Well, it looks like California is getting into the money printing business:
http://www.economyincrisis.org/articles/show/2426 Prepare for a depression with hyperinflation: no jobs and worthless money. Terry On Wed, Oct 29, 2008 at 9:38 PM, Stephen A. Lawrence <sa...@pobox.com> wrote: > > > 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 the > power to create money. All the incentives are wrong, and hyperinflation > tends 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. > 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.) > >
