The future of credit: a workable system.

The current and ongoing collapse of fiat currency and the debt monster it spawns should inspire us all to find a new solutions for a workable monetary system. I suggest to you that the current banking system is corrupt from the ground up, and has been for ages. My solution is quite simple: It should be illegal to lend other people’s money.
“That’s Crazy!” you may say. But consider this…  there can be no people borrowing without other people saving. Otherwise you’re debasing the currency.
My solution in 5 simple steps:

1) Ditch the “Legal Tender” laws and let people choose what to use as a currency. History indicates most will revert to silver or gold (or even copper for small change). Get government out of the money printing business altogether! They’ve shown they can’t be trusted. Mines and private mints will pick up the slack with bullion.

2) Banks will only be warehouses for whichever currency people choose to use. People will have deposit accounts and will be able to transfer bullion electronically to other people’s accounts for payment. Much like online “bill pay”.

3) Banks will facilitate private party loans, sort of like a “financial e-harmony”, but will be required to have 100% of all deposits on hand at all times. Due to the history of fraud at financial institutions, this must be subject to frequent surprise audits.

4) Interest rates on private party loans will naturally respond by market forces to the general level of savings and the robustness of the economy, but must be set only by the agreement between the saver and the borrower. More savings available will mean lower interest rates. More competition to borrow those savings means higher interest rates. Riskier borrowers will have to promise higher rates of return. The market will manage itself better than any government or central bank ever could.

5) Government will calculate tax in silver AND gold, but leave the form of payment up to the taxpayer, who will pay in whichever seems less valuable to him. Government must NOT be allowed to fix an exchange ratio between the metals.

A free people require a free monetary system.