Tyler Durden
via Zero Hedge

Either in anticipation of QE2 which will cut the value of the dollar by another 50% once another $2 trillion in toxic crap becomes the “assets” backing the viability of the dollar, or just because they are sick of Fed policies, mid-Michigan has taken monetary matters into their own hands, and in one simple act, completely bypassed the destabilizing influence of the domestic currency printers.

As ConnectMidMichigan reports, “New types of money are popping up across Mid-Michigan and supporters say, it’s not counterfeit, but rather a competing currency.  Right now, you can buy a meal or visit a chiropractor without using actual U.S. legal tender.” The plan is so simple, it just may work – after all if one can’t get away from the Fed’s probing and pickpocketing long fingers, all one has to do is learn to live without its parasitic pieces of paper. And not just paper: “I sell three or four every single day and then I get one or two back a week,” said Dave Gillie, owner of Gillies Coney Island Restaurant in Genesee Township. Gillie also accepts silver, gold, copper and other precious metals to pay for food.” So yes, you can eat gold…. and load up your gas tank with it.

“Do people have to accept dollars or money? No, they don’t,” Gillie said. “They can accept anything they want or they can refuse to accept anything.”

He’s absolutely right.

The U.S. Treasury Department says the Coinage Act of 1965 says “private businesses are free to develop their own policies on whether or not to accept cash, unless there is a state law which says otherwise.

That allows gas stations to say they don’t accept 50- or $100 bills after a certain time of day in hopes of not getting robbed.

A chiropractic office in Lapeer County’s Deerfield Township allows creativity when it comes to payment.

“This establishment accepts any form of silver, gold, chicken, apple pie, if someone works it out with me,” said Jeff Kotchounian of Deerfield Chiropractic. “I’ve taken many things.”

Jeff Kotchounian says he’s used this Ron Paul half troy ounce of silver to get $25 worth of gas from a local station.

While the government and banks don’t accept them, many others do.

So why is there interest in these competing currencies?

Is it just novelty or is there something deeper?

If the ruling kleptocrats, demand on being such an intimate part of everyday life, and procuring all of the population’s real wealth and cash producing assets in the process, said population has a choice of either going with this sheepish approach, and meekly allowing the loaded gun to be parked at its temple, or do what Michigan, with its 99.9% real unemployment, has decided to do.

Not to long ago I clicked on an ad for a free investor’s kit from Goldline International. I was skeptical at first entering my phone number and address to a web form for a company I knew very little about. I was afraid of being spammed not only with unwanted emails, but advertisements in real life or even worse phone calls from telemarketers.

Despite these risks I took a chance and filled out the forms. The current climate here in the US has given me some serious concerns about the safety of the U.S. Dollar and my investments in the stock market. I felt like I needed to protect my savings with something I could physically put my hands on like gold or silver.

Within 2 weeks I received my Investors Kit along with only one or two emails, one confirming my sign-up and another monthly newsletter.

I was blown away by the quality of the Free Investor’s Kit. It came in a large envelope packed full of papers and information. Inside was a folder with several high quality full color pages printed on High Gloss paper and several brochures and documents with all the information that YOU NEED TO KNOW.

What Comes In The Goldline Free Investors Pack?

1. Precious Metals and Rare Coins Investors Guide

Tables of Contents:
I: Introduction to Precious Metals
II: Advantages of Owning Gold & Silver
III: Most Popular Coins & Products
IV: Why Investors & Collectors Choose Goldline
V: How To Acquire Precious Metals & Rare Coins

2. Coin Facts For Investors and Collectors to Consider

Facts, risks, and policies collectors should know:
Diversification, Holding Period, IRA Accounts, Buy Back Policy, Delivery, Storage, Risks In Precious Metal Investing, Pricing, Bullion Purchases, Exchange Transactions, Refund Policy

3. Account and Storage Agreement Information

Any and everything you need to know about Goldline International’s Terms and Conditions.

4. One-Time Special Offer Coupon for Free Shipping on my order.

5. Complimentary Issue of The American Advisor Newsletter
Goldline’s newsletter, American Advisor, provides timely news and information about our economy, precious metals and rare coins. The Investor’s Kit also included an offer for 1 Year Free subscription to the American Advisor.

Listen to the American Advisor Radio Podcast Here.

6. Pre-Paid FedEX Air Mail Envelope

7. Vintage Copy of 1933 Executive Order Gold Confiscation Act.

Under Executive Order Of The President issued April 5, 1933 all persons are required to deliver on or before May 1, 1933 all GOLD COINS, GOLD BULLION, AND GOLD CERTIFICATES now owned by them to a Federal Reserve Bank, brand or agency, or to any member bank of the Federal Reserve System.

8. Personalized Letter written to me from my Goldline Account Executive.

How was the customer service at Goldline?

About a week after receiving my Goldline Investors Kit I got the first phone call. Normally I don’t pick-up unknown phone numbers so I let it go to voicemail. It was from the same acount executive that left his business card in my free investors kit.

He was polite and basically said:

Hi John, we’ve got your phone number here because you requested some information online. I’d love to get a chance to talk with you about how we can help you with your investments at Goldline. Give me call back at this number…

It was a short message and not too pushy. I actually did not call them back right away, but my account executive called me two more times in the span of about 2 weeks and left a message each time. After that I did not hear back from him again.

Overall I would say that they were very professional and courteous. I was afraid to give out my ‘real’ phone number, but you can trust not to have problems with Goldline.

How Can I Get A Free Goldline Investors Pack?

1. Call Goldline at 1-800-827-4653 to speak with a Account Exec.

2. Sign up on the web here

3. Follow the links in the side bar.

Reuters — Gold prices are currently high and markets should be careful of a potential asset bubble forming, a senior official at China’s central bank said on Wednesday, as prices for the precious metal hit a record high.

“We must keep in mind the long-term effects when considering what to use as our reserves,” Hu Xiaolian, a vice-governor at the People’s Bank of China, told reporters in Taipei, when asked if China had plans to increase its gold holding in its foreign exchange reserves.

“We must watch out for bubbles forming on certain assets, and be careful in those areas.”

Gold hit record highs at US$1,216.75 an ounce in Europe on Wednesday as investors bet on higher prices.

China’s more than US$2-trillion in foreign exchange reserves are mostly parked in U.S. treasuries, despite calls from some in China to invest the reserves in oil and other natural resources that the fast-growing Chinese economy will need in future.

Before gold prices hit record highs, however, China said last month that it is working to improve the allocation of assets in its foreign exchange reserves, when asked whether it would buy any of the gold that the International Monetary Fund is seeking to sell.

Watch this video to learn how to ‘Make Spare Money Recycling Scrap Gold’.

Local gold buyer says business is BOOMING. As people are finding themselves strapped for cash they are turning to cash-for-gold style traders to get buy. The dealer recommends people buy gold and silver. Most important thing he said was own METAL.

Copper, aluminum anything, just don’t rely on paper money to protect your savings. The dealer even talked about the value of older pennies and nickels.

“Gold is insurance, Silver is money.”

How to Prepare for the Coming Depression Part 2:

In the Part 1 I outlined the importance of having a reserve of food set aside for you and your family. Regardless of it being an inflationary or deflationary depression, you would not want to be vulnerable to skyrocketing prices or a food shortage. This was the main reason why you want to invest in your food supply today, because the longer you wait the more the prices will rise.

After you have 3-6 months food supply stored up its time to take care of your finances.

1. Eliminate Debt

If you can not get completely out of debt, then you should focus on the one with the highest interest rates first. The basic idea is to reduce the total amount of any future expenses and money going out. To be prepared for a possible job layoff, or cutback in hours you should pay off as much as you can today. Tomorrow it might hurt you twice as much to make the same payments. You want to be able to get by with the minimum amount of money.

2. Build Your Emergency Fund

Save up a CASH reserve of 3-6 months (if not more) of expenses. You should be able to survive on this reserve if the event you were laid off from your job. Even if you are able to work through depression will you be prepared if the president declares a “bank holiday”? Look back to 2008 when IndyMac was taken over by federal regulators. People were lined up for days to get limited access their money. This event was isolated, in the future (as it has happened in the past) it could happen to hundreds of banks at the same time.

In your emergency fund only keep small bills, $1, $5, $10, and $20 dollar bills. The majority of people have difficulty breaking larger $50 and $100 dollar bills even today. You want to make sure that the money you have can easily be spent.

3. Invest in Gold, Silver, and Tangibles

If you have a considerable amount of money saved up already in retirement funds or stocks. It may be time to look at re-distrusting your investments. Many people lost 50% of the net worth in the last stock market crash. Could your portfolio survive through another? Throughout history gold, silver, and precious metals have always held their value. The prices of gold is on the rise and not coming down anytime in the near future.

Aside from gold and silver, you want to invest in real tangible objects. A Good set of tools and equipment, books, medicine, firearms, ammunition, and other supplies will all be worth their weight in gold. In a serious long term depression paper assets with be worthless to you. If you can’t touch it and hold it in your hands then you don’t want it.

4. Cut Expenses At All Costs

Many of us live way beyond our means. It shouldn’t take an economic crisis for you to take a look at the thing you may not actually need. Cancel the cable, and netflix memberships. Downgrade your phone plan from the blackberry plus line to a cheaper normal line. Stop running the a/c 24 hours a day. Cut out junk food and fast food. They have little nutritional value and they are more expensive fresh fruits and vegetables. There are several small things that can add up over the course of a month. Staying at home on the weekends could save hundreds of dollars over time. Instead of going out to eat, you could take turns having people cook.

No matter how you choose to do it, its important that you find some way of reducing your expenses and increasing your savings. Be creative. If you stick to your plan you will be in much better shape than the rest of the people out there, who may have been caught by surprise.