Comments on: Ron Paul’s Bill To Audit The Federal Reserve Now Has 92 Co-Sponsors

By: Cartoon: You’re Going to Audit OUR Bank? | Austrian Economics Blog

Cartoon: You’re Going to Audit OUR Bank? | Austrian Economics Blog — Fri, 14 Aug 2009 14:19:58 +0000

[...] Ron Paul’s Bill To Audit The Federal Reserve Now Has 92 Co-Sponsors Ron Paul’s bill to audit the Federal Reserve (HR… [...]

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By: Cheryl A.

Cheryl A. — Wed, 13 May 2009 22:34:10 +0000

Where are my posts?

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By: Sean

Sean — Fri, 01 May 2009 17:55:51 +0000

“An association of men who will not quarrel with one another is a thing which has never yet existed, from the greatest confederacy of nations down to a town meeting or a vestry.” – Thomas Jefferson

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By: Oscar_DeGrouch

Oscar_DeGrouch — Fri, 01 May 2009 17:01:12 +0000

KIds, take it elsewhere.

Let’s try to keep the discourse civil. Discussion like this doesn’t help our reputation.

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By: Ross

Ross — Fri, 01 May 2009 13:35:35 +0000

Sean knows no depths of depravity.He likens himself to the hidden paw ,yet betrays himself and our common humanity with subversion.

Study TS Elliot Sean.The US Federal Reserve and those of like minded arrogance Sean,are on the path to demise.Money will not save you.

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By: Joe

Joe — Fri, 01 May 2009 02:15:57 +0000

What is up with all this back and forth? Let’s get the audit done. Regardless of what it shows it needs to be done. The “AMERICAN” Government, and by proxy the FED since they handle America’s money, should be open to public scrutiny. The only exceptions are ones the would endanger national security.

Have a nice day everyone.

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By: Nate Y

Nate Y — Thu, 30 Apr 2009 23:43:05 +0000

No. What gives fiat money value is government decree (fiat).
Your hypothetical gold standard is so absurd and lacking in content I can’t even comment on it. All it does is replace fiat dollars with gold conjured from nowhere (which is impossible). It ignores all the steps that would have to take place to bring about a new gold/commodity money. It also ignores all the consequences of a new gold/commodity money being introduced. You don’t even realize that a gold standard encourages production. Why? Because gold/commodities are not nearly as easily created as fiat (physical or electronic) dollars. We’d actually have to produce so we could have something to trade back for the gold/commodity. Stop listening to your Keynesian professors. They are destroying your mind.

Anyway, I’m just gonna post this. It’s by another person from another thread but it is relevant.

NotRocketScience Apr 30th, 2009 at 6:56 pm

The theory and history of fiat money (which is also largely the theory and history of banking) must always focus on the ever-present problem of redemption. Emphasis on the noun “problem” is warranted, because a fiat money is, by definition, a promise to pay the real, commodity money of the country.

A piece of commodity money – typically, a silver or gold coin – is itself payment because it contains a fixed weight of precious metal. But a unit of fiat money – typically, a bank or government-treasury note – is only a contingent and uncertain payment that depends upon the ability or the willingness of the issuer to redeem. And there always exists a temptation for issuers to renege on their promises to redeem.

Thus, fiat money always threatens to become fraudulent money. Not surprisingly, therefore, the history of fiat money has been more or less the history of monetary fraud, both economic and political.

Also, the danger of fraud in the issuance of fiat money becomes particularly acute in the case of modern “fractional-reserve banking”.

Under fractional-reserve banking, the bank always issues more units of fiat money, supposedly “payable on demand”, than it has units of commodity money available for redemption, counting on the unlikelihood that the majority of its customers will ever seek redemption at one time. Thus, modern fractional-reserve banking is inherently fraudulent, because:

1. For the bank simultaneously to fulfill all its promises to redeem its outstanding notes “on demand” is impossible.

2. The bank’s managers know that complete redemption “on demand” is impossible, and therefore that the bank’s promises to pay are false. And,

3. The bank’s customers, by and large, are ignorant of how the fractional-reserve scheme works, and the dangers it poses to them.

So it is doomed to fail just like every other time.

Historically every major fiat money have self-destructed in what is popularly called “hyperinflation” (that is, extreme decreases in purchasing-power) caused by either unlimited increases in the supply of that fiat money by the issuer or accelerating loss of public confidence in the continued value of the money or the economic or political fortunes of its issuer, or both.

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By: Sean

Sean — Thu, 30 Apr 2009 22:14:11 +0000

Well you can’t convert fiat into anything tangible, but fiat is allocated to tangible items thru loans. Thats what gives it value..

I do speak of the importance of savings. our government trade policies have made it impossible for our money supply to build up. Thats why the fed has to create additional money.. Lets say we switched to the gold standard and we have ten trillion dollars worth of gold. Well our country loses one trillion dollars a year because of trade.. We would run out of money and gold in ten years.

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By: Nate Y

Nate Y — Thu, 30 Apr 2009 22:02:20 +0000

It has everything to do with our monetary system. Our money is not backed by anything tangible at present. That is the definition of a fiat currency. You are again being very dishonest.

You speak of the importance of savings. Unfortunately, the gov/fed’s monetary policy actively discourages savings and production while encouraging debt and consumption. Indeed, the government/fed makes it near impossible for people to save. They actively loot the nations’ savings via inflation. Sound money is the answer. Sound money is a vital check on government expansion.

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By: Sean

Sean — Thu, 30 Apr 2009 20:13:46 +0000

I’m trying to imagine a country where every home and car is self sufficient for energy.. A country that builds on wealth instead of spending it overseas on coal to heat our homes, on gasoline to drive the economy, and steel to construct our buildings.. I don’t want to be dependent on other countries and that has nothing to do with our system of money and will not change from changing money backed by goods to money backed by gold.. And yes, money is backed by goods because money is created to buy goods. Thats what business loans are for that represent 95% of our money. The problem is, we consume too much from other countries so that money isn’t going into “savings” here. It goes into other countries “savings.” If you want sound money and loans based on “savings,” than we would have to produce here so we can “save” the money from going overseas.

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