Why does fiat money seemingly work?
written by Trotsky, edited by Mish
Mish's Global Economic Trend Analysis
June 27, 2007
http://globaleconomicanalysis.blogspot.com/2007/06/
why-does-fiat-money-seemingly-work.html
Flashback: Rome 27 BC
Rome’s history of inflation and money debasement actually began with Cesar’s successor Augustus, whereby his method was at least not a prima facie fraud. He simply ordered the mines to overproduce silver in an attempt to finance the empire that had grown greatly under Cesar and himself.
In AD 274 Aurelius entered the scene with a well-intentioned monetary reform, which fixed the silver-copper content of the then most widely used coin (the Antonianus)at 1:20 – however, just as soon as this reform was instituted, the silver content resumed its inexorable decline.
The leap from clipping coins to outright fiat money
There are two distinct intertwined historical developments that led ultimately to the present system.
Goldsmiths become bankers
The idea of fractional reserve banking was first introduced by the forerunners of our modern day banking system, the goldsmiths.
Tally sticks and Charles II
The other historical development that can be seen as an ancestor of the modern day fiat money system is England’s application of the medieval ‘tally stick’ method of recording debt payments.
Internet Censorship Alert
Internet Censorship Alert: Alex Jones exposes agenda to 'blacklist' dissenting sites (March 14, 2010)
As I predicted, the Obama Administration is trying to shut down the Internet - at least the parts he doesn't like. Barack Obamas regulatory czar, Cass Sunstein has stated that he wants to ban conspiracy theories from the internet. Think about what this means - Every video, every website, every blog, every email, that exposes or just criticizes the government for any reason whatsoever could be labeled a "conspiracy" and taken down. Your home could be raided in the middle of the night, and you could be carted of to jail for criticizing the government. All they have to do is call it a "conspiracy theory".
http://www.youtube.com/watch?v=aqAWmBLFodE
Friday, August 22, 2008
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