Monetary Preferences

[firefox]

Here's something we haven't talked about before, as far as I know: What do you think about America's and the world's economy, as it applies to the monetary system? Personally, I am very knowlegeable about the situation, and I belive that the majority (but by no means *all) of problems today (inflation, abusive economic regulation, corruption) are the product of government interference.

That said, I would argue that we need a fully backed, non fractional-reserve banking system, ideally one that is private and not controlled by a government or a quasi-governmental monopoly type organization (aka the Fed Res in the US).

Personally, I use the silver and gold based Liberty Dollar (http://www.libertydollar.org/) on a regular basis, and nearly everyone takes it, though many are surprised to see it at first. I also have eGold and a couple of other eMetals accounts, but I don't have anything in them at the moment (I need a full-time job to earn enough to have more savings- I'm in college full time right now).

To put it all in perspective, Before the Federal Reserve was created (prior to 1913), the US Dollar was very stable with the exception of the Civil War period, when, guess what, it was taken off the gold standard. Today, one Federal Reserve Note dollar only buys you about 4% of what it did less than a century ago!

Now comes the vote: Which course of action do you feel should be taken?

[Labrocca]

That's incredibly interesting but odd. I do think the dollar was better off being part of the Gold standard and I love to find silver certificates still...but...I think we should leave the system as it is.

There is a lot more to money than what this guy states.

[firefox]

I know, you should read "America's Great Depression" by Murray Rothbard. Fractional Reserve banking is not only dishonest and beneficial only to governmental bodies and the central bankers themselves, but it devalues our currency and leaves us poorer than before. Without fractional reserve banking, there'd be no way to create 90% more credit on every loan, and thus foreign wars such as Iraq could not be funded, wasteful special interests payouts could not be financed, etc.

For a well organized, straightforward overview of what the Federal Reserve System is, and what it does, please see http://www.libertydollar.org/ld/federal-reserve/index.htm

[Mayberry]

The gold standard is what our money was originally based on, and should still be. As of now, money is merely worthless paper. The fed manipulating the economy by jacking with interest rates, etc. I think is wrong. The market will dictate what prices, or interest it is willing to pay.

[Labrocca]

Personally I am ok with the current money situation. Like how we owe trillions of dollars to other countries....so what. We can just print more money. Our national debt is a joke. We owe nothing but some paper.

I think once we went the fractional route there was no turning back. What is done is done.

[Rider]

Hold on Firefox, seems to me that the economy was taking severe hits at least every few decades throughout the 19th century. I have to believe that the dollar played some part in all of this.
As for the poll, I'm just not knowledgeable enough to make an intelligent choice.

[firefox]

There are periodic economic fluxuations, approximately ever thirty years. The difference is that with a stable currency, these fluxuations are short lived (a year to three years of recession at most) rather than huge and catastrophic, as they were in the 30s, 70s, and 80s. Today we're about to suffer another huge bout of inflation to pay for the Iraq War, the War on Terrorism, and the Drug War. What suggests this? Prices are going up, and the Fed stopped publishing its important "M3" Number (http://action.downsizedc.org/wyc.php?cid=44), which is a very deceptive but at least semi reliable gauge of how much fiat currency is in circulation. I agree with Mayberry that more private competition is what is needed to get the US Dollar and our national economy back on track. Think of the improvements in USPS service since various private shippers came about (UPS, FedEx, DHL, etc.)?

[Labrocca]

In this age of counterfeits...I think it's a VERY bad idea.Â*Â*There is no way an independent company can make currency in bulk to compete with the fed.Â*Â*The second another company made money that was recognized...it would be counterfeited.Â*Â*Would it be the feds job to monitor this?Â*Â*Would they have to make sure that all printed currency was real?Â*Â*It just doesn't make sense to me how this would work.Â*Â*Even if every person in America was notified that other money would exist and could be used as currency...I am doubtful the majority of people would want it.Â*Â*Banks are insured and guaranteed that their money is good...what happens when an independent money maker folds or goes out of business?Â*Â*With all the scams going on it's very likely this would happen.

The liberty dollar is a cute novel idea but impractical.Â*Â*Everytime I go to use it...I would have to take 15 minutes to convince them and in the end...pay with US dollars anyways.

I like the idea of Gold and Silver coins though.Â*Â*I would buy those but these paper wannabe's no way!

[Mayberry]

I like the idea of Gold and Silver coins though. I would buy those but these paper wannabe's no way!
I'm inclined to agree with that. Nobody can argue about gold or silver coins, and their virtually impossible to counterfeit.

[firefox]

Yes. I use them quite frequently myself, specifically Liberty Dollars. I use the warehouse reciepts as well, but far less frequently. If you're already familiar with the ALD, it's much more convenient, but if you've never seen it before, the raw metal is where it's at.