 Hello again, this is Jim at the House of Poo Corner. And this is part two of our interview with Wayne Hicks. And the first part was the history of the Liberty Dollar and its current use. And we're going to discuss kind of a hypothetical in the second half, a both a hypothetical and an actual event. And that is the ability to exchange Liberty Dollars for other currencies, be it the dollar or if you live in France, the euro or in England, whatever you are, to be able to exchange that currency. And I should say that this Thursday, well, that doesn't mean much to our listeners online, does it? In a couple of days, I will be interviewing Matt Krupp, Matthew Krupp, who is an expert on credit unions. And I'm going to be discussing with him a theoretical credit union, a credit union that hasn't been founded yet, but we're working on it, that has a purpose, one of its many purposes. It would have the same purpose as other credit unions plus an exchange mechanism for currencies like the Liberty Dollar and common good and all that sort of thing. And even maybe a cryptocurrency, like the Holo, depending on the stability, as Wayne will explain to you in a minute, depending on the stability of that currency, remember that Bitcoin fluctuates in value. And we're talking about a currency today, the Liberty Dollar, that is based at a $25 rate, based on silver. So Wayne, can you tell us a little bit about any experience you've already had and what you're looking forward to as a way to exchange the Liberty Dollars for other currencies? The exchanging Liberty Dollars is very simple. I mean, since right now it's pegged at the $25 per ounce of silver, we could exchange with any currency in the world based on an equivalent amount of their currency for that ounce of silver. For instance, let's take the British pound for the moment. And I think their exchange rate is something like one and a quarter percent or 1.2 to the dollar, or 125% is what I meant to say. So let's say it's 125%. Well, in that case, we would need to collect $31.25 for that $25 certificate. In their 31, excuse me, I've got it backwards. It would be roughly 20 pounds or slightly over 20 pounds for that $25 certificate would be the correct way to say it. But it's still the same amount of value. It's still that ounce of silver based on $25 per ounce. The same thing applies to any other global currency in existence today. Now, when we get to the alternative currencies, such as you mentioned common good, common good right now works one to one with the US dollar. That's the same way we're working, one to one with the US dollar. So we can exchange common good dollar for dollar for Liberty Dollars and vice versa. And our public trust is already being set up to do that. The cryptocurrencies are another matter. They keep referring to the hollow cryptocurrencies as a stable coin, something that's going to have a stable value. And yet all of the stable coins that I've looked at so far have failed to remain totally stable. As long as there's any room for fluctuation in the value of a crypto coin, then I can't exchange a dollar for dollar. It would depend on what the value was locked at at the time of exchange. For instance, if a stable coin that started out at $1 is now going for $2.50, well that's double what it should cost as far as I'm concerned. I'm just not able to make a one to one exchange with that type of currency. There would be an exchange rate of money so that we didn't end up losing money and hurting the value of the Liberty Dollar. Okay. Well, as long as I'm claiming to be a monetary expert, I do have to ask something you've already answered by the way, but we'll go into it in part two again, which is the way that Liberty Dollars are created. And one way that fascinates me, it seems, is that they are created with the presentation of goods. Is that correct? You present a good that you have made or that has some obvious value to the warehouse and that person gives you a credit in Liberty Dollars. It's like it used to be that the warehouseman, when you brought your grain into the warehouse, he would give you a receipt for that grain and that receipt was a negotiable instrument. You could take and trade that for something else. It's the same principle today. Yeah, that's wonderful. And that's outside what is so thrilling about that is it's the kind of thing I've been advocating ever since I got into monetary reform, which is that what a currency ought to be, and that's the opposite of a Federal Reserve note, it's the opposite of the system we're in now, what a currency ought to be is something that is created when it is needed to buy something. And that goes over the head of just about everybody. They can't conceive of a currency that doesn't come from a bank. That doesn't come because you borrowed it. And this currency, the Liberty Dollar, can actually be created because you have sat at home and made your widget, which is a recognizable product and of use to society, you can turn that into a warehouse and get credit or actual physical dollars for that product that you have bought. Again, we've already answered this, but I just wanna ask, I'll let you tweak my answer. When someone brings a commodity into the warehouse, whether it's silver, gold, corn, anything at all, furniture they've made, honey, vegetables, when it's brought into the warehouse, it becomes redeemable for those Liberty Dollars that are issued for it. And that means that if you bring in your widget and I give you a hundred Liberty Dollars for that widget, you go out in the community, you spend $900, whoever you spend them with can come back to that warehouse and pick up those widgets if they want to, or whatever else in the warehouse. And then they can take them out and resell them at a profit. That's how our system is designed to work, to be a circulating economy. And it doesn't, and you don't have to spend your dollars to do that. You can start with nothing, build something, turn it in, and get your credit in Liberty Dollars, and you haven't had to borrow money from a bank in order to enter into this commerce, I would call it. That's correct. That's correct. Now, Benjamin Franklin did something like, you can tell me the difference as after I explained what Benjamin Franklin did, hopefully correctly, you can explain how that is similar or maybe different from the Liberty Dollar. Benjamin Franklin created colonial script. He wasn't the first to issue colonial script, but that's beside the point. For Pennsylvania, which was extremely successful because it was based on a commodity called land, and it could be lent at a low interest, but it was created infinitely when a good and service was available. And so when you had your harvest, when you made a chair, you may have borrowed colonial script in order to do that, but that money was created because of the goods and the services. It was outside the banking system, it was public money. It wasn't based on bank debt. You might have to repay, you would have to repay the money that you borrowed, but the interest was so low and it was so popular that the, that currency spread like wildfire and was so successful that the Brits had to shut it down. They passed the first currency act in 1751, which was mild. Then they passed the second currency act in 1764, which Benjamin Franklin and other scholars at the time and later historically said was what caused the War of Independence. It caused the Revolutionary War, not the Stamp Act, not representation, not taxation without representation. It was primarily the currency acts because they didn't just curtail the creation of money. They pretty much tied it in a knot so that the money supply dried up instantly because the money supply was based on goods and services. So I'll shut up and let Wayne tell you how that is either similar or different from the Liberty Dollar. Well, it's very similar in that just like Mr. Franklin's script, there is a value that's brought in to back the currency that's issued. The biggest difference that I would think might be there is that we don't necessarily have to have a tangible item to give you an example. I mentioned that we like to help fund small businesses. Let's say you have an automotive repair business. You can bring me coupons, for instance, for an oil change, for a tune up, whatever services you offer and bail those into the warehouse. Now, other people with Liberty Dollars can come and get those coupons and take them to your place of business to get that service and probably spend a little money while they're doing it since it's a coupon-based setup. This is something that we can offer. The only thing tangible is the piece of paper the coupon is printed on, but the service is what's valuable. So we're basically backing a currency or some of the currency with a service to be offered at a later date. So that's the only real difference that I can see. And we have in Vermont a system, believe it or not, it's been in place for years, very much like that, which is a mutual credit system. It operates out of businesses for social responsibility in Burlington, Vermont. Amy Kirschner runs it. And it is similar to Liberty Dollars in that you don't have to spend Federal Reserve notes, you don't have to spend money out of your bank account to get into that system. If you do something for somebody else, you get credit, they add a credit. If somebody does something for you, you get a debit. No dollars are exchanged. Now, of course, the state of Vermont wants it cut. In anything you do, if you laugh, they would tax it if they could. But so would the feds. So that's the only negative that I see with the mutual credit system that we have in Vermont. And I admire Amy for doing such a good job with it. I'm personally a little bit out of the geographic range of Burlington. So that does indeed seem similar to what you were talking about with your warehouse receipt. There are some similarities. Most of what we get are tangible items that go into the warehouse, but we can work with futures or intangible future services, things of that nature. Anything that has a value, whether it's something you can hold in your hand or something you hold in your heart, can be used as a basis for Liberty Dollars. All right. And you have to, the person who makes the decision, who is obviously connected to the warehouse in some way, has to agree with you that it has value. We have some basic formulas that we use. In other words, we like to know what is the wholesale price of the item. Okay, if it's a new item, we want to know what the wholesale price is. And that's what we go on minus the 15% bailment fee. There may be some room for negotiation there, but that's our general formula. All right. Now, when you do that, this is another thing I love about this. I don't see a risk on your part, really. You can tell me if I'm wrong, but if somebody comes to you with an idea, he's an inventor, and he comes to you with an idea, and he says, I have designed on paper, a gadget that takes the eggs out of your refrigerator, cracks them and makes scrambled eggs and hands them to you, like grommet. Like, what is it? Walter and grommet? Anyway. It's not Walter. What's? Anyway. So he comes to you with this idea, comes to the warehouse person, and you've got your criteria. And he says, all right, that's a good idea. I will give you what does the inventor get in advance for this, if the warehouse owner accepts the idea. Well, let's examine it. Let's say he brings us a device, and he's got a business plan laid out that explains how he's going to make money up on this device if he can get into production, all right? What we're gonna look at is what is the projected revenues over the next two to three years? And we're going to take a portion of that and call that the wholesale value. And that's what we would issue currency on based on is that wholesale value. Again, minus the bail in fee. And then we're not taking all of his profits, we're going to take a small percentage of it. If we want him to give it back, we want him to redeem that and keep his business going. That's what we want. So that he can continue to stay livery-dollars. That's our goal is to keep livery-dollars in circulation. All right. Now, if he fails utterly, we've got a sound problem. Again, if he fails utterly, what kind of loss, how would the Liberty Dollar Organization account, what's the accounting system? That's why we charge this in bail in the fee. What we do in the bail in the fee, that's not a profit that goes in our pockets. That's to buy reserve commodities. We use those reserve commodities to cover situations like you're describing right there. So we're going to make sure that every Liberty Dollar in circulation has backing one way or another. All right. So if you back an invention for, I don't know, if you give the guy $3,000, what does he give you upfront as your bail in the fee? He's going to sign a security interest agreement, just a simple agreement that we have a security interest in a portion of his earnings from that invention in the future. All right. And in that, along with that, there's going to be a promissory note that he's going to make payments of X number of Liberty Dollars on a monthly, quarterly, or annual basis until he's redeemed that security. All right. So again, ladies and gentlemen, you have the creation of money. This is the actual, another word for creation of money is monetization, by the way. You have the monetization of an idea. And if the idea fails, the inventor has lost a lot of time and effort, and the creators of the Liberty Dollar have lost something. It is a little hard to tell because he's been. We would have lost the amount we gave him sooner than we have to make up for that in the security in our warehouse. We have to cover that loss. Okay, okay. So it's not a fractional reserve. And another thing that monetary people talk about is fractional reserve. And this is not fractional reserve. No. This is a, you're giving someone a debit in hopes to return that that will get returned, but it's face value. Yes, and it has a security of some sort to back every Liberty Dollar that goes out. There is some kind of security backing it. In some cases it's actual silver. In some cases it's other commodities. We've got some books in the warehouse. We've got lots of different things. And in some cases it can be a future value. Now another, I'm trying to imagine monetary people out there from public banking institute and other places, gold bugs and whatever side you're on with their own questions. I'm trying to imagine what some of those questions might be. What do you see as potential legal problems if any, at this point, and looking forward because the feds tend to make stuff up as they go along. They do, yes. At this point I'm not anticipating any major problems. First off, we're still small enough that they really don't care a lot about us. Secondly, we've made sure to follow the law to the letter. We do not issue any silver coins or gold coins or any other metal coins that we're never going to as long as that law is on the books. So we understand all of the rules and regulations they place on any type of financial operation and we are staying within the law all of them. The only thing we don't have to do is we're not a bank, so we don't have to jump through the hoops that a bank has to jump through. We're not a lending company, so we don't have to jump through those hoops. And then that works in our favor, of course. Do you imagine becoming a bank or a credit union at some future point? Because then you would be entering the fractional reserve. It's possible, but I don't anticipate it at this time simply because we're working fine as an anti-bank. That's what I call our Republic Trust is the anti-bank. Yeah. All right, well, let's say the website's again for people. Well, if you wanna learn more about the Liberty Dollar, you can go to libertydollar.net. If you're interested in opening an account to use Liberty Dollars, you would go to Republic Trust. That's republicwithacaytrust.com. R-U-P-U-B-L-I-C-K-Trust.com. And our store is at libertydollargeneral.com. That's where we have, right now there's clothing up there and some other things, and we've got a lot more coming that you can buy with Liberty Dollars. Electronic Liberty Dollars through the internet eat most easily. Now, if somebody in Uruguay said, we would like to create an alternative, in Switzerland, I'll give you an example, in Switzerland they have the weir, which sounds very similar to this. And it is a complementary currency. It operates alongside the Swiss franc. What's made it so difficult for the weir is that it's not public. It cannot be used for paying debts to the government, fees, taxes, that sort of thing. And so the weir has survived all these years on that basis. And I think we all have a lot to learn from how they managed to do that. And I see that as a parallel, what I've just said there, I see as a parallel to the Liberty Dollar. Can you imagine a country somewhere, an imaginary country that wants to use the Liberty Dollar as its main currency, maybe have some other alternatives but to use the Liberty Dollar as its main currency? How would that work? What would they have to show you in order to do that? I'll tell you how simple it is. Open a branch of the Republic trust in that country and they can start handling Liberty dollars that easily. It's that simple. We've got several branch offices opening around the country right now, around the United States right now. Got one in Texas, got one coming up in Colorado, two in Utah, one in Massachusetts, one in Indiana, one in Kentucky. And I'm talking with other people almost every day now that are interested in opening branch offices in their own communities. And that branch office, it's an independent business. We don't own it. Once they open it, it's a franchise opportunity. They own it, they run it. We simply give them the guidance and the information and the tools necessary to run that Republic trust office. Wow. Well, we're planning on that in Vermont, by the way. Emily has started the ball rolling. We don't have any people who can help us and we don't have the time to do it ourselves. So we're still trying to find a commissioner. We don't want to go into this until we get a few more people. And so, you know, we'll give you a heads up when if we get anywhere with that, but we want to do that. And I think what we will probably do is maybe a mix of the common good and the Liberty dollar. But for the trust, that's all just Liberty dollar. Well, we are setting up the system so that you can have an accounting for your Liberty dollars, your common good and your reflects, which will be coming up soon. Okay. All right. And that's one of the reasons I'm interviewing. If you have an exchange, for instance, if you've got more in your common good than you do in your Liberty dollar account and you need Liberty dollars, you can within your account do a quick exchange and transfer the balance from your common good balance to your Liberty dollar balance. That's great. Well, that's the conversation I'm planning to have in a couple of days with Matt Krupp is whether or not a credit union, which of course is a bank, whether a credit union could have an employee who is designated to do that sort of thing. And I think that would be a giant leap forward for credit unions and it wouldn't hurt the alternative Liberty dollar, et cetera, in the meantime, because we still have to pay time. I can do it. It's just, he's gonna meet a lot of resistance. You know, you're gonna meet a lot of resistance when you first do it. But I think it'll come, it'll come. Well, thank you very much, Wayne Hicks. We have a minute left in this program. This is the House of Poo Corner with Jim Hogue and we have made a leap forward today. One more step in the education of people in the direction of the creation of money, which is what I've devoted, I don't know, 10 programs to over the last couple of years. And we're moving forward with the Liberty dollar and here's Emily right now. She just walked into the studio. So that's interesting and I will explain to her what's happened and she will be watching this and she'll probably be in communication with the USA Republic folks. And again, USA Republic and that's with the CK, right? Yeah, USARepublic.org is how you find out about the umbrella organization that we are with that's interested in the use of this currency. Yes, now, since you brought that up, I wanna tell you that I'm launching a Radio Republic radio station, Internet Radio. So I'm gonna be after you for an interview before too long also. Well, I'd be very happy to do that and I'm giving a talk, by the way, in California. This Saturday via Zoom, it'll be at a big conference but I'm on Zoom and I'll be talking about something like that. Okay, thank you folks. Bye-bye.