[WhoisAlanGreenspan?]

To me this sort of thread always inspires a quick look at "The Creature from Jekyll Island", and the question of how do we recover from this.

The FED is America's fourth try at a central bank, 1690 - 1764 Massachusetts financing the fight with Quebec with a virtual orgy of printing bills of credit resulted in price inflation in the 1750's ...

It was British Parliament who stepped in... unforeseen by the promoters of fiat money ... a miracle boom of prosperity occurred ... forced use of fiat money had compelled everyone to hoard their real money (gold coins) and use the worthless paper instead ... now that the paper was in disgrace ... prices rapidly adjusted to reality, and commerce returned to a solid footing.

[phockthis]

WOW, I just posted this article below in another thread, but I think everybody should read it and learn because it backs up everything you just said here.

Money

What is it?

http://www.hiddenmysteries.org/themagazine/vol14/research/money-what-is-it.shtml

[rashley]

It’s why we have an Income Tax, and is a source of evil and mischief.

[mas cerveza por favor]

Apparently, "The Creature from Jekyll Island" was sorely mistaken on the British Parliament action of 1764 and on the question of paper currency in general:

After Franklin had explained…to the British Government as the real cause of prosperity, they immediately passed laws [Currency Act, 1764], forbidding the payment of taxes in that money. This produced such great inconvenience and misery to the people, that it was the principal cause of the Revolution. A far greater reason for a general uprising, than the Tea and Stamp Act, was the taking away of the paper money.

http://www.newworldencyclopedia.org/entry/Peter_Cooper#Legacy