63 votes

FORBES: Signs of the Gold Standard are Emerging from Germany

Forbes: Good money is not only a counsel of rectitude. It is critical path to restoring vibrant prosperity and social health. Erhard (as previously noted here) reprised the characterization of Pietrre and Rueff in his memoir Prosperity Through Competition .

Germany’s economic miracle “began as the clocks struck on the day of currency reform. Only an eye-witness can give an account of the sudden effect which currency reform had on the size of stocks and the wealth of goods on display. Shops filled with goods from one day to the next; the factories began to work. On the eve of currency reform the Germans were aimlessly wandering about their towns in search of a few additional items of food. A day later they thought of nothing but producing them. One day apathy was mirrored in their faces while on the next a whole nation looked hopefully into the future.”

http://www.forbes.com/sites/ralphbenko/2012/09/24/signs-of-t...



Trending on the Web

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.

The Constitution and Gold

The US Constitution gives the central government the power to coin money, but does not mandate a gold standard.

It says the state cannot coin money or emit bills of credit, and if the state does make anything tender, it has to be gold or silver. So in other words, a state cannot print its own money, but if it has a gold reserve, it can use it to pay off its debt. This part says nothing concerning the national government and gold and silver, and only applies to the states.

Wrong. The federal

Wrong. The federal government was never given the power to make legal tender. Legal tender does not mean "coin money". It does not mean "emit credit". It means "require payment" as in legal judgement and taxes or anywhere else someone might be required to take a debt. Those are three separate things. No one but an idiot would think so after all the discussions on here, even if they didn't know at one time.

States set it. The federal government doesn't.

And for the support of this Declaration, with a firm reliance on the protection of Divine Providence, we mutually pledge to each other our lives, our fortunes and our sacred honor.

No State Shall ... Article I Section 10.

...Make anything but Gold and Silver Coin a tender {payment} in payment of debts.
That sure sounds like all transactions must be paid in Gold/Silver to me !

beesting

You're correct. The usually

You're correct. The usual mob of useful tools and the enemy is busy spreading ignorance again, while the schools don't teach, the media lies, and the population is on iv's of phony money.

legal tender is a carefully defined term, and does not mean anything close to "money", "coining", "credit", or "required to use currency". It only means what legally someone is required to use or take when the situation comes up - such as a court judgement, and only states can set it - not the federal government.

And for the support of this Declaration, with a firm reliance on the protection of Divine Providence, we mutually pledge to each other our lives, our fortunes and our sacred honor.

The question is whether or

The question is whether or not a gold standard is required by the U.S. Constitution, not what constitutes legal tender. Further the federal government was empowered with the authority to coin money which would indicate that they are the authority in dictating monetary guidelines, not the states. Unfortunately the Constitution does not clarify the federal governments' required legal tender or monetary basis, only the states legal monetary form.

"A true competitor wants their opponent at their best." Lao Tzu

There is no problem with the

There is no problem with the federal government minting "tally sticks" if they want, as long as they don't force anyone to accept them.

The constitution forbids the government from forcing anyone to take anything but gold or silver for what is owed them - LEGAL TENDER. And it is not likely that "tally sticks" would have value except for this fraud. Why else fraudulently put legal tender on federal reserve bills of credit.

20 years ago I was arguing with idiots online like on this thread right now, intentionally confusing definitions and trying to play the population as a fool. One was a member of the federal reserve, the other later became an assistant to a state attorney general.

In my opinion, living as a man means you do not lie to others.

And for the support of this Declaration, with a firm reliance on the protection of Divine Providence, we mutually pledge to each other our lives, our fortunes and our sacred honor.

The constitution forbids the

The constitution forbids the government from forcing anyone to take anything but gold or silver for what is owed them...

Where? Where does the constitution forbid this?

Article 1 Section 10 places this restriction on the states, not on the federal government. Article 1 Section 10 is indeed a listing of restrictions on the states in of itself, not the federal government. So where is this forbidden?

"A true competitor wants their opponent at their best." Lao Tzu

Where is it forbidden that

Where is it forbidden that the federal government doesn't murder babies and drink their blood?

You have zero understanding of the constitution. The federal government has no power to do it, was never given power to do it, and by God, we shouldn't let it get away with stealing the entire world.

And for the support of this Declaration, with a firm reliance on the protection of Divine Providence, we mutually pledge to each other our lives, our fortunes and our sacred honor.

Fail.

So there it is, you don't have an answer because you are spouting lies. You said:

The constitution forbids the government from forcing anyone to take anything but gold or silver for what is owed them...

No where does the constitution forbid the federal government from using anything but gold and silver. Plain and simple, cut and dry, you are wrong. So just suck it up, admit it, be an adult, and stop spewing out nonsensical ad hominem gibberish.

"A true competitor wants their opponent at their best." Lao Tzu

Oh go crawl back in your hole.

Oh go crawl back in your hole. It's been posted many times already.

10th Amendment - The powers not delegated to the United States by the Constitution, nor prohibited by it to the States, are reserved to the States respectively, or to the people.

There is no power that was delegated to the federal government to make legal tender. Legal tender does not mean "coin money" or "emit credit", and "make" here is used in the legal sense of enforce.

All the terms have been discussed many times already. You aren't actually ignorant. You're just a liar - and one quick to accuse others of it when they point out why your posts aren't matching reality.

And for the support of this Declaration, with a firm reliance on the protection of Divine Providence, we mutually pledge to each other our lives, our fortunes and our sacred honor.

All hail King MaxK

Again, you specifically claimed that the constitution forbids the federal government from using anything but gold or silver. You have failed to demonstrate where it does this directly. You only point to indirect interpretative meanings just like liberals do. You are twisting the constitution to make it fit your political ideology. Further I have never claimed that I don't support hard money, but the constitution has failed to make this the law because it was not clearly defined and it should be amended to do so.

You have continuously resorted to personal attacks because you are an intellectual midget. Your post is filled with vitriolic nonsense as bad as Fox News spin. You are an ostentatious simpleminded sycophant and should crawl back into your hole.

"A true competitor wants their opponent at their best." Lao Tzu

.

.

"A true competitor wants their opponent at their best." Lao Tzu

Bundesbauer is correct.

Bundesbauer is correct. While the Federalist Papers make clear that fiat money was to be feared, and the Constitution does prevent states from dealing in it, there is no concrete restriction in the constitution itself which prevents the federal government from engaging in paper currency. The keywords here are federal and currency. The federal government is given the power to 'coin' money which obviously implies that it should be of a metallic nature, however, it doesn't specify which type of metal it should be nor does it say anything about prohibiting the creation of fiat currency. This is a weakness in the constitution. The only mention of hard money is in the section you cited, but that is a restriction put on the states and not the federal government.

"A true competitor wants their opponent at their best." Lao Tzu

You Use Whatever Kind Of Money You Like,

But, following the teachings of Ron Paul, Thomas Jefferson, Andrew Jackson, and Roger Sherman:

http://www.constitution.org/cmt/rsherman/caveatagainst.htm

I'd like to use the type of money mentioned in the Constitution, Gold/Silver.

You go ahead and twist things anyway you like concerning Constitutional money, but look around the world and ask yourself, has the present system made more people happy and satisfied financially, or angry enough to demonstrate in large numbers.

beesting

The teachings of Ron Paul,

The teachings of Ron Paul, Thomas Jefferson, Andrew Jackson and Roger Sherman are not the Constitution. The Constitution is the law and it is absent of reference to a gold standard at the federal level. I never said I support fiat money, so point the finger at yourself for being a twisting hypocrite.

"A true competitor wants their opponent at their best." Lao Tzu

It's not a weakness in the

It's not a weakness in the constitution. The constitution doesn't give anything but StatesCoining money is not making legal tender. Not even close. The federal government has no power to "make legal tender" anywhere in it's expressed list of powers.

It's ignorance of basic legal terms that allows the globalists to take power again and again. That I see it on forums dedicated to it is distressing.

"legal tender
n. Legally valid currency that may be offered in payment of a debt and that a creditor must accept."

I could go on and on. Should I? The only objection might be "but the federal reserve notes say legal tender on them". Yes, and it's completely illegal that they do. But they used to be backed by gold, redeemable on demand, and they changed the printing slowly over time.

And for the support of this Declaration, with a firm reliance on the protection of Divine Providence, we mutually pledge to each other our lives, our fortunes and our sacred honor.

Some other observations of

Some other observations of why the whole constitutional system supports this as well.

Most court suits start on the state level. the federal government only has appellate jurisdiction (much abused today though). That is where legal tender matters, and will most commonly appear.

The seventh amendment specifies that suits over 20 dollars have a right to jury. It doesn't say "bills of credit" or "federal reserve notes", and dollar doesn't mean something the federal government made up - it was a well known piece of money at that time, and meant a silver coin of a certain size. And it still means it since we go by what was meant when the constitution was made.

The tenth amendment specifically prevents the federal government from assuming more power than it has. If there is any attempt to take a power not specifically given to it but the States - in this case to make legal tender - the tenth amendment already says NO.

And for the support of this Declaration, with a firm reliance on the protection of Divine Providence, we mutually pledge to each other our lives, our fortunes and our sacred honor.

"Make" not Pay

It says if the state is to "make" any type of money, it can only be gold and silver.

The state can still pay off debts with whatever the nationally authorized currency is.

Fraud

You make legal tender everytime you require it's use, such as a court judgement.

Make does not mean "coin", or "make something physical".

TO MAKE. English law. To perform or execute; as to make his law, is to perform that law which a man had bound himself to do;

It means if the States try to MAKE YOU take federal reserve notes, even if they say "legal tender on them", the State is committing fraud.

It is exactly why that is in the Constitution, and it is exactly why only the 50 jealous States , not one greedy central government has the power.

Obviously, somewhere the wall against tyranny collapsed as the globalist bankers committed stage one of their coup. We've all been seeing the later stages of it the last ten years.

And for the support of this Declaration, with a firm reliance on the protection of Divine Providence, we mutually pledge to each other our lives, our fortunes and our sacred honor.

Gold Standard?

I don't understand this obsession with the gold standard. Why can't we just print our own debt-free sovereign currency according to the wealth of our country, instead of the current debt system we have now?

And anyway the same people around the world who have control of our paper money supply are the same people controlling most of the world's gold. They could just as easily inflate and deflate the amount in circulation. And as far as gold being a good investment, who says they won't crash the current gold price and then buy it back up?

nonsense

go figure it out yourself..how about reading and learning go to dr antel fekete gold institute if you want to learn the truth...

governments can print interest free it doesnt mean that because they can they wont destroy a currency...

Obviously Yes

Of course printing too much money would destroy the currency.

We as citizens should be able to check our representatives through the institutions of our republic. If you don't believe we have the ability to do that, then you don't believe in the ability of a republic to control itself.

In the end, you would only print enough money to keep up with economic growth, and any money that was issued, would be through production.

Ok let the state print what

Ok let the state print what ever they want, how much they want and let them call it what they want as long as they don't force me to use or accept it. Let the State debt free currency compete in the free market. Only an open competition of currencies will protect our liberties and wealth. This way you can hoard as much government paper as your heart desires cause after the state starts printing to fund their endless wars, police state apparatus and welfare state your gonna need truck loads to buy an Oz of gold. And this is where the beauty of the free market comes in, if the state wants to have a competitive currency they won't be able to do all that stuff.

However I will continue to use gold and silver to protect what little wealth I have cause for over 3000 years gold and silver have always won in an open competition of currencies and odds are it will again.

The United States isn't a

The United States isn't a democracy but a republic. A republic among other things has a written constitution that gives the government express, written, limited powers derived from the consent of the individuals that created the government.

And for the support of this Declaration, with a firm reliance on the protection of Divine Providence, we mutually pledge to each other our lives, our fortunes and our sacred honor.

TwelveOhOne's picture

Watch "The Money Masters" on YouTube

From that video (it's long, 3.5 hours; I've only gotten through the first 2 or so, so far), I learned that Tally Sticks (http://en.wikipedia.org/wiki/Tally_stick#Split_tally) were a form of wood used as currency; an early version of cryptographic currency (the sticks were split down the middle, and had to match up with one in the king's vault in order to be paid out).

Not sure it's such a great idea in these days of 3D printers -- but cryptographic techniques have improved, and something like Bitcoin might make more sense.

I love you. I'm sorry. Please forgive me. Thank you.
http://fija.org - Fully Informed Jury Association
http://jsjinc.net - Jin Shin Jyutsu (energy healing)

An Alternative Proposal I've Heard...

Interestingly, there is another proposal out there, though it's not supported by the Austrian School. It suggests a return to full reserve banking with a fiat currency. The Federal Reserve and the FDIC would be abolished and a constitutional amendment would define how much money should be kept in circulation so that central planning through manipulation of the money supply and interest rates would not be possible. I'm not endorsing such a plan, but I'm not discounting it either. A commodity backed currency would be safer, simply because it's been done before and has been shown to work. The proposal I'm referring to has never, ever been attempted before and might either be a smashing success or a horrific failure.

It's been done here

The colonies issued their own currency before the Currency Act of 1764 required only hard specie to please the Bank of England. The colonies were doing economically well, but this deflationary act sent them into a depression. Ben Franklin at the time endorsed the sovereign colonial monetary system, and would argue that the Currency Act of 1764 was the prime reason for the War of Independence.

Printing money for a handout or a war is obviously going to devalue the currency, but if the government issues printed money into something associated with production, the added currency is immediately backed by that production. It's a little abstract, but the goal would be to create new money in terms of economic growth, so the amount of money is always proportional to the amount of wealth.

And there's no reason why a republic couldn't monitor this system effectively, and for once, the central government wouldn't be beholden to the banking power. We will never be a sovereign people without the power to issue our own currency.

Bundesbauer gets it

I couldn't agree with you more. The Bank of England (the same people who were part of the money mastering and would become the Fed System and globalists) Outlawed the debt free notes and put them back on your beloved Gold-Standard. It killed our economy and basically led to the revolutionary war!!! Why? Because gold and gold only is CONCENTRATED MONEY. There is a case for free competing money or printing debt free US Notes that are held accountable/checked and balanced through the Republic, through the people. Lets not get all anarchist about this. Power to "coin" money was at that time the VERB for "issue". There is nothing wrong with government in itself, when it is for and by the people. That means we need to be more involved as a people. Here is the big issue many of us do not understand: The govt does not "print" the money! The private banks do (under the smokescreen of the private Fed). Give congress the right again, and hold them accountable. Pegging our money to one rare and precious commodity is about the stupidist thing you can do! There's nothing constitutional about it. The whole theme of the constitution is DECONSOLIDATION on every level. With money, this means public, not private (bankers), alternatives and competition, not concentration.

Bow down to the idea that government needs to make money

You don't peg something to any commodity.

What part of "the traders in the market itself decide what they want to use".

If gold gets too expensive, the market would probably use silver. But government is not needed to "make money". Money occurs naturally in a free market because people solve the coincidence of wants themselves.

It requires no law. Just like gravity will exist - without needing a law to make it exist.

* If you are starting to believe like me, that "spells" are intentional political delusions or lies that people believe which aren't true, then money was started in the roman temple of moneta. The whole thing is roman pagan brainwashing. Worship the need for government to make money. Bow down to the idea.

And for the support of this Declaration, with a firm reliance on the protection of Divine Providence, we mutually pledge to each other our lives, our fortunes and our sacred honor.

In favor of this, spell

In favor of this, spell originally just meant to speak. It's a story.

http://www.etymonline.com/index.php?search=spell

And for the support of this Declaration, with a firm reliance on the protection of Divine Providence, we mutually pledge to each other our lives, our fortunes and our sacred honor.