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To: AdamSelene235
There are legal ways to purchase (trade) without using FRNs, so let's not banter semantics. The truth is that any monetary system is dependent on the consumer's willingness to participate in the system. The majority of people don't even understand the concept of specie and they trust the government to protect our financial system. (This is the real concept of fiat: it is not the law, but the trust in the issuing government.)

Short of outlawing credit, even a return to the gold standard would make little difference except for those who own gold. Our entire economy is driven by debt and the level of investment that we now have is not possible under a specie system. Our money supply is so inflated that any specie would be set on an exponential path of inflation and regulation—not to mention the problems of supply and market fluxuations.

85 posted on 04/12/2003 12:37:38 PM PDT by antidisestablishment
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To: antidisestablishment
The majority of people....trust the government to protect our financial system. (This is the real concept of fiat: it is not the law, but the trust in the issuing government.)

Your comments demonstrate a lack understanding of what fiat means. Fiat implies an arbitrary order or decree. Here's a quick history: For 5000 years, money was defined as some standardized commodity (usually gold and/or silver) which served as a standard of value, medium of exchange, and storage of value. Much much later, fiduciary paper money was introduced wherein an issuing authority promised to pay real money in a written promise. 70 years ago (30 internationally), a full-fledged fiat currency replaced both commodity and fiduciary currency. Fiat currency promises nothing to nobody in no particular timeframe. Such a currency serves only the issuer.

93 posted on 04/12/2003 4:10:47 PM PDT by Deuce
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