HomeArticlesEconomicsFixing the Monetary System: Market Driven or Gold Based?


Fixing the Monetary System: Market Driven or Gold Based? — 12 Comments

  1. Gordon: This piece does not explain what is wrong with the Federal Reserve System, is that dealt with elsewhere? Of the two options considered here, market-based is more sensible. Gold-based appeals to our sense of stability, yet tends to gloss over the fact that gold is itself a commodity with fluctuating market value. In the long run, genuine stability depends more upon public confidence in the system and those who run it, than it does on the external aspects that form the system. Greater concern should be accorded to the moral and ethical bases of the system and how well those morals and ethics are put into practice.

  2. You guys are real close to smacking the nail on the head. I still feel it can be fixed but it will take a fight for sure–the banksters are not going to give up without one.

    There is nothing in the constitution forbidding fiat currency per se. what the constitution fails to address is just as important as what it says. Fiat is not money, it is a simple commercial instrument of trade, or CIOTI-Coyote. It’s value is fixed by the King, it’s also incontrovertible, and backed only by the combined value of the commerce that it enables.

    It should be neither be borrowed nor lent as it isn’t Money. Thus congress can create as much as it needs and spent it into the economy without violating the Constitution. No tax’s needed and no debt. Gold and Silver coin are still the lawful Money and if borrowed must be paid in gold and silver coin.. The federal reserve note is not Lawful money or scrip or fiat. It is an instrument of debt and a perversion and debauchery of every sound monetary policy. Thank you for listing to my Septigenarian rant. j.charles edwards@gmail.com

  3. Charles: Your confusion about the Fed. are understandable. Even those whothink we understand it are operating in the dark. Someone has planed it that way. This may help a bit.

    Gold and Silver are indeed comodities subject to the marketplace.

    Gold and Silver Coin are altogether different. These are givin their value by Congress– this is set–solid.

    Fed Reserve Notes are a debt creation. They have novalue of their own–it,s the biggist fraud in the history of money.

    It kinda goes like this:

    Fed: Such a deal I have for you today Congress USA. We will lend you what ever you desire at intrest, only you have to print it and pick up all the costs, you can only print or digitize the principle ammount- not the intrest. These notes are neither backed nor based on anything of value but they must be paid back acording to Art. 1 of the constitution USA so leave the treasury door open to us 24-7-365.

    How about that? Did we the people have the slightest clue.

    The fed has loaned us only what is ours already. They have no real investment.

    So as the Good Book says “WAKE UP OH YOU SLEEPERS”. The bad news is that It’s a lot more complicated than that and the Devil realy is in the details!

    please reply on this Blog and also to my email.

  4. Uh– Gordon: It appears I may have stumbled abord an abandoned ship here. This site should be humming but it appears to be moribund. Are you well?

    We sorly need to promote this site. How can I help.

    j. charles edwards

  5. Charles, I have not abandoned ship. I am well and busy and basically agree with what you have to say. The issue of printing money and the Fed is an extremely important one.

    It is true that there is no reason that the Federal Reserve should charge interest rates. If they are functioning well, they should be able to provide money to member banks to lend out. Member banks should pay a fee for processing and they should pay a membership fee that includes insurance against failure. The Fed should simply be an independent agency, separate from any taxing authority, that processes the flow of money into the system.

    I believe that it should be an open transparent organization that does not earn its money on interest. That opens the door for corruption.

    Another serious problem is federal income tax. Basically the 16th amendment was created to fund the debt scheme through income tax. I believe the only clear check and balance on the problem is to let the states, who can’t print money and HAVE to balance their budgets by law, collect all income taxes from citizens and pay the federal government a constitutional apportioned tax to defend the country from attack. This would force the federal government to balance its own budget.

  6. Gordon: Please pardon my absence, the storms here in north Alabama shut us down. We are dug out now and the I net is up. I enjoyed and learned some from your remarks. Thank you for the come back.

    While I would like to get rid of the Fed altogether, that might be a disastrous thing to do. Chaos would be an understatement. However the creation of our Nations Commercial instruments of trade is the duty of congress and the US treasury and congress had no authority to contract it out in the first place.

    I suppose they thought it best because at least four tines they tried to issued scrip and it failed. This caused a run on the Banks and looted the treasury. They made the same mistake every time.

    It’s not rocket science; The solution comes from wise old King Solomon. 1 word, (incontrovertible). The value set by Congress based on the value of the nations coinage-declared incontrovertible, and backed solely by the commerce it enables. It also must be debt free. Created by Congress, spent into the Economy,not loaned , Debt free Fiat-not Notes.

    No Need for taxes.

  7. Charles, the nation-state of France was begun in the 1460s by King Louis XI, who set up a banking system with the House of Medici. By law, money entered the economy without interest. I haven’t studied the effects, but France prospered under his reign.

    As I said above, I think money can enter the economy with a participating bank creating a loan for a sound productive purpose. For example, for a machine shop to buy a milling machine. In this case the manufacturer produces more wealth than the interest being paid. Also, in this case the Fed should merely provide the money to the lending bank for some processing fee, and not charge any interest on the money–that is true usury.

    You are probably familiar with the term “the creature from Jekyll Island,” which was really the product of a banking cartel. The real evil in the present system, as I see it, is that the Fed itself is like a mafia collecting interest on the money it lends to other banks.

    The other problem, of course, is government debt, which I believe ought to be illegal, except perhaps during a defensive war. It is probably a violation of sound economic law to bring non-productive money into an economy, e.g., stimulus checks, debt for welfare, etc. A sound society has to pay for welfare out if its wealth, and it creates wealth by building a productive economy. I don’t think that in the grand scheme of things borrowing for such purposes is much different than what Bernard Madoff did. On some level, debt for non-production is nothing more than a ponzi scheme.

    I suppose some people might make a case for a government borrowing money for a bridge, which serves the wealth production of an economy. The problem there is that governments do not operate on market principles, but on lines of legal authority. Therefore motivations become improper for economic activities. It is probably best to build bridges with gasoline or other transportation taxes so that users pay for them. That way a government isn’t stealing from people that don’t use the bridge.

  8. Gordon: France was not the first to use that economic model however. I believe it was King Solomon. It worked so well that the Nations were bringing him Gold and Silver coin deposits in exchange for his incontravertable scrip in part to avoid the fees of the money changers.

    And yes, glad you mentioned the Jekyll Island Monster. It would be nice if we could confirm the guest list and could see the minutes of the meeting, but then as now Evil lurks in the cover of darkness and secrecy.

    Those Jekyll Island Style meetings never cease. The Fed Reserve Board has no real say in the Fed. They make suggestions and then return and report the decision of their Masters whose faces they never see, and then Timmy G. is enthroned in our Treasury–God forbid– we have placed an enemy spy at the head of our treasury????!!!

    I think you said something about OPENESS TRANSPARANCY.
    Those cannot exist in a world of darkness. Oh how I would that the world could see things as cleary as you do. A great teacher you are. And Me; Well I’m Just a learner and a slow learner at best.

    Please keep the good stuff comming and Thanks for all you do. Say, where the heck are all those we elected?
    Dont they read any of this stuff? Surely they have Staffers that do. Dont you think?

  9. Charles, I agree with you that many lessons of ancient history can be cited for the articulation of sound principles of economic governance. All that I meant referring to France and the Medicis is the development of the modern banking system and the modern nation-state.

    While I said earlier that I do not think we can successfully rely on a gold standard, I do agree with you that Ron Paul’s call to “Audit the Fed” is correct. Transparency is necessary, and almost everyone knows that people who do not want to reveal transparency have something to hide. In my mind, the resistance of the Fed to an audit indicates a high probability of guilt. The more public and the higher level an institution is, the more transparent it should be. Since the Fed is at the pinnacle, it should be completely transparent.

  10. Right you are Gordon, My remark was not intended as a jibe simply a further confirmation. Annother I didnt mention due to the Madman the turned out to be is Adolph Hitler. He turned Germanys monetary system to the point that a certain British P.M. remarked,(If England ever found it’s self in that Germany did after WW1 I would to God that he would send us a Man such as Adolf Hitler.) fo course he later regretted that statment. Anyhow it was much the same model I I think.

  11. Gordon; just annother post script. Remember the Tally Stick? and how long were those used? Also the Native American Wampum– it took the white man a short time to totaly debauch what had worked so well for centuries. So could it be our ( pay back time)?

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