Using Silver Dollars (Part 4)
So far in this series, we’ve seen how to put Liberty Eagle Silver Dollars in the hands of both businesses and individuals utilizing an Exchange mechanism. We’ve used variations on procedures already available and in use elsewhere in our Economy right now.
Today, we’ll start to see how these Silver Dollars can be spent.
Suppose you have a credit card bill due or some other amount which calls for payment in Paper Dollars. One way to pay the amount would be to go to your account on your bank’s web page, and use their Bill Pay service. You enter the amount, who to pay, and where to send the check. They make the payment for you, and they charge our account.
The Cambi Bill Pay would work in similar fashion. You advise us of the payment information, and Cambi would pay the bill for you, using Paper Dollars. For this service, Cambi would bill your Silver Dollar account based on the current exchange rate.
Now, Cambi is not billing you in Paper Dollars – it is billing you in Silver Dollars. You need not worry about exchanging Silver into Paper, and the possible capital gains involved. That capital gain is up to Cambi to handle – not you.
As an example, if the bill called for $1000 in Paper, Cambi sends them a check and then bills you (assuming a 20:1 rate and a 2% fee) $50 plus a $1 fee. So, $51 is debited to your Silver Dollar account.
If your business wants to buy a piece of equipment for $10,000, Cambi would send your supplier a check, and would debit your Silver Dollar account $510. Now, you could depreciate only the $510 that you actually paid, but since the Invoicing module has reduced your taxes to zero, the deduction wouldn’t make any difference anyway.
For your business, or for you personally, Cambi’s Bill Pay service would allow you to spend the Silver Dollars you have earned.
But, there’s more.
So far, Invoicing has allowed numerous businesses to receive Silver Dollars, and to save money in the process. Bill Pay will allow for payment of most purchases using credit cards as a middle step. But this still leave a lot of money on the table, both for sellers and for buyers.
Picture a super market, let’s call it Silver Dollar Market, which has an integrated POS system that can ring up sales with one price for Plastic Dollars (eg. Credit & Debit Cards), a second price for Paper Dollars (eg. FRNotes & Checks), and a third price for Silver Dollars. They could advertise, “Use Paper Dollars and save 3%… Use Silver Dollars and save even more.”
You take your cart to the register, and the prices ring up each of the three amounts, plus sales tax on some items. You use Silver Dollars or a Cambi Silver Dollar Card to pay, and you get the lowest price. The market saves money by receiving lower nominal sales but equal value, and you save by paying less.
But, you only have Paper or Plastic Dollars! Not to worry, Cambi has installed an Exchange terminal right at the register, where you can swap to receive Silver Dollars. Again, you and the merchant benefit.
Now the Cambi POS system likely will be among the last to be adopted by merchants, but as the use of Silver Dollars in everyday commerce expands, Silver in POS will happen.
The only remaining feature needed is a way for the Silver Dollars to be used in buying and selling investments, either self-directed or through managed accounts. We’ll discuss this in Part 5.
We’re almost ready to start beta testing the software, followed by approaching potential customers. As the concept is proven, we’ll expand (as resources allow) and offer franchise opportunities.
If you’d like more information, please contact me through my blog at Bob@US-Issues.com.
Robert (Bob) Shapiro is self-taught in Austrian Economics and has consulted briefly for the governments of Mexico, Greece, Portugal and Spain. He has traded Gold & Silver and their stocks since 1970. Bob Shapiro’s blog is http://us-issues.com