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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: maceng2 who wrote (66835)	10/4/2010 5:00:21 PM
From: Hawkmoon	Read Replies (1) \| Respond to of 219783

The fiat monetary system is too easily open to abuse imho. IMO, it's no more, or no less, susceptible to abuse than a gold backed system. Look at the bank panic back under Andrew Jackson/Van Buren: Andrew Jackson’s removal of federal deposits from the Second Bank of the United States into favored (“Pet”) state banks, and his Specie Circular of 1836 (causing government land deals to be transacted in gold) affected confidence in the value of bank notes. Foreign creditors (the British) called in American debts, and speculation ran rampant. In the Panic of 1837, Jackson’s chosen successor, Martin Van Buren, was faced with a run on banks. sethkaller.net Gold backed money.. And in fact, Jackson wanted all land sales to be paid in gold.. Yet, there was still a run on the banks. And since a lot of it had to do with wild land speculation, maybe it's worth more reading on the subject (since land is very much like gold in that it possesses intrinsic value). More info: en.wikipedia.org And the Federal Government didn't start printing it's own money until 1862 (to be replaced by Federal Reserve notes 50 years later). Before then, as I recall reading, each state could have a number of banks printing their own money based upon the amount of gold they had in their vaults. Many of them printed MUCH MORE money than they had available gold.. Again.. bank runs. Now.. if you want to pull an Andrew Jackson and demand that all monetary transactions be carried out in gold, weigh the consequences. Hawk