Comment: You cannot have a

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Republicae's picture

You cannot have a

You cannot have a fiat-non-debt based currency system since all fiat money, whether directly or indirectly interest bearing, is a liability. Fiat money is the liability of government whether interest is directly associated with its creation or not. Gold is a double asset, on both sides of the equation. Fiat money is a liability or double liability on both sides of the equation. Fiat money is, by its very character, a note that denotes a debt is an IOU since it has no asset value inherent within its character. Now, while it is assumed that the current system we suffer under is direct interest bearing, the fact is the the currency does not bear direct liability interest, only the Treasuries which back up the system, but each Federal Reserve Note does represent a legal notification of a debt obligation. Now, even if Congress were to issue fiat money directly, outside of the assistance of the Federal Reserve System, the effect would be the same...each of those notes, just like the Federal Reserve Notes, would be legal notifications of a debt obligation.

Just because you put some pretty words and pictures on a piece of paper does not make it actual asset money, the value of money is that it is an asset. The reason money arose from asset commodities is that it was recognized, in an of itself, as an actual asset, it contained value before it was used as money and that value was recognized. I know of no fiat currency in the history of the world that the same can be said.

"We are not a nation, but a union, a confederacy of equal and sovereign States" John C. Calhoun