Why do we care about money? Why do people think that having these paper dollars mean anything? This paper is about worth as much as toilet paper if we really think about it. Really fancy toilet paper.
We cannot take a dollar and get anything of real value in the case that this "dollar" is no longer accepted by other people.
So a quick search of money, we would see that the type of money we are using is FIAT money.
FIAT WHAT?
What Does Fiat Money Mean?
Currency that a government has declared to be legal tender, despite the fact that it has no intrinsic value and is not backed by reserves. Historically, most currencies were based on physical commodities such as gold or silver, but fiat money is based solely on faith.
Investopedia explains Fiat Money
Most of the world's paper money is fiat money. Because fiat money is not linked to physical reserves, it risks becoming worthless due to hyperinflation. If people lose faith in a nation's paper currency, the money will no longer hold any value.
WHY oh WHY do we have this, is it legal?
WELL let us see. Did you ever hear the saying "history repeats itself?" well it does!!
Remember that little thing called the CONSTITUTION? Remember a person named THOMAS JEFFERSON??????
Do you know what they say? I DIDN'T but I looked it up and read about it and I was SHOCKED!!
Article 1 section 8 of the Constitution
To coin money, regulate the value thereof, and of foreign coin, and fix the standard of weights and measures;
To provide for the punishment of counterfeiting the securities and current coin of the United States;
It says to COIN money! then why do we have PAPER money. What did the writers of the constitution know and try to stop in America? Why did they want the government to mint coins and have a standard of weight and measure for it (that means like 12 inches = 1 foot, it is what it is)?I have learned that the money we have today in our wallets is worth nothing, and that the money in the bank account is only numbers. It is strange how hard people work and strive to make an almighty dollar to buy "things" and these "things" they have us buy are worth nothing!! I can't take a used shirt and buy an apple. I can't take my computer and buy my electricity. Who are the people holding all of us a servants to pay off our debts? Do we know the hearts and souls and values of these people?
IT is scary. I truly believe it to be a scary thought. Our inflation will get so high, the dollar will hold no value (since it lost value through fractional-reserve banking now turned to fiat money) then how will any of us buy things?
I guess it is interesting to note, which I did not know this either that there was a "GOLD ACT"
which forced people to stop using gold and the US treasury took all (even the holdings of the Federal Reserve) of it and put it at Fort Knox.
I could only hope that the Constitution would be upheld, and that we would have a "plan B" when this fiat money we have fails us. I think it would be wise for the US to uphold the constitution plus make an amendment saying that the US government would not be allowed to borrow money. I think that they should make standardized coins from either gold or silver, not both just one, in different weights and measure. and they should uphold the weights and measure very very justly, and they should condemn counterfeiters and they should have an open mint where people can take there GOLD and have it minted into gold standard pieces for a nominal fee.
Just like proposed by the founding fathers. If you look back in history that is when the most peace existed. There will be plenty of Gold pieces to go around and then bread will cost the same price every year, nothing will have inflation. It would all even itself out. then on top of that a free market would allow people the opportunity to see how free they really are and give people back the motivation to work, because there is something tangible they will receive.
Heck I will make little satchel bags for coins right now.
Hopefully there is a "plan B" I think that according to past history of centralized cartel banking as in the Federal Reserve, and the World Bank and such we are going to have a money fall out. It would be good though, since wars would cease since A)no funding and B) the banks wouldn't be pushing for war (since that is when their profits are highest).
Well that is the end of my ideas on Fiat Money!
Thomas Jefferson Quotes
"Paper is poverty,... it is only the ghost of money, and not money itself." --Thomas Jefferson to Edward Carrington, 1788. ME 7:36
"Experience has proved to us that a dollar of silver disappears for every dollar of paper emitted." --Thomas Jefferson to James Monroe, 1791. ME 8:208
"The trifling economy of paper, as a cheaper medium, or its convenience for transmission, weighs nothing in opposition to the advantages of the precious metals... it is liable to be abused, has been, is, and forever will be abused, in every country in which it is permitted." --Thomas Jefferson to John W. Eppes, 1813. ME 13:430
"I now deny [the Federal Government's] power of making paper money or anything else a legal tender." --Thomas Jefferson to John Taylor, 1798. ME 10:65
"The system of banking [I] have... ever reprobated. I contemplate it as a blot left in all our Constitutions, which, if not covered, will end in their destruction, which is already hit by the gamblers in corruption, and is sweeping away in its progress the fortunes and morals of our citizens." --Thomas Jefferson to John Taylor, 1816. ME 15:18"I sincerely believe... that banking establishments are more dangerous than standing armies, and that the principle of spending money to be paid by posterity under the name of funding is but swindling futurity on a large scale." --Thomas Jefferson to John Taylor, 1816. ME 15:23
http://en.wikipedia.org/wiki/Gold_Reserve_Act
http://etext.virginia.edu/jefferson/quotations/jeff1325.htm
http://video.google.com/videoplay?docid=6507136891691870450
http://www.investopedia.com/terms/f/fiatmoney.asp
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