There is a clear push towards honest money although it can at best be described as a drop in the ocean at this time. It is however encouraging to see that we at Silver Bullion are not the only ones that are pushing for a monetary system where currencies consist of copper, gold and silver, especially in the form of copper, gold and silver coins.
There are two such initiatives we would like to cover in this article, namely Constitutional Silver and the Continental Bank of Canada. Both these initiatives are not necessarily available to South Africans at this stage, but we hope that some great minds in South Africa, those with deep enough pockets and the brain power to back it, will take note and offer the same type of services to South Africans. We don’t intend to cover all of the details here, but intend to leave investors with a pretty good idea of what is or will be on offer through the mentioned initiatives. Needless to say, investors have reason to be excited about these initiatives, since it not only bring us closer to a monetary system earmarked by honest weights and measures, but it provide investors with real protection in a debt-based monetary system that can at best be described as “tumbling towards the abyss” at this stage.
Constitutional Silver, the brainchild of Chris Duane of the Sons of Liberty Academy, makes it easy for Americans to save “…90% silver dimes or quarters from pre-1965” (as per the Constitutional Silver website) or silver which is termed “constitutional silver.”
Constitutional silver conforms 100% to the definition of legal tender as stated in Article 1 Section 10 of the U.S. Constitution, which reads in part: “No State shall enter into any Treaty, Alliance, or Confederation; grant Letters of Marque and Reprisal; coin Money; emit Bills of Credit; make any Thing but gold and silver Coin a Tender in Payment of Debts; pass any Bill of Attainder, ex post facto Law, or Law impairing the Obligation of Contracts, or grant any Title of Nobility” (Part of Article 1 Section 10 of the U.S. Constitution). Thus, unlike thousands of banks and other financial institutions out there, Constitutional Silver offers Americans with the opportunity to participate in a monetary system that consist of currencies which are legal tender according to the U.S. Constitution. This being written, it will be wise for investors globally to grasp the importance of what Thomas Jefferson, the principal author of the famous Declaration of Independence of 1776, said/stated in 1816: “If the American people ever allow private banks to control the issue of their currency, first by inflation and then by deflation, the banks and corporations that will grow up around them will deprive the people of all property until their children wake up homeless on the continent their fathers conquered.”
Given the above, initiatives like Constitutional Silver should be welcomed by all investors, especially those who treasure true freedom, personally and otherwise.
The Continental Bank of Canada
Word is out that Eric Sprott, Founder of asset management firm Sprott Inc., is planning to start a bank unlike any other bank out there.
The new bank “…would take deposits, but it would make no loans…” and customers can expect to be able to open “…chequing accounts backed by precious metals – customers could deposit gold, then make purchases by cheque and have their accounts debited accordingly” (Sprott makes a bet on a different kind of bank, The Globe and Mail, Boyd Erman, 17 October 2011). In addition, the new bank planned by Sprott, if approved by federal regulators, will be called the Continental Bank of Canada. It will consist of no less than 17 branches; branches of a trading company called Continental Currency Exchange Corp, based in Ontario, Canada. Both Sprott and Sprott Inc. are investing in this outfit and they expect a decision by the federal regulators by early 2012. If approved by the federal regulators, it will be a sure sign that the days of the Federal Reserve Note (commonly referred to as “the Dollar”) are indeed numbered.
Silver Bullion prefers physical silver, especially in the form of silver coins, stored independently from the formal banking system. The new bank planned by Sprott will not mean all our requirements in this regard, but it would be an excellent choice to those who would like a viable alternative to traditional check/chequing bank accounts.