It looks like you're using an Ad Blocker.
Please white-list or disable AboveTopSecret.com in your ad-blocking tool.
Some features of ATS will be disabled while you continue to use an ad-blocker.
Originally posted by Techsnow
"T o back everything with Goild or Silver would be foolish because those are scarce as well."
How would that be foolish?
A currency is supposed to be scarce so no more can be created. The whole problem with the reserve is that the money is not scarce, since they can simply create more and LOAN it to the U.S. it creates inflation and devalues the money that is out.
If the U.S. didn't have to borrow money and simply made its own it still wouldn't be good. We would still have inflation.
The whole point is what ever backs the currency has to be scarce and rare so more can't be created.
Originally posted by iceofspades
reply to post by Techsnow
I don't buy that. What backs currency does not need to be rare, but it needs to have intrinsic value. What the OP is suggesting, I think, is that the intrinsic value be labor itself. For instance, instead of trading gold/gold notes for a service, trade the value of one's labor. This has similiarities to gold-backing, since labor, too, is limited, but it is lacking in one limiting factor; absolutely arbitary assignment of value.......we can say gold is whatever value we want to assign to it, but physical work is a relatively static value.
If I want to trade a bushel of wheat for a couple dental sessions, the dentist and I are both recognizing the value of each other's hard work and coming to an agreement as to how much each one's time is worth. If I want to give him gold as payment, who is to say he doesn't deserve a whole bar out of my pocket? Do you see the difference?
[edit on 10/15/2008 by iceofspades]
Although internal controls have been an integral part of business for centuries, confusion exists over the exact meaning and scope of the term. Historically, the term internal control applied to the domain of accounting. The term was applied to the effort to safeguard assets and ensure the accuracy of the accounting records.
Originally posted by Techsnow
reply to post by truthwarrior7
"Money is not scarce, since it can be created by debt. In our current economy, in our commercial paper world..... "
Do you know why our money is created by debt? You do realize that we borrow money from the federal reserve right? They then print us more at interest and we are supposed to eventually pay the debt back to them some day. There's nothing federal about the federal reserve. We are literally borrowing money from a bank that has THEIR money backed by... GOLD.
The real question you should be asking is why do we borrow money from the federal reserve. Why not just make money ourselves instead of borrowing money from them?? When you figure out the answer to that queston you'll probably realize we don't a new currency, we just need to start making our own.
Originally posted by goathead
What if we could come up with some kind of hybridized system, using elements of both the barter system and for some applications, our own national currency, backed by precious metals? Some things would be dealt with through barter, while others might require a more tangible form of payment. The currency aspect would also allow for individuals to save for their later years, when they may no longer be able to barter? Just a thought.