States Seek Sound Money System

by Elias Alias

“Although control of the monetary and banking systems has serious political significance, the apologists of the Federal Reserve System have been extremely successful in the last seventy years or so in removing monetary and banking issues from the agendas of the political parties, candidates, and anybody else who is on the political platform or in the political arena. Dr. Edwin Vieira, Jr.

Several State legislatures are introducing resolutions to create commissions to study alternate money systems for their people in the event that the Federal Reserve System, Inc., implodes or otherwise mismanages its fiat currency programs.  The term, “Hyper-Inflation” is used.

Economists and political devotees around the nation now are admitting that the Fed may have jeopardized its ability to maintain our annual rate of inflation at controllable levels, and the bailouts and stimulus packages give grave concern to those who study money’s relation to the laws of economics.

Tennessee’s legislature is following Virginia’s, South Carolina’s, and Montana’s legislatures  in recommending that its State government look into creating an alternative money system to compete with the Fed’s fiat, debt-based “legal-tender” money system – or to replace the Federal Reserve Notes if the dollar is allowed to go into hyper-inflation.

From here, < >   we read:

State Sen. Bill Ketron said he believes the federal government is implementing many things that are not sustainable, and he wants to make sure Tennessee is prepared in case the bubble pops. That’s why he wants to set up a committee to look into what it would take for Tennessee to come up with an alternate currency. He said there’s concern hyperinflation could render the U.S. dollar worthless and could throw the state’s budget and economy into chaos. Since the federal government hasn’t come up with a backup plan, Ketron thinks the state should exercise its 10th Amendment right to do so.

So that sentiment is now before the Tennessee State Legislature. The text of the legislation is here:

Is it paranoia, or fear-mongering, when various State legislatures talk about the Federal Reserve System’s imminent failure and begin preparations to study the implementation of alternate money systems for their respective States?

The book-cooking gurus on Wall Street and at the Federal Reserve have much to say by way of reassurance, but the simple fact is that “legal tender” laws cannot check a run-away currency which has been excessively over-printed while no real increase in backing has occurred in the workplace.

The danger posed by carrying out the bailouts and stimulus packages, plus endless war financing abroad coupled with a Homeland Security military-police-state domestically, lies in the temptation to just print more money to pitch at the problems. There is a catch to that trick, however.

The gross domestic product is what the working people of America generate by doing what they do each day. That GDP is a solid figure, measureable, and is the basis of our economy. When the Fed just prints up a few extra billion dollars, creating Federal debt in the process, all the previously-existing dollars in circulation become worth slightly less, owing to the fact that the GDP did not grow to match the newly created influx of fresh money.

The vernacular term for this money-tweaking magic is “Inflation”.

History has shown the folly in doing this, yet the Fed swears by the system. But the Fed, which is a privately-owned banking cartel and is not an agency of the U.S. Federal government, demands as much secrecy as does our CIA and is now playing a game which historians assure us has been played by other nations in the past. This game has deadly consequences. No fiat money system on earth has been sustainable in the long term, and all previous fiat currencies have failed or crashed.

Montana’s Honorable Representative Bob Wagner introduced a sound money resolution into the 2009 Montana legislature session, where it stalled. In this current session he has a stronger version of the bill. He has stated:

“Our object isn’t to forcibly replace Federal Reserve notes with sound money. History and the dynamics of a failing financial system will likely do that without any input from us.  Passage of this Bill will provide the option, template and the mechanism to give Montana a worthy alternative to insolvency should the existing Federal Reserve System fail.”

Meanwhile, in Virginia’s legislature, Representative R. G. Marshall introduced HJR-557. Opening lines of that resolution include this –


Offered January 12, 2011

Prefiled January 5, 2011

Establishing a joint subcommittee to study whether the Commonwealth should adopt a currency to serve as an alternative to the currency distributed by the Federal Reserve System in the event of a major breakdown of the Federal Reserve System. Report.

WHEREAS, the Supreme Court of the United States has ruled in In re Rahrer, 140 U.S. 545, 554 (1891), that “the police power” of a State “is a power originally and always belonging to the States, not surrendered by them to the general government, nor directly restrained by the Constitution of the United States, and essentially exclusive”; and

WHEREAS, the Supreme Court of the United States has ruled in Beer Company v. Massachusetts, 97 U.S. 25, 33 (1877), that the police power of the States “extend[s] to the protection of the lives, health, and property of the[ir] citizens, and to the preservation of good order”; and

WHEREAS, the protection of the lives, health, and property of Virginia’s citizens, and the preservation of good order in the Commonwealth, depend upon the maintenance of both an adequate system of governmental finance and a sound and robust private economy; and

WHEREAS, an adequate system of governmental finance and a sound and robust private economy cannot be maintained in the absence of a sound currency; and

WHEREAS, the present monetary and banking systems of the United States, centered around the Federal Reserve System, have come under ever-increasing strain during the last several years, and will be exposed to ever-increasing and predictably debilitating strain in the years to come; and

WHEREAS, many widely recognized experts predict the inevitable destruction of the Federal Reserve System’s currency through hyperinflation in the foreseeable future; and

WHEREAS, in the event of hyperinflation, depression, or other economic calamity related to the breakdown of the Federal Reserve System, for which the Commonwealth is not prepared, the Commonwealth’s governmental finances and Virginia’s private economy will be thrown into chaos, with gravely detrimental effects upon the lives, health, and property of Virginia’s citizens, and with consequences fatal to the preservation of good order throughout the Commonwealth; (snip)

That is fairly strong language, and a lot of that language can be derived from the works of Dr. Edwin Vieira, Jr., author and Constitutional scholar. A few hyperlinks can introduce readers to Dr. Vieira’s works:

The BookPieces of Eight — the Monetary Powers and Disabilities of the United States Constitution: A Study in Constitutional Law.

Advanced Knowledge:  The Purse And The Sword by Dr. Edwin Vieira. An eight-hour course on four DVDs, this could be the most important purchase you’ll make this year.

“Self government is not a spectator sport.” – Edwin Vieira. Hear Dr. Vieira say that in context at this next link. Please view this ten minute interview with Edwin Vieira on the Alex Jones show:

The Knowledge: A remarkable essay entitled Restoring the Dollar

Quoting from that essay by Dr. Vieira:

The evolution of the Federal Reserve system exemplifies a typical historical devolution or corruption of monetary systems throughout the world for the last two centuries. This is a devolution from commodity money to fiduciary money to fiat money.

But first here are some definitions:

Commodity money is a medium of exchange, the units of which are fixed amounts of an actual commodity that has value other than as money alone. Historically, silver and gold coins of known standard weights and designs emerged as the preferred monies of the civilized world. Certainly that was the result at the end of the last century.

With commodity money, the actual commodity, the silver or the gold, is both the medium of exchange and the standard of value. The supply of commodity money is self-limited because of the costs of minting, refining, and coining the silver and gold. New supplies of commodity money will be coined only to the extent that coinage is economically profitable. The market will simply not produce more gold and silver coin than is necessary compared to all the other uses of that capital.

Fiduciary money is composed of some intrinsically valueless substance, typically paper, which the issuer promises to redeem on demand in commodity money. Private bank notes and government treasury notes served for fiduciary monies in general circulation prior to the 1930’s in this country.

With fiduciary money, the promise to pay is the medium of day-to-day exchange. That is what people carry around in their pockets. But the actual money and the ultimate standard of value remains the promised medium of payment, the silver or gold coin.

The supply of fiduciary medium is also self-limited by the requirement of redemption. In a free market system, in which contracts are enforced, the supply of fiduciary money is issued only to the extent that the issuer is confident it can satisfy the demands for redemption. (The self-limiting aspect of fiduciary money has always failed whenever the government or a powerful private interest has been able to step in and license the issuers of the fiduciary money to suspend or to repudiate that promise to redeem.)

Finally, fiat money is composed of some intrinsically valueless substance which the issuer does not promise to redeem in a commodity or in a fiduciary money. Because fiat money has no legal connection to a commodity money, and, therefore, has no real economic cost in terms of production, the supply of fiat money is never self-limiting and is always largely a matter of public confidence in the economic or political stability of the issuer.

Historically, every major fiat money has self-destructed in what is commonly called hyperinflation, that is, extreme decreases in purchasing power that is caused either by unlimited increase in supply by the issuer or simply by loss of public confidence in the value of the money or in the economic or political fortunes of the issuer.

-end quoted passage from Dr. Vieira’s essay entitled Restoring The Dollar –

There are now several States considering alternative money systems. This is the money America’s founders required in the Constitution itself. It is not paranoia – it is facing a reality which is now visible by simply knowing twentieth century American history.

But as we know now today that old history, we also are aware of current events, such as the G-20 financial planning meeting in Pennsylvania, the existence of a Bank for International Settlements which is the global central bank for all national central banks, a World Bank, an International Monetary Fund, a World Court, and a world governing body called the United Nations.  We see the infrastructure for consolidation of vast regional economies into what is referred to as a “global economy”. We know that very powerful people in key positions of governance and finance refer to and act upon the reality of that global economy and that they have spoken publicly, published, in fact, a shared plan to dominate the world through directing the activity of that global economy in the policies of nearly two hundred member nations on the roster of the UN.

Here, in the words of one of their own, is a rather point-blank confession:

(From page 324 in Carroll Quigley’s Tragedy And Hope.)

“[….] The powers of financial capitalism had another far reaching plan, nothing less than to create a world system of financial control in private hands able to dominate the political system of each country and the economy of the world as a whole. This system was to be controlled in a feudalistic fashion by the central banks of the world acting in concert, by secret agreements arrived at in frequent meetings and conferences.

The apex of the system was to be the Bank for International Settlements in Basle, Switzerland, a private bank owned and controlled by the world’s central banks, which were themselves private corporations.

Each central bank, in the hands of men like Montagu Norman of the Bank of England, Benjamin Strong of the New York Federal Reserve Bank, Charles Rist of the Bank of France, and Hjalmar Schacht of the Reichsbank, sought to dominate its government by its ability to control treasury loans, to manipulate foreign exchanges, to influence the level of economic activity in the country, and to influence co-operative politicians by subsequent rewards in the business world.”

~ Professor Carroll Quigley [emphasis EA]

We must ask, if indeed the Federal Reserve System, Inc., were to self-destruct into hyper-inflation, what would our governmental and economic leaders/planners do?

It appears that they plan to put into effect a Department of Homeland Security, Pentagon, and FEMA interfaced system of enforced order while consolidating State, national, and International (UN) forces to maintain civil order and infrastructure – and – to introduce a regional or global currency such as the SDRs (Special Drawing Rights) of the BIS (Bank for International Settlements, created in 1930 and kept well hidden from the public discourse under the most rigid non-national charter of secrecy known to man – no government authority from any nation on earth can question or audit the BIS, which grants employees international diplomatic immunity from all national laws of all national governments or international governing bodies such as the UN or the EU).

In other words, once the gamut of fractional reserve, fiat styled tom-foolery has been completed and the Federal Reserve System has been corrupted to the point of self-destruction through fiat-caused hyper-inflation, and the U.S. and world economies are thrown into chaos, the world planners intend to bring in the global version of this Federal Reserve System on the back of a global currency (or a basket of regional currencies). In their view, the IMF/World Bank can become the world’s “Federal Reserve” and they can then begin their fiat enterprise anew, with no authority left on this earth to oppose it.

That would be the final take-down of the U.S. Constitution, the end of American sovereignty as an autonomous nation on this earth, and the unchecked, unbridled rule by a corporate-fascist culture of Marxism relying upon the force of global governance to police humanity in all sectors.

Our freedom as individual Americans is what is at stake as some of our courageous and visionary State legislators introduce bills for sound money into State legislative processes.

And that is an inkling, a brief glance, into what is behind Oath Keepers new mission in the Veterans community across America, in which our Veterans shall take up this torch of knowledge and assist in restoring in their respective communities the Oath Keepers three-tiered plan to restore the Republic –

  1. Sound Money;
  2. Preparedness; and
  3. Reinstitution at the local and County level of the Constitutionally required lawful “well regulated militia” of the several States.

The purpose of coordinating these three areas of action, sound money, preparedness, and reinstituting the lawful militia, is to establish a foundation on which to rebuild in the several States their original status of sovereignty.

State sovereignty is the constitutionally-provided answer to Federal tyranny, as the Tenth Amendment Center so clearly shows.  State sovereignty depends on the people of the several States and their adoption of sound money, a degree of personal, community, and state-wide preparedness against possible disruptions, and the security provided by the totality of the citizenry in their lawful, well-regulated militias.

Oath Keepers will unveil our Alliance of Liberty Leadership (ALL) in the Spring of 2011, and charge the Veterans community with front-lines action in accordance with the faithful fulfillment of their Oath in their own local communities. In the meantime, one truly patriotic action each Oath Keeper can do is to support these courageous statesmen who are introducing and promoting bills at the State level to accept their responsibilities as States of the union to ensure economic stability for their people through sound money legislation. Urge your legislatures to pass these bills.

Support those who vote for sound money, and replace those who vote against sound money. And whatever else we all do as individuals, support the Tenth Amendment Center and Oath Keepers!

I will close by asking each reader to recall with me a favorite Tea Party rally sign, held by an unknown woman at a public Tea Party event:

“If they can just print money when they need it, why are we paying taxes?”

Copyright Elias Alias and Oath Keepers 2011 (336)

Copyright (c) 2013 by PolyMontana LLC or by the author. All rights reserved.


  1. 1
    elias alias says:


    The following came to me after I had completed the above article, and I think this should go with the article immediately. Fox News is reporting that Utah is making forward progress in passing its own State alternate monetary policy, which would be based on silver and gold coins minted by the Federal government’s Treasury.

    From that article.

    The Utah House was to vote as early as Thursday on legislation that would recognize gold and silver coins issued by the federal government as legal currency in the state. The coins would not replace the current paper currency but would be used and accepted voluntarily as an alternative.

    The legislation, which has 12 co-sponsors, would let Utahans pay their taxes with gold and also calls for a committee to study alternative currencies for the state. It would also exempt the sale of gold from the state capital gains tax.

    The bill cleared a state legislative committee on Wednesday, the first of 13 similar bills in statehouses across the country to do so. If the bill clears the House, it would have to pass the Senate before the governor could sign it into law.

    Attorney and Tea Party activist Larry Hilton, author of the original bill, said he doesn’t foresee any roadblocks.

    “There’s enough uneasiness going on in the economy to trigger people to feel that, hey, having a little Plan B, kind of a backup system, is not a bad idea,” he told

    Additionally, here is a wonderful eleven-and-a-half minute video on how the Swiss do things, and this video takes us through these vital aspects of cultural/social infrastructure as the Swiss formula for sound money. This video was, and is being, played around Utah to prepare the people to support Utah’s bid for sound money. It is:

    The Swiss Model For Peace And Prosperity
    A sovereign State –
    Having sound money –
    And a competing currency –
    To support the local economy –
    With a reputation for strict privacy –
    And for the protection of property rights –
    Secured through an armed/trained citizenry –
    Thus attracting foreign investments and deposits –

    Regarding a claim I made in the above article, that the U.S. military is investigating possibilities centering around a collapse of the Federal Reserve System’s system, there are a couple of links. The first one I’ve placed below came from the body of the second link I’ll post. This first one is on an operation the Pentagon calls “Unified Quest 2011”.

    And what might “Unified Quest 2011” be?

    Ahhh, that would be the name which the Pentagon uses to denote its wargame planning exercises which are designed to control things when the money thing gets out of control.

    EA note: If your browser claims that this site’s certificate is not in order, click your way through to the site anyway – this is apparently a side-bar military site not intended for public use – or something – my computer did not explode when I clicked into this site, and hopefully yours won’t either. ;)

    From that site:

    Unified Quest conducts broad studies of future joint, interagency, intergovernmental and multinational (JIIM) operations to isolate and frame issues vital to future force development in format that is suitable for integration into concepts and capability development. Unified Quest will also examine and develop interim solution strategies for enduring operational and generating force Army Warfighting Challenges.
    Unified Quest Design Input:

    • Guidance from the Chief of Staff of the Army & Commanding General TRADOC

    • Army Warfighting Challenges and Integrated Learning Plans

    • Army Concept Framework and other concept to capability documents

    • Current operations and Future operational environment

    • Science and Technology

    • Close synchronization with Sister Services, OSD and other wargame efforts

    • Army, Joint and service concepts and emerging doctrine

    • Emerging civilian agency planning and execution processes

    The Army Capabilities Integration Center (ARCIC), at Fort Monroe, VA, is the Army’s leader in the identification, design, development, and synchronization of capabilities into the Army current Modular Force and the future Modular Force, bringing together all the Army agencies as well as Joint, Multinational and other DoD agencies to manage rapid change.

    The ARCIC supports TRADOC in providing adaptive Soldiers, leaders and units by contributing to the development of doctrine, TTPs, and the collective training experience. Our measure of success is a campaign quality Army with joint and expeditionary capabilities.

    We will know we are achieving our goals when Soldiers, leaders, and units supported by integrated DOTMLPF solutions provide the landpower capabilities required by the Joint Force Commander – for today and for the future.

    Well, that should back up the message in this next link from the SHTF site –

    At that page we read –

    If we’ve “prevented economic collapse” and “avoided the depression many feared,” according to President Obama, inquiring minds are asking why the Pentagon and US Military are actively and aggressively engaged in planning responsive action to large scale economic breakdown and civil unrest scenarios:

    … According to the report, the Army has spent time on financial market trading floors with JP Morgan and others, in the hopes that they can learn more about how a financial and economic attack may occur, and what the ramifications of such attacks on US stocks and bonds may be.

    The Army, in a year-long war games series called Unified Quest 2011, is looking at a variety of possibilities and how to deal with them, including:

    • the implications of “large scale economic breakdown” inside of the United States
    • how to maintain “domestic order amid civil unrest”
    • and ways to deal with fragmented global power and drastically lower budgets

    Also from that article we find another valuable link. At the risk of frightening McNutt’s constituents …


  2. 2

    For a full listing of bills introduced to return to gold and silver tender, go to the Constitutional Tender website.

Speak Your Mind


Please enter the CAPTCHA text

%d bloggers like this: