Category: Fiat Currency
The analysis published under this category are as follows.
Tuesday, May 29, 2012
The Disease is our Monetary System / Politics / Fiat Currency
By: Rudy_Avizius
f the American people ever allow private banks to control the issue of currency, first by inflation [bubbles], then by deflation [recession or depression], the banks and corporations that will grow up around them will deprive the people of all property until their children wake up homeless on the continent their fathers conquered.” Thomas Jefferson
Monday, May 21, 2012
Fiat Currency Collapse Dynamics / Currencies / Fiat Currency
By: Alasdair_Macleod
The reason we accept paper money as a store of value is habit. This habit has its origins in history, when banks took our gold as deposit and issued paper receipts for it. The gold has gone, but the paper with its habitual value remains, and we accept it without question. The only backing is a vague government promise.
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Sunday, May 06, 2012
Savings, investment, and the Keynesian preference, a follow-up / Economics / Fiat Currency
By: Alasdair_Macleod
There is a general belief that government finances are somehow immune from the financial reality faced by everyone else – an illusion fostered by bond markets and supported by the public’s wishful thinking. Look no further than the plight of the eurozone for evidence of the reality. Not only that, but history tells us that countries regularly default, yet we continue to buy government bonds in the belief they are less risky than any private sector debt. And if we begin to question the status quo, we are even told by financial regulators that government debt is less risky than anything else. Banking regulation enshrines it in Basel Committee guidelines, and modern portfolio theory – which guides securities regulation – casts it in stone.
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Tuesday, May 01, 2012
It Can't Happen America? It Already Did! / Politics / Fiat Currency
By: LewRockwell
Tim Case writes: "Sometimes people don’t want to hear the truth because they don’t want their illusions destroyed." ~ Friedrich Nietzsche
If there are two things that can be said with all confidence they are that throughout American history the American public has had and continues to have an enduring commitment to owning firearms. Second is the government’s unerring ability to be the sole cause of economic calamities, regardless of how vibrant the markets.
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Saturday, April 28, 2012
A Return To Real Money / Politics / Fiat Currency
By: Richard_Mills
On the night of November 22, 1910 a delegation of the nation's leading financiers, led by Senator Nelson Aldrich, left New Jersey for a very secret ten day meeting on Jekyll Island, Georgia.
After the Jekyll Island visit the National Monetary Commission wrote the Aldrich Plan which formed the basis for the Federal Reserve system.
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Friday, April 27, 2012
The New World Order’s Money Scam / Politics / Fiat Currency
By: Gary_North
It is not easy for the average person to make much sense out of the current international monetary system. It works something like a poker game. Everyone at the table has some chips. The green ones are supposed to be exchangeable at a ratio of 35 to one with the yellow chips. About half way into the game, the other players notice that the host has a machine at his feet that keeps popping out green chips every few minutes. Apparently the yellow chips can’t be cranked out this way, but the green ones can. So the host keeps on betting on every hand – deuces, fives, anything – and he keeps offering green chips to pay for staying in the game.
Thursday, April 26, 2012
Epic Money Battle Between U.S. Dollar and Gold / Currencies / Fiat Currency
By: Jim_Willie_CB
The so-called Global Financial Crisis is a term so widely used that it has earned its own acronym of GFC. When first seen, it seemed like girl friend club or some such, since many friends use GF loosely to refer to sweethearts. The GFC is falsely named, since it is more accurately described as a global monetary war with the USGovt vigorously defending its franchise in the USDollar for crude oil and trade settlement, and for bank reserves management. Take either away, and the other departs quickly, leaving the United States vulnerable to a quick ticket to the Third World marred by price inflation and supply shortage, even isolation in ring fences. On its own devices, the US is in as bad shape as the worst of the PIGS nations. The USGovt debt is above 100% of GDP finally. The annual deficit of $1.5 trillion could not be financed in normal methods. So the USFed is the adopted buyer of last resort, purchasing over 80% of new and recycled US debt issuance. The Interest Rate Swap tool acts like a hydraulic howitzer, in pushing down the long-term interest rates by creating false artificial demand. Without the IRSwap contract, a Morgan Stanley specialty, the US interest rates would be 6% to 7% just like Spain and Italy. The USTreasury Bond is not a safe haven, but rather a place where Weimar printing press operations persist, where decisions like SWIFT code rules are enforced like a illicit weapon, where billboards are painted to attract embattled investors of impaired toxic sovereign bonds from Southern Europe to retreat to the supposed safe haven of USTBonds.
Tuesday, April 24, 2012
Natural Money / Currencies / Fiat Currency
By: Christopher_Quigley
The Story of Robinson Crusoe and guest: "If there were a monetary system on this island and I, as a shipwrecked traveller needed a
loan, I should have to apply to a money-lender for money to buy the things which you have
just lent me without interest. But a money-lender has not to worry about rats moths, rust
and roof-repairing, so I could not have taken up the position towards him that I have taken
up towards you. The loss inseparable from the ownership of goods is born, not by money-lenders, but by those who have to store the goods. The money-lender is free from such cares and is unmoved by the ingenious arguments that found the joints in your armour. You did not nail up your chest of buckskins when I refused to pay interest; the nature of your
capital made you willing to continue the negotiations. Not so the money-capitalist; he would
bang the door of his strong room before my face if I announced that I would pay no
interest. Yet I do not need the money itself, I need it only to buy buckskins."
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Saturday, April 21, 2012
Fiat Currency, Nixon, Gold and Crude Oil / Politics / Fiat Currency
By: Richard_Mills
In July 1944, delegates from 44 nations met at Bretton Woods, New Hampshire - the United Nations Monetary and Financial Conference - and agreed to "peg" their currencies to the U.S. dollar, the only currency strong enough to meet the rising demands for international currency transactions.
Member nations were required to establish a parity of their national currencies in terms of the US dollar, the "peg", and to maintain exchange rates within plus or minus one percent of parity, the "band."
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Friday, April 06, 2012
The Reserve Fiat Currency Triffin Dilemma Will Create a 3-G World / Currencies / Fiat Currency
By: Richard_Mills
Trade imbalances - deficits and surpluses - between nations are one of the major reasons for financial crises. Countries become trapped in a vicious spiral - they accumulate debt because they are sustaining a trade deficit, the bigger their debt grows year after year, the harder it becomes to generate a trade surplus.
Sunday, April 01, 2012
The Decline of the U.S. Dollar / Currencies / Fiat Currency
By: Julian_DW_Phillips
In our previous article we looked at whether the U.S. Dollar was headed for a major fall or not. We demonstrated how the dominance of the U.S. dollar was almost entirely dependent on the grip it had over oil producers and this allowed the oil price to be designmnated in the U.S. dollar. The U.S. has gone to war in Kuwait and Iraq over this issue under the guise of destroying "weapons of Mass Destruction" as it appears on the verge of doing in Iran. It is no coincidence that Iran has long since ceased using the dollar to price its oil. It has also eliminated the U.S. dollar from its reserves. But of greater importance to the emerging world has been the use of the Belgian-based SWIFT system of international settlements. Not only has the move stopped the sale of Iranian oil, but it has also interfered with an important source of oil to the emerging world.
Monday, March 26, 2012
Why Printing Money is Immoral, Value Subjectivism and Monetary Instability / Politics / Fiat Currency
By: Ron_Hera
Subjectivism is the philosophy that reality is what we perceive to be real and that no underlying, true reality exists independent of human perception. In other words, the nature of reality for an individual person is dependent on that individual's own consciousness. It follows that each person experiences their own reality that is not shared with others. What is true and what seems moral to one person may not be true or moral for another person, i.e., truth and morality are relative. In contrast, objectivism is the philosophy that reality exists independent of human consciousness; that human beings have direct contact with reality through sense perception; and that objective knowledge of reality can be obtained through perception, evidence and logic, e.g., through scientific methods.
Sunday, March 25, 2012
U.S. Government War on Cash / Politics / Fiat Currency
By: Joseph_T_Salerno
Under cover of its multiplicity of fabricated wars on drugs, terror, tax evasion, and organized crime, the US government has long been waging a hidden war on cash. One symptom of the war is that the largest denomination of US currency is the $100 note, whose ever-eroding purchasing power is far below the purchasing power of the €500 note. US currency used to be issued in denominations running up to $10,000 (including also $500; $1,000; $5,000 notes). There was even a $100,000 note issued for transactions among Federal Reserve banks.
Friday, March 09, 2012
Should Iceland's Next Currency be Gold? / Currencies / Fiat Currency
By: Money_Morning
Peter Krauth writes:
My eyes nearly popped out of my head when I read this headline: "Iceland Considers Adopting Canadian Loonie."
The loonie is otherwise known as the Canadian dollar. Of course, gold would be a much a better choice as I'll explain later.
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Thursday, March 08, 2012
How to Understand the Monetary System / Currencies / Fiat Currency
By: GoldSilver
The reason the global monetary system survives is largely thanks to the public’s blissful ignorance of exactly how it works. To paraphrase one familiar analogy, if you knew how sausage was made, would you still eat it? It’s probably safe to say that the vast majority of the world’s citizens have no clue that the integrity of the currency they work for, save and use as a medium of exchange every day rests on nothing more tangible than their respective governments’ authority to and solemn promise to tax them in the future.
Friday, February 03, 2012
Iran’s Currency War Heats Up, And The People Rush to Metals / Politics / Fiat Currency
By: Dr_Jeff_Lewis
The EU and the United States have implemented fresh sanctions against Iran targeting its oil exports. The tough measures are intended to curtail Iran’s nuclear program that Western nations believe is aimed at making nuclear weapons, while Iran claims that their nuclear program is for peaceful energy generation purposes instead.Read full article... Read full article...
Wednesday, February 01, 2012
Fiat Money – The Confidence Trickster / Politics / Fiat Currency
By: Jan_Skoyles
Since immaterial money is based on nothing but confidence, a loss of confidence is, unquestionably, the biggest risk to the survival of any paper money system. – Detlev Schlichter, Paper Money Collapse
Never mind the collapse of the dollar, the Euro or any other currency, we are about to experience the mother of them all – the collapse of confidence.
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Wednesday, December 28, 2011
U.S. Dollar being Replaced by China, Japan a Gold Positive! / Currencies / Fiat Currency
By: Julian_DW_Phillips
The Globalization Process for the Yuan
Japan and China will promote direct trading of yen and yuan without using dollars and will encourage the development of a market for companies involved in the exchanges, the Japanese government said over the holiday weekend.
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Tuesday, November 29, 2011
The Anglo-American Century and Why the Financial Engineers Hate Gold and Silver / Currencies / Fiat Currency
By: Jesse
'Nominal GDP targeting' is a way of raising the Fed's inflation target without admitting to it explicitly.
Nominal GDP means that one can meet their growth target simply by inflating the money supply to make up the difference between 'real growth' and 'headline growth.'
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Thursday, November 24, 2011
The Money Crisis' First Blush, The Gold Pool Debate / Currencies / Fiat Currency
By: Adrian_Ash
"I cannot think of anything which would more surely lead to a danger of all-round deflation than the collapse of international monetary confidence."
- Roy Jenkins, then British chancellor, debate on the London Gold Pool, 18 March 1968
This SUMMER'S FIRST U.S. debt downgrade came after Washington failed to fix the debt ceiling one way or the other. Three months later, and Washington just failed again.
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