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A couple days ago, I took a look at different cities that were printing their own money; today, I found this article about a lawmaker who wants to ban federal currency. Earlier this month, South Carolina Republican Mike Pitts introduced legislation that would ban "the unconstitutional substitution of Federal Reserve Notes for silver and gold coin" in his state. To clarify Pitts's move, a Federal Reserve Note is defined as legal tender currency notes by the U.S. Treasury -- it's money folks. Pitts is looking to ban paper money in favor of a monetary system based solely on gold and silver. Interesting? Yes. Constitutional? Not according to the CBSNews Political blog, which notes that the bill "would likely be ruled unconstitutional because it 'violates a perfectly legal and Constitutional federal law, enacted pursuant to the Commerce Clause of the U.S. Constitution, that federal reserve notes are legal tender for all debts public and private.'"
In Pitts's interesting argument, he sites the German monetary system that collapsed in the 1930s -- resulting in people needing "a wheelbarrow of money to buy a loaf of bread." He piled the Soviet Union on top of the German example, noting that the Soviet Union "didn't think their system would collapse, but it did." Should we be concerned that Pitts says, "Ours [currency system] is capable of collapsing also?" Possibly. What would happen if our currency devalues to nothing more than "paper with ink on it?" Pitts expects a nationwide economic collapse should the government stay on "the course it's been traveling under the previous administration and this administration."
Does this mean that we need to start stocking up on gold and silver? Perhaps not, as George Soros has said, gold is "the ultimate asset bubble," adding that there is "no alternative to the dollar." Wait, what's this? Turns out Soros Fund Management decided to double its stake in the world's largest gold ETF last quarter? Perhaps we are on the verge of a world where the true value of our money is the paper it is printed on. I guess a post-apocalyptic monetary world is upon us -- maybe I'll use the few dollars I have on hand to start a fire and stay warm.
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Reader Comments (Page 1 of 1)
2-18-2010 @ 10:09AM
Mike O said...
I think the goal of those architecting a new world order want to do away with currency entirely and rely on a system of global credits.
It forces the world to be disciplined and avoid basket cases like Zimbabwe. It also makes it easier for prying eyes to see how every dollar (or credit) is spent and tax accordingly.
If the western currency systems implode (specifically the dollar and euro, along with the yen), it's quite possible that the yuan is all that's left standing... for better or for worse.
2-18-2010 @ 12:34PM
MyKisa said...
....maybe a micro chip in the hand would work.....seems it would be so convenient and would help us to avoid wallet based spine injuries, from sitting on all that worthless trash.....no need for wheelbarrows, and you could work harder in the fields with a good straight back.....gold and silver too heavy...micro chip so lite, and maybe we could have a tat to cover the insertion mark.....did I say mark?
2-18-2010 @ 12:44PM
C Caton said...
Well, when it comes right down to it, it seems to be the only thing we really are actually short of in the world.
Do we or do we not have enough food on the planet to feed everyone? (thing of the tons of the stuff that gets thrown away here everyday)
Do we have enough water for everyone - yep again
Do we have enough people who know how to build decent housing and enough building materials on the planet to make sure no one lives in substandard structures? Yep
Enough medicine? Think of all that sits on shelves and ultimately gets thrown out (expires, etc)
We probably have plenty of Ipods & tv's, refrigerators, and anything else you can think of to give everyone one too - especially if the crap products that fall apart were no longer made, and only our best were produced.
Money is the thing that holds us all back from being the civilization we "could" be, but it's just the way it is right now. How many Einsteins, Bachs, Beethovens, DaVincis, has the world deprived itself of, because the next one was actually some poor kid living in a dirt hut somewhere?
Maybe someday we'll have a world where all of this "stuff" really is produced for the good of all instead of a bunch of pretty paper, but not probably in this lifetime. Maybe it would wake people up to the illusion that money really is, but it probably wouldn't be pretty.
2-18-2010 @ 1:03PM
jason said...
Just convert money to sex and pass out viagra to those who need it for income heh !
2-20-2010 @ 3:59AM
StokeyBob said...
I don’t see how there can be any improvement in the economy until we stop the government from printing itself up fiat money.
Maybe this will help make the danger of fake money clear.
Imagine you and me are setting across from each other. We create enough money to represent all of the world’s wealth. Each one of us has one SUPER Dollar in front of him.
You own half of everything and so do I.
I’m the government though. I get bribed into creating a Central Bank.
You’re not doing what I want you to be doing so I print up myself eight more SUPER Dollars to manipulate you with.
All of a sudden your SUPER Dollar only represents one tenth of the wealth of the world!
That isn’t the only thing though. You need to get busy and get to work because YOU’VE BEEN STIFFED with the bill for the money I PRINTED UP to get YOU TO DO what I WANTED.
That to me represents what has been happening to the economy, and us, and why so many of our occupations just can’t keep up with the fake money presses.
They have been beating us with our own stick!!!!1