Silver & Gold & the Problem w' the Austrian School of Economics

Silver & Gold - the Problem w' the Austrian School of Economics.
One major problem with the theory that the gold & silver pundits argue regarding "'sound money" and "hard money", is that they ignore the fundamental problem whereby Central Banks charge Interest for the money they lend to the government. The Constitution provides that only the Congress has the ability to "coin money". The of the crux of the problem, for the people, is that a Central Bank lends the money with interest to the government which must be paid back through the taxation of the people. If the Central Banks had gold the problem of paying back the money with INTEREST would still be preset. Even if all "fiat" notes were to be used as the legal tender and medium of exchange of a country, as long as those "fiat" note came into being without interest attached to them and by vote in the House of Representatives, that would be a much better deal for the people than have a gold-backed currency lent to the government with INTEREST.
The Austrian School of Economics ignores this fact. If we went to a gold standard and Central Banks lent the government money with interest attached, we are all still enslaved to the Central Bankers. Actually it was an experiment in Austria in the 1930's depression time where FIAT local currencies saved the economy in the areas these Fiat currencies were issued Interest-free. It is very obvious that the Austrian School of Economics is aware of this successful issuance of Interest-free Fiat money that immensely stimulated the local economy.

Local Currencies & the role of PD in the 3rd Industrial Revolution
(An experiment with interest-free Fiat money in 1930's depression-era Austria)

[syyenergy]

“Only after the last tree has been cut down. Only after the last river has been poisoned. Only after the last fish has been caught. Only then will you find that money cannot be eaten.”

[syyenergy]

I made both points for that reason. But the main problem of the gov't (and people) being charged interest by the Central Bank is always left out and ignored by the gold pundits.

[syyenergy]

We elect them every 2 years. If they are the problem the who's fault is that ? The Congress has the power to deem what legal tender to use, , gold or whatever. That is the Law and guess what the people allowed ? If we go to a gold standard and the Central bank still has control we are still totally screwed.

[vettefever]

Can't blame Faber for selling. That is the dynamics of the free market. People should NEVER overpay for a good or service.

[syyenergy]

When there was a gold standard they still screwed us. They will just charge more interest for loans. Keep the power of money creation in the hands of the House of Representatives. In Austria they issued fiat local currency and worked extremely well in the 1930's depression. The Central Bank of Austria hated it. Faber and the rest are very aware of this.

[syyenergy]

Yep. But the real problem is the Interest. None of the gold pundits mention this. If the Central Banks have 90% of the gold on the earth (for example), and lend it out and charge interest. How would that loan get paid back? It can't. It's the fact that a Central Bank controls credit and money that really screws the people far more so than it not being on a gold standard. Money issuance was deemed to be in the hands of the Congress, not lent to the gov't with interest by a central bank.

[sheepman]

you make some very interesting points... the reason gold has value is because one, it is rare, gold is form from exploding stars, and two the man power and resources it takes to get the stuff out of the ground, where as money printed by our government is only worth the paper it is printed on, i like your idea of using other commodities, how about food??

[freesk]

I'd say the problem is not interest. It is legal tender laws. These create a monopoly in money. But what we need is the opposite: a free market in money. Sometimes you want a gold backed money. Sometimes bitcoin. Others may have some other private currency they prefer. But if anyone tried to take advantage of people via one money type, then others would have an advantage. You could not use people via the currency because the competing money types would keep you honest. Freedom works.

[Rain]

You just pointed out precisely what the problem is. However no measure taken in the physical alone (i.e. change the monetary system) can ever clear Man of his errant (as you say criminal) consciousness. The majority must be controlled, as we see, through the mechanisms employed in the physical by threat of poverty, jail, death or in other words pain to behave in a manner that extends his chances to clear consciousness via Truth. It matters not whether we deem any control governmental or private.

[acjitsu]

Yes, there would be a massive deflation in assets that need to be deflated. Perfect !

[gtorres]

I would go as far to say why not find a way to sow the precious metals into the bills and make the bills a plastic material. This should also be good way to inform the population why our money is suffering from hyper inflation in the future. The truth of the matter is today most people are clueless to the history of money and the banks use this to their advantage. Knowledge is power when preventing enslavement by bankers.

[syyenergy]

I know. I don't trust Ron Paul. What I was emphasizing here was the Interest aspect. Look at the experiment in Austrian in the 1930's depression. They used local Fiat currency but the currency went right into the productive middle-class. It required much less fiat local currency than they expected to stimulate the economy a great deal. If the House of Representatives took back their power, Debt-Free money creation would be back in the hands of the people.

[syyenergy]

I think the USD should be backed by useful commodities, especially hemp.

[gtorres]

I see what your saying when you say issue currency interest free by the congress but. the problem I see with this so called solution is that criminal such as the people who own the fed will always find a way to take control of the system back. These criminals will murder if they have to. Backing currency with precious directly seems like a good safety net to me.

[acjitsu]

I get your point and agree with the Central Banks having the gold, but why give these people, Congress, any power at all? 'm tired of this system. What about If we "elect" these bozos every two years, it would be better but who's to say these people EVER have our best interests in mind?I can't even get my lawyer or real estate broker whom I've paid to truly represent me, how can there be a system where a person can represent millions of people? BTW, great vblogs.Thanks.

[joeyojoeyo]

What was the rate of debt in Russia when they devalued their currency ?

[syyenergy]

That was not point. If Central Banks control the money and Lend it to the government with Interest, then we are still screwed even if it is backed by gold & silver.

[evanlhm]

Touche. this is what Bill Still proposing. Have you looked at Bill Still's work?

[acjitsu]

Keep the power of money creating in the House of Representatives? These clowns can't decide on a budget and you want to give them the power to create the money? Come on man. We need three things to have a successful money system. 1- The rule of law, 2- Sound money, 3- An end to Fractional Reserve Banking.

[gtorres]

I enjoy these videos by the way as well as health videos.