Project to Stop Federal Tyranny Now

I. Key Elements of the Alternative Currency Program

A. A bill is brought before the legislature proposing the following:

  1. Because of the present economic, financial and private monetary systems operating in this country and the resultant economic catastrophes and disasters existent in Maine, many people in this nation and in Maine are out of work, with little possibility of obtaining work, under the present monetary and economic systems. Many are destitute, others are losing their homes to foreclosure, and still others are unable to pay for the basic necessities of life, such as shelter, utilities, food, clothing, medicine and transportation. These conditions are expected to continue, and worsen to unprecedented proportions.

  2. Therefore, in order to provide for the common welfare, economic well being and security for the People of Maine, the legislature of Maine, pursuant to oaths taken, establishes, by law, a bank owned and operated by the People of Maine, as a public bank, known as MaineBank, which bank creates and prints an alternative public, asset-based currency, known as MaineBucks.

  3. The value of MaineBucks is based upon the labor, productivity, skills, ingenuity, inventiveness and resourcefulness of the People of Maine and the businesses and industries of Maine.

  4. MaineBank’s objective is to create a robust and growing economic climate in Maine favorable to businesses and industries so that large numbers of people who live in Maine will be able to easily and quickly find good, well paying jobs and be able to financially sustain themselves and their families.

  5. The People of each county in Maine will elect one member of MaineBank’s Board of Directors, who will serve for a period of four (4) years, provided the board member abides by his/her oath, upholds the Articles of MaineBank and upholds the Public Trust. Board members will elect their own officers and those who serve on the bank’s committees.

  6. One of MaineBank’s policies is that it will be a direct lender to businesses, industry and to the people of Maine, including loans for home mortgages.

  7. Another policy of MaineBank will be to make direct grants to charities, theatres and the arts, Citizens of Maine to improve their properties, health organizations, towns, cities, counties and the government of the state of Maine to serve the needs of the People of Maine.

  8. All loans will be made based upon standard loan policies, with collateral requirements and the ability of the borrower to repay.

  9. All loans will be made in MaineBucks, without interest.

  10. Depending upon the amount of the loan, borrowers can make payments for terms up to 50 years. Larger loans to businesses, industries and for home mortgages will fall into this category.

  11. Grants made are intended to create rapidly developing economic activity in which large numbers of people, presently unemployed or underemployed, will easily be able to find good paying work and in which business and clean industry will thrive and be attracted to Maine.

  12. All non-government grants will be made upon requests submitted to and approved by MaineBank, after review and assessment by the Non-government Grant Committee and final approval by the Board of Directors of MaineBank.

  13. Maine state government and other local governments in Maine will make yearly requests to MaineBank for all government needs and expenses for the entire following year. The Government Grant Committee of MaineBank will evaluate these requests, based upon valid factors. If the requests are authentic, necessary, soundly based, and conform to all Constitutional requirements, then, the Government Grant Committee of MaineBank will recommend to the Board of Directors that they grant the Maine state government and other local governments all the approved requested expenses. Since the MaineBucks will be GRANTED, and not loaned, no public debt is incurred by the People of Maine.

  14. Since no public debt is incurred, the people owe nothing. Therefore, since no public debt exists, Maine will not tax its people, businesses and industries, in any way, whatsoever, including property taxes, income taxes, excises taxes, sales taxes and any other tax that now exists in the state of Maine. Maine will be the first state to abolish all taxes of all types upon its Citizens, businesses and industries.

  15. The economic value of MaineBucks is equal to the same economic value of the federal reserve note. While the federal reserve note is private, debt based and interest bearing, MaineBucks are public currency, asset based, issued by a public bank, owned and operated by the People, interest free, with debt incurred only by the actual borrowers of loans in the principal amounts only.

  16. MaineBank will operate as an Authority, under the People, brought into being by the Maine legislature and signed into law by the Governor, pursuant to their oaths, on behalf of the People of Maine for their economic well being, the well being of Maine businesses and industries and that of the state of Maine.

A. How Maine Bucks compare to other currencies

Virtually all government currencies now operate as fiat currencies, only, with no gold or silver backing, whatsoever, no matter what the constitutions and the laws of those nations require. Gold and silver backed currencies - which really do not even exist in this world - and fiat currencies are manipulated, at will, by the private central banks controlling those currencies. These manipulations create economic booms and busts, recessions, depressions, good economic times, soon followed by economic disaster and frequent money shortages, which arise at the whim of the controllers. These shortages, obviously, affect the vast majority of the Citizens of those nations and their ability to even provide basic sustenance for their families and meet the very simplest needs of life.

For the People of any nation to allow a private, central bank, driven by profit, to have unbridled control over their very means of even their most minimal basic survival is insanity of the highest order. That control would never exist under MaineBucks, because since MaineBucks are based in and on the people, businesses and industries of Maine, they are unlimited, so there will never be any shortages of currency, as long as people are willing to work and businesses and industries are willing to produce. In a world of privately manipulated money, this is a very unique concept, highly beneficial to the interests of the People, businesses and industries. Under the MaineBucks program, there will never be any lack of good paying, meaningful work, no recessions, depressions, money shortages or shortages of anything else which can be readily produced by the People, businesses and industries of Maine and those which will be attracted to Maine, because of this sound, sensible People-controlled public currency program.

II. The Case Against Gold and Silver Backed Alternative Currencies and State-Owned Banks

This is a hypothetical example to demonstrate what would likely occur if any state were to base a new alternative currency on gold or silver. For the sake of discussion, let us say California wants to create an alternative currency backed by gold, and has determined it would require one trillion dollars worth of gold-backed currency to properly function, both publicly and privately. To do this, California must possess one trillion dollars worth of gold, so, unless California actually has gold bullion on hand in sufficient quantity to back the proposed new currency, which is ridiculous, how does California acquire enough gold to do this? If California has no gold to back the proposed currency, then, logically it would have to buy enough gold to accomplish this. However, is this even possible, given the fact that California, like a lot of other states, is dead broke, in high debt, defaulting upon contracts and payments, cutting vital services, and laying off state workers, with no light at the end of the tunnel?

It is illogical to think that a state in such dire financial shape could borrow sufficient funds to purchase enough gold to back one trillion dollars worth of currency. However, even if California could extend itself further, it is illogical to think that the Federal Reserve Banking system, or any of its affiliates, world wide, would lend California the one trillion dollars, because this enormous controlling banking cartel has no interest in lending California the funds necessary to set up an alternative currency to compete with the fed.   Do you think California will take the one trillion dollars out of its CAFR accounts?  Though technically there should be sufficient funds in those accounts, it is highly unlikely that California would expose this fact, so well concealed from its Citizens, or risk the consequences it could face for so doing.

If by some miracle, California managed to acquire the funds to buy the gold, and California then attempted to buy one trillion dollars in gold, what do you think would happen to the price of gold  - before the purchase?  Since the gold market is tightly controlled and manipulated by the interconnected vested interest groups, which have a lock on the overwhelming majority of all gold that exists, do you think that the price of gold might at least double and probably quadruple, overnight?  Those who know the markets, how they work and are manipulated, would see this trend continuing, so the answer is “yes”.

California’s loan has now further indebted the People of California for an additional one trillion dollars, plus interest.  Since the economy is expected to increase due to a theoretical "sound" money innovation, California will need to borrow more funds to supply additional new currency to meet the ongoing demand to keep pace with the forward movement.  The People of California will be still further indebted for full payment, plus interest, plus fees, etc., etc.  Does this sound feasible?

In such a scenario, California would be representing to the People that the new currency, totaling one trillion dollars, is backed by one trillion dollars worth of gold. Is it? Since California borrowed the funds to buy the gold to back the currency, the gold is pledged, as collateral for the loan, thus, cannot lawfully act as backing for the currency. The proponents of gold and silver backing never explain, on a step-by-step basis, how their states would acquire the gold to back the currencies, perhaps, because the luster of gold-backed currency blinds them to the real-world considerations necessary to orchestrate such a currency, which are impossible, on virtually all levels, to effectuate.

Since the vast majority of gold bullion in existence upon this planet is owned by the central banks, their various banking cartels and affiliated entities, it is folly to think that these tightly controlled cartels would sell California, or any other state, for that matter, one trillion dollars worth of gold to back a currency competing with the currency controlled by one of the members of that cartel system. This is illogical, and in the real world of manipulated control of virtually everything, an absolute impossibility; yet, the gold proponents never discuss this or the other aspects mentioned herein. Gold-backed currency may work well in “fantasy-land”, but it will not do so in the real world, as it now operates.

You likely are aware that, as of this writing, some eleven states in this nation are realistically discussing and considering alternative currencies. Unfortunately, most, if not all, of these proposals suggest currencies backed by gold and/or silver. Other states are expected to follow suit, while nine other states, such as Massachusetts, are considering state-owned banks. It appears that most of these proposals arose from concerns that the private monetary unit, termed the Federal Reserve “dollar”, will tank in the near future. To avoid financial disasters when this unconstitutional, private, debt-based currency loses most of its value, states proposing these alternative currencies want to have their own state currencies or state-owned banks actively operating, so that these states can function without the devastating economic catastrophes the states without alternative currencies will suffer.

While it is encouraging to hear that states are considering alternative currencies, it is not encouraging that these proposals advocate gold and/or silver backing, which realistically is not viable, nor are proposals for state banks dealing in federal reserve currency, which will not work for the best interests of the People. When the Federal Reserve “dollar” tanks, so will those state-owned banks with all their assets and deposits. Since state owned banks use Federal Reserve dollars and the current banking system, this is obviously not a shield against economic catastrophe.

If history can be believed, the fact that gold is mostly owned and controlled by the private banking cartels and their associated private enterprises suggests that if any currency were backed by gold, these controlling cartels will engage in ongoing manipulations of the currency, for their own interests and against those of the people of any state using such a currency. The intrinsic values of gold and silver, in and of themselves, have maintained and appreciated over the centuries, but as a backing for a currency, they only serve the interests of those who control these metals and any currencies based upon them, just as now occurs with precious metals and currency markets.

Some of the states proposing a gold-backed currency have suggested that the people of that state pay all of their taxes to the state in gold or silver. This is a troubling suggestion that will work against the interests of the People. In the first place, the vast, overwhelming majority of average Americans do not own gold or silver, have no intention or ability to purchase gold and silver, let alone the funds to do so. Even if they did, they would have no idea as to the mechanics of the purchase or how to even go about it. As we have seen with governments before, what is suggested or begins as “voluntary”, usually becomes mandatory. In this case, those Citizens who do not possess these metals, or lack the funds and/or means to purchase the metals, could easily lose their properties to the state, just as they are losing their properties now, in the millions, by and through the foreclosure fraud upheld by virtually all governments in this nation.

In our very simple, direct proposal, the people regain the political and economic control inherent in a self-governing Constitutional Republic, as guaranteed to us in Article IV, Section 4 of the Constitution for the United States of America, circa 1787, as amended in 1791.

The "precious element" that backs our alternative currency is the substance of the labor and productivity of the People, businesses and industries of the state, inherent in their talents, skills, time, creativity, resourcefulness and inventiveness, and as manifested in tangible goods, products, and services, which have real, measurable value and are marketable throughout the state and elsewhere.  Once the currency is established, the markets will drive both the currency and the economy, and spending by the state and local governments will disburse the currency throughout the state. Where factories and businesses lay idle now and people cannot find jobs, because no work is available, businesses and industries will spring into operation within a very short period of time and hire people who now have no expectation of being hired anywhere. Where no economy existed, a thriving robust economy will emerge almost overnight. As long as businesses operate and people work to produce ideas, goods, products and services, there will never be a shortage of currency, goods, products or services.  The People are a precious resource of unlimited nature and value, on an ever-expanding basis, and unlike gold or silver, etc. cannot be bought up, hoarded, controlled and manipulated in quite the same way as these precious metals.

There are fifty states in this Union, and all we need for this project to be successful is for one visionary state to adopt and implement this public, people-based alternative currency. Based upon the successes, which will be quickly achieved, other states will soon follow. Maybe your state will lead the way and restore economic sanity in this nation.

John and Margaret Flynn





Jack and Margy Flynn

C/o P.O. Box 292

Bingham, Maine

207-404-9093 or


"What's Behind Your Alternative Currency Proposal? If It's Gold or Silver, Think Again – And Read This"


Update Alternative Currency Proposal

Jack and Margy did a two-hour radio program regarding all aspects of their Alternative Currency Proposal.

This includes why gold and silver should not be used as backing for an alternative currency and why the state bank proposals being considered by some states is not a good idea. The link to that two-hour radio program is below. There are two links, each with 4 15-minute segments.

Audio Links

"On the Audio Links below, Hear the Flynns explain on Higher Ground Live Radio why a gold currency won't work, what will work, and how the States and the People can reclaim their sovereignty and restore their economy.”

Flynns on Higher Ground Live Discussing StopFed Project-02-22 2011 (1st hour).MP3

Flynns on Higher Ground Live Discussing StopFed Project-02-22 2011 (2nd hour).MP3




Project to Stop Federal Tyranny Now

Instructions for Ordering Copies of Stop Federal Tyranny Now! CDs

Project to Stop Federal Tyranny Associated Audio Files

Steps to Stop Federal Tyranny

Most Americans now realize that there is something awfully wrong with the government, financial and social systems operative in this country - federal, state and local. Most of you reading this are well aware of this truth, but, unfortunately, the overwhelming majority of Americans, for generations, had not even the slightest inkling that anything was amiss. They simply went along with whatever the government wanted, without comment, question, protest or objection. Most of them fought the wars, obeyed the “laws”, paid the taxes and kept their mouths shut. Why? This country, like most countries throughout history, has perpetrated ongoing conditioning, programming, indoctrination and propaganda upon the People, at all levels, to make absolutely certain that the status quo and the operative systems remain in power. People, so to speak, simply bought the program and regurgitated whatever the program dictated.

Now, it is evident, to even those who are least informed, that the systems have gone awry, but, for the most part, they do not know how, why, where, when or for how long. This is a dramatic, significant change in American society, one that is badly needed, and one that cannot be discounted. Others, who have been aware of political, economic and social realities, for a long time, are much more knowledgeable and attuned to the malfeasance, outright fraud and other criminal actions perpetrated by the governments all over this nation, which governments hypocritically claim to represent the People. As most of us now know, nothing could be further from the truth, and the very public officers in whom the American People naively placed their misguided trust have sold the People out on every conceivable level. It is now up to the People, as a totality, within the great American society, to fully understand and comprehend this treason and take lawful, effective action to stop it. This is the purpose of The Project to Stop Federal Tyranny Now.

In law, the mark of “the reasonable, rational observer” has importance, as it should have in all aspects of society. If we were to take that reasonable, rational observer and add a smattering of basic intelligence, solid common sense, with awareness of the political, economic, banking and social realities existent in this nation, then, that observer would likely determine that all operative systems in this country, both public and private, are totally criminal and fraudulent, and that no “experts”, with answers to correct the problems and benefit the People, truly exist. “Experts” are hired and retained by the “system” to represent the best interests of the “system”. If the “system” allowed the “experts” to fix the problems the “system” created, then, the “system” could no longer scam them. This is why nothing ever gets fixed, because, if and when it did, the “system’s” money line and control is finished.

For anyone who understands this – and, thankfully, those numbers are dramatically increasing – to expect that the current traitors in office and the current proclaimed “experts”, who serve those traitors, all of whom are advancing the orders and agenda of their hidden masters, will resolve the problems, that they, themselves, created is total insanity. Most of us know the definition of insanity, which goes something like this: Doing the same thing, over and over, with the same people, and expecting different results. As stated above, the People of this nation are the only ones who can solve the problems that exist throughout America, but the only way the People can do this is to realize that their power was usurped and stolen from them, long ago, resolve to reclaim it, and then, take action to regain it and lawfully displace the usurpers.

Good ideas of any nature that will benefit society, whether they be free energy inventions, medical and health improvements, political ideas or economic ones, all should be readily adopted by a well-intended governmental structure and the institutions and people in a benevolent society. The fact that innovative ideas are usually ridiculed, disparaged, vilified and hidden away, with their creators ruined, incarcerated or killed, clearly demonstrates that the operative governments and their vested-interest collaborators and hidden masters do not want these ideas to come to light and be implemented to benefit the People. So, dear friends, where does one take a good idea to be implemented for egalitarian benefit to society?

It is obvious that such an idea could not be presented to government or to private corporations. Can one then present it, by and through the legal and court systems of this nation? Again, it is obvious that both of these “systems” are deceptive, totally corrupt, entirely fraudulent and work against the interests of an egalitarian society, since these systems are part of and reflect the pernicious policies of the larger government system. Can one then go to the leaders of the so-called national “patriot” and “activist” groups in this country? By now, many of you understand that this “leadership” is in place to serve and maintain the system and not to serve or advance the People, which, unfortunately, is totally unknown to the rank and file membership of those groups. Can one then go to the media? Most of us realize that this is absurd, since the media is owned entirely by the “systems overlords”, most of which masquerade as “philanthropists” and “champions of the People”. Can one go to academia? Another absurdity, because academia is simply a propaganda and indoctrination arm of the system, which helps control the young masses, warps their minds and greedily drains their and their parents’ bankbooks, then, shapes them into “resources” to be exploited, and a support base to uphold the system, resulting in a “go-along-to-get-along life” of “success”. Is it possible to take a good idea to the military? This is the height of insanity, because the military, since the beginning, has been the muscle and enforcer that keeps the evil system firmly in power.

The reasonable, rational observer of whom Margy and I spoke before, would most likely agree with all of these positions, because that observer is objective, understands the true nature of political, economic, academic, social and other operative realities existent in today’s America and does not ignore or deny the transparent facts presented by these realities. Where, then, does one take a truly beneficial, innovative, “outside the box” idea or combination of ideas, which will begin the road back to Constitutional restoration and economic freedom for the People? The answer is: The People, themselves, and that means YOU! No one can represent you or speak for you better than you can.

It is obvious that none of the systems or institutions, referred to earlier, will represent your best interests, but you can. “If” is a very small word with a very large meaning, but IF enough concerned Americans can understand the very simple, direct, practical proposals contained in the Stop Federal Tyranny Now Project, and disseminate this information to others of like mind, or even to others who have not yet considered such matters, we all, collectively, may be able to generate the real grassroots movements that Jack and I have been speaking about and urging for many years. There is a saying that is quite apropos: “Do it now!” Today’s America is in a shambles, because the American public has allowed the criminals to act in such a manner that destruction of America and our freedom, as cruelly intended and designed by them, is imminent. However, it is never too late to take action, and it is never too late for the American People to come forth in support of their nation and her Constitutions. If the People fail to act, now, then, that planned destruction is inevitable, and that means not only for you, but also for your children, your grandchildren and all those you love. Please, dear friend, listen closely and thoroughly read these three simple, direct proposals, then, make the conscious choice to act upon them.

As you know, some time ago, we devised two proposals intended to put the long-usurped political and economic power back into the hands of the People, where it properly belongs. Those proposals pertained to requiring candidates and public officers to execute a Constitutional Affidavit promising to uphold their oaths of office or resign. The need for this is self-explanatory! The second proposal introduced an Alternative Currency Program, designed to implement a public monetary system, controlled by the People, to benefit the People and the economies of America. The need for an alternative currency is clear, especially, if one is honest and acknowledges the overwhelming oppression most Americans are suffering at the hands of the private, debt-based monetary system, which has been robbing us blind and enslaving all of us for decades. If this oppressive monetary system continues, as is, there is no hope for America and Americans. We had hoped that the People of America would understand how the adoption and enforcement of these two proposals would favorably impact them and this nation. Unfortunately, for America, that did not occur in large enough numbers. However, some people actually “got” what we were trying to do, and some of them decided to get actively involved to bring about what we urged.

Rick Aiello and Dick Sieron have combined our two proposals with their proposed bill to stop the unconstitutional ObamaCare and have created an audio CD and a companion data CD, which fully describe them. You can hear them and view the documents right here. If you understand and like what you hear and see, then, please download and send this information to everyone you know – not just “patriots” or “activists” – and urge them to listen, read and also send this information to everyone they know.

Rick and Dick put this information on CDs with the intention that concerned, caring, committed, courageous Americans would hand carry them to their respective state senators and representatives in each state. In addition, the CDs can be distributed to chambers of commerce, business associations and organizations, county commissioners, city councils, town selectmen, mayors and city or town managers throughout each and every state. For those who are willing to be state coordinators to act with others to effectuate these distributions, please contact Rick and Dick at the emails given below. The CD packet, including the audio and data CDs, is available for only $1.00, which just barely covers the cost of production. We suggest that people pool their funds to allow them to purchase enough CDs to be able to distribute them to all of their state legislators and to others in the state, as described in this paragraph.

Here are some realistic figures that could be achieved, if enough Americans were to distribute the CDs and this information available on this website. We estimate that, by and through various channels, including resending, our News-Letter reaches about 50,000 people. The information presented here is being disseminated across the country beyond the News-Letter and our website, so should reach many more thousands of people. To be very conservative, if we take only 10% of the News-Letter distribution, that amounts to 5,000 people. If these 5,000 were to send this project information to 100 people, we would be reaching 500,000 people. If 500,000 people were to send this, on average, to 25 people, we would be reaching 12,500,000 people. If these people were to send this, on average, to 10 people, then, we would reach 125,000,000 people!

This figure amounts to approximately 39% of the current American population. Imagine the kind of potent, political pressure these numbers could exert upon THEIR “public servants” to get these projects adopted and implemented for the benefit of the People, the small businesses, the industries and the entire social fabric of each and every state in this country! Reality dictates that, if 125 million people receive this information, although many of them may like the proposals, only a small percentage of that figure will likely take action to implement them in their states. If that small percentage were projected to be 3%, then we would be looking at approximately 3,750,000 people, which is a figure substantial enough to get the ears of their public officers and, hopefully, persuade them to act on behalf of the People they were elected to serve. Fellow Americans, please remember, that we need only one state to accept and implement these proposals, because once that happens, every state will likely follow. The chances of getting one state out of fifty states to adopt and implement these proposals are excellent, but ONLY IF THE PEOPLE GET BEHIND THEM AND URGE THEIR PUBLIC OFFICERS TO ACT ON BEHALF OF THE PEOPLE, and that includes YOU.

Following is the audio and the companion documents for this project. If, after hearing and viewing them, you have any questions, comments, ideas or suggestions, please email or call us, using the contact information provided on our website. If you are interested in becoming a state coordinator, for distribution of the CDs in your state, please contact Rick and Dick, as follows:


Rick’s email:

Dick’s email:


Now is the time for all good Americans to come to the aid of their true American Constitutional Republic!


Best regards,

Jack and Margy


Our Email to a Proponent for Gold or Silver Backed State Bank Controlled and Operated Currency

The ways in which society in America work now, both publicly and privately, clearly demonstrate that they do not work for the average American - "they", including the monetary system do not work for the American society, and definitely oppose all Constitutions, federal and state. 

All of the politicians, judges, bureaucrats and public officers in this nation, federal, state and local, with a few minor exceptions, here and there, are traitors to the American People, to the country called America, and to the Constitutions.  All so-called "experts" in this country are expert only in creating new problems and in not solving them, because their intent is to never solve them.  It is obvious that if a problem is solved, it no longer exists, therefore, can no longer be scammed by governments and corporations.  We believe that even one of low intelligence would agree, based on current political and economic realities, that these positions are true and correct.

As you know, we have proposed a Constitutional Affidavit and an Alternative Currency, which have been combined with a proposed bill from Rick Aiello and Dick Sieron, Rick's friend, to repeal ObamaCare.  These three proposals have been placed on audio and data CDs, with the intent to get them distributed to legislators, political and activist groups, chambers of commerce, and business associations and organizations all over this country. 

Since the so-called "experts" and the politicians have done such a horrible job for the people of this nation, as is borne out by, at minimum, the current economic problems everywhere, our Alternative Currency Program is egalitarian in nature and places the power to issue and control the currency in the hands of the People, by and through a People-owned public bank, for the benefit of the People, the businesses, the industries, the state, itself, and the General Welfare.  Since you theoretically know what the proposal is, beyond this, we won't go into it here. 

You, like many others, firmly believe that gold or silver, etc. should be the only basis and backing for a proposed new currency.  We have explained to you that this is just more insanity piled on top of previous insanity.  Again, it is obvious that none of our systems work and it is also quite obvious that these systems were designed and put in place by the traitor politicians and the traitor so-called "experts", at the bidding of their hidden masters.  For anyone to rely upon these traitors in the establishment of an alternative currency is further insanity.  To us, once someone lies to us, or commits treason, he is forever branded a liar and a traitor, and if we were to ever trust or put any faith in what he says, then, we would be insane, just like everyone else. 

We shall just give you a few examples of what could happen, if one were to base a new alternative currency in gold or silver or anything else considered to be "rare enough to have value".  For the sake of discussion, let us say that one state, such as California, wants to create an alternative currency based in gold, and let's say, for the sake of discussion, to make it easy, that the amount California needs to function, both publicly and privately, is one trillion dollars. 

Since California wants to base the one trillion of new currency on gold, then, California must purchase one trillion dollars worth of gold, so that it can issue a new currency backed by one trillion dollars of gold.  Are you beginning to see some very serious problems with this? 

In the first place, where is California going to get one trillion dollars to purchase the gold?  As most of us know, California, like a lot of other states, is dead broke, in high debt, defaulting upon contracts and payments, with no light at the end of the tunnel.  So, we repeat, where is California going to get the one trillion dollars needed to back the new currency?  Do you think California can borrow one trillion dollars from the fed to do this?  If your answer is "yes", then, you know nothing about economics.  The fed has no interest in lending California one trillion, so California can set up an alternative currency to compete with the fed.  Do you think California can borrow one trillion from a banking cartel within the fed system?  The same position holds true as with the fed.  So, again, where is California going to get the one trillion to buy the gold to back the currency?  Do you think California will take it out of its CAFR accounts?  Again, if you think so, then, you know nothing about political and economic realities.  There is no one who will lend California a trillion dollars to buy gold to back an alternative currency, therefore, the position that the currency must be gold backed is untenable and insane.

If California were lucky enough, by some miracle, to get some group, somewhere in the world, to lend it one trillion dollars to buy the gold, and California then attempted to buy one trillion dollars in gold, what do you think would happen to the price of gold  - before the purchase?  Since the gold market is tightly controlled and manipulated by the interconnected vested interest groups which have a lock on over 99% of all gold that exists, do you think that the price of gold might at least double and probably quadruple, overnight?  If you do not think so, then, you do not know the markets and how they work and are manipulated.  If the price is now 4 trillion for what used to be one trillion in gold, then, the one trillion dollar loan does California no good, because now it needs 4 trillion in gold to back one trillion in their alternative currency.  This obviously is untenable, insane and makes no financial sense, whatsoever. 

Let us take a real reach and say that someone will lend California one trillion dollars, and California can buy one trillion in gold without the gigantic increase in cost, which would occur under such conditions.  California now has indebted the People of California for an additional one trillion dollars, plus interest.  Do you see any advantage to this?  Do you see any disadvantage to this?  The economy is expected to increase due to a theoretical "sound" money innovation, so new currency and new money supply will be constantly needed to keep up with the forward movement.  Therefore, new funds will have to be borrowed to buy more gold to back the expanding currency, further indebting the People of California for full payment, plus interest, plus fees, etc., etc.  Is this beginning to sound familiar?

Further, the way you have devised it, from our conversations, you put the state legislature in charge of issuing the money, which legislature is in the same vein as the congress, which has caused and/or allowed all the problems in this country that have totally trashed our economy and our society, no matter what the "experts" say.  The usual corruption, at the highest levels, will take place, as is the custom, practice and policy of such institutions, but you want to place the power of the new currency within the hands of these thieves.  Do you see a problem with this? 

It is quite clear that under the system you propose there is basically zero difference between the current monetary system and the new monetary system, with the exception that, in theory, the currency is backed by gold.  In reality, is it?  In reality, we were told that the U.S. dollar was backed by gold, but no gold has backed the U.S. dollar for a long, long time; yet, the myth continued.  Even if gold were to have backed the U.S. dollar, that dollar is not a public currency, but rather a private currency - debt based, interest bearing, and operated for private corporate profit.  Just as took place in 1913, and then later under the "New Deal", the gold simply vanished out of the hands of the People and into the hands of the usurpers.  If you use essentially the same institutions to operate this charade, masquerading as a new currency, do you think that there is a remote possibility that the same fraud might take place and that what people assumed was a gold-backed currency was actually backed by absolutely nothing, because the gold had been pledged to, then, delivered to, the lender?  If you don't think this is possible, then, there is really nothing else to be said.

Your proposal indebts the People enormously, which means their taxes increase enormously and the governmental control over them expands rapidly.  The horrors, as stated above, will absolutely take place in any gold or silver backed new currency, controlled by the existing governments and the existing bank system and the hidden masters of both of these.  How do we know this?  It has always happened and always will happen, because of the evil nature of the evil controllers of our society.  Your system is doomed to failure, before it even begins.

Further, you must be aware that there are no such things as free markets in a controlled world, such as this one.  Therefore, if your gold backed currency were ever to manifest, do you think that no manipulations would ever be played upon that currency and the theoretical gold backing behind that currency, to the extent that there would be great rises in the gold prices, at the whim of the controllers, therefore, affecting the currency, then, great depressions in the price of gold and that currency, again, at the whim of the controllers?  Manipulations would take place unendingly with any such proposed currency, as they do now, and have taken place since the inception of the private issued currency in this nation, which started during the first Washington administration in 1791.  At one point or another, the American People have to wake up to the absolute fraud perpetrated upon them and begin to see the way to achieve parity through an egalitarian, People controlled monetary system.

Our system is a public currency, owned by the People, not by a private bank or private interests, debt free to the People of the state and debt bearing ONLY to those who directly borrow from the bank, without interest.  No public indebtedness exists for funds spent by the state or any city, town, county or municipality of the state for government purposes to benefit the People.  In your system, enormous taxes will exist, and government and corporate control will greatly expand.  In our system, there is no public debt; therefore, there is no need for tax upon the people of any type, whatsoever.  The government is dependent upon the People for the funding it needs to operate, thus, the People will have reclaimed their monetary control and political authority over their governments.  Since government gets all the funds needed to run government, by and through grants from the People's bank, no funds are needed from the People's funds to pay for government operations or debts to bankers and/or private interests, plus their usurious interest.  This system is not only egalitarian for all participants, but is also a capitalist's dream come true.  If the reasonable, rational observer exhibiting some intelligence and common sense were to analyze the two systems, which one do you think he would accept? 

The "precious element" that backs our alternative currency is the productivity of the People of the state, as inherent in their talents, skills, labor, time, creativity, resourcefulness and inventiveness, and as manifested in tangible goods, products, and services, which have real value and are marketable throughout the state and elsewhere.  As long as businesses operate and people work to produce ideas, goods, products and services, there will never be a shortage of currency, goods, products or services.  The People are a precious resource of unlimited nature and value, on an ever expanding basis, and unlike gold or silver, etc. cannot be bought up, hoarded, controlled and manipulated in quite the same way as these precious metals. 

Best regards,

Jack and Margy