Originally Posted by
Svipdag
I support "hard money". It is impossible to run precious metals off on a prijnting press., This encourages economic responsibility. Deficit spending is the high road to disaster. You and I can not spend money we have not got. Neither, though they refuse to admit it, can the government.
We have to accept as money whatever the government calls money. We are compelled to by legal tender laws. However, these laws are not binding on other nations. They can recognise stage money for what it is and reduce the amount of their own currency that they will give for it. Thus the exchange rate is changed in our disfavour.
Domestically, the degradation of our currency by printing trillions of dollars in unsupported bogus currency decreases the buying power of the money already in circulation, (Gresham's Law: "Bad money drives out good.") Thus does deficit spending generate inflation.
The number of Silver Certificates that could be issued was limited by the language thereon. Take the dollar bill for example; "This certifies that there is on deposit in the Treasury of the United States of America one dollar in silver , payable to the bearer on demand."
In other words, the Silver Certificate was a promissory note. The Federal Reserve note is not. It says nothing about paying anything to anybody. It asserts that it IS a dollar.So, of course, the Federal Reserve notes, which can be printed in any desired quantity, had to replace the Treasury notes which can not.
It has been claimed thst our money is now based on the Gross National Product . HOW CAN IT BE ? The government doesn't OWN the GNP. ,They might as well claim that our money is based on the paintings in the Louvre; they don't own them either.
The drastic measure which would cure inflation and our ever-escalating national debt would be to abolish paper money and replace it, for all but the very smallest denominations, with precious metal coins.
Of course , this will never be done because, the government doesn't WANT a stable economy. Pork barrel projects buy votes, economic responsibility doesn't.
"Suppose I were a member of Congress, and suppose I were an idiot.....but I repeat myself." - Samuel Langhorn Clemens
Bookmarks