reply to post by FiatLux
Not quite right.
All paper money is constitutionally defined as 'bills of credit' or debt, in that we agree.
[Sidebar to others: that's why we call it a '10 dollar BILL' or 'Federal Reserve NOTE' - Bill or Note - as in real money
is due on it].
This is defined by the US Constitution
in Article 1, section 8 "To coin Money
the Value thereof, and of foreign Coin, and fix the Standard of Weights and Measures" and "To provide for the Punishment of counterfeiting the
Securities and current Coin
of the United States" and "To borrow money on the credit of the United States"; and section 9 "No State shall
..... coin Money
; emit Bills of Credit; make any Thing but gold and silver Coin
a Tender in Payment of Debts...". In fact, until the
1960s all paper 'money' printed in the US said words to the effect that the paper was redeemable '"in lawful money". There's a whole Story here,
but the general idea is that in times past, no one would consider currency itself money (let alone electronic digits), but rather just a negotible
instrument for real money.]
Where we disagree is that money is currently a debt instrument. It is not. Beginning in 1933, with the seizure of gold by the US government from its
citizens; and ending in 1971 with Nixon closing the Gold Window on foreign governments, the US dollar is, in a historical and factual sense, akin to
company store script. As long as the store has stuff on the shelf, and you want to do all your shopping there, it isn't an apparent problem. However,
once the shelves start emptying, and the next town over doesn't want your script for their goods, the farce is evident.
This whole string talks to the possibility of that happening - and soon! When it does happen, no one knows the outcome - that much is certain.
In my humble opinion, our great nation, with the entire West not far behind, is so far into debt that nothing in the status quo will cure the problem.
However it is affected, there are only two ways out for the US (and West): either an outright default on its debt - which would really have to be ALL
debt to level the playing field again, and keep the country from honest to god revolution; or purposeful hyperinflation. Both situations erase the
debt, and allow a fresh start. However, the one key element in either scenario for it to be successfully ACCEPTED and allow life to go on afterwards,
is the adoption of a 'new dollar'. Whether its a Global or North American dollar, or pure US is hard to say, but what I do feel fairly certain of is
that, whatever new currency is established, gold will again be its basis. How exactly? What ratios? Don't know. But it must. Otherwise, there is no
way to guarentee that the US or any other nation, won't simply do the same thing again in 5-10-20-50? years. There's a reason why the world operated
on a GOLD standard for nearly all history, and we are soon to re-discover it.