That doesn't make sense, though. How you gonna force someone that owns a vault full of gold to put it into circulation??Originally Posted by heavenlyboy34
I don't care how many mundanes demand real money, I'm gonna go on CNN and laugh my ass off and say, "Come and get it suckers!"
Last edited by Jamesiv1; 08-25-2012 at 09:41 AM.
- Don't lie.
- Don't cheat.
- Don't steal.
- Don't kill.
- Don't commit adultery.
- Don't covet what your neighbor has, especially his wife.
- Honor your father and mother.
- Set aside a day of rest for church, family and friends.
- Don’t use your Higher Power's name in vain, or anyone else's.
- Do unto others as you would like to be done to.
"For the love of money is the root of all evil..."
I Timothy 6:10, KJV 1611
Ugh.
Not forced by gun...forced as a matter of needing to purchase goods and services.
The Fed Reserve Note came into existence in 1933.
FDR, by unilateral executive order, he made it illegal for American citizens to own any gold coins that had no numismatic value. The government paid the owners $20.67 per ounce. Once the gold was in the possession of the Treasury, Roosevelt officially hiked the price to $35 on January 31, 1934.
The Fed then bought the gold from the Treasury by creating new money - the Federal Reserve Note.
This newly issued money was then spent into circulation by the Treasury. The Fed now holds the gold— demonetized.
Note: the Federal Reserve Note is not backed by gold - that is, it was not redeemable for gold (as its possession was now illegal). It, itself, is redeemable for itself. You go to the bank with a $20 and ask for it to be redeemed, they give 2 x $10....
This is how the Federal Reserve Note came to exist and it has nothing to do with "debt" - it has to do with the demonetization of another commodity that was money - which then created the FRN to be money.
While it is true that that the FED increases the money supply by purchasing interest-bearing IOU's from the market ...though typically it focuses on Government debt ... it is not correct to claim such money is based on debt.
This is important to understand, since there is this strong believe that if all the debt was repaid, there would be no money.
That is, factually, false as you can now understand with knowing how the FRN was born.
^^^ MODERN MONEY MECHANICS. Go learn something.
*sigh*
I post facts and history - and *shrug* you ignore it and carry right on with a pet theory....
Oh well.
Its "shareholders" are merely its banks, but they DON'T own the Fed as such, Fed is just another arm of the Federal Government even though it's placed as a "hybrid" of private & public sector so as to make it seem "independent" & "unaffected by politics" but calling it "private" is taking things too far, it's a decent tactic to wake up people to liberty but it's not totally accurate
So accordingly, it's the US government who holds that gold IF it's actually there or some other country doesn't have a lien on it
+1
I'm afraid you've a pet "crackpot economic theory" & only "I" know the truth & "I" make all the definitions & only "I" can see the "self-evident objective truth" & anyone else who disagrees with "me" is either an idiot or misinformed or both or has a "crackpot economic theory"
Can you eat gold? Can you drink it? Can you live in it? Can you drive it? Can you wash clothes with it? And so on
It does NOT matter who has gold, they'll have to SPEND to get the goods & services from other people & they'll also INVEST it to produce more goods & services & so on
"Money", no matter whether it's gold or whatever is NOT end in itself, it's a means to an end, it's a means to exchanging for goods & services in return
Most of the world's gold though is held in private hands, it's only recently that some central-banks have turned net-buyers but masses in India & China & people elsewhere have most of the gold, many who value it as a store of purchasing-power as well as a status-symbol & tradition
There is enormous inertia — a tyranny of the status quo — in private and especially governmental arrangements. Only a crisis — actual or perceived — produces real change. When that crisis occurs, the actions that are taken depend on the ideas that are lying around. That, I believe, is our basic function: to develop alternatives to existing policies, to keep them alive and available until the politically impossible becomes politically inevitable
- Milton Friedman
Your explanation here only covers initial offerings of the first round of Federal Reserve notes. The money supply has expanded by a couple magnitudes since then and that expansion took place through Fed loaning money into existence and Fed-backed banks loaning money into existence. Also, trivially, Treasury coinage. So while you are correct that paying off all debt would not erase the entire money supply, it WOULD erase most of it. Just this year the Federal government borrowed more from the Fed (created out of thin air) than the entire money supply in 1933.
The proper concern of society is the preservation of individual freedom; the proper concern of the individual is the harmony of society.
"Who would be free, themselves must strike the blow." - Byron
"Who overcomes by force, hath overcome but half his foe." - Milton
http://en.wikipedia.org/wiki/Executive_Order_6102
^^^Kind of the reverse of what you said. But you can't say the government has never done anything LIKE it.
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So you just won't eat or buy clothes or electricity or a car or anything? You'll just sit there and starve to death looking at your gold?
If a person with a vault full of gold doesn't put it into circulation, then they can't use it as money until they do.
Same as if you stuffed your mattress with FRNs. They're good for nothing but stuffing until they get circulated.
“If ye love wealth greater than liberty, the tranquility of servitude greater than the animating contest for freedom, go home from us in peace. We seek not your counsel, nor your arms. Crouch down and lick the hand that feeds you; May your chains set lightly upon you, and may posterity forget that ye were our countrymen.”
- SAMUEL ADAMS
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