Faith-Based Currency

[ThoughtCriminal]

Faith-Based Currency
by: Ron Paul

The Latin term “fiat” roughly translates to “there shall be”. When we refer to fiat money, we are referring to money that exists because the government declares it into existence. It is not based on production or earnings, and not backed by any commodity. It is solely based on trusting the government. Fiat money is exchanged in the economy as long as there is faith in the government that issues it.

Some are blaming the recent shakeup in the markets to “whining” or financial fear-mongering, which misses the whole point. History has shown that fiat money, or “faith-based currency” always fails, because when governments claim this power, they always behave irresponsibly.

When government has the ability to create and spend all the money it wants, priorities shift, and the concept of budgeting, as most Americans know it, loses all meaning. Hand a teenager a credit card, and tell him there is no limit and no accountability for what he spends, and the effect would be the same. You see, this problem is not unique to our government. It is a predictable outcome based on human nature, and we’ve seen variations of what we are experiencing now happen over and over throughout history. I didn’t have a crystal ball or a fortune teller when I predicted this 3, 7, or even 30 years ago. Actions have logical consequences. The government becomes the reckless teenager with the credit card, and in the end, the taxpaying citizens get the bill. What happens after that is never pretty.

This is why our founding fathers considered, but decidedly rejected the creation of a national central bank. They understood that governments, even the best of governments, cannot control spending. Even the current administration, which promised strict fiscal responsibility, has had to increase the national debt limit by 65 percent to keep up with its spending sprees. Every dollar created and spent by government makes the dollars in your pocket worth less and less. Eventually any currency controlled by government will be debased to worthlessness, and will wipe out the savings of the citizens who put faith in that currency.

Hard currencies, on the other hand, force governments to remain in check, strictly limited to the revenues they can raise from the country’s economic health. This is also an incentive for government to stay out of the way of productivity. The hyper-regulation in today’s economy demonstrates that this is no longer the case. What does it matter if the economy is crippled and the tax-base eroded, if government can create whatever dollars they need to keep the special interests happy?

We have been building economic castles on the sand, and the tide is coming in. The answer is not to bring in more sand, but to move to more solid foundation.

So yes, it is true that many are complaining about our economic trouble, but our economic trouble is not caused by their complaining. Many are being forced to wake up to the predictable troubles associated with faith-based currency. As more people notice the hardships, more will lose faith.

We are long overdue for a course correction and I can only hope that this awakening translates to a solid approach to currency reform.

[PisnNapalm]

http://www.libertydollar.org/index.php

Anyone ever tried using the Liberty Dollars?

[ThoughtCriminal]

Originally Posted by PisnNapalm

http://www.libertydollar.org/index.php

Anyone ever tried using the Liberty Dollars?

I have some but haven't tried using them. I guess they're starting to come back after the raid?

[dc dalton]

Originally Posted by PisnNapalm

http://www.libertydollar.org/index.php

Anyone ever tried using the Liberty Dollars?

I have a few too ... the whole SCAM against him by the feds was they said he was counterfeiting when in actuality he was trying to start a new barter system. I know he is back but the damn feds will keep him tied up for years.

[PisnNapalm]

I'm all in favor of a barter system that would circumvent the excise tax paid for using Federal Reserve Notes.

[ThunderingWind]

Originally Posted by PisnNapalm

I'm all in favor of a barter system that would circumvent the excise tax paid for using Federal Reserve Notes.

I do not understand this? Do you mean sales tax?

My tax software asks if I bartered for anything and the value of each barter so state sales tax can be processeed.

[PisnNapalm]

I mis-spoke. Income tax is an indirect tax. Think of it as rent you pay for using Federal Reserve Notes. The more notes you use, the more rent you pay.

What if a transaction is made that does not involve the use of Federal Reserve Notes? Why should you have to pay a tax if you did not use government property? Federal Reserve Notes are owned by the Federal Reserve Bank.

Why is it illegal to deface money? Because you don't own it. It's not your property.

I highly reccomend you watch the Constitution Class posted here: http://www.pafoa.org/forum/national-...ion-class.html

It was extremely informative.

[ThunderingWind]

Originally Posted by PisnNapalm

I highly reccomend you watch the Constitution Class posted here: http://www.pafoa.org/forum/national-...ion-class.html

It was extremely informative.

I would like to visit that web site but I am afraid that the Commonwealth will label me a Delta Tango.

I am already registered on this site so I expect them to come smash my door (or any members door) down in the middle of the night.

My Interent connection will not work if I load any of the popular anonomizer software packages.

[PisnNapalm]

You won't go to Google video and watch the class?

[ThunderingWind]

Originally Posted by PisnNapalm

You won't go to Google video and watch the class?

And watch those videos - no way.

It is bad enough how much the Commonwealth is tracking my Interent usageas it is. They do not need any more reason to label me a Delta Tango and take away my kids, house, bank accounts, autos and firearms.

Then add Google keeping tabs on every site you look at after doing a search or even clicking on thier stuff.....No.

I already post on this forum which has me on the Commonwealth's Delta Tango watch list and I am a member of the NRA which again puts me on the list. I do not a "third strike and I'm in jail."