also complies with Article 1, Section 8, of the US Constitution which empowers the government to ‘coin money’ (the Founders had recent experience in the abuse and damage caused by fiat – no gold backing- money), and in Section 10 for States to ‘…not make anything but gold and silver coin a tender in payment….’. Note the absence of authority to create a central bank, or a private bank such as the Federal Reserve System, which acts like one!.
History shows us that a monetary system using precious metals as money is the path to peace and prosperity and ALWAYS works.
Conferences will be held in locations across America to discuss how to make the federal government adopt our Private Gold Standard. Educating members of the U.S. Congress and State legislators will be a priority. State branches of the Forward USA Foundation will be set up to organize this work