Abolition of fractional reserve banking?

The Utah Monetary Declaration of Freedom From the Tyranny of Central Bankers

I do not know anything about this - so here are comments from Mike Ruppert:

“Although nothing less than the abolition of fractional reserve banking, compound interest and fiat currency will remove the power from the Infinite Growth paradigm which is killing us this move in Utah which deals with fiat currency is infinitely more useful than anything I have seen come out of the "Occupy" movement.

It addresses one of the key issues squarely and head on. I'm not arguing that is a prefect or complete solution. And I certainly do not believe it can arrest collapse. 

But it is a way of freeing the people of Utah from the clutches of the bankers so that they might better use their resources to prepare for an inevitably localized economy.

Until you change the way money works, you change nothing.” -- MCR   

SmartknowedgeU via Zero Hedge

A very important document, the Utah Monetary Declaration is now circulating among the citizens of Utah. Though citizens of Utah are attempting to introduce the basic principles of this declaration into the Utah legislature, every citizen of every US state and every citizen of every country in the world should read the below document and note the similarities of the Utah Monetary Declaration to the US Coinage Act of 1792, which protected the freedoms of US citizens until they were destroyed by Central Bankers. You will note that Alexander Hamilton, one of the founding fathers of the Republic of America, penned the US Coinage Act of 1792. Alexander Hamilton was so adamantly opposed to the process by which Central Banks create money today that when he wrote the US Coinage Act of 1972, he believed the no other threat other than the severe penalty of death would prevent bankers from deliberately debasing the value of coined money, and thus, usurping the peoples' freedoms. Today, I’m quite certain that Central Bankers would label the very man that helped found the Republic of America, were he still alive, as a terrorist, for his expressed ideals of freedom oppose all ideologies and principles for which a Central Banker stands.

Alexander Hamilton equated essential freedoms with the preservation of the purchasing power of all money. Debase the value of money and we will lose our freedoms. So then, what does the Central Banker deliberately directed, massive debasement of all major fiat currencies in the world bode for future generations? This is precisely why we have recently witnessed the birth of uprisings all around the world – Greece, Iceland, Ireland, the United States, the United Kingdom, Spain, Portugal, Egypt, and Tunisia just to name a few. As we all know, the world’s reserve currency, the US dollar, has now lost about 97% to 98% of its value and purchasing power since private bankers created the US Federal Reserve in 1913. Say what you will about the death throes of the Euro but the US dollar is hanging by a thread right now as well.

I urge everyone to:

(1) Read the below Utah Monetary Declaration;

(2) Discuss it with your neighbors and friends; 

(3) Research the parts you may not understand so that you may better understand the tyranny and complete immorality of our current monetary system; and

(4) Learn why Alexander Hamilton believed the soundness of money to be inseparable from freedom to such an degree that he advocated not imprisonment, but death, for the deliberate act of devaluing US coins.

The freedom to choose the form of money we can use in our daily lives is inseparable from the ability to live one’s life as a free man and a free woman. Monetary freedom is inseparable from all other freedoms in this life. What we have today is monetary enslavement. Many of us have lived our lives believing the lies and propaganda about our current, extremely oppressive monetary system because powerful banking families have deviously inserted these lies into the textbooks they feed into our global educational system. Other times, they just insert professors that they have paid-off to spread their propaganda directly into “esteemed” (and I use that word very lightly) institutions like Harvard University, Princeton University and the University of Chicago to pollute the minds of millions of impressionable youth. It is time we help one another wake up to the truth about the utter disgrace that we call our modern banking and monetary system. If we wish to stand in solidarity with our brothers and sisters around the world in restoring our essential freedoms, the first pro-active step every citizen in this world must take is to research and learn why the debasement of monetary value is a direct attack on the freedoms of every citizen in every district, in every province, in every state in every country in the world.

As many people already know, Utah Governor Gary Herbert signed HB317, the Utah Legal Tender Act into law earlier this year in March of 2011. Though well reported by the mainstream media as an act that made Utah the first US state to accept gold and silver coins as legal tender, this interpretation was erroneous as all federally minted gold and silver coins have always been accepted as legal tender at their face value in every state inside the United States. The Utah Legal Tender Act did not change this important Central Bank restriction on the use of gold and silver coins as money and as a competitor to their fiat currencies. In the state of Utah, a one-oz gold American Eagle coin can still only legally be used at its face value of USD$50 in monetary transactions and not at its current US bullion dealer price of about USD$1,740. There is no fool that is going to spend a coin valued at USD$1,740 to buy USD$50  of groceries, so even though the US government states that gold coins and silver coins can be used as legal tender, that declaration is the equivalent of telling someone imprisoned in solitary confinement that he is free to leave the penitentiary any time he wants as long as he can avoid being shot and killed by the guards if he attempts to escape. Thus, the Utah Legal Tender Act HB317 truly accomplished nothing in the fight for freedom other than to exempt all sales of gold and silver coins from the state capital gains tax.

However, there is a much more important declaration now circulating among the citizens of Utah that deserves our attention, the Utah Monetary Declaration, the full text of which I have reproduced below. This much more important declaration, if it can reach the Utah legislature and eventually be passed into law, would be infinitely more important than the Utah Legal Tender Act for it would grant Utah the power “to monetize gold and silver coin as an alternative, voluntary medium of exchange, and as an effective check and balance against debasement of the national currency by the national government which is constitutionally precluded from demonetizing state legal tender, through disparate tax treatment, discriminatory regulation, the threat of suppression and seizure, or otherwise.” 


One of the essential tenets of this declaration is the following: “As an essential element of true liberty and of the pursuit of happiness in a free society, all people enjoy the inherent and unalienable right to lawfully acquire, hold and use as a medium of exchange whatever form or forms of money they may prefer, including especially gold and silver coin.” This declaration is attempting to enforce the mandates of the US Constitution that the private owners of the US Central Bank, the Federal Reserve, have directly violated for nearly 100 years. The Utah Monetary Declaration also attempts to re-establish the freedoms first established by one of the first laws to regulate coinage in the United States, the US Coinage Act of 1792. The most important sections of the US Coinage Act of 1792 were Section 14 and Section 19 as reprinted below:

Section 14. And be it further enacted, that it shall be lawful for any person or persons to bring to the said mint gold and silver bullion in order to their being coined; and that the bullion so brought shall be there assayed and coined as speedily as may be after the receipt thereof, and free of expense to the person or persons by whom the same shall have been brought.

Section 19. And be it further enacted, That if any of the gold or silver coins which shall be struck or coined at the said mint shall be debased or made worse as to the proportion of the fine gold or fine silver therein contained, or shall be of less weight or value than the same out to be pursuant to the directions of this act, through the default or with the connivance of any of the officers or persons who shall be employed at the said mint, for the purpose of profit or gain, or otherwise with a fraudulent intent, and if any of the said officers or persons shall embezzle any of the metals which shall at any time be committed to their charge for the purpose of being coined, or any of the coins which shall be struck or coined at the said mint, every such officer or person who shall commit any or either of the said offenses, shall be deemed guilty of felony, and shall suffer death.

The Utah Monetary Declaration

WHEREAS, money, as a medium of exchange, a store of value, and a unit of measure promotes economic activity, growth and productivity by facilitating specialization and trade, the accumulation of wealth and its long-term investment, as well as accountability in setting prices, tracking progress, and settling accounts;

WHEREAS, natural money – precious metal coin – by virtue of its inherent qualities of recognizability, measurability, uniformity, divisibility, durability, portability and scarcity has reliably retained its purchasing power, notwithstanding periodic fluctuations, over the centuries and millennia of human history, serving as an effective medium of exchange and store of value often without any governmental declaration to require, legitimize or perpetuate its adoption and operation as such;

WHEREAS, sound money, by retaining stable purchasing power over time, best serves societal needs by substantially reducing the uncertainty of inflation risk for creditors and deflation risk for debtors as well as encouraging saving and investment among the general populace and benefiting the economic zone in which it circulates by stimulating the economy and by attracting foreign capital and commerce to the region;

WHEREAS, history attests that monopolistic monetary systems frequently engender currency debasement, resulting in serious consequences such as lost purchasing power, inequitable wealth redistributions, misallocation of productive resources, and chronic unemployment, and that, as the cornerstone of a free market and society, the right to choose, whether between suppliers of goods and services, political parties and candidates, or between alternative media of exchange, effectively promotes the general welfare;

WHEREAS, for the equal protection of all people, rich and poor, the open circulation of complementary and competing currencies should be fostered and promoted by every sovereign state, including those of The United States of America pursuant to their monetary powers (expressly reserved in article 1, § 10 and in the 10th amendment of the United States Constitution) to monetize gold and silver coin as an alternative, voluntary medium of exchange, and as an effective check and balance against debasement of the national currency by the national government which is constitutionally precluded from demonetizing state legal tender, through disparate tax treatment, discriminatory regulation, the threat of suppression and seizure, or otherwise;

NOW THEREFORE, we the undersigned hereby declare and affirm that:

1.     As an essential element of true liberty and of the pursuit of happiness in a free society, all people enjoy the inherent and unalienable right to lawfully acquire, hold and use as a medium of exchange whatever form or forms of money they may prefer, including especially gold and silver coin.

2.     All free and sovereign states bear the moral, political and legal obligation not only to refrain from debasing their own currencies (except under the most exigent circumstances) and from erecting barriers to the unfettered circulation of monies issued under the authority of their sovereign trading partners, but also to affirmatively defend and protect against fraud, counterfeiting, uttering, passing off, embezzlement, theft or neglect by requiring full transparency and accountability of all state chartered financial institutions.

3.     No tax liability nor any regulatory scheme promoting one form of money over another should apply to: (a)the holding of any form of money, in a financial institution or otherwise; (b) the exchange of one form of money for any other; or (c) the actual or imputed increase in the purchasing power of one form of money as compared to another.

4.     Except in the case of government assessed taxes, fees, duties, imposts, excises, dues, fines or penalties, the authority of government should never be used to compel payment of any obligation, contract or private debt in any specific form of money inconsistent with the parties’ written, verbal or implied agreement, or to frustrate the intent of contracting parties or impair contractual obligations by invalidating the application of a discount or surcharge agreed to be dependent upon the particular medium of exchange or method of payment employed.

5.     The extent and composition of a person’s monetary holdings, including those on deposit with any financial institution, should not be subject to disclosure, search or seizure except upon adherence to due process safeguards such as requiring an adequate showing of probable cause to support the issuance by a court of competent jurisdiction of a lawful warrant or writ executed by legally authorized law enforcement officers.

We hereby urge business leaders, educators, members of the media, legislators, government officials as well as judicial and law enforcement officers to use their best combined efforts to reinstate and promote the legal and commercial framework necessary to establishing and maintaining well-functioning, sound monetary systems based on choice in currency. 


The signatories hereto concur in the general principles expressed in the foregoing declaration notwithstanding specific reservations some may have as to how such principles should be interpreted and applied in practice.

We, at SmartKnowledgeU, who will continue to fight for monetary freedom in perpetuity as one of our most important missions, would add one more caveat to The Utah Monetary Declaration and it is this:

"Immediately outlaw the use of all gold and silver paper derivatives that allow bankers to create millions of imaginary paper ounces of gold and silver that do not physically exist in the real world, and thus allow bankers to defy the basic tenets of supply and demand in manipulating the spot price of gold and silver futures. 


If demand for physical gold and physical silver accelerates and if supplies of physical gold and physical silver diminish, falling gold and silver prices will no longer be legally accepted in light of these supply/demand dynamics. 


Let the price of gold and silver be dictated only by free market forces of the supply and demand for real physical ounces of gold and silver and not set by the behavior of a single ounce of paper gold and paper silver that represents nothing more than what a piece of paper fiat currency represents - which, of course, is nothing."