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View Full Version : What do you think of this statement?



FortisKID
10-31-2011, 01:59 PM
It's not what backs the money, it's who controls its quantity.

Heard it in a documentary called "The Secret of Oz." I assume that all of us here are against fiat currency.
hammy
10-31-2011, 03:19 PM
As the adage goes... "absolute power corrupts absolutely." We want decisions made by the many, not by the few.
Agorism
10-31-2011, 04:16 PM
Oz is Australia no?
Crystallas
10-31-2011, 04:26 PM
What a contradiction.

Who controls the quantity? The same people who control what backs the currency(or lack thereof). Only the market can determine the currency, quantity and backing with stabilization.
FortisKID
10-31-2011, 05:49 PM
What a contradiction.

Who controls the quantity? The same people who control what backs the currency(or lack thereof). Only the market can determine the currency, quantity and backing with stabilization.

As much as I agree couldn't we still have fiat currency as long as we eliminated the central bank? I mean it worked fine with colonial scrip and the greenback. I'm just trying to understand why we NEED a gold standard, or any standard for that matter. If the government declares money good for the payment of taxes then doesn't that make it just as valuable?

Again I'm just trying to understand things better. I still lean towards having a gold standard I'm just talking theoretically.
cucucachu0000
10-31-2011, 06:04 PM
Because in the end with a fiat money whether from a private bank or central bank gets inflated till the money is worthless..... every time. The temptation and potential profit is too great both for businesses and politicians who want to spend but doesn't want to tax. Gold puts a limit on what they can do, it stops the warfae welfare state and keeps our wealth from being diluted through natural supply and demand and not a small group of people that includes congress.