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
Showing posts with label fiat currency. Show all posts
Showing posts with label fiat currency. Show all posts
Friday, August 22, 2008
Thursday, August 21, 2008
A Fabrication Bottleneck or Something More
A Fabrication Bottleneck or Something More
GoldMoney Alert
James Turk
17 August 2008
http://www.goldmoney.com/en/commentary/2008-08-17.html
The Internet is abuzz with reports that precious metal dealers have stopped selling coins and small bars because they have run out of inventory.
For example, Franklin Sanders reports on goldprice.org that his inability to purchase product from his suppliers is something that he has never seen before in his "twenty-eight years of brokering silver and gold." On Friday afternoon, Kitco posted the following notice: "Due to market volatility and higher demand in the entire industry, we are anticipating delays in supply of all bullion products."
The rush out of fiat currency and into precious metals on this latest drop in prices is not just a North American phenomenon. The Times of India reports: "There is a shortage of the yellow metal in the bullion banks and traders."
The bottom line is that it is difficult, if not impossible, to buy coins and small bars. Mints and refiners are back-ordered. Dealer shelves are bare. But the question is, why? Is it just a fabrication bottleneck, or is something else happening?
GoldMoney Alert
James Turk
17 August 2008
http://www.goldmoney.com/en/commentary/2008-08-17.html
The Internet is abuzz with reports that precious metal dealers have stopped selling coins and small bars because they have run out of inventory.
For example, Franklin Sanders reports on goldprice.org that his inability to purchase product from his suppliers is something that he has never seen before in his "twenty-eight years of brokering silver and gold." On Friday afternoon, Kitco posted the following notice: "Due to market volatility and higher demand in the entire industry, we are anticipating delays in supply of all bullion products."
The rush out of fiat currency and into precious metals on this latest drop in prices is not just a North American phenomenon. The Times of India reports: "There is a shortage of the yellow metal in the bullion banks and traders."
The bottom line is that it is difficult, if not impossible, to buy coins and small bars. Mints and refiners are back-ordered. Dealer shelves are bare. But the question is, why? Is it just a fabrication bottleneck, or is something else happening?
Labels:
bars,
bullion,
coins,
fiat currency,
gold shortage,
India
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