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While much attention is placed on the bad side of the global economic depression, very few are trying to find those slight glimmers of hope that maybe, just maybe, this isn’t as bad as it seems. In the moment we are hurting, facing painful adjustments and lifestyle changes. We are learning, and often times finding a happier balance in our lives, by embracing a more economically feasible way of living.

One good thing is coming out of this economic hell is the sudden rise of the layman study of economics. Had someone argued for auditing the Federal Reserve system even two, three years ago you may well have had blank stares back, or worse. But now, thanks to the popularity of Dr. Ron Paul’s HR1207, the bill to audit the Federal Reserve, many Americans are taking a sudden interest and asking questions to which they are finding increasingly disturbing answers.

Take for example, the the monetary supply base. Such a conceptual and theoretical field of study might seem a bit technical for the average person, but in reality, when one takes a quick survey of its application, you find that it is actually quite straight forward. To loosen our economy, under the Federal Reserve system, we simply expand the monetary base, giving banks and lending institutions more reserve capital upon which to do business. Conversely, when we need to slow down a booming business cycle, we contract said supply. And thus, the boom and bust business cycle is born.

Or how about the name itself. “The Federal Reserve System”. It sounds so official, so quaint, so trusting. With such an powerful name, it simply must be an institution that is most critical to living in a modern world. Well, that is until we find out that it is neither federal or has reserves. In fact, when one really studies our entire economic structure you realize that it has no backing at all. It is a fiat currency system. Our dollar is only good so long as the people still believe in and have faith in our paper currency and Republic.

Of course governments, realizing that people would reject this currency if it ever came to fall out of favor, have declared this “legal tender”. Meaning that as a merchant, or private citizen, if you are selling something for an agreed upon price the dollar, the Federal Reserve note, is what must be accepted. That is, of course, unless you are trading for something of equal value on both sides (barter).

In a free-market transaction I can sell you a haircut for $15. I offer my services as a hair cutter, or lawn care specialist, perhaps selling a product, in a value for value exchange. My goods or services are exchanged for your money. You gain the benefit of a new haircut, lawn mow, perhaps the fixings for dinner, and in return I obtain monetary gain.

Well recent economic troubles have pushed the value of the dollar downward. This is happening for a multitude of reasons, but the first and foremost is the rapid and sudden growth of the amount of Federal Reserve notes in circulation. You see, we didn’t obtain the stimulus or bailout monies by taxing our way there, rather we simply printed it. We put ourselves into debt to the private Federal Reserve bank and we will repay this debt through inflation.

Many countries are worried about our economic troubles and are considering de-pegging themselves from the United States dollar. Indeed, even American’s themselves are rushing back into tangible currency. Consider this: American gold and silver eagle proof and uncirculated coins are still under temporary production freezes while the US Mint seeks to keep up with the demand for bullion gold and silver stock.

Fortunately, one collaborative group saw this writing on the wall and organized ahead of the curve. This group has prepared an alternative currency/barter system for trade/purchases both now and should the dollar fail at some future date.

The American Open Currency Standard seeks to:

The AOCS exists to expedite the implementation of silver as money. We actively prospect, train, and support the 3 groups that comprise the AOCS: Merchants that accept AOCS Approved Currencies, Currency Issuers that conceptualize & requisition new minted pieces, and Currency Officers that exchange the Currencies with the general public. The AOCS promotes local enterprise, rebuilds local community wealth and creates a profit for you! (1) AOCS Mission Statement from opencurrency.com

The AOCS is both a currency, with a expanding network of merchants and retailers who will accept AOCS rounds for payments of goods and services, and a wealth preservation system. Historically, nothing else competes with the ability of precious metals (gold and silver) to rise and fall in value in accordance with the general rate of inflation and economic conditions.

Think of it as a gift certificate. Only should this company fail, the gift certificate itself will be worth something. Many stock and bond certificates have been rendered moot when the corresponding company closes its doors and goes out of business. Gold and silver, throughout history, has never failed to retain some sort of value and predominately has always been one of the most sought after assets.

But the most compelling case for a currency backed by the stability of precious metals? Because the Constitution requires it!

Article I Section 8

“To coin Money, regulate the Value thereof, and of foreign Coin, and fix the Standard of Weights and Measures.”

Article I Section 10

“No State shall… coin Money; emit Bills of Credit (fiat currency); make any Thing but gold and silver Coin a Tender in Payment of Debts”

If this interests you, check out opencurrency.com or go ask your local gold/silver broker about purchasing precious metals, both for wealth preservation and an alternative barter currency should the need arise. Remember, the need to purchase goods and services that you need to survive will not disappear simply because our currency collapses under the weight of our own debt. By preparing and familiarizing ourselves now we can find both stability and preservation of our financial assets.