Any fiat-money, "debt-free" or not, is fatal for economy

Below-copied essay by ap first submitted and published at comments, http://radiofetzer.blogspot.com/2014/11/peter-feneht-don-fox.html#comment-form


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Fiat Money Is No Solution--It's Problem In Itself As We See Presently

(Apollonian, 15 Nov 14)

I listened to the Fox interview w. much interest, and it seems there's much more to be researched regarding the MOSSAD/zionist -connection for the people who saw to the dog-leg route taken by the limousine and who determined who Kennedy was to be speaking.

But I also note there's serious confusion over the money issue, particularly in regard to the "debt-free" part.

For if what Fox was saying about Kennedy's scheme is true, the silver certificates were backed by real money--which can only be commodity, gold/silver being best.

But the Lincoln greenbacks were not backed by gold/silver or any commodity, being pure fiat which Lincoln issued as it was only way to pay for the illegal, un-Constitutional, and genocidal war he was waging against the southern states.

Greenbacks then were not retired and exchanged for REAL money till 1879, 14 yrs after the war ended, the USA now changed forever, the central gov. running a gross, ever-expanding dictatorship now committed to the very same, basic imperialism in which we still find ourselves. .

Again, the pt. is that fiat-money which is "debt-free" is no solution to any problem, but becomes a problem itself very quickly, no less than "debt money"--there's no essential difference. For fiat money is worthless unless it's convertible to whatever commodity backing.

Note then, fiat money begins (a) the inevitable price inflation process as the notes (not really true "money") are circulated. (b) The ever-inflated and issued notes then are used in new loans which are made by the banks.

(c) When then the issuance of the notes is necessarily curtailed in order to halt the price inflation, the resulting deflation causes many if not most of the new loans made in the notes to go bankrupt.

So the greenbacks were just a debt which took many yrs to pay-off, while Kennedy's silver certificates were always backed by commodity (real money), not a debt at all--there's a HUGE, big difference, certificates NOT being fiat-money, not causing inflation, and not causing inevitable defaults or bankruptcies.

Fiat-money (like the greenbacks), supposedly "debt-free," is no solution, but actually a problem in itself, the fiat-money being itself a debt which requires conversion to real money at some pt.--like the Lincoln greenbacks. History demonstrates that fiat-money being re-converted back to real money (commodity) practically NEVER happens.

Great danger of fiat-money is it encourages profligate spending which is never re-paid. The re-conversion of the "greenbacks" to real, commodity money was perhaps the ONLY instance of its sort in all history--and observe it didn't last long, as fiat-money is what we got again w. the Federal Reserve Act in 1913. Perpetual warfare and ever-growing dictatorship is what we're now saddled with, with no easy solution in sight.