Life without a Federal Reserve Note

What would The United States be like if we stopped using the FRN's, and used gold and silver coins? In an America that used traded goods along side of gold and silver who would be better off?

Well, at first, it would slow down money transfers, I'd be willing to bet.

Originally posted by slapmyface
What would The United States be like if we stopped using the FRN's, and used gold and silver coins? In an America that used traded goods along side of gold and silver who would be better off?

if the FRN's were backed up by silver or gold there wouldn't be a problem.

the dissapearance of this system in the 70's is what caused most of the problems we see today.

also the money lending at interest the federal reserve does is such a ponzyscheme.

reply to post by kn0wh0w


The reason I posted this is, I have found some old 1964 coins and they are worth 10 times face value. I then thought wow, If all money was made of silver or gold It would be inflation proof, or at least resistant.

Originally posted by slapmyface
What would The United States be like if we stopped using the FRN's, and used gold and silver coins? In an America that used traded goods along side of gold and silver who would be better off?

From what gold?

Long gone.


Khar

As with any barter system of economics, what ends up happening is goods and services are exchanged for goods and services. Using gold or silver exacerbates this medium of exchange and invariably the coin of the realm gets passed over for a mode of trade using less traditional means of barter.

With a gold/silver based system of economics, the few would retain possession of a larger portion of the available supply of coined currency, and thus, the purchasing power of the remaining currency in circulation would go up to the point that using the currency would no longer be a viable option for payment for most people.

Columbia is a prime example of an alternative means of barter being used instead of the coin of the realm. Often, instead of paper money, a specific substance is used as means of exchange. Having a more stable value than the currency of Columbia.