patrick.net

Our B.S. fiat (debt as money) currency reminds me of this simple quote:

"But certainly for the present age, which prefers the sign to the thing signified, the copy to the original, FANTASY to REALITY, the appearance to the essence, ... ILLUSION ONLY is sacred, TRUTH PROFANE. Nay, sacredness is held to be enhanced in proportion as truth decreases and illusion increases, so that the highest degree of illusion comes to be the highest degree of sacredness..." Ludwig Fauerbach

Er, then again I think this quote applies to our current post-modern world EVERYWHERE you look, from pop culture right down to the individual ego...

"There is zero chance of economic success with a fiat currency. History proves it."

Actually, history proves the exact opposite. In case you haven't noticed, pretty much every country has a fiat currency. Sound money, as you call it, lost. Fiat currenty won.

How do you explain the period from 1981 to 2002 or so when Gold went down in value, while inflation occurred and the money supply increased ?

That's twenty years when the fiat dollar held value way better than Gold. Actually almost every type of asset held value better that either Gold or the dollar over this period.

I acknowledge some serious issues with central banks. And obviously we are at a tricky time in our evolution, that is globally, and economically. I wish that there was some simple answer, to a question that I don't even completely understand. But if there is, I don't see that a gold standard is it.

I read the right wing anti fed article that Patrick posted today. I thought it was very poorly written, meandering, and illogical. It would be easy to find something more compelling, and better written on the Mises web site. Sure the fed has made some mistakes, probably the biggest being the degree to which they goosed the economy (and housing) in 2002 - 2005.

But that doesn't prove that more progressive tax rates wouldn't have helped us a lot. I have made the argument many times before. It's really simple, the people who call the shots are also generally high income people. IF their tax rates were tied to recent deficits, then we would control our spending and have less corruption.

It's the same with individuals. If you pay your bills rather than putting everything on a credit card, then by golly you'll spend less.

We tried lowering taxes (increasing deficits) in the hope that would lower spending. Let's try raising taxes, which can be lowered when we get deficits under control again.

The markets would go crazy to the upside if we did that (although maybe not right off the bat).

Honest Abe says

Gold vs. fools gold is an analogy of sound money vs. unsound, fiat currency.

I'll have to disagree as well. We haven't used gold as everyday currency since the 1800's. Hell we don't even use paper money all the much anymore. Money has gone virtual. I get my paycheck direct deposited, I pay my bills online, I buy things with my debit card. I see very little physical money from my paycheck every week. What kind of safeguards are in the system to prevent someone like the government from added a couple hundred billion dollars into the system by just adding a couple zero's to a computers account? Nothing. Fools gold unsound? Hell we run our entire world economy on the stuff.

The responses above which support the concept of a fiat currency are made out of ignorance. Clearly those responders don't understand the fraud thats involved with a currency which has no definition. They are uneducated as to the purpose and benefits of a currency backed by gold and/or silver.

And yes, I've noticed that "pretty much every country has a fiat currency". THEREIN LIES THE PROBLEM. Imagine if every country in the world had a sound currency backed by gold or silver, and imagine if our leaders had integrity?

Don't you remember American History? After the Civil War, each state printed its own currency, and each state inflated it at a different rate. What was the result????? Do you see ANY similarity with whats happening around the world today???

"For twenty years the fiat dollar held value way better than gold". HAHAHA. For twenty years...out of 5,000 years, HAHAHA.

Do any of you "educated" liberals know the average life span of fiat currency? (Either you don't, or you refuse to acknowledge how short the life span actually is). Paper money always reverts to its intrinsic value - zero. Zero, like - NO VALUE, worthless. America will not have a sound economy until we has a sound currency.

"Good as Gold"...not "Good as Paper" hahaha. You people are ignorant but masquerade as intellects. You are the ones who are America's "domestic enemies".

Hmm, he's got a point! There's BOUND to be more stability in a currency you can dig up out of the earth than there is in a currency that the government can just print up! I mean, you have to actually DIG the gold up, right!? Right?

And another point Abe has - 20 years is nothing in the face of 5,000 years! Don't ask where the number 5,000 comes from, it's not relevant - just compare the two numbers and listen to your gut, people!

My gut tells me that if we looked at our society right after the civil war and compared it to now, we'd be saddened by all we've lost - the economic stability of that era, combined with the economic opportunity experienced by every-day people ... combined with the FAIRNESS of the distribution of wealth back then relative to how it was later ... like now, for instance, when the liberals have taken all the wealth and power for themselves to leave us Joe-the-plumber sorts powerless, freedomless, and poor.

You might ask yourself what does gold vs fiat currency have to do with the liberal take-over of our country, but you've made the worst mistake already if so - you're THINKING! 'Thoughts' and 'analysis' are part of the liberal-elite-scientist-DOGMA that THEY use to keep us down. First they take our gold, then they take our gold. Then they take our women. And give them to mexicans. It's time we had some serious debate in this country about these things.

Sorry, got a little overheated there. I just get so PISSED thinking about those nazi communist liberals and their blatant agenda to disenfranchise hard working patriots with a fiat currency WITH NO SET VALUE. Pardon me.

I'm sorry, i can't tell if you're serious or not.

kentm says

I'm sorry, i can't tell if you're serious or not.

Well, it made me laugh so serious or not I enjoyed the post.