Little Miss Liberty – Learning About Money

Now that I’m hip to money. I want to learn about it. What is money? Why do we have it? Didn’t we use other forms of money, and why aren’t those same currencies relevant today. Who quit and left the current money makers in charge of money? I prescribe a healthy round of video and news articles. Here’s something I should investigate, an upcoming devaluation conference. What was the outcome? Yikes! It’s called Your Wages Will Be Cut In Half! That’s dreadful. The narrator has a wild British accent and talks a lot about hedges, and debt ratios, and money. Yawn. Later.

Aha, CNNMoney, these folks ought to know something “The U.S. Mint is facing a problem — especially during these penny-pinching times. It turns out it costs more to make pennies and nickels than the coins are worth. And because of that, the Obama administration this week asked Congress for permission to change the mix of metal that goes to make pennies and nickels, an expensive recipe that has remained unchanged for more than 30 years. To be precise, it cost 2.4 cents to make one penny in 2011 and about 11.2 cents for each nickel.”

Included in the article, a link to a video demonstrating a time based currency created by senior citizens.

Okay, the money that USA uses is worth so little that they have to make it out of cheaper stuff. Why don’t we keep a balance in our heads and just “speak” a twenty dollar bill.

“Hey, lemme owe you twenty bucks?”

“Sounds good. Tell your friends.”

What a wonderful world that would be. I can see what would happen though, you’d have to calculate a 30% contingency for bad memory. Likewise, someone could set the price on the fly.

“Hey, you said twenty bucks yesterday?”

“Did I? I’m sorry, well you know with price of gas these days, and taxes, let’s say my new and improved price is fifty bucks.”

“Oh, right. Okay, I just remembered, I have fifty bucks. Can I owe you?”

~PiNg~ I think I just figured out how inflation and the futures market works all in one fell swoop. I love making this stuff up.


I think I will attend a board of directors meeting for a large international monetary consortium. Hmmm, here’s one announced in my subscription to Society’s Who’s Who:

Compound Interest Lenders Meet-up

Convene at 9 am

Elect chair

Raise inflation



Boring. I could do that, especially if my buddy was running a printing press. I was thinking something more complex, like a robust new concept in providing affordable housing for the masses using those same little squares of paper currently popular…


Registered Shelter Tax Free Lending

Government puts up a $100000 security bond*
Lender puts up $100000 loan
Borrower makes payments of 6% annual simple interest on the original principle for the life of the loan.

Simple interest is divided:
2% to lender for earned tax free interest
2% to lender for principle
2% to government Accumulating Cash Account to buy the bond

When half the principle is paid back, the Accumulating Cash Account is paid towards the principle.

At this point, the lender regains their principle and they earned 50% tax free interest over the life of the loan.

If the borrower defaults, interest on the original security bond pays for insurance to recoup the government and preserve the borrower’s position in the property. Insurance could also be used to initiate a new security bond.

Anyone can be the lender. Parents could earn a return by financing their children instead of banks.

At some point in a traditional compound loan, the principle is paid off. However the borrower still must make payments because the principle is reduced gradually as annual interest is paid first. In Shelter Tax Free Lending, the loan ends as soon as the principle can be paid off. The Lender keeps the earned interest tax free. The government earns interest on the Accumulating Cash Account.

*Investors who finance a Shelter Tax Free Bond, earn interest on the Accumulating Cash Account tax free.

Simple principle: anyone can be a lender, anyone can finance a bond, government holds the bond and the Accumulating Cash Account. When principle is half paid, the Accumulating Cash Account pays the remainder of the principle and the loan ends. The government earns interest on the Accumulating Cash Account.

Whoa! Where did that come from? I have to take a break. Check out my article, Gold, Silver, and Your Word Are Money.

News update! For me anyway… California people are flocking to dry creek beds to pan gold. Apparently, drought has opened up areas where loose river gold is now accessible to the avid. “Beats minimum wage,” claimed one guy on the radio. Here’s a read-it-yourself: Gotta love the people’s currency.


Follow along as Gaboo researches and writes his new book online! Click on Little Miss Liberty.


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