History Of FIAT CURRENCY Foretells '$' Destruction

POSTED BY: out2theblack
UPDATED: Monday, April 7, 2025 22:05
VIEWED: 5979
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OUT2THEBLACK

Tuesday, May 5, 2009 1:36 AM

http://dailyreckoning.com/fiat-currency/

Fiat Money = Toilet Paper Money

"...The history of fiat money, to put it kindly, has been one of failure. In fact, EVERY fiat currency since the Romans first began the practice in the first century has ended in devaluation and eventual collapse, of not only the currency, but of the economy that housed the fiat currency as well.

Why would it be different here in the U.S.? Well, in actuality, it hasn’t been. In fact, in our short history, we’ve already had several failed attempts at using paper currency, and it is my opinion that today’s dollars are no different than the continentals issued during the Revolutionary War. But I will get into that in a moment. In the meantime, I will show you that fiat currencies have not been successful, and the only aspect of fiat currencies that have stood the test of time is the inability of political systems to prevent the devaluation and debasement of this toilet paper money by letting the printing presses run wild...

...So what’s in the future for the dollar?

Some, myself included, might say that the dollar has already failed. It has lost over 92% of its value since its initial issuance in 1913. After the revaluation in 1934, the dollar dropped another 41%. In my opinion, it already is toilet paper money, but for the above-mentioned characteristics, which are alarmingly similar to the circumstances that led up to the eventual collapse of the dollar’s toilet paper predecessors, I believe that we have seen only the tip of the iceberg of the dollar’s inevitable path toward becoming toilet paper money."

ANTHONYT

Tuesday, May 5, 2009 2:09 AM

Hello,

I do wish we could adopt a currency that, in the absence of confidence in the issuing government, would be worth more than paper. Gold and Silver have fluctuating values, but they are almost universally held in higher esteem than paper.

--Anthony

"Liberty must not be purchased at the cost of Humanity." --Captain Robert Henner

RALLEM

Tuesday, May 5, 2009 3:07 PM

I don't know if the euro has this feature but I believe at least for a while that the Deutsche Mark actually contained a silver thread sewn into it to keep it from becoming waste.

http://www.swyzzlestyx.com/index.html

BLUESUNCOMPANYMAN

Tuesday, May 5, 2009 3:09 PM

Quote:
Originally posted by out2theblack:
Fiat Money = Toilet Paper Money

Hear, Hear.

Now if we could only get others on here to understand that unmutable fact. Like Signym, rue, and kwicko.

The ever-growing worthlessness of the fiat can be counterbalanced by economic growth, but that is only a temporary stopgap and it cannot last. This is why you're right that the current dollar is as much garbage as the contentials of the 1790's. The difference is that back then the american economy was teeny-tiny compared to it's size now, and our size is what keeps the dollar bouyed. Think of this in terms of "National Equity". When the government borrows against the fiat in amounts unimagined, and if the growth (the equity) isn't there to help sustain, the collapse is sudden and unstoppable. This is what happened in Zimbabwe. I said 2 weeks ago in the tea party threads that America's star as the worlds currency reserve is setting and will be replaced by China's unstoppable power.
17th century = Spanish
18th century = Dutch
19th century = English
20th Century = American
21st Century = Chinese
The core of the tea parties revolved around this issue and it's corollaries. Then the message was stained and twisted by ideologues from two directions.

RUE

Tuesday, May 5, 2009 3:45 PM

"The ever-growing worthlessness of the fiat ..." happens b/c of concentration of money into fewer and fewer hands. If the currency supply stayed the same, by simple growth of the underlying economy, it would be worth more and more. In order to counteract money concentration and re-inject it at the bottom, one measure is to print more money or mint more coins. That is what makes currency of any kind worth less.

***************************************************************

Silence is consent.

BLUESUNCOMPANYMAN

Tuesday, May 5, 2009 3:57 PM

*Sigh*
And so enters the socialist arguement which is ever flawed, focusing upon the drifting of wealth to the rich and demanding that the wealth be spread back out across the people like so much manure upon a farmfield. The socialist philosophers of the world all echo this as an ultimate truth while ignoring its repeated demonstrable failures.

The strength of the currency is the issue, not where it's differing component parts exist. You compare apples to oranges and work so very hard to make that orange look like an apple.

RUE

Tuesday, May 5, 2009 4:04 PM

Voodoo economics - a term coined by GHWB to describe Reagan's polcies - is a demonstrable failure. So why do you still support it ?

***************************************************************

Silence is consent.

FREMDFIRMA

Tuesday, May 5, 2009 4:27 PM

Quote:
I don't know if the euro has this feature but I believe at least for a while that the Deutsche Mark actually contained a silver thread sewn into it to keep it from becoming waste.

That's not a half bad idea, but there's a problem with that, you see - once you debase the currency far enough, folks start meltin it down!

And boy do the powers that be get pissed about it too!
http://www.usatoday.com/money/2006-12-14-melting-ban-usat_x.htm
http://www.thetrumpet.com/index.php?q=3170.1616.0.0
http://www.moneyweek.com/articles/money-morning/why-its-now-illegal-to
-melt-down-us-coins.aspx

Remember, I deal in metals, as one of the few viable methods of making enough to survive on after the frikkin Gov gets done robbing me, grr.

Hell, the only reason my fridge is well-stocked as of late is indirectly related to ammunition stockpiling, and I never thought I'd find myself more thankful to the damn Bosnians, but they did give us both Tomos and IGMAN, so warm fuzzies for the lot of em.
(And I'll even forgive them for the Yugo!)

Today's "dollar" is in my opinion, "Not worth a Continental!"
http://en.wikipedia.org/wiki/Continental_dollar
That being our first, idiotic and disastrous foray into the realm of fiat money, something Roger Sherman had already warned about previously in a handbill title "A Caveat Against Injustice"
http://www.rogershermansociety.org/caveat.htm

You will note, however - despite that handbill initially being his primary claim to fame, NO mention of it is made here.
http://en.wikipedia.org/wiki/Roger_Sherman
Which is of course, entirely deliberate.

Interesting historical stuff to this...

And at the Constitutional Convention he did all in his power to prevent the Federalists and their dreams of power from coming to fruition by suggesting a bi-cameral type of legislature and inserting a provision that he thought would pre-emptively forbid Fiat Currency, but of course he was unaware of Hamilton, Jay and Madisons plan to loophole and subvert the document before the ink was even dry, nearly carried out in full later by John Adams, which pissed off Hamilton cause he wouldn't "get with the program" and defer to Hamilton and his cronies, when he could have it all for himself, and Madison defected to Jeffersons side, completely horrified at the true nature of the Federalists was behind their weasel words - this lead to a schism within the Federalists between Hamilton and Adams, especially over Hamilton's more or less taking over the military and raising the "Standing Army" that Madison believed was the precursor to the destruction of liberty itself - and Adams compounded it with the midnight judges and the installment of Federalist John Marshall to the bench, which subverted much of the Constitutions intended protections by "re-interpreting" without check or balance, just like Patrick Henry warned would happen.

Side note: This also started Aaron Burr's rather clever maneuverings which on long study and perspective seem more a collective of chicanery and trickery set up to bait and sabotage the Federalists than anything else, and as such were extraordinarily effective.

As for Hamilton, such men tend to linger and cause damage far out of proportion to their own existence (See Also: Kissinger) if left to linger, so it's my opinion that Burr did our country a favor which will never be truly appeciated - especially since Hamilton, showing the true character of a Federalist, tried to impinge on Burr's character pre-emptively by suggesting in a statement he *knew* would become public if he died that he intended to not aim his first shot, which no one who knew him at the time believed in the slightest, and even Burr dismissed with a snort and the curt statement "Contemptible, if true."

Also, while not known at the time, and for a very long period after, also in the character of a true Federalist, Hamilton had brought a set of rigged duelling pistols with a hidden hair trigger, but elected not to use it in front of so many witnesses, thus likely the cause of h

FREMDFIRMA

Tuesday, May 5, 2009 4:47 PM

Question ?

Has anyone ever thought of or used a currency with an expiration date, as in use it or lose it ?

Just one of them thunderbolt thoughts that might be worth chewing on a little, is all.

-F

BLUESUNCOMPANYMAN

Tuesday, May 5, 2009 4:58 PM

Quote:
Originally posted by Fremdfirma:
Remember, I deal in metals,

Do you mean precious or scrap? I can converse in either but my industry involves ferrous stuff so I can REALLY talk scrap with a guy. I'm not in scrap, but I understand it better than the average bear.

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