Mr Obama, at one of the many White House press conferences during the negotiations to persuade Congress to continue funding his administration, announced that he had “halved the nation’s deficit.” And so he had – by printing money to cover the other half. The Fed, whose mission was once to protect the nation’s currency, is now to protect the administration.
Not that the poodles of the press corps were going to point that out, of course. He can rely on them to say nothing, just as they have said nothing about his fraudulent “birth certificate” and his deliberate shutdown of war families’ benefits, war cemeteries, national parks and monuments that Congress had voted to continue to fund.
In three months’ time, the battle will commence again. This time, Obama will know he can rely absolutely on the poodles to tell his side of the story, and only his side. Whatever birth-certificate-like fiction he decides to peddle, he knows it will be faithfully repeated.
What should we, the people, do? Can we any longer trust the institutions of the presidency, Congress, the Fed or the press to watch out for our money? The answer is No.
Little by little, then, we are going to have to take the government of the nation into our own hands, directly. We must do this without violence and without breaking any law. We must use our wits. We must act at once.
To show what we can do, I am going to describe a simple, lawful project that will let us consign the Fed and its debased currency to the museum where they belong. The dollar, once the world’s reserve currency, is no longer fit for its purpose.
We are going to bypass it by issuing and using our own money.
We won’t call it a “currency,” because that would fall foul of the law. For the same reason, not a single note will be printed and not a single red cent minted. We are going to bring money into the electronic age.
And we are going to stop it inflating. Our money will be honest money – something the Fed and all its predecessors in the United States have never succeeded in issuing. Our money will be 100 percent backed by assets managed by a professional board of fund managers.
Welcome to the Talent.
Bring us your dollars, your pounds, your Mickey Mouse euros. All this Monopoly money is now valueless. We can – and we will – do without it.
Suppose you bring us $10. We shall give you Talents in return, at that day’s rate of exchange. And how is the rate of exchange decided? By a simple division sum. Every day, like every bank, auditors for the Talent Asset Board will add up the value of all the assets it holds – bullion, specie, commodities, stocks, bonds, real estate – and divide it by the total number of Talents it has ever issued and not redeemed.
That division sum, whose result will be published daily, will tell everyone what one Talent is worth. For the Talent will have a real value, and that real value will determine its rate of exchange for worthless currencies like the pound and the dollar.
So you will get the appropriate number of Talents for your $10. And the Talent Board will not hold on to your dollars for a single moment longer than it has to. It will buy real assets with your $10 and add them to the asset fund that backs the Talent. So, as the Talent rapidly grows, the asset fund is self-financing.
Your Talents will go into your bank account, initially with the Talent Bank – an entity entirely separate from the Talent Asset Board. Eventually, all clearing banks will allow accounts denominated in Talents – once they’ve gotten used to the idea.
But what use is a currency you can’t spend? Where are the notes and coins?
Answer: in your billfold, right now. There you will find a credit or debit card. Use it to pay for any purchases you want from your Talent account, and the transaction will be converted at that day’s rate of exchange, just as you can if you go to Malaysia, say, and you want to buy a knick-knack priced in ringgits. You can even draw cash – but not in Talents, because we won’t print or mint.
Eventually, you will be able to carry a Talent cash card, which you can top up anywhere using your credit card and then use to buy small items by tapping a touch-pad on the retailer’s counter. In Hong Kong they already have these cash cards; they are called Elephant Cards.
But what if you want your money back in dollars? No problem: Just exchange as many Talents as you want for dollars. You’ll get a nice surprise: You will get more dollars than you bought in for. Why? Because the value of the Talent asset fund will have risen, but inflation accelerated by Obama’s money-printing will have pushed the dollar down.
If you save in Talents, you will get a lower nominal rate of interest than you will get in dollars, but you will not have to pay tax on that element in the interest that purely compensates you for inflation, because inflation is history.
If you’re paid in Talents, you need never ask for an annual inflation-compensating pay raise at all, because the Talent won’t inflate. True, no absolute guarantee against inflation can be given, because there can be market crashes.
But a well-spread asset portfolio, geographically and sectorally, will provide maximum protection against market collapse. And, as time goes on, the Talent will be over-funded by about one-eighth, precisely to insure against widespread asset collapses.
Once the Talent is available, others will copy it. Indeed, the smart guys, reading this article, will rush out to set up their own competitors before we’re even off the ground. So much the better. The more competition, the better the deal for the customer.
So long, then, Federal Reserve. It’s not been nice knowing you. You have made yourselves irrelevant. Go and get proper jobs. And don’t apply to the Talent Asset Board. We’re looking for serious, competent fund managers, not monkeys who have destroyed the nation’s currency.
Gentle reader, write in to WND and let me know what you think of this modest proposal.