State of the World

Our problem is not financial—it is sovereignty. The secret governance system is waging war on us, a war to destroy liberty, wealth, and even life. We need, therefore, state governments willing to protect independent state sovereignty instead of states run covertly by corporations and Wall Street banks. State sovereignty must be used to protect individual sovereignty. Without the rule of law we can’t do that, and without state sovereignty we won’t have the rule of law. 

The Rule of Law Is Breaking Down

We are experiencing a fundamental breakdown of law and order that is crushing citizens’ ability to practice their faith, raise families, and be economically productive. Rule by the enormously wealthy has destroyed the rule of law, leaving them outside the law and immune to prosecution while the law is applied rigorously to the rest of us to harvest our wealth. 

The federal government has operated outside financial management laws for several decades. Combined with exceptionally liberal monetary and fiscal policy and legal immunity given to financial institutions with records of repeated criminal conduct, we are now looking at the potential for a serious implosion of law and order leaping to financial markets and liquidity, leading to wholesale destruction of our businesses, farms, and family wealth.

Worse yet, as we noted earlier, in most states, 50% of the people draw their living from government—three-fifths from state and local government and two-fifths from the federal government. Any stoppage of those state or federal payments will result in a social nightmare and chaos. States must prepare themselves to step in if that happens.

Control by Central Bank Digital Currencies

Right now, the Federal Reserve and central banks worldwide are preparing CBDCs, the ultimate cashless society. Central bank digital currency will destroy the economy and the banks. Its whole purpose is control, nothing else—total control of the economy, of individuals, of capital allocation, of all wealth and behavior. 

Never mind all the bland reasons central banks give for introducing CBDCs. Their true purpose is revealed in one short statement by Agustín Carstens, General Manager of the Bank for International Settlements (BIS), on October 19, 2020: “We tend to establish the equivalence [of CDBCs] with cash [but] there is a huge difference there. For instance, in cash we don’t know who is using a $100 bill today, a 1,000-peso bill today. A key difference with the CBDCs is that central banks will have absolute control under rules and regulations that will determine the use of that [digital currency], and also we will have the technology to enforce that.”20 

This is why it is critical to build and rebuild the analog (gold and silver) side of our financial system, until and unless we can create digital systems that have local integrity and respect individual and state sovereignty. Without a parallel gold and silver monetary system, no one will be able to escape the CBDC digital control system, a system that envisions the destruction of human freedom. After Trudeau’s seizure of his political opponents’ bank accounts in Canada and U.S. sanctions on Russia’s central bank, the world has been warned that digital assets are no longer safe. Bitcoin is not secure. We must avoid a 100% digital system run by the eyes in the satellites. 

Good Governance

What we lack is good governance. Some of our states have done remarkably well fiscally and with their pension funds, but the federal government is just the opposite. It is making it impossible for us to be productive human beings. We need to support states’ efforts to protect the rule of law and stand up to the federal government. We can’t do this as individuals.

What do our states need? We need sovereignty, the rule of law, and a fundamentally sound financial and food grid. We need safe local banks. Unfortunately, existing data systems are corrupt, compromised, untrustworthy, and a means of spying and control. We are all bugged and manipulated digitally. That’s why we must develop independent, reliable communications systems.

The wedge for all these improvements is gold, particularly state treasurers buying gold.  Since 2015, central banks around the world, not just Russia and China, have been increasing gold reserves and repatriating gold reserves from New York and London.  They have been shamelessly shucking dollar reserves. In the last eight years, central banks have bought three times more gold than U.S. Treasuries. This is an epic sea change, ending an 80-year trend. Our states won’t be the pathbreakers doing this; central banks and nations are already doing this, worldwide. Lately, there’s news that even Israel is reducing its dollar reserves. Why not us?

Buying gold is just the first step, a stopgap measure. First that, then a depository and a state bank. When we buy gold, we’re not betting on foreigners or people outside the state or the present corrupt system; we are betting on ourselves. States buying gold and creating a system to circulate gold and silver will protect the citizens and increase their wealth. The alternative—do nothing—may appear to be the “safe” thing, but it will strip us of liberty, property, and a future.

Talking about everything that’s wrong won’t work. Rather, we ought to offer examples of what is working in various states—for example, the Texas Depository or the Bank of North Dakota—and what other countries around the world are doing. The time has come to significantly increase our ability to provide for our families and ourselves locally and in cooperation with other states and networks with whom we have maintained long-standing and productive relationships. 

Our states are uniquely positioned to affirm and assert our constitutional laws and provide citizens with a sovereign government that can unleash citizens and enterprises to build more resilient, more profitable local economies and to ensure that we act together to protect our promises to our citizens. 

What to Do?

States need to act immediately to provide the governance of our state and our financial systems—essentially the vacuum created by the inability of the federal government to manage monetary and financial policy and operations on a sound basis. What follow are our recommendations in a nutshell.

Establish a State Depository

We need to create the legal and physical capacity for our state governments to provide in-state custodian services for real assets and archives, including gold, silver, and digital records.  

Example: Texas is leading the way. Let’s start by learning the best practices from their experience.

Establish a State Bank

The economy is a function of good local banks, but they need to be protected by a state bank—not a state bank that deals with the public but one that acts as a bank for banks. A state bank can help protect and cultivate our local banks and deposit institutions from the vagaries of both global and national central banking mismanagement and ensure that they have the support they need to serve our local communities and economy as well as a rich regional trade. 

A state bank can support and regulate healthy digital and analog financial systems, so we do not become overly dependent on digital systems that facilitate destructive central control. They can also help us increase the market share of state and regional banks that do not have a demonstrated track record of criminality.  

Example: The Bank of North Dakota is a long-standing, successful state-owned bank.21 Let’s learn from them and their example. 

Unleash Our Local Food Growing and Processing Capacity

Getting the financial system on a sound footing requires getting the local food supply growing. We can lower barriers to local growing, processing, and distribution in-state. This includes encouraging local food purchases by schools and other government-funded institutions focused on significantly improving nutrition for schoolchildren. It means removing bureaucratic barriers to farm-to-consumer agriculture. We can also do a lot to ease the regulatory obstacles to equity investment locally in both farms and enterprises in a manner that would encourage our young people—working with our schools, colleges, and universities—to take on the entrepreneurial challenge of building local resiliency in food, energy, and local investment.

Bring Integrity to Our Communication and Data Systems

Let’s establish and build state capacity, that is, not run by or dependent on large multinational corporations and banks, to ensure secure telecommunications and data transmission for state and local officials, enterprises, and citizens within the state, and establish widespread curricula for encryption and cryptography.

Strengthen Our Alliances

In-state, let’s support our local sheriffs in the support of constitutional law and order and their efforts to draw on local citizens to support them in doing so. Then, let’s go to work with surrounding states and governmental agencies to protect and build critical infrastructure—energy, water, border protections, commerce, social systems. We can use relationships with regional banks and insurance companies to increase regional trade and risk management. 

Strengthen Our Financial Integrity

Let’s figure out how to start a buying program to invest a higher portion of state pension funds and other reserves in real assets, including gold and silver. Let’s start a buying program to add the first $1 billion of gold, to be held within the state. 

Let’s establish state-managed escrows for federal taxes paid by state citizens to ensure federal compliance with laws, including obligations to state governments and citizens. See details in the Solari Report’s 3rd Quarter 2021 Wrap Up: Taxation: With or Without Representation.22

Pray

We invite our churches, religious institutions, and prayer groups to help lead us in prayer through this time of accelerating change. Our environment will be uncertain and dynamically changing for some time to come. Faith is what led our ancestors to build great states. We will nurture our faith to gather together to lead and draw on the wisdom that God will surely and graciously give us. 

We are a group of concerned citizens. We can work together with our state leadership to ensure our state and individual sovereignty. 

Continue to Part X: Gold and Silver Clause Contracts: An Escape Route