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☭proletarian☭;2020046 said:I know the States are not allowed to print currency, but is there anything stopping a state from starting a bank dealing with gold and silver stores and issuing gold/silver notes that would be used for transactions like we used to do?
Probably not gonna happen until said state is completely self-sufficient.
I think that is unconstitutional because the federal government has the responsibility of creating one unified currency among the states, no?
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.
As of the end of last year we had over 14 trillion dollars in circulation.
I don't think we have 14 trillion worth of gold to back that with....
As of the end of last year we had over 14 trillion dollars in circulation.
I don't think we have 14 trillion worth of gold to back that with....
we only have $173 Billion in gold
☭proletarian☭;2020046 said:I know the States are not allowed to print currency, but is there anything stopping a state from starting a bank dealing with gold and silver stores and issuing gold/silver notes that would be used for transactions like we used to do?
☭proletarian☭;2020046 said:I know the States are not allowed to print currency, but is there anything stopping a state from starting a bank dealing with gold and silver stores and issuing gold/silver notes that would be used for transactions like we used to do?
I don't think there's any Federal law against it.
Hell, you get to issue currency in the form of your personal checks, don't you?
In fact I see no reason that any private individual cannot do this if they want.
I don't think you're going to get a lot of customers and I cannot imagine how the business model would work in today's economy, but it is something that seems legal.
Basically you'd run the operation just like gold smiths ran their operations during the middele ages. (they were the first banks, really)
People would pay you to horde their gold for them, and accept script as their reciept for it.
Now if that script is transferable (and if it isn't then it's not script) then you and whomsoever else wanted to play, could issue you own tender, but tender that does not have the same power of LEGAL tender as the FED reserves have.
Now if you really want to play the game right, you'd end up doing what the goldsmiths so often did, too.
You'd figure out what you typical reserves were, and then you'd start issuing script (for youself) beyond the amount of script that you'd have gold on reserves for.
You could play that float forever unless your depositors sensed that there was more script in circulation than gold, then there'd be a rush on your bank by people holding that script to get their gold back.
I strongly advise you to read Galbraithe's book "Money: Whence It Came, Where It Went".
If nothing else it will give you some idea of how what you're suggesting, now, used to be done.
Fail.As of the end of last year we had over 14 trillion dollars in circulation.
I don't think we have 14 trillion worth of gold to back that with....
we only have $173 Billion in gold
Hmm seem like that going to gold backed dollars would create a problem with massive devaluation of the dollar.
McDonalds would have to start giving change for $1,000 bills.
☭proletarian☭;2021734 said:Fail.we only have $173 Billion in gold
Hmm seem like that going to gold backed dollars would create a problem with massive devaluation of the dollar.
McDonalds would have to start giving change for $1,000 bills.
The 'dollar' would be worth more, since there'd be less bills and they'd actually be backed with something other than lead and uranium.
