The Lone Libertarian

It appears that alternative currencies may be catching on in several parts of the country. Nationally, for example, there is the Liberty Dollar, which is backed by silver as opposed Federal Reserve Notes which are backed by nothing. However an interesting article crossed my eye today about a local currency that seems to be thriving in New England. BerkShares are the local currency of Great Barrington, Massachusetts. The currency is paper based with no coinage for change. The denominations are 1, 5, 10, 20, and 50. A BerkShare is quite pretty as you can see here. Their backs are adorned with full color artworks from artists that reside in Massachusetts, and the fronts are emblazened with the busts of famous Massachusetts residents, such as Norman Rockwell and Herman Melville.

It is backed completely by Federal Reserve Notes, so using it doesn’t seem like a worthwhile endeavor. However, the trick seems to be 1 BerkShare trades for 90 cents, yet is treated like a whole dollar at retailers. Thus a 10% discount of sorts is passed to consumers, and eaten by the local retailers. I don’t know how sustainable this model is, considering a BerkShare’s value is related to the value of the US Dollar. One would speculate that the local economy has probably adjusted its prices to compensate for the inherent “10% discount.” With $759,600 of this currency floating around New England since its inception on Sept. 29, 2006, I’d say it will be there to stay for a while yet.

I’d probably just buy them for the pretty pictures and never spend them. I’m sure they count on that too.

From Reuters: Article Link
Wikipedia: Link

It seems that Ron Paul has introduced a bill this week to repeal the Federal Reserve Act, thus abolishing the US Federal Reserve Bank and the Board of Governors. H.R. 2755 was introduced on June 15, 2007. You can look at a summary of the bill here:
http://www.govtrack.us/congress/bill.xpd?bill=h110-2755

Now this is refreshing, a politician that actually does what they say they will do. A number of you may ask why would it be good to kill our nation’s central bank that has been in operation since 1913? I can give you a few reasons.

• The Federal Reserve is a private bank, not public, where the member banks are typically privately owned corporations
• These private entities and individuals control the United State’s money supply with little to no oversight from Congress
• The value of a dollar today is around $.04 (adjusted from 1913)
• The American Dollar is a fiat currency, which is backed by nothing other than “In God We Trust, which is subject to inflation and loses value year over year
• The Federal Reserve System routinely engages in fractional reserve banking, and creating money out of thin air for the Congress to use, and then charging the American public interest on it

Seeing as how most politicians are satisfied with the status quo, and wont rock the boat unless necessary, I don’t see this bill going far. However, Americans should know the true history and inner workings of how their monetary system works. I think Congressman Paul, if nothing else, is making a statement that will hopefully be heard by open-minded individuals whom will do their own homework on the matter.

Speaking of homework, here are a few videos of note on the topic:
YouTube Link - Ron Paul speaks about the Federal Reserve to Ben Bernanke (Fed Chair) during House Financial Services Committee, Feb 17, 2007

Google Video Link - America: Freedom To Fascism - A 2 hour documentary on the Federal Reserve and the Federal Income Tax, and the unconstitutionality thereof. (I highly recommend this video)

Google Video Link - The Money Masters - A 3.5 hour documentary of the origins of world banking systems, focusing on the US Federal Reserve Bank and the Bank of England.

Google Video Link - Zeitgeist, The Movie - I haven’t watched this one all the way through, and it seems like it has some wild conspiracy theory in it, but the Fed history seems mostly sound.

It’s taken me a few days to get everything squared away, but I have finally finished setting up my new home on the web. As a transplant from LiveJournal, managing and hosting my own content was something I didn’t have to worry about in the past. I’m rather new to this format and look forward to making new friends throughout the blogosphere.

For those wondering about my blog name, I selected it due to the lack of libertarian-minded individuals in West Tennessee, and Tennessee as a whole. Sometimes I feel like I am speaking into an echo chamber when singing the praises of liberty. Thus, I hope to start a dialog with other “lone libertarians” and forge friendships and build a virtual community.

I hope that you will find my commentary a refreshing departure from the status quo. A choir to preach to is always nice, but different opinions are always welcome and are encouraged.

Enjoy,
-Jesse