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* money without intrinsic value.[6][7]
Fiat Money
Yeah, things are the way they are because the bankers have worked long and hard to make it that way. The national debt combined with the rapid inflation of the dollar makes it perfectly clear that something isn't working quite as it should, and indeed America is heading straight towards the edge of a cliff, and will come tumbling down if this absurd system is perpetuated for much longer. The only people who benefit from an inflationary currency are those at the top, everyone else gets screwed over. The only real logical answer is to carefully control the quantity of the [fiat] currency in question. That is easier when it's issued by the Gov interest free straight to the people, and I've posted ample evidence to prove how successful this method is.
What I'm trying to get across to you is that the economic theories that drive our economy cannot be messed with.. that there are reasons for why things are the way they are, they all serve a purpose.
Another good man assassinated by the money masters.
"The government should create, issue and circulate all the currency and credit needed to satisfy the spending power of the government and the buying power of consumers..... The privilege of creating and issuing money is not only the supreme prerogative of Government, but it is the Government's greatest creative opportunity. By the adoption of these principles, the long-felt want for a uniform medium will be satisfied. The taxpayers will be saved immense sums of interest, discounts and exchanges. The financing of all public enterprises, the maintenance of stable government and ordered progress, and the conduct of the Treasury will become matters of practical administration. The people can and will be furnished with a currency as safe as their own government. Money will cease to be the master and become the servant of humanity. Democracy will rise superior to the money power."
~ President Abraham Lincoln, Senate document 23, Page 91. 1865
The essential meaning of a fiat paper standard is that the currency
unit—the dollar, pound, franc, mark, or whatever—consists of paper
tickets, marked as "dollars," "pound," and so on, and manufactured by the
central government of the nation-state.3 The government (or its central
bank) is able to manufacture those tickets ad libitum and essentially
costlessly. The cost of the paper and the printing is invariably negligible
compared to the value of the currency printed. And if, for some reason,
such cost is not negligible, the government can always simply increase
the denominations of the bills!
It should be clear that the point of the government's having the
power to print money is to monopolize that power. It would simply not do
to allow every man, woman, and organization the right to print dollars,
and so the government invariably guards its monopoly jealously. It
should be noted that government is never so zealous in suppressing
crime as when that crime consists of direct injury to its own sources of
revenue, as in tax evasion and counterfeiting of its currency. If counterfeiting
of currency were not illegal, the nation's supply of dollars or francs
would rise toward infinity very rapidly, and the purchasing power of the
currency unit itself would be effectively destroyed.4
In recent years an increasing number of economists have understandably
become disillusioned by the inflationary record of fiat currencies.
They have therefore concluded that leaving the government and its central
bank power to fine tune the money supply, but abjuring them to use
that power wisely in accordance with various rules, is simply leaving the
fox in charge of the proverbial henhouse. They have come to the conclusion
that only radical measures can remedy the problem, in essence the
problem of the inherent tendency of government to inflate a money
supply that it monopolizes and creates. That remedy is no less than the
strict separation of money and its supply from the state.
Originally posted by Rockpuck
reply to post by ChaoticOrder
First rule to perpetual growth is a positive Birth Death Cycle. Old people die, young people are born. The United States in the 1970's and 80's was the first nation in the World to experience a phenomenon never before seen in Human history: When people were wealthy, they stopped breeding. This created a conundrum for economist and politicians. By the 1990's it was evident: White people were going to die off due to their wealth status.
Solution?
Brown people!
But your logic doesn't make sense. By printing more notes the existing notes become worth less. It just "fluffs up" (aka inflates) the money supply to make it look like more is there, but in reality the total real value of the money supply is worth exactly the same. It IS impossible to create real money value out of thin air. Then what happens when the dollar becomes worth less? Peoples savings become worth less and the price of commodities go up. That does not avert famine in the slightest, it causes it. The best it will do is delay it slightly until the new money trickles into the money supply and becomes realized.
The best reason in favor of the Fed is that it can supply money when there is no money. To avert famine or some other national emergency.
Originally posted by ChaoticOrder
reply to post by Semicollegiate
But your logic doesn't make sense. By printing more notes the existing notes become worth less. It just "fluffs up" (aka inflates) the money supply to make it look like more is there, but in reality the total real value of the money supply is worth exactly the same. It IS impossible to create real money value out of thin air. Then what happens when the dollar becomes worth less? Peoples savings become worth less and the price of commodities go up. That does not avert famine in the slightest, it causes it. The best it will do is delay it slightly until the new money trickles into the money supply and becomes realized.
The best reason in favor of the Fed is that it can supply money when there is no money. To avert famine or some other national emergency.edit on 1-3-2012 by ChaoticOrder because: (no reason given)
1. The fed does NOT return all money to the treasury, as the fed pays its member banks a 6% share. Now, whether that 6% comes from newly printed money, or by interest/bond payments is unknown to me.
2. Here is the real trick- When the FED injects money into the system by buying bonds, that new money causes inflation. What do you think happens when the Gov't pays bond interest back to the fed? DEFLATION!