stephenstillwell
Jul 10, 2017 · 2 min read

Is that why we pay interest on it?

This fiat backed economy is relatively new, the characteristics, features, function, have not been examined very well, as we have only used it as a substitute for gold

It naturally followed the practice of fractional reserve banking, because it was a reaction to the same problem…

…there isn’t enough money

Which you can imagine is quite frustrating when there are people willing to borrow it…

..so they loan it to them anyway

Then we needed more money and there wasn’t enough gold to back it, so fiat

This is a deception from the MMT, that a sovereign country can create all the money it wants, which of course they can, but what will it be worth to the world?

The debt is what gives currency value, the promise of repayment… or of the payment of interest anyway

So we both own and owe our national “debt”, that is a characteristic of fiat backed currency

When I suggest that the authority to create money be granted to each, that does not detract from constitutional authority of Congress, it simply shifts the authority from the current subcontractor to the people, and since the people are a far more valid proxy it is reasonable, and more in keeping with a democratic system

“I assume you were referencing the Federal Reserve with fractional reserve banking or Treasury instruments. Neither “creates” currency because the contract requires repayment in existing currency. Both have the power to create “accounts”, but issuing/creating currency is still the monopoly task of Congress, even if it doesn’t realize it, or admit it publicly.”

There is clearly some semantic thing going on that obscures reality

If the bank writes a check to loan money that didn’t currently exist, it doesn’t much matter how it is to be repaid, the money was created…

..and how do you tell “existing” money from created money?.. since all money is backed with the same “full faith and credit” debt, it is all essentially the same, and all represents debt of the issuing authority

Did you know that the government bonds bought by the fed for QE were bought from Goldman-Sachs and not the government?.. funny

    stephenstillwell

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