Posts tagged paper money
Posts tagged paper money
Pay attention #Occupy protesters. The root culprits are the central banks and the fiat currencies they create out of thin air. To solve the world’s economic problems we need first to get out of debt (no more bailouts or stimulus) - - - allow the market the freedom to work as it was meant to. Then we need to replace the fiat currencies (paper money) with something that has true value and cannot be manipulated by governments and bankers as paper can. That likely means a return to some kind of gold standard. Gold has been recognized everywhere on the planet as having intrinsic worth for thousands of years. Bankers and governments hate gold because they can’t control it or the persons who possess it.
Fiat (Latin, meaning “let it be so”)
It turns out that the biggest villain of all is not a person, but a system.
Specifically, the fiat money system.
If you’ve got four minutes, check this out to see why the rich are getting richer while everyone else is getting taken to the cleaners and ground into the dirt.
And why nothing will change until we attack the problem at its root.
Mises Daily: Thursday, October 13, 2011 by Hans-Hermann Hoppe
Assume that you rule over a territory that has developed beyond the stage of a primitive barter economy and where a common medium of exchange, i.e., a money, is in use. First off, it is easy to see why you would be particularly interested in money and monetary affairs. As state ruler, you can in principle confiscate whatever you want and provide yourself with an unearned income. But rather than confiscating various producer or consumer goods, you will naturally prefer to confiscate money. Because money, as the most easily and widely saleable and acceptable good of all, allows you the greatest freedom to spend your income as you like, on the greatest variety of goods. First and foremost, then, the taxes you impose on society will be money taxes, whether on property or income. You will want to maximize your money-tax revenues.
In this attempt, however, you will quickly encounter some rather intractable difficulties. Eventually, your attempts to further increase your tax income will encounter resistance in that higher tax rates will not lead to higher but to lower tax revenue. Your income — your spending money — declines, because producers, burdened with increasingly higher tax rates, simply produce less.
In this situation, you only have one other option to further increase or at least maintain your current level of spending: by borrowing such funds. And for that you must go to banks — and hence your special interest also in banks and the banking industry. If you borrow money from banks, these banks will automatically take an active interest in your future well-being. They will want you to stay in business, i.e., they want the state to go on in its exploitation business. And since banks tend to be major players in society, such support is certainly beneficial to you. On the other hand, as a negative, if you borrow money from banks you are not only expected to pay your loan back, but to pay interest on top.
The question, then, that arises for you as the ruler is, How can I free myself of these two constraints, i.e., of tax-resistance in the form of falling tax revenue and of the need to borrow from and pay interest to banks?
It is not too difficult to see what the ultimate solution to your problem is.
You can reach the desired independence of taxpayers and tax payments and of banks, if only you establish yourself first as a territorial monopolist of the production of money. On your territory, only you are permitted to produce money. But that is not sufficient. Because as long as money is a regular good that must be expensively produced, there is nothing in it for you except expenses. More importantly, then, you must use your monopoly position in order to lower the production cost and the quality of money as close as possible to zero. Instead of costly quality money such as gold or silver, you must see to it that worthless pieces of paper that can be produced at practically zero cost will become money. (Normally, no one would accept worthless pieces of paper as payment for anything. Pieces of paper are acceptable as payment only insofar as they are titles to something else, i.e., property titles. In other words then, you must replace pieces of paper that were titles to money with pieces of paper that are titles to nothing.)
I am reading this book currently
It just came out last week, so far it is very good. It’s a nice explanation of why we are in the financial crisis we are in today.
The root of most evil: paper money and the power to create it out of thin air. Among other things, that is how all wars are financed.
Ron Paul has consistently held to his message about the creation of money for decades. A vote for Ron Paul in 2012 is a vote for sanity and a stable economy.
Ron Paul on Fiat Money: 1970s Video
Sept. 14, 2011
This ancient video has good audio. Here, Ron Paul correctly frames the debate over fiat money. It is a moral issue: theft. It is a political issue: power. It is a free market issue: a violation of competition, i.e., a government-granted monopoly. Fiat money is anti-free market.
By framing the issue correctly, he never lost sight of the enemy institution: the central bank. This is why he refuses to give Bernanke any slack.
By sticking to his knitting for 35 years, he has become the most formidable political opponent of central banking in American history — and probably world history. He never stopped hammering on the central bank. He finally gained an audience in 2007, 30 years or more after this video was shot.
His ability to expand that audience today makes him a major threat to the Federal Reserve. He will continue to get out this message after 2012. But he will do so from outside of Congress.
He is wise to leave. A politician can do only so much. He has been inside the Congress continually for over 20 years. He had earlier successful runs. There comes a time to transfer the torch. He has used his office to educate the public. He can do this from the private sector now.
By: Peter Cooper, Arabian Money Posted 6 October, 2011
. . . what would normally happen when a commodity is in short supply is that the price would go up to encourage sellers to put some more into the market. That is presently not happening because the silver price is being artificially suppressed in the Comex futures market by the bullion banks acting on instructions from the Fed presumably, so why would you sell that silver cheaply if you happened to own some?
But something has to give and it is the price of physical silver rather than the Comex price of the shiniest of metals. If you can find any silver these days you will pay quite a substantial premium over the spot price. But pay it because that is probably still a bargain compared to where silver prices are going.
The truth is that silver is a rare metal, more rare than gold. Silver reserves have been estimatated at one-hundredth of gold reserves. Silver is after all consumed by industrial processes and reserves have dwindled over the years because the price has been kept so low for so long by market manipulation. Why is that?
Praying to God or to Mammon?
Bernanke outlines new approach to monetary policy!