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See Rothbard's What Has Government Done to Our Money . When a regular person buys a government bond, that person is spending money they had to have somehow received beforehand from someone else. That is, it must have been money that was already in circulation. When the Federal Reserve buys government...
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In the midst of our economic slowdown, the U.S. Treasury Dept has issued what they are calling the "Blueprint for Financial Regulatory Reform". The highlights, as given by an article on Yahoo!'s website , are as follows: --designate the Fed as the primary regulator for market stability...
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The part that you’re missing is the technical aspect of how the Federal Reserve creates money. This is understandable because critics often use the metaphor that the Fed is “printing’ money or “creating money out of thin air.” What actually happens is that the domestic trading desk at the New York Federal...
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Currency, by definition, is never "hard;" people keep the hard money and spend the least hard. However, the problem is easy if there is a federal system: the central government is mandated to coin both gold and silver coins, the several States adopt one or the other. If someone finds a reef...
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If you want to know why paper money hasn't collapsed, I recommend that you stop looking at this from a point of view of one who is observing society. Instead, look at this from a more individual level. Why do you desire this paper money? After all, you're knowledgable enough to know that it's...