Free Republic
Browse · Search
News/Activism
Topics · Post Article

To: CobaltBlue
And it cannot be held responsible by the government. They back our money with nothing and charge interest on that.
87 posted on 02/07/2002 1:38:06 PM PST by Texaggie79
[ Post Reply | Private Reply | To 86 | View Replies ]


To: Texaggie79
>>And it cannot be held responsible by the government.<<

Sure it can. Congress created the Federal Reserve system, Congress can take it away. History tells us that Congress shouldn't be involved in fine-tuning the money supply, but maybe one day things will change. Most countries have central banks now and it seems to work pretty well so far.

>>They back our money with nothing and charge interest on that.<<

They repay interest in excess of expenses to the Treasury. As for whether the money supply is backed, I think our money supply is backed, for the most part, by collateral like property (mortgages) and businesses (commercial paper).

98 posted on 02/07/2002 2:57:48 PM PST by CobaltBlue
[ Post Reply | Private Reply | To 87 | View Replies ]

Free Republic
Browse · Search
News/Activism
Topics · Post Article


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