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To: shrinkermd
Mr. Carroll's arguements are not easily disposed of.

On the contrary, I think they are very easily disposed of. The article is full of ex cathedra pronouncements--such as the suggestion that America owes her present greatness to paper money. The Founding Fathers would certainly not agree with that. The man does not a case make.

There is sound reason that the Founding Fathers in the Constitution forbad the States from making anything but Gold or Silver a medium of exchange. Getting rid of the reckless inflation that followed the War, was one of the motives for the Constitution. Because it was the hard money group who were backing the Constitution, they overlooked the fact that a similar prohibition against the Federal Government would have been in order. But regardless of that, we had a Gold Standard until FDR, and a Gold Exchange Standard until Nixon. The Foundations of modern America were very closely related to that Gold Standard.

Of course, the reason for Gold is that it has value to most people. It does not depend upon the arbitrary fiat of the State of Bankers. While gold coins may be clipped, or adulterated, that does not make a point either. Man can corrupt almost anything. But fiat--paper money that is not convertible--is made to be corrupted. On the other hand, paper money convertible into a precise quantity of gold, offers far greater safety--unless a demagogue like FDR repudiates its convertibility, which is what happened. (Gold didn't fail us; our leaders stole our assets.)

Traditionally the opposition to the Gold standard is that it prevents the manipulations of the currency for the temporary advantage of the politically favored groups. It means that your savings--what you put aside in one era--should retain their value in the next. It adds predictability to accounting; makes long term planning easier.

William Flax Return Of The Gods Web Site

140 posted on 05/03/2002 3:31:51 PM PDT by Ohioan
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To: Ohioan
I meant the arbitrary fiat of the State or bankers. The "of" was a typo.
141 posted on 05/03/2002 3:34:02 PM PDT by Ohioan
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To: Ohioan
There is sound reason that the Founding Fathers in the Constitution forbad the States from making anything but Gold or Silver a medium of exchange.

I hope you don't mind me getting slightly off the subject, but I have a question to ask - mostly a curiosity on my part. What the Constitution forbade to the states was making anything but gold or silver a tender in payment of debts. But what if the debt was something other than gold or silver to begin with? What if I loaned Wisconsin a bunch of clam shells? Are they still prohibited from paying me back in kind?

144 posted on 05/03/2002 7:53:29 PM PDT by inquest
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