Free Republic
Browse · Search
General/Chat
Topics · Post Article

To: politicket

Supply and demand for everything ultimately determines relative value. If necessary to prop up deflating bank asset values, central banks will print endless supplies of paper money whereas gold, silver, diamonds and other hard assets will remain scarce and tend to far out-value what streams from the printing presses over time. Every fiat currency over thousands of years has failed. The economic laws have not been repealed as digital fiat has replaced paper fiat.


19 posted on 07/19/2013 4:12:01 PM PDT by JustTheTruth
[ Post Reply | Private Reply | To 11 | View Replies ]


To: JustTheTruth
If necessary to prop up deflating bank asset values, central banks will print endless supplies of paper money whereas gold, silver, diamonds and other hard assets will remain scarce and tend to far out-value what streams from the printing presses over time.

Central banks do not print money. They issue currency as a liability against assets of Treasury securities that they obtain from primary dealers. There is no "new" money created in this transaction.

New money is created any time a promissory note is signed. Shrinking debt and bankruptcy cause a decrease in the money supply - since all money is debt based.

People still think of precious metals the same as when money was not debt based - prior to 1600 in Europe.

There is nothing wrong with "fiat" currency - as long as the currency represents labor that has already been completed...instead of a claim on the future labor of others.

28 posted on 07/19/2013 10:44:50 PM PDT by politicket (1 1/2 million attended Obama's coronation - only 14 missed work!)
[ Post Reply | Private Reply | To 19 | View Replies ]

Free Republic
Browse · Search
General/Chat
Topics · Post Article


FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson