2016-02-20
Dear Candidate Sanders:

I am writing to support you in your quest to give voice to an important message that many Americans want politicians to hear; and to give you a variation that people can really latch on to. Let me start with the planks you should add to your platform to get people's attention and support:-

  1. Mere possession of any non-living thing or substance shall not be a crime, nor shall anybody be convicted of a crime where the preponderance of the evidence is mere possession.
  2. Bring back the $1000 bill and make it usable.
  3. Curb the increasing militarization of police and government agents.

There is no doubt that many of us feel financially squeezed, at the same time that a few individuals have accumulated so much wealth that they could directly fund the basic needs of the rest of us combined if they chose to do so. We dont begrudge them that wealth nor do we want to take it away from them; but we do object to being forced to support their growth and limit our ability to compete and take their place. They do this when they take our money to support their causes, in particular via the banking system.

Glass-Steagall was one roadblock to this theft, and certainly needs to be reinstated. But the fundamental issue of being able to choose where to keep and spend our money, and protecting the value of that money, is even more important. Central banks have found a solution to the inflation problem by constraining the availability of the new funds they create to only owners of "assets" like stocks and bonds, so while we see incredible inflation in stocks and bonds, we see almost none in other areas, and maybe even deflation. Thus the real economy is being squeezed while the securities economy is being inflated. I would say the reason the real economy (as opposed to the stock market) seems to be doing OK today is that Janet Yellen credibly threatened to raise rates last year, and actually did so in January (see mail to Dr. Draghi similar to mail to Dr. Yellen). Without a flow of cash from the real economy, the only way to keep up this securities stimulus without directly purchasing securities (like the Bank of Japan is doing) is to continuously drop interest rates, and now we have hit the unthinkable - the prospect of negative interest rates. Obviously, at that point the support they get for their charade from the real economy in the form of deposits is going to vanish - so now they are talking about eliminating physical cash.

These are the ways to get people to give up using cash.

  1. The voluntary method - pay interest on deposits (i.e. positive interest rates)
  2. Inconvenience - make holding cash difficult by eliminating large denominations
  3. Unacceptability - anti-money laundering laws
  4. Fear of losing value - inflation
  5. Fear of theft - cash asset seizures

Lets just think about what that means:-

  1. Our right to property - meaningless if government agents can just take it, and some incidents that are happening right now look just like plain simple robbery using government authority as a weapon.
  2. Our right to freedom of speech and right to associate freely - untraceable cash lets us support unpopular causes.
  3. Our right to defend ourselves in trial - meaningless if a hostile government can locate and/or freeze all our assets with a tap on an electronic screen.
  4. Our right not to incriminate ourselves - meaningless if a tyrannic government can track our every thought and action with a tap on an electronic screen.
  5. Our right to be secure in our persons, papers and effects - meaningless if police can invade our homes with tanks, or shoot us in the streets. The notion that you can demand a warrant if a cop is pointing a gun at you is ridiculous.
  6. Our right to a fair trial - making mere possession a crime is an end-run around the requirement to prove intent to commit a crime. Not recognizing that computer records can be hacked, and not insisting on proving the chain of control in using computerized records takes away our ability to prove our defense.
  7. Our ability to provide for our future - inflation forces us to work harder and save more, reducing our quality of life and what we are willing to spend in today's economy.

Our founding fathers did realize how important money was to our ability to claim and defend our rights. Which is why they gave the power to coin money exclusively to an elected Congress, one answerable to the people. That of course was based on what was then the best method for creating a freely tradeable (and untraceable) means of exchanging and storing value. Congress has violated the Constitution by giving up this responsibility to the Fed, it needs to take it back; at least the control of the total amount and form of money available.

Given all these ways our freedoms are being attacked, a US citizen has to wonder if he/she still lives in the land of the free. With FATCA, our assault on liberty is being extended to the rest of the world. It would be awful if the world started thinking of Putin, not the President of the United States, as the leader of the "free" world. This is really happening, already foreign banks refuse Americans accounts, and many foreign businessmen refuse to be directly associated with American organizations.

Now of course, in this age of sound bites, all this is too complicated to communicate - and people will have to think hard before they can get behind it because of all the arguments that are being made for the elimination of cash. But try these planks in your platform to get people's attention and support:-

  1. Mere possession of any non-living thing or substance shall not be a crime, nor shall anybody be convicted of a crime where the preponderance of the evidence is mere possession.
  2. Bring back the $1000 bill and make it usable.
  3. Curb the increasing militarization of police and government agents.

I think you can see how each one will resonate with at least one of your target groups.

Hopefully this was useful to you, and I wish you every success in your campaign.

Sincerely,