-->Andere beschäftigen:-)


Alright, more mental exercises; this one I think needs serious
consideration.

Suppose that shortly after the inauguration of our next President in
2005 (if a new one), there is another terrorist attack, followed by
mayhem, strife, and the dollar collapsing. Within one month, the
dollar falls to the point where it takes $1,000,000 to buy what used
to cost $10--and it continues to fall.

Now, we're all expecting to help stave off--or work through--this
sort of thing. Yet I doubt NORFED has a $1,000,000-base design and
die ready to go. Even if they did, it would likely only be usable for
a week or less in the scenario I've depicted.

So my question becomes, does NORFED have plans as to what to do
should the dollar finally collapse? Such a collapse would probably be
so rapid that there would be no realistic way for NORFED to keep up
with the rate of inflation in terms of new bases, so how would they
handle this?

It seems to me as if there are really only two beneficial plans that
could be enacted:

1) NORFED fades away. If we make great inroads before the collapse,
and have silver circulating readily through the nation, we could
easily switch to a monetary system based on troy ounces of silver
and/or gold. Between the ALDs (of any base) out in circulation, as
well as generic silver rounds, American Eagles, and other gold/silver
coins, NORFED would really not be much needed other than to redeem
silver and gold for their certificates as necessary.

However, this plan doesn't seem realistic. If the collapse occurs
within a decade or two, even if we assume that we have an incredible
3,000,000 users of the currency by then, and that our national
population somehow stays stable at 300,000,000, only 1% of the
population will have ALDs and/or be used to them. Considering the
conservative nature of those figures, it's probably safe to say that
only a fraction of the country would realistically have any sizeable
store of silver (or even gold) of any kind. There's a very good
chance that despite our work, when the collapse comes there will
*still* be insufficient silver in circulation. That leads us to...

2) NORFED drops the FRN correspondance. When things get that bad,
there will no longer be any point to pricing things in dollars or
stamping dollar amounts on ALD. Beginning with those who already use
the currency, prices can begin to be denominated in troy ounces of
silver, and NORFED can then take the Liberty Dollar to it's final
form: certificates denominated soley in troy ounces, and rounds
stamped as such. Older certificates and silver Liberties could still
be used, of course, but they would likely be accepted based on their
silver content rather than face value.

Of course, there would still be issues to deal with. Without any
other money in circulation, NORFED might have difficulty meeting an
exploding demand for silver rounds and certificates. If silver is to
be used as money, but most folks didn't have any silver, what would
they give to NORFED in exchange for silver rounds and certificates?
It's probable that RCOs would have to become exchange centers--barter
shops, if you will--to negotiate the conversion of goods and services
(and possibly even FRNs or other currencies, if they work fast
enough!) into a form suitable to trade to NORFED in exchange for
silver.

Even if NORFED's non-profit stance became obsolete, it's only real
needs would be to pay it's bills, including labor. RCO's might
possibly help shuttle enough gasoline, food, and other goods to
NORFED so that they could"pay" their employees, their bills, and the
mining companies to get more silver (there probably wouldn't be any
stockpiles at this time!) They could then have this silver minted and
distributed immediately back to the RCO's, who could distribute the
rounds at a"profit". (NORFED could, of course, make"profits"
itself, but then trade the excess goods for more silver to
immediately begin using it as money itself--to employees, etc.--to
speed up the process.) With a well-oiled pre-planned system, NORFED,
working in concert with the RCO's, could begin the arduous process of
turning the country from a post-collapse barter system to a more
stable silver monetary system.

Now, perhaps one of these plans--or another one entirely--is already
complete, waiting for the inevitable. If not, perhaps NORFED might
consider the question and attempt to answer it--what will it's job be
the day after?

-Wayne