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Money Can ONLY Be Commodity
(Apollonian, 25 Mar 14)
Nick: u just don't understand money, but don't worry; there are lots like u. Real money, by definition, is commodity, finite in quantity, and with "intrinsic value," meaning it has its own value on the market, this commodity now used as (a) medium of exchange, (b) store of value, (c) unit of account. Just ck history. Gold & silver are simply the best, most convenient commodities to use as money.
Paper bank receipts for this stored commodity money can be also used, but this isn't money, strictly speaking, rather money substitute. Fiat money is the counterfeit of these genuine receipts, and obvious problem is the fiat money is ALWAYS replicated/proliferated, far beyond what is stored in banks, leading to inflation.
Charging interest on issue of fiat-money is optional, mere complication. Primary fraud is the legalized counterfeiting.
In history, the criminals are always switching back & forth--fiat money that charges interest vs. fiat money without interest--neither of these work; get a clue. Only commodity money renders prosperity, though in course of inevitable CYCLIC decline of the culture, it gives way to fiat-money and inflation--always. Thus we find ourselves well into "Decline of the West," by Oswald Spengler.
-------------------above by ap in response to below-copied------------------
"For when real (hence commodity) money is stored or ware-housed in a bank"
Yes, that's what Rothbard said. But since that condition does not obtain, you agree the answer to the question, 'what are the Fed counterfeiting?' is 'Nothing'?
Yes, that's what Rothbard said. But since that condition does not obtain, you agree the answer to the question, 'what are the Fed counterfeiting?' is 'Nothing'?
---------------------above by Nick in response to below by ap-------------------
Babbler's Question Answered
(Apollonian, 24 Mar 14)
Nick: u just babble, pretending to urself u make any sense--I guess u think u're soooooooo clever for ur babble.
Rothbard is indeed excellent source, regardless of ur babbling. But there's also G. Edward Griffin's "The Creature From Jekyll Island" for outstanding expo.
Now I'll answer ur question, the ONLY thing in all ur babble that makes any sense--and I note it's pathetic thing u can't figure out what's being counterfeited, considering all ur babbling.
For when real (hence commodity) money is stored or ware-housed in a bank, a receipt is necessarily issued, this receipt then capable of being used as substitute for the real thing.
Fiat-money then, backed by "legal-tender" laws, forcing people to accept it in exchange for real goods & svcs, is literally (legalized) counterfeiting for the honest receipt money. Q.E.D.
--------------------There's more to this dialectic--ck site, noted above---------------------
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