Tuesday, November 25, 2008

Real money at the Free Lakota Bank

Another interesting silver story to look at this week is the Free Lakota Bank. While the U.S. has thousands of banks, the Free Lakota Banks uses a business model based on Real Money (gold and silver) making it unique from all the other banks I've ever heard of.

Highlights of the bank

1. Savings are in silver and gold offering protection from inflation and devaluation of fiat currency

2. No fractional banking so the bank is liquid at all times and you may withdraw your savings in real minted rounds on demand

3. You pay to store and protect your savings wealth, rather than loaning your capital to a normal bank so they risk as they see fit

4. You may assign any portion of your savings you want to a GIF (general investment fund), from which standard and micro loans are made, current rate of return on the GIF is 7.24%

5. Good loan criteria

6. They have damn pretty rounds

One of the best things I like about this bank is their take on loans applications. This is from their site.

Do you have the moral integrity and character of a person that deserves a loan from the Free Lakota Bank? If so, we may have a loan for you. Our first priority with the Free Lakota Bank General Investment Fund is to enhance the profitable development of exports from within the Nation of Lakota. We will consider any and all proposals to establish free enterprise within our territory above all other requests for loans. Please read the list of benefits of conducting business from within our Nation.

The Free Lakota Bank issues loans based not on need, but instead on merit. During application, explain the value we will receive by lending money to you. Inform us as to why investing in you is in our best interest. What have you done in the past to create value for yourself and shareholders? What commitment will you make to ensure the success of our investment?

Apparently I want a big screen or I want to go to on vacation will not be a valid loan rational (about bloody time) It looks like they are limiting loans to things with will generate real wealth and opportunity for the community rather than fanning consumption like normal banks. I like it!

I’m a huge fan of the good work done by Micro credit organizations like the Grameen bank that seek to empower third world women by letting them escape loan sharks and other exploitive financing arrangements. Micro loans also allow them to gain a greater level of Independence.

The Lakota coins will also be real currency redeemable at various AOCS tribes or merchants. AOCS stands for American Open Currency Standard a loose grouping of alternative currencies including the Liberty dollar the Government raided and closed this year in what was probably an illegal action.

I hope the Free Lakota Bank can have similar success in stoking job creation and local economic autonomy in the Lakota lands and I also hope that once they get this up and going they will mentor other native groups in “real money” finances.

Now I don’t know these people and I’ve not seen their books so I cannot endorse the Free Lakota Bank but I certainly approve of this kind of business model and hope it flourishes. I do recommend you check them out but do your own due diligence.

Damn pretty rounds!


Only a couple days left to vote for the Canadian silver bug as the best Canadian blog in its category


Unknown said...

Hi Lord of Wealth,

I'm contacting you in regards to an email I sent to you last month about a partnership, have you had a chance to think about it?

If you have any questions or would more information, please advise me and we can go from there.

Kind Regards,
Andrew Knight

Anonymous said...

Good day "lord of wealth"
I purchased a 100oz silver certificate from TD Canada Trust a couple of months ago. Ever since, I have been having a heck of a time getting it "redeemed" - not cashed. After a lot of BS, and finally making the trip to T.O. I was told that they do not have to provide me the silver because the circumstances preventing them from giving it to me, are "beyond their control" (As per term 1 on the certificate) This despite the fact that I pointed out a number of sources for 100oz of silver, albeit above spot price.
Who would you think would be a better contact for me, The RCMP fraud unit, or my lawyer? Is there any interest for a class-action suit in the silver certificate holding community?

Anonymous said...

I'm sorry but you've probably been had, I've been preaching against paper certificates for as long as I've blogged on the subject and each and every story I hear like this from someone the bank has Buggered makes me just as sick as the first one I heard.

I have to admitt I'm no law expert but I would think that there are sufficient disclaimers built into these certificates to protect the banks despite the fact they should be burned at the stake for decades of fraud in the metals market.

The fact is however that the banks have not been able or willing to deliver on these certificates for some time and if they know they cannot do so they have no right selling certificates, especially as recently as a few months ago. As you say there is silver available so I would think they should be required to find it for you.

TD is especially troublesome because they are not a bullion bank like Scotia, I asked once about physical silver got a stunned look and the manager said he'd bought it a couple of times but his branch had never sold physical.

I would suggest the RCMP only because there will be no cost to you, but I really don't know enough of the details of their certificates to make a judgement call. Could you scan in the certificate and blank out your personal information so I could read, interpret, and post the certificate.

I think someone in the situation should form a group to investigate the legal options and I would gladly post a plug for such action and attract more members.

Anonymous said...

"lord of wealth"
My email address is skye_bowen@yahoo.com
I will gladly make copies of my certificate, and keep you in the loop.
I have now waited 5 business days since notification of my surrendering of the certificate was given to the bank.
I will be contacting the manager at the downtown branch tomorrow, to inquire as to whether he has my silver ready for pickup.
I will see what happens tomorrow


St_Clair said...

I loved those rounds too, and the ideas behind the Bank are very good.

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Thanks for sharing this info!

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