I see money as a promisary note. I owe you a specific amount of digits for an item, we exchange digit everyday in life. People have tasken the BILL$$$ and made it a material need. I believe we can live without it, all we need is a gadget that we use to exchange digits.
Originally posted by WarJohn
Besides gold...
Is money backed by work?
Is money backed by goods and services?
If not to any of those questions, why not?
Following World War I, Benjamin Strong, head of the New York Fed from 1914 to his death in 1928, recognized that gold no longer served as the central factor in controlling credit. Strong’s aggressive action to stem a recession in 1923 through a large purchase of government securities gave clear evidence of the power of open market operations to influence the availability of credit in the banking system. During the 1920s, the Fed began using open market operations as a monetary policy tool. During his tenure, Strong also elevated the stature of the Fed by promoting relations with other central banks, especially the Bank of England.
--- snip ---
n reaction to the Great Depression, Congress passed the Banking Act of 1933, better known as the Glass-Steagall Act, calling for the separation of commercial and investment banking and requiring use of government securities as collateral for Federal Reserve notes. Also, as part of the massive reforms taking place, Roosevelt recalled all gold and silver certificates, effectively ending the gold and any other metallic standard.
---snip ---
In 2003, the Federal Reserve changed its discount window operations so as to have rates at the window set above the prevailing Fed Funds rate and provide rationing of loans to banks through interest rates.
“Is gold money?” he asked. Clearly bothered, Bernanke told the representative, “No. It’s a precious metal.”
After Paul interrupted him to note the long history of gold being used as money, Bernanke continued,”It’s an asset. Would you say Treasury bills are money? I don’t think they’re money either but they’re a financial asset.”
---snip ---
The interesting exchange served as one of the few times Bernanke has been publicly pushed off his comfort zone by an elected official. Rep. Ron Paul brought up the issues that he’s famous for, namely, a sort of allegiance between the Fed and the nation’s most powerful institutions, the illusion of fiat money, and the gold standard. Bernanke, angered and bothered, had no option but to respond.
Originally posted by morder1
reply to post by lbndhr
I see money as a promisary note. I owe you a specific amount of digits for an item, we exchange digit everyday in life. People have tasken the BILL$$$ and made it a material need. I believe we can live without it, all we need is a gadget that we use to exchange digits.
I agree we can live without it...
But why would you want to exchange "nothing"?
Also, with a gadget, you dont care about privacy at all? it would be easy for something like that to be monitored and tracked... just like credit cards, bonus/rewards cards... Even if you dont care about your privacy... think about othersedit on 12-12-2011 by morder1 because: (no reason given)
