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Money, Economy, Gold and SilverTerry L. Krohn Fiat money doesn't work for very long. Initially, there is this false sense of prosperity, and then the piper demands his payment. As near as I can tell, nothing has really changed in the foundations of the economy - friends, family and neighbors are just as productive now as they were a year or two ago. Yet the carnage in the monetary system is definitely being felt in everyday life. Let's put it this way. If you could write checks every month and then at the end of the month, legally write a "free" check to yourself from the same account to cover all the other checks, would your spending habits change? This is what a fiat standard, supported by Keynesian economics, allows those in control of the money to do (Let's call them Banking Sources or BSers for short). Purposely, the details behind the creation of money in a fiat, debt-based system is so convoluted that the common man doesn't even attempt to understand it. Look up John Law in France or the Weimar Republic in Germany for other attempts at fiat systems. Except for these sporadic attempts throughout history to create money out of thin air (unfortunately, we're living in the biggest such experiment so far), linking gold and silver to currency has provided a natural constraint. In these hard-money systems, the BSers are unable to abuse their monetary authority without it immediately being felt by you in the form of higher prices and higher taxes. As gold and silver rise in price, they give lie to the efficacies of a fiat monetary standard - showing in crystal clear fashion the shrinking buying power of the currency.
These types of price manipulations never work for long. Eventually, the free market has the last word. So, while I state a priori that everyone should do their own homework, I must add that having a few gold and silver coins (if you can still find any) amidst the current monetary dislocations will likely serve you well.
Currently, in the interests of expanding my readership, a limited number of my novels are on sale for $3.33 per copy (minimum six-book purchase... or six Christmas presents for $20). You can read more about the offer at the link below:- http://www.axiomhouse.com/specials.htm Take some time to learn about money. Despite what you hear on the news, the current economic catastrophe is not simply a cyclical correction to be papered over in the next many months leading to business as usual. It is a severe test of a fiat standard, a standard that has never worked in the whole of history. Fiat money always seeks its true value, zero. Educate yourself as to how this perspective might benefit you and yours - or at least, save you some pain and suffering. Dec 2, 2008
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About Terry L. Krohn