Why does the world use fiat currency?
Submitted by punjabimunda on Tue, 02/26/2008 - 21:08
...if gold standard doesn't crash and withstood the test of time?
»
Why does the world use fiat currency?
Submitted by punjabimunda on Tue, 02/26/2008 - 21:08
...if gold standard doesn't crash and withstood the test of time? » |
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THE problem with fiat
THE problem with fiat currency or papar money is this...
the people in government are corrupt.. they counterfeit money to pay bills that they don't have money for.. they promise people... healthcare, welfare, or any other socialist program they can think of to get reelected. then when the bill comes due they print money to pay the bills.. over time this adds up and you see huge defecits like we do today. and an imploding economy like we do today.. if gold and silver were used as money only, you would not have the socialism programs and debt like today because only GOD can make Silver and gold not some printing press! metals cannot be made out ot thin air! this is why nixon took us of the Gold standard in 1971.. with the vietnam war raging they had to pay the bills. so without having to put an ounce of gold in the vault for x number of dollars printed, he did away with that and just printed the money .. this is what led to 20% interest rates in the late 70's... difference then and today is that the US was a creditor nation.. not a debter nation.. also the problem with printing money out of thin air is inflation.. which is nothing more then a hidden tax on the american people!
“A prudent man foreseeth the evil, and hideth himself: but the simple pass on, and are punished.” (Prov. 22:3; 27:12 KJV)
Hey McCain-----┌П┐(◣_◢)┌П┐
There is nothing inherently wrong with paper money,
or paper not backed by gold, or printing paper money. What is wrong is printing paper money for the wrong reasons.
If our nation's currency is the standard in the free market then we should be pleased. If it falls out of favor...quite likely...then our economy will feel a shock. But we will recover as the free markets peg our dollar to other currencies or even commodities.
h-daddy
The problem is
that unbacked fed notes be printed for the wrong reasons. I do not support a currency that can be destroyed by its handlers. It is just another method of potential government influence by the redistribution of wealth.
Indeed, As Dr. Paul has
pointed out many times, even if the fed reserve acts with the best of intentions, their policies are caught up in a nasty game that has very few winners...certainly not ordinary folks like us.
h-daddy
It is solely for the
It is solely for the expansion and support of THE STATE! It creates a feudal society where the people labor, pay their "rents" to the lords of the manor and basically become a peonage of THE STATE.
http://militantjeffersonian.com
"Men do not willingly read unpalatable truths of themselves. The People like those best who fool them most, by pandering to their vices and flattering their foibles" Raphael Semmes
Funny thing about Nixon...
Most people think that the Watergate cover-up was the worst thing he did. The damage that debacle did to the country is trivial compared to his wage and price controls, and his devaluation of the dollar.
-jcr
"The problem with trying to child-proof the world, is that it makes people neglect the far more important task of world-proofing the child." -- Hugh Daniel
Without fiat money the
Without fiat money the bankers would not be able to tax us even more by printing money out of nothing other than paper & ink. Increases in the cost of living are actually due to our dollars losing their purchasing power. Printing all that fiat money is probably the primary cause of that.
...
The only sensible excuse for artificial inflation
is that it's hard to negotiate wages down.
But really, we should have the cojones to do that anyway.
because government's want to
because government's want to be able to print money, bankers want control of money because money is power, and because the average person doesn't know any better.
But what if our currency is tied to
oil and not gold? Or, as some did in the seventies, especially Saudi Arabia, purchased gold at $900 an ounce and not long after, lost $600 per ounce when gold crashed down to $300po. Lindsey Williams believes Saudi Arabia was tricked into losing billions of dollars by Kissinger. Lindsey has a book out called "The Energy Non Crisis" and he has a 8 or 10 part video series on Youtube. Consequently, guess how much Iraqi's pay for gas? The last time I heard it was about $.25 (that's twenty-five cents) per gallon.
The accumulation of all powers, legislative, executive, and judiciary, in the same hands, whether of one, a few, or many, and whether hereditary, self-appointed, or elective, may justly be pronounced the very definition of tyranny. James Madison
The accumulation of all powers, legislative, executive, and judiciary, in the same hands, whether of one, a few, or many, and whether hereditary, self-appointed, or elective, may justly be pronounced the very definition of tyranny. James Madison
Stop thinking about gold in
Stop thinking about gold in terms of Fiat Currency. If you relate anything of value with a unit of exchange that holds no inherent value then you will miss the point of why gold is a store of value. If you look at gold in terms of a Fiat Investment with returns in Fiat then you will miss the entire point of the use of gold and silver for sound money.
We have grown to accept the measure of the Fiat Dollar as one that relates a standard of value when it does not. When the Dollar was a real Dollar, backed by gold then the measure was sound, that is no longer the case since it now takes over $22,0000.00 Fiat Dollars to purchase what $1,000.00 Real Gold Backed Dollars purchased in 1913.
The value of the Fiat Dollar in terms of gold, as of this morning, is 1/960th of an ounce. Basically, the Fiat Dollar is about to enter into negative value verses the Real Dollar of 1913, as that happens we can expect hyper-inflation to run rampant.
http://militantjeffersonian.com
"Men do not willingly read unpalatable truths of themselves. The People like those best who fool them most, by pandering to their vices and flattering their foibles" Raphael Semmes
Exactly
Think of gold as something to hold, something that will transport some of your hard-earned wealth on to the next currency incarnation after the dollar (and perhaps all other fiat currencies) collapse.
$100 per barrel versus $930+ per ounce?
Just in terms of being able to convert your paper money into the real asset, I think gold would be much easier to carry...
...
Oil is not a good medium of exchange, nor is it portable.
The requirements of a sound monetary system. Money serves three specific functions. It acts
1. as a unit of measurement of exchange value
2. as a medium of exchange, and
3. as a store of exchange value for future use.
The commodity used most successfully for money to date has been gold. By its very nature it is almost ideal. It is scarce. To produce a small amount of it requires a large expenditure of human energy. It is homogeneous and therefore can be divided into small amounts of identical size, quality and exchange value. It is inert: it does not physically deteriorate, so it does not inherently lose value.
Oil passes the first few hurdles. But there are other hurdles.
It must be compact. Any commodity suitable for use as money must also meet the requirements of ordinary people for their normal use in the market-place. It must be available in quantities sufficiently small for an individual to carry enough on his person to use for expected daily exchanges. The commodity must be portable. The product used as money should therefore be such that it can be divided into small equal and identical lots and that a small amount of it carries a relatively high exchange value. Oil cannot be easily carried. Gold meets both these requirements. Oil is not a good medium of exchange, nor is it portable.
Using oil backed 'currency' causes more difficulties to arise, such as the immense bulk oil storage facilities that would be required, or verification of true amounts of oil if underground facilities are used.
Gold, for nearly three thousand years (since the first Gold coins were struck in Lydia in 700 BC) Gold's primary utility has been recognized as the best MEDIUM OF EXCHANGE.
You're sort of right
Fortune Favors the Bold
It doesn't necessarily have to be gold, but the currency should be backed by something. Oil is not good, because oil gets consumed. Silver would be just as good as gold.
Fortune Favors the Bold
gold and silver has been
gold and silver has been money for all of mans recorded history and they will continue to be money for the rest of mans recorded history
“A prudent man foreseeth the evil, and hideth himself: but the simple pass on, and are punished.” (Prov. 22:3; 27:12 KJV)
Hey McCain-----┌П┐(◣_◢)┌П┐
The Plan to Enslave Humanity
Whose plan? For our purposes, they are the dynastic families who own the central banking cartel and dominate industry, culture and government, world wide. The names Rothschild, Warburg, Rockefeller, and Morgan come to mind. The "Money Power" operating through the Bank of England and countless corporate fronts, has tied up most of the world's wealth.
Globalist Cecil Rhodes once said the goal (plot) was to absorb all the wealth of the world.
When you create money out of thin air (FIAT MONEY), you can buy a lot of “change agents.” Our elites actually think they are creating a better world. In fact, they are building a world police state, the "New World Order" secretly dedicated to Satan. They are complicit in the cover-up of 9-11; and the "war on terror" is a ruse to deprive us of our rights.
They own a controlling interest in industry, and have used that position to buy the politicians, the media and education.
We are being colonized by this fiat financial power. The bogus "War of Terror" obviously is directed against us. It is the naked fist of this imperialism. Our jobs and resources are exported. Illegal aliens are imported to divide our political culture and dilute our job market. The education system is used for mass indoctrination. News is controlled. Entertainment is filled with trivia, drugs, violence and pornography. 'They' own a controlling interest in industry, and have used that position to buy the politicians, the media and education. Obviously our masters wish to arrest our development.
QUOTABLE:
"There are powers at work in this country about which we [most people] have no knowledge' ~H. M. Queen Elizabeth II (in conversation with royal butler Paul Burrell) Daily Mirror
"...the world is governed by very different personages to what is imagined by those who are not themselves behind the scenes." ~Benjamin Disraeli - British Prime Minister - 'Coningsby' pub. 1844
Or as Woodrow Wilson put it: "We have come to be one of the worst ruled, one of the most completely controlled governments in the civilized world - no longer a government of free opinion, no longer a government by... a vote of the majority, but a government by the opinion and duress of a small group of dominant men.
Some of the biggest men in the United States, in the field of commerce and manufacture, are afraid of something. They know that there is a power somewhere so organized, so subtle, so watchful, so interlocked, so complete, so pervasive, that they had better not speak above their breath when they speak in condemnation of it." ~President Woodrow Wilson [signed bills into law creating the privately owned Federal Reserve & income tax just before Christmas 1913, all time best bankster present.]
"...somebody has to take governments' place, and business seems to me to be a logical entity to do it." ~David Rockefeller - Newsweek International, Feb 1 1999.
We are grateful to The Washington Post, The New York Times, Time magazine, and other great publications whose directors have attended our meetings and respected their promise of discretion for almost forty years. It would have been impossible for us to develop our plan for the world if we had been subject to the bright lights of publicity during those years. But the world is now more sophisticated and prepared to march towards a world government. The super-national sovereignty of an intellectual elite and world bankers is surely preferable to the national auto-determination practiced in past centuries. ~David Rockefeller, at a 1991 Bilderberger meeting
"Our kingdom is the kingdom of money," our globalist friend writes. "We have given you a piece of paper or some numbers on a computer screen that we have termed 'money.' It is backed up by nothing and proven by nothing but what we say it is. We create it from nothing, we print it, we loan it, we give it its value, and we take its value away. All things that have to do with money are in our hands." ... more-> http://www.henrymakow.com/001544.html
Thanks for your great
Thanks for your great comment.
Fiat currency can only survive if it is backed up by force.
That's what "fiat" means. Gold and silver developed as money throughout history for very good reasons and a system, which was a model of value and stability for over 4000 years, has been replaced by a fiat system which is nothing more than a sorry invention of politics.
_________________________________________
"An economy built on fiat money is a society on its way to ashes."
cant go to war with no money and the bankers need interest on
their investments ! how can you make money if you are not fractional reserve lending?At least the profits are not enough for them at even interest is not enough
All part
of their great shell game. Plain and simple.
In 1971 the only currency in the world backed by gold
was the US dollar. After the "Nixon shock" of '71, whereby he ordered that US treasury notes could no longer be redeemed for gold, governments and institutions had to decide on a standard currency. The world choose the dollar. It might be they are ready to switch to something else!
h-daddy
Just to clarify..
While you are correct, you have your events mixed up. The Bretton Woods agreement in 1946 was where the world decided to settle on a standard currency (part of the reason for WWII was WWI, and the main reason WWI happened was due to regional trading/currency blocks of the late 1800's.) The US agreed to maintain it's currency backing on the international stage with gold so that nations across the world would still have something of value backing their dollar reserves (they wouldn't hold gold in reserves, but hold dollars that they could redeem for gold if they wanted or needed.) What Nixon did was close the international gold window; basically, Japan, after a long minor trade war with the US, wanted to redeem it's gold and Nixon (being pressured by an inverse global trade relationship) decided to kill two birds with one stone and give Japan "the finger" while attempting to decrease the value of the dollar by floating it. It worked, but we had fallout from Japan, who in turn redeemed their dollars by buying US businesses in the 70's and 80's. The rest of the world was hesitant about accepting a floating dollar, but Nixon's visit to China and opening up cheap labor for US industries (combined with the establishment of the PetroDollar) helped assuage global fears. And, it's pretty much worked for the last 30 years, but China now has teeth, the Middle East is tired of being pushed around and the US has spent itself into nearly unimaginable levels of debt, so the whole structure is wobbling.
-Mixer
I think a few years ago
I think a few years ago the only countries in the world that didn't have a central Rothschild run bank were like Iraq, Iran, Syria, Libya, North Korea, Venuzuela, and Sudan. I'll have to check up on that. Kind of makes you think...How many of those countries have leaders that are demonized in our media? Guess we'll be going into Darfur Sudan for "humanitarian" purposes and might happen to set up a bank along the way.
The guy who wrote
The guy who wrote "Confessions of an Economic Hitman", explained this all very easily. The World Bank and IMF are used to gut poorer nations by loaning money to said country, paying off the dictator (left, right doesn't matter) and then stealing the countries hard assets when they can't pay the loan back. Those countries you listed are resisting the banking cartels of the world. Everyone else was cleaned out after WWII. What we are in fact witnessing is not the "Axis of Evil" but the "Empire of Evil" marching upon every last remaining country on earth.
Puppets come and puppets go but the world's stage is getting cluttered.
IMO, it has something to do with the fact that most...
of the first world countries reek of socialism.
Collectivism is slavery.
Collectivism is slavery.
Fiat currency is a tool for the bankers
When a banker can make 214 million extra out of a 6 million investment they all get rich, and if this crazy fractional reserve system is backed by the government the banksters could care less whether the honest people who put their trust in banking their money lose.
Are you still confused? Watch this movie:
http://video.google.com/videoplay?docid=-9050474362583451279...
http://killfiat.blogspot.com/
petrodollars
too tired for the history. look it up.
It's All About Power and Control
The modern central bankers are the same "Moneychangers" described in the New Testament. They are the epitome of evil. They control nations, start wars, create depressions, grant and deny wealth. A precious metal standard, or even one based on productivity (as originally designed by our founding fathers under the Articles of Confederation, or, later, by Adolph Hitler) is inflation free. A national economy grows based on real productivity growth, not on the whims of greedy, self-absorbed psychopaths. Immediately following creation of the Federal Reserve in 1913, American wealth was used to finance the German side when WWI broke out in 1914. Only after Lord Rothschild convinced Lord Balfour to allow Jews to return to Palestine did the Fed shut off money for the German war effort. The modern central bankers are responsible for the hundreds of millions who died in wars during the 20th Century and the millions more who will continue to die in th 21st Century. Check this out
http://www.newswithviews.com/Cuddy/dennis121.htm
yeah, although
Fortune Favors the Bold
it's not just the rothschilds. It's also rockefellers, morgan, others...
the only "color" here is green...
and they're moreso sociopaths then psychopaths. There's a slight difference.
Fortune Favors the Bold