If you are worried about Lincoln's greenbacks a bill can be crafted to prevent the minting of money for military purposes.
Use your moral imagination! Harry ----- Original Message ----- From: Harry Veeder <[EMAIL PROTECTED]> Date: Wednesday, October 29, 2008 11:48 pm Subject: Re: [Vo]:IOUs and ITUs > > > ----- Original Message ----- > From: "Stephen A. Lawrence" <[EMAIL PROTECTED]> > Date: Wednesday, October 29, 2008 10:38 pm > Subject: Re: [Vo]:IOUs and ITUs > > > > > > > Harry Veeder wrote: > > > Very few people seem to be aware of the fact that the US > > constitution> permits the government to literally coin money > > without having to borrow > > > it from their central bank. (I know this and I am not even an > > American.)> > > > Such money would correspond to what I termed an I-Thank-You note. > > > > But the Fed came long after the constitution. I don't know > whether it > > was set up with an amendment or just an act of Congress, but > whatever,> the power to "make money" was handed over to the Fed. > > > > And a good thing, too -- central governments canNOT be trusted > with > > thepower to create money. > > Basically what you are saying is that the American people can't trust > themselves. > Remember "government of people for the people by the people"? > > > All the incentives are wrong, and > > hyperinflationtends to be the result: The government, as the > > biggest debtor, is also > > the biggest beneficiary of inflation. The Fed, though not perfectly > > independent, is distant enough that the President can't just > order up > > another half-trillion in notes whenever he needs to pay the troops. > > > Your government just ordered up more than a half trillion in a few > weeks! > > > Only the Fed can do that, and the Fed tends to be at least a little > > under the thumb of big business and big banks, and they generally > hate> inflation. (Contrast this with the situation in Zimbabwe, > where the > > government controls everything.) > > > > This is not 1929. It is not 1941. It is not 1973. In the current > "creditcrunch", it already looks like a deflationary spiral is of > greaterconcern than an inflationary spiral. > > Harry > >
