Mercantilism and Inflation

http://mises.org/daily/4439

Quote :

The post-medieval state acquired most of its eagerly sought revenues by taxation. But the state has always been attracted by the idea of creating its own money in addition to plundering directly the wealth of its subjects. Before the invention of paper money, however, the state was limited in money creation to occasional debasements of the coinage, of which it had long managed to secure a compulsory monopoly. For debasement was a one-shot process, and could not be used, as the state would always like, to create money continually and feed it into state coffers for use in building palaces, pyramids, and other consumption goods for the state apparatus and its power elite.

Quote :

Whenever the central bank inflated itself into financial trouble, the government stood ready to allow it to suspend specie payments.

We MUST get rid of the fiat monetary system that is robbing us blind!

I am not nearly as well versed nor am I as nearly motivated as you are to educate myself on this subject. That said it doesn't take a rocket scientist to come to the conclusion that currency backed by nothing is worth nothing. I would not want to carry around nuggets,ingots,or bars of any precious metal either. Perhaps the answer would seem to lay in laws and regulation prohibiting the gov't from printing currency that is not backed by precious metals or other commodities of value.

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luv2fsh&hnt wrote:

I am not nearly as well versed nor am I as nearly motivated as you are to educate myself on this subject. That said it doesn't take a rocket scientist to come to the conclusion that currency backed by nothing is worth nothing. I would not want to carry around nuggets,ingots,or bars of any precious metal either. Perhaps the answer would seem to lay in laws and regulation prohibiting the gov't from printing currency that is not backed by precious metals or other commodities of value.

I am no advocate of carrying precious metals around in my pocket either, I like my Wranglers tight damn it! A monetary system that is backed by precious metals that has notes that are backed 100% by the precious metal is what I advocate. That means no more banks practicing fractional lending, that creates 'money' out of thin air and devalues the notes. Inflation of the U.S. Dollar started AFTER the Federal Reserve was created under the POS Woodrow Wilson. It was held mostly in check until Nixon in 1973 put a knife through the heart of the free-market and officially took the U.S.A. off the gold standard. Since 1973, the rate of inflation has steadily accelerated and escalated to where we are now on the verge of one of two things, BOTH being very bad for the average Joe; stagflation or hyperinflation.