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It seems to me that the imposition of the Euro - which was established as a purely fiat money - puts the regression theory in perspective and possibly refutes it. If «nothing can enter into the function of a medium of exchange which was not already previously an economic good to which people assigned...
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Does Gresham's Law prove that money must have intrinsic value? Great article by Gary North. I didn't know all that about Gresham's Law and foreign exchange. Does it also have a simpler application as explaining domestic circulation? For instance, when arguing with Keynesian/Chicagoites, who...
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[quote user="Libertarian_for_Life"] According to Ch. 12 in "Economics in One Lesson", in the scenario in the 2nd paragraph, the British importers pays in pounds, then through exchange or direct buyback, someone in America must buy something from Britian because he can't use the...
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In The Case Against the Fed, Murray Rothbard has this to say on page 143: "It should be easy to see why the Fed pays for its assets with a check on itself rather than by printing Federal Reserve Notes. Only by using checks can it expand the money supply by ten-fold; it is the Fed’s demand...
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Hypothetical Situation: Within a country, there were 2 political parties. Each had its own central bank, one whose bank notes or money was based on value of stored gold etc (assuming the bank kept its note to gold ratio at 1:1), and one that was based on debt, like the Federal Reserve. Would this system...
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Regarding the distinction between claims on investments and notes, I don't necessarily see the difference. If notes are given to a debtor, then the debtor can use the notes as if they were claims to the actual assets they represent. I don't see the difference in the "note" versus "the...
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I love Ron Paul, if only because he's bringing the debate over the Gold Standard kicking and screaming back into American Politics. I hope he gains some political steam, because I bet Obama could give a great, "Cross of Gold" speech that would be fun to watch! However, I was re-reading...
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What countries do you think have the most stable fiat currencies? An oxymoron, yes, but which are headed to the fiat graveyard the slowest and are likely to survive the US implosion? List your favorites and why.
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[quote user="ladyattis"] Now lets assume a thought experiment where the money supply never increases. If the supply obviously never increases, how is interest paid? Well, interest can be paid any number of ways beyond simply little notes or shiny coins. Exchange for bulk commodities or shares...
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I just read an article saying that it appears that China, and perhaps the other BRIC countries, is exploring (and actively moving toward) the idea of implementing Keynes Bankor global currency idea. Does anyone know anything about this proposal and its consequences? There is no mention of it on Wikipedia...