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To: MarkL
Wouldn’t the government have to limit the amount of currency in circulation to a relationship to the amount of gold held by the government? And if there’s more currency than gold, what happens? And how would the government “tie” the value of the dollar to gold?

The way forward is to introduce a new currency, redeemable in gold. The Federal Reserve need not be abolished, simply remove the legal tender laws that require under penalty of law its acceptance, the market will determine the relative value of Federal Reserve Notes to dollars ('dollar' referred (before FDR and then Nixon) to a specific weight of gold, it was a concrete measurement of a commodity in the real economy that could not be conjured by alchemists, politicians, or bankers).

Paper currencies have come and gone time and again through mankind's history. Governments debasing the money is old as governments abrogating the responsibility of minting money. Their inflation of the money supply, to support government spending greater than what the public will bear in taxation, results in price distortions and economic malinvestment chasing 'paper profits'. The introduction of new currencies to supplant those the government has destroyed via reckless spending has also happened time and again.

15 posted on 04/11/2012 8:49:52 PM PDT by Gunslingr3
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To: Gunslingr3

Legal tender laws don’t mean what most people think.

If somebody owes dollars or borrowed same, then the lender has to accept them. But there is no requirement to use dollars. If I want to sell my house for tobacco or seashells, that is perfectly legal. Taxes are another matter.


16 posted on 04/12/2012 4:38:34 AM PDT by Freedom4US
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