Powell Gammill
Letters to the Editor • Federal Reserve
Foundations for Real Money
Look, if we abolish the Federal Reserve, what will the federal government base our money on? It's a pretty open secret that the Treasury doesn't have enough gold (or silver, or even copper) to back up our existing money.
Well, consider: the federal goverment does own a lot of physical property. There's land (and no, not just the national parks, thank you!), there are countless warehouses full of unsorted property collected by every means from confiscation to war, and there are old weapons up to and including fleets of ships. The Mothball Fleet in San Rafael Bay alone should be worth a few trillion just as it is, floating on the water.
Let's pressure the government to make a complete and accurate accounting of all the property it owns, and start basing our national currency on that.
Let it also restrict the amount of actual money we send out of the country, so that -- for example -- no Arab emir with a lot of oil can collect American dollars and trade them for American land. In fact, let's insist that nobody but American citizens (or American corporations) can own American land. Trading for old battleships, on the other hand, will be perfectly feasible.
Can anyone see any problems with this?
Editors Reply
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2 Comments in Response to Foundations for Real Money
You do not want your currency based on Government holdings. To expand the money supply, they will expand their holding, as it is always the nature of politicians to spend more money than they have. Name one government with fiat currency that has not deficit spent over the last decade. Introducing gold and silver coin back into the world economic systems would begin the transition but the Tyrants of Power will not just bend over and let that happen. However, I believe that this will happen soon enough as the free market must always correct the error of our ways and those that have none will regret their desire and allegiance to fiat paper money. Until somebody comes up with a better money than gold and silver coin, I believe the Citizens will always choose them as their favored medium of exchange. Keep trying though.
I suspect the total entirety of the federal government out on the auctioning block would not add up to cover even one half of our debt. Even if we tossed in the nukes.