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real bills - updated - Dr. Fekete
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**Latest Article Posted at the end**
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After Fekete's last article (posted here) I still couldn't put together his total concept of a gold standard with a real bill system. But this finally does it. Generally he places the blame for our economic woes in the 1930's and then 2000's on the destruction of international trade via real bills. Along with this is the need to be able to pay one's workers making key consumer products by a wage fund. A gold standard takes care of both.
And in reading Fekete's article I think it shows that one doesn't have to use gold for every transaction, or even the majority of transactions. Those real bills get passed around to multiple entities before finally being settled.
Interesting reading.....though not as exciting as silver jumping $1 today.
Fekete discusses gold and real bills
roadrunner
______________________________
After Fekete's last article (posted here) I still couldn't put together his total concept of a gold standard with a real bill system. But this finally does it. Generally he places the blame for our economic woes in the 1930's and then 2000's on the destruction of international trade via real bills. Along with this is the need to be able to pay one's workers making key consumer products by a wage fund. A gold standard takes care of both.
And in reading Fekete's article I think it shows that one doesn't have to use gold for every transaction, or even the majority of transactions. Those real bills get passed around to multiple entities before finally being settled.
Interesting reading.....though not as exciting as silver jumping $1 today.
Fekete discusses gold and real bills
roadrunner
0
Comments
JMHO for the purpose of offering a comment. I do like the article by Dr. Fekete but it's a little abstract for me. thanks for the post.
Worry is the interest you pay on a debt you may not owe.
It doesn't matter what forms the basis of money if there is no trust. That's why a hard asset such as a precious metal always works as the fallback position. In the final analysis, it is necessary to "Trust, but Verify". And physical metals can be counted, audited and pro-rated.
It isn't rocket science, but if real money predominates - the bankers have everything to lose and the politicians would be forced to make real decisions.
Bankers hate real money because they can't create more of it or skim it off the top. Their incomes and status would plummet if they actually had to work for a living and if their incomes depended upon real work and honest accounting.
Politicians hate real money because of accountability. If they had to make a real decision without smoke & mirrors about whether to cut retirement benefits or not to provide for comprehensive health care benefits for everyone regardless of their contributions to society, there might actually be some hard decisions being made. No politician wants to be on either side of a hard decision - it's that basic.
The change in money and accounting is coming, though. Like it or not, phantom currencies are in trouble.
I knew it would happen.
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Bankers hate real money because they can't create more of it or skim it off the top. Their incomes and status would plummet if they actually had to work for a living and if their incomes depended upon real work and honest accounting.
Politicians hate real money because of accountability. If they had to make a real decision without smoke & mirrors about whether to cut retirement benefits or not to provide for comprehensive health care benefits for everyone regardless of their contributions to society, there might actually be some hard decisions being made. No politician wants to be on either side of a hard decision - it's that basic.
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Well said.
I agree with this.
This piece is shows that the whole thing is cyclical. We will have bubbles and busts. Always have, always will. It has more to do with human nature. Utopians, like Marx, thought his theology could fix these economic boom and busts, but they overlooked the human nature - greed and self-aggrandizement over the good of the masses, self protection at the expense of the masses.
It shows that as long as there is a mutual trust in the system, whatever that system is, it works. If trust is gold in a vault, so be it. If trust is faith in the US paying is obligations, thats just as well. When that trust erodes, that is when the problem starts.
The intent of linking Fekete's article was not to say we have to shift to a gold standard, but basically how one would or could work....or how it used to work. The average person would have no clue how such a system would be constructed. It's taken a series of several articles by Fekete to show me how it would work where I could actually understand it. It's just not as simple as J6P would believe where a gold coin covers every purchase, wage, and transaction being conducted.
roadrunner
Another article on this topic that better clarifies the difference between real bills & circulating legal tender notes (ie FRN's).
Real Bill fallacies
Gold and Honey - real bills update Jan 2011
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