The Mandrake Mechanism-(How the Fed Creates Money)

The Creature from Jekyll Island -Book Excerpt ^ | May 1998 | G. Edward Griffin

[Southack]

"Aqua Regia or a simple density test will catch both cases in under 60 seconds with very little cost."

Neither of those methods has widespread "buy in" acceptance by the public, and both of those methods present time and financial transaction costs in front of ever using gold as a currency again (as in, the strippers who are lap dancing and pouring my drinks aren't going to accept anything that takes time and more money/effort to verify than what they've already got in play).

That's NOT the direction that our world is moving. We aren't going to SLOWER and more costly mediums of exchange, but rather, we are moving towards ever faster, ever more efficient mediums (e.g. cash, credit cards, wire transfers, digital cash, etc.).

[AdamSelene235]

That's NOT the direction that our world is moving. We aren't going to SLOWER and more costly mediums of exchange, but rather, we are moving towards ever faster, ever more efficient mediums (e.g. cash, credit cards, wire transfers, digital cash, etc.).

Sure, that doesn't mean we have to leave currency in the hand of the government.

Electronic gold is just as fast as Paypal.

[jd777]

The real question is why can't we issue our own currency interest free?

[zechariah]

A "gold standard" for a currency is NOT bartering.

Whew! For a second there I thought you were arguing against a gold standard.

[z]

[Southack]

Gold is dead, kid. Gold is dead.

[zechariah]

Gold is dead, kid. Gold is dead.

Oh, so you are a socialist. I guess I suspected as much when I saw some of your responses in the GSE threads defending FNM. At least you are consistent: without nationalized money we couldn't have a nationalized financial system, nor is there any way we could continue to have nationalized schools, nationalized medicine, nationalized retirement, nationalized housing, nationalized farming, etc, etc.

Long Live Socialism!!

[z]

[Deuce]

why can't we issue our own currency interest free?

Who do you mean by "we" and what do you mean by "issue"?

That money is issued and distributed by a banking system that lends it out at interest is only one part of the problem.

As long as new money can be costlessly issued and distributed by any issuing authority that the rest of us are legally bound to honor, there will a problem. An honest monetary system must maintain both scarcity integrity and distributional integrity.

[jd777]

I think a constitutional agrument works here. The constitution reserves the right for the coining money and regulation of its value to the CONGRESS. That power was given to the federal reserve in 1913.

What we need to do is bring back the Bank of the United States...

[Deuce]

The constitution reserves the right for the coining money and regulation of its value to the CONGRESS.

Agreed. Congress fulfilled that role with the Coinage Act of 1792, which has never been repealed, that defined the dollar as 412.5 grains of silver, 90% fine.

What we need to do is bring back the Bank of the United States...

Which bank are you referring to? The Bank of North America (under the Articles of Confederation)? The First United States Bank?

In any event, neither of these banks was publicly owned and heated debates in the H of R over the lack of constitutional basis for the First US Bank was ignored in order to favor special interests---no differently than was the Federal Reserve Act of 1913. For the Constitutional basis (lack thereof) for our money system I highly recommend: Pieces of Eight by Edwin Veiera Jr Esq. This 1600 page, 2 volume set with a 15 page Table of Contents is definitive, to say the least.

[AdamSelene235]

Oh, so you are a socialist.

No, strictly speaking I'd say he is a Conservative.

Conservatives believe the burden of proof should be on those who wish to change the status quo.

The status quo happens to be designed by Fabian Socialists but this is of little concern to Southack:He defends what he sees as a empiricially viable system.

[zechariah]

Conservatives believe the burden of proof should be on those who wish to change the status quo.

The status quo in America today is Socialism. To be a "Conservative"--by your definition--is to also be a socialist.

That is the greatest triumph of the Left to date: they've hoodwinked America and her people into believing that the status quo is Freedom when, in fact, it is Socialism.

[z]

[Southack]

I'm free. Pity that you aren't.

[AdamSelene235]

The status quo in America today is Socialism. To be a "Conservative"--by your definition--is to also be a socialist. That is the greatest triumph of the Left to date: they've hoodwinked America and her people into believing that the status quo is Freedom when, in fact, it is Socialism.

Spot on.

[Southack]

IF indeed *you* aren't free, please explain what *you* are forbidden to do or say.

[zechariah]

IF indeed *you* aren't free, please explain what *you* are forbidden to do or say.

I am not free to go to the pharmacy and buy medicine of my own choosing.

[z]

[zechariah]

IF indeed *you* aren't free, please explain what *you* are forbidden to do or say.

I am not free to wear a gun at all times.

[z]

[zechariah]

IF indeed *you* aren't free, please explain what *you* are forbidden to do or say.

I am not free to keep the money earned by working for clients/employers.

[z]

[zechariah]

IF indeed *you* aren't free, please explain what *you* are forbidden to do or say.

I am not free to invest my money as I'd like.

[z]

[Southack]

That's odd because I've never had that problem (re: pharmaceuticals).

[Southack]

Regarding your freedom to wear a gun, you certainly don't live here in Alabama, where open carry is the legal law of the land throughout our fine state. Pity that your state prohibits the same.