How about a real world example?

I am a farmer and have just harvested 6 containers of logs that are of export grade quality. My usual Japanese buyer of the export grade logs buys them. Now, I'm just a good ole boy farmer, and the Japanese buyer doesn't trust me to pay in advance, because that is $200,000 worth of logs. He could pay me and I could substitute lesser quality, or just disapear with the money.

Instead, we agree on a LOC arrangement, where the logs are marked and ID'd, placed on a container ship, and only after the ship arrives with the right logs in them, will his bank release the funds to me.

The problem that is happening now is that the Japanese buyer is from Tokushima, and his bank is Tokushima Bank, whre the Letter of Credit is drawn.

OK, as a good ol boy farmer, I've been hearing about banks going upside down. I know **** about Tokushima Bank, whether or not they've purchased CDS or sold it, have loans out to Lehman, and no one else has ever heard of them.

Are you going to let your $200,000 dollars worth of logs leave port?

I think not.


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He that is of the opinion money will do everything may well be suspected of doing everything for money.
Benjamin Franklin
2008-10-15 15:16:12

I was thinking about what a system overhaul would look like. It would be decentralized, and prevent concentration of power and wealth in a pyramidal style hierarchy. It would be like the internet, a distributed network. It would conform to God's law or cosmic law if you see that way. I started writing these ideas, but would like others to revise and comment as they see fit. Please feel free to take it and run, if you will.
Belessings & Peace
Dennis

1.   Nationalize the Federal Reserve
The congress shall act, and the president shall execute to dissolve the Federal Reserve Board. All of its assets, powers and prerogatives shall be vested in the US Treasury of the Executive branch.
The Supreme Court, which relies on precedent, which was manipulated to form and support the Federal Reserve Board over the years, shall have no authority to act to prevent or restrict this action. It is preferred if it gives its blessing to the peoples’ initiative.
2.   Declare a Jubilee
All debts owed are cancelled. Whatever your position with regard to this, lender or borrower you be, be you person, state or corporate, all debt is cancelled.
Chartered commercial banks shall receive a credit in lieu of the cancelled debt that they actually held in title. No bank may be chartered to operate across state lines. Therefore, no large bank monopolies may be allowed to operate.
All Banks chartered shall be a quasi- public local enterprise. A controlling majority of its directors shall be elected by the voting public of the county in which it does business. No bank stock is allowed to be authorized or issued.
All bank business shall be public information and disclosed publicly.
3.   The People own the Dollar
The Dollar shall become a US Treasury note backed by the full faith and credit of the US government, redeemable in silver or gold, only to citizens of the US.
No exchange of currency shall be allowed with any foreign person or entity.
Currencies to be exchanged shall be (converted to gold or silver certificates then) conducted through a single US treasury exchange facility. Said facility shall exist for the sole purpose of enabling travel and trade abroad, and may charge a nominal fee for its services. It shall not be used for arbitrage nor for redemption of US Federal Reserve Dollar notes or US Treasury Dollar notes from abroad. All of its transactions shall be publicly disclosed.
4.   No Usury
Usury is made illegal. Interest may not be allowed to accrue or be charged or paid on any new debt or loans made or on commercial trading accounts.

5.