posted on Dec, 3 2010 @ 06:28 PM
This is what happens when you switch from a gold standard to a currency standard.
With gold, you have a finite amount of money involved. The only way to get more is to sell goods for more gold or start digging. It will always be a
somewhat rare mineral so it can only increase in value over time. It is difficult to spend more than you actually have in that respect.
But with a currency standard, the game changes. You need more money, you just fire up the printing press. This, in turn, increases the national
deficit because you are spending more money than you actually have by the billions. With the deficit in the multi-trillion dollar range, it is pretty
safe to say that you can accomplish more with currency simply because it is all an illusion of wealth. Promisory notes for money that doesn't really
Think about that. We have spent TRILLIONS of dollars more than the amount of money we actually have in our reserves. The money in your wallet, in your
bank account, nestled away in your piggie bank. None if it should actually exist. Because it is already worthless.
The dollar only has value because it is recognized worldwide. If that were to cease, those promisory notes would be as worthless as they really are.