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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: Robin Plunder who wrote (99883)	11/24/2008 5:47:23 PM
From: Robin Plunder	Respond to of 110194

""As I have noted before, any theory or assertion or generality that does not take all facts and history into account is flawed." I guess you conclude that the fact that fiat money has been used in the past means that it works and is an acceptable option...we disagree on this... Robin" from Richard Russell tonight: "The Federal Reserve was instituted in 1913, along with the federal income tax. No mention of a banking monopoly is mentioned anywhere in the US Constitution. Furthermore, the Constitution specifically and very clearly warns against fiat money. The following is from the great book, Our Ageless Constitution: "Records of the Constitutional debates clearly show that the Founders specifically DENIED CONGRESS THE POWER TO PRINT PAPER MONEY. We can be certain of this because the original draft of Article 1, Section 8, included the words, 'and emit bills of credit' were understood by all to mean 'paper money.' James Madison's record states, 'This was a favorable moment to shut and bar the door against paper money' and the Founders firmly rejected the phrase and by an overwhelming vote, struck it from the Constitution." "Inflation, deflation, depression -- all had brought misery to the new nation, prompting Washington to write 'Good God! Who could have foreseen or predicted the disorders which have arisen in these states.' It is at this point that the Congressional Convention convened in Philadelphia. Those who had experienced such trauma were determined to do something to restrain the government from issuing paper money and forcing it into circulation." "To understand fully the action of the Founders, we must examine the history of money. As Jefferson said, paper money has been abused in every country in which it has been permitted. Even in America, in the years just prior to the adoption of the Constitution, the Continental Congress issued bills of credit, which were nothing more than the fiat money or paper currency. The inflated paper currency imposed a cruel tax on the citizens, just as it has in all other countries, and they lost their fortunes. "NOT WORTH A CONTINENTAL" describes perfectly the dollar which, in 1792, was worth only a penny."