In this blog post he discusses a method to migrate from debt money to asset money (he calls it 100% money).
I agree with all his method steps but would like to comment on #6:
6) The new government bank will act as an electronic "piggy bank" only. All deposits will be 100% reserve and it will not make any loans. Loan making will be left to the private banking system (with no deposit insurance or a possibility of a future bailout). The new government owned bank exists only as a "safe" money storage and a payment clearing system so the public does not have to carry around physical paper cash to make purchases and pay bills.
I have been thinking about this. So I will write about it with a bit of humor. Do not take any of the ideas too literally but grasp the concepts
The electronic "piggy bank" of the new government bank will hold all the 100% money of the USA. It would really be a huge server farm located at Ft. Knox near the depository. The facade would an artistic rendition of a pig in honor of who used to own all the money. The building would be painted pink. It would be located near the gold vaults in compromise with the gold folks to give the digital money value by proximity. Ron Paul said this was close enough and was the deciding factor in legislation to be introduced jointly with Dennis Kucinich that will abolish the Fed and established the Piggy Bank.
The United States Bullion Depository is called Ft. Knox for short. The United States Piggy Bank could just be called the Pig like we call the Federal Reserve Bank the Fed.
All the money in the United States is securely stored in the pig. The money itself is fiat money but it is as good as the gold that it sits next to. It belongs to the people of the United States and all financial entities other than people that do business in the USA.
US currency called Digital Dollars, or just dollar bills for short exist as a computer record consisting of these data elements:
Denomination Amount. The denomination may be a value as determined necessary serve as a medium of exchange with face values in an appropriate distribution from 1 thousand dollar bill to a billion dollar bill. Perhaps much like we have paper bills in denominations from $1 to $100.
Serial Number. A unique sequential serial number is given the denominated bill at birth. Once born, the bill exists forever. Data regarding the bill is included in the serial number. No two numbers are alike.
Owner ID: An identity number of a financial entity registered in the money system of the USA. Every number is unique. The government has its own number system range. ID numbers may be concatenated to denote ownership as well a rights to use the money. All money records have an owner ID.
Transaction History A record of all transactions for each denominated bill in the Pig system would be retained. This is a separate record related to its parent by serial number.
Digital Dollars are used as a medium of exchange simply by changing the owner associated with denomination. This method of handling transactions is transparent to the owner. The owner authorizes a payment transaction to a new owner through a secure system. The Pig receives this transaction request in the form of a total amount. The Pig then changes ownership on whatever is the least number of denominations necessary to equal the total. The Digital Dollar Bill Unit remains a fixed record in the computer. Ownership changes with transactions.
Ooops! What about the amount less than $1,000? That is the subject of a Small Money System called Small Change that would interface with the Pig. It would be a private money system and act as the Small Change Purse of the owner. The two would interface. Rules of the Small Change system would be established as well as protocols and security. Anyone could be authorized to operate a small change money system subject to registration and rules. The money in each Small Change system would be serialized. When the small change account of an owner was greater than $1,000 dollars it would migrate to the Pig. When Small Change needed replenishment, money would be transferred to the owner's Small Change account. A method would be established to replenish the Small Change owner account as required. I have no idea what that method might be but given enough time I could dream one up.
The Small Change sector is to be established as a free private enterprise vehicle to introduce market place efficiencies to money management at the bulk of transaction level. It will also serve to give employment to unemployed banksters. They are limited to handling accounts of less than $1,000 dollars in this system. However, they no longer have a monopoly and must compete with anyone in this free and open money system sector. Probably one that will be dominated by Apple, Google or Facebook.
Money in the Pig would serve as a store of value savings account at the choice of the owner. The owner would have control of the account to allow others to use money the owner was not using and it would therefore be reserved for their use depending on whatever arrangements were made with the user. This opens the possibility for mandatory reservation of some amount, depending on wage transactions levels and employer contributions that would to be reserved for the future use of the owner. This could handle Social Security if the owner is an individual subject to withholding.
Maybe some more ideas to add to this as i get them.
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