posted on Dec, 30 2008 @ 02:40 PM
Quite easy. The thing is... (economics is my strong point) the Government NEEDS to have a monopoly on currency. If it didn't, the economy wouldn't
have a standard to measure value of goods by. Essentially, you could do that, but it would cost much to adjust standards and compensate, and no one
would want to use yours.
They also have a monopoly on it because our Money, cash, bucks, whatever, has to be backed by a force! Remember what the Gold Standard was? The
currency had to be backed by something tangible, like gold.
Here is a good video explaining why it needed to be backed by gold.
video.google.com...
These days, things are different, when FDR (I think so) took us off the gold standard (might have been Eisenhower?) he artificially inflated the
currency.
By producing money without something backing it besides trust, it extremely dangerous.
When the government inserts cash into the economy, it is creating inflation. ie that's why things cost more than things 100 years ago.
That video above explains it all.