NEW USA CURRENCY PROPOSED
December 20th, 2009
(Draft originally was published December 15, 2008. Now it is over a year later).
KEN’S EARLIER PROPOSAL STILL MAKES MORE SENSE THAN ANYTHING ELSE THAT OUR LEADERS HAVE COME UP WITH!
As conceptualized by Ken Haugen, the USA needs a new currency. It seems that everything has gone to about 65% of what it was a few months ago. Oil is. Soybeans are. Corn is. California real estate is. Florida real estate is. East coast real estate is. The U.S. Stock Market is. Interest rates are. Everything is around 65% of what it was a few months ago.
Ken Haugen recommends that the U.S. Dollar be replaced as the preferred international currency. He thinks that the new currency become the U.S. Smacker, with the international symbol being $$, as opposed to the $ symbol, which, of course, represents the U.S. Dollar. Every $100 gets traded in for $$65 (65 Smackers).
Take BANKING, for example:
- A Bank’s assets are its LOANS made to people and businesses. All loans get adjusted to 65% Smackers vs. Dollars. (e.g. a $10,000 loan gets adjusted to a $$6,500 loan).
- A Bank’s debt is made up of Deposits and CDs payable to people. All deposits and CDs get adjusted to 65% Smackers vs. Dollars (e.g. a $10,000 CD gets adjusted to a $$6,500 CD).
- Interest is payable in Smackers ($$)
- All rates get renegotiated. The bank negotiates a new rate on CDs. Borrowers negotiate a new rate.
- Hard cash ($) must be traded in for ($$), as follows:
Within 30 days - $$65 for $100
31-60 days - $$45 for $100
61-90 days - $$25 for $100
after 90 - worth whatever collectors will pay for a $
(This will be guaranteed to bring $$ billions of Smackers into the banking system)
- Labor: All contracts become null and void. Rates and benefits get renegotiated.
- Government: All contracts become null and void
- Transfer Payments adjust to Smackers ($$)
- Tax revenues adjust to Smackers ($$)
A few months ago, Bill O’Reilly of FNC made a statement to the effect that Barrack Obama is taking office, not as President, but as Trustee in Bankruptcy. A New Currency for the United States of America would be a good start for stimulating recovery. Everybody can relate to it. We have all referred to real money as a “Smacker”.
Let’s get back to “real money”.
AND Wow! Think about the new jobs it will create. It oughta be good for at least a million new bank tellers just to swap the $ for the $$
I’m Old Enough to Remember Nixon Removing Gold Standard
December 14th, 2008
Dennis Pape also has a very good point. I agree, the Federal Reserve has been given great power. I also recall when Paul Voelker was King of the World! Of course, my “Smacker-Currency” was tongue- in-cheek, but it may be a good start. While the suggestion to go back to the gold standard may be the ultimate answer, just think about it — today, the “Fiat” dollar that we have would be worth about 50 “gold-standard” dollars. Is it practical to do that in “one fell swoop”???? Ken.
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