Comment: It must be understood that

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It must be understood that

It must be understood that fiat, in monetary terms, does not mean false, it simply means that there has been an official decree that enforces the use of an official type of paper money through legal tender laws that would not normally arise in a free market environment.

Scarcity, likewise, it not defined in terms of supply, but when used in monetary terms, it denotes a pressure of choice, thereby defining costs within the market. Without scarcity, pricing becomes an artificial construction caused by distortions of centralized planning.

The least type of manipulated and controllable money is gold and silver, the reason being that it instantly becomes the real property of the person holding it, it has no external forces or obligations upon it like our current fiat currency does. It is a ready asset instead of a double liability as is the current fiat money.

Resources of any kind are relatively scarce and since many, if not all resources have alternative uses, the degree of scarcity denotes a perceived value. Any time a resource is consumed, that consumption comes at the expense to someone else. In terms of the government, it cannot create abundance, even though it has sought to do just that with the printing of a fiat currency, all it can really do is redistribute wealth, the fiat currency does that better than any other form of currency. This is particularly true since debt has been organized into a currency system in this and other should therefore be evident that the true costs of all that this government supplies to the people in the form of entitlements, its military expansionism, its corporatism is all due to its ability to manipulate a fiat monetary system, in which the real costs are essentially hidden.

Thus, since the costs in production is normally a market function, the government has, through its fiat currency, disrupted the market, distorted the actual costs, not only of production, but of all market functions that depend upon economic calculation. Rather than have a free market where the entire basis of production comes from capital investment and voluntary cooperation, where there is a market division of labor and specialization takes place, we have a market that is essentially dependent upon mercantilist or monopolistic markets that have been created through the governments ability to provide essentially an abundance of fiat liquidity.

Scarcity allows for economic calculation and economic calculation is virtually impossible without a free market. John Maynard Keynes, in his General Theory, based many of his so-called theoretical assumptions on the idea of an abundance of elastic currency, i.e. fiat money. The idea was that we could, through the use of an elastic currency system essentially "turn stones in to bread"

"It appears to me to be just as certain that the functions of being a "measure of value" and a "store of value" must not be attributed to money as such, since these functions are of a merely accidental nature and are not an essential part of the concept of money." Menger

Thus, if we look at the world at large, the entire global economy is based upon a fiat monetary construct, therefore, since gold and silver are rarely used as "money", it would currently fail the definition and test of money. Yet, it remains monetized despite decades of the most powerful forces in government and banking to demonetize the metals. While gold/silver are not considered officially money, it nevertheless has the most desirable properties of money in the world. It is that very quality that will once again make it money in the global economy, while this is the first time the entire world has been subjected, by force and stealth, to a fiat currency regime, all fiat currency regimes eventually fail and the only thing that can revive a collapsed economy in such cases has always been a return to the sound money of gold/silver.

While through coercion, fiat currency appears to have the ability to transfer value from present usage into the future, the fact that inflationary depreciation takes place from an ever-expanding fiat money supply renders the availability for such transference non-functional. Attributes of value must contain the ability not only to recognize value, but the ability to transfer that value over time. Since gold/silver have a recognized durability and also a very low cost of preservation, there is a recognized value to the metals when used as money, not only that, but the value perception remains intact, thus the transference of value from the present to the future is readily accepted. The fact is that when compared to any fiat currency, gold, in particular, has maintained its purchasing power.

Thus, as is denoted by the fiat price of gold, it retains essentially the same purchasing power it did when the classical gold standard ended in this country. You can easily calculate this by taking the convertibility ratio of even the price of gold in 1933 at $35 per ounce and then multiplying by a factor representing the growth of fiat currency since that time. If you extend that calculation to the global expansion of fiat currencies and compare it to the world price currency index of gold, then you will see the immense volatility in purchase value in relationship to the stability of gold. Thus, as far as the quality of money is concerned, the purchasing power of gold has remained stable, thus it means the requirement of a store of value, something that cannot be said of any fiat currency in existence.

Scarcity is absolutely necessary for a competitive market, without it all manner of distortions, all manner of deceptions are available to those who control the markets through the use of a deceptive fiat currency regime. It is the fiat currency regime that has allowed the expansion of a government unresponsive to the People, redistributing wealth, not from the top down, but from the People into the hands of a highly concentrated power group. It is a fraudulent system, it always has been, that's the reason it is beloved by Banksters and Political Statist.

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