The government can never run out of money.

No, I'm not wrong.

The only reason why anyone uses USD to obtain goods and services is because the central government has granted USD an effective monopoly on money.

In a free market, it would fail.

And I'm still laughing at your epic meltdown on numerous forums.

Man, that was hilarious!

 

Stalkers and crazy people get the best of you sometime. I'm still laughing at how obsessed you guys were with me. It was insane.

 

Actually the US Constitution does that, not the federal government.

Obviously, you're unaware of the financial and economic conditions during the pre-Civil War and Civil War Periods.

 

Can you explain how a legal document like the US Constitution "does" something without federal officials and agents?

In any case, how does it change the fact that the USD's status as money is dependent upon a government-granted monopoly, i.e., force?

No, I'm well aware of them.

Perhaps you are projecting your own ignorance onto me?

Because there was a robust market for private currencies in the pre-civil war period.

And to the extent the US government issued money during this period, most of it was gold and silver coinage.

It's pretty obvious that you know very little about the US Constitution or about American history in general, though you pretend otherwise.

 

The several States voluntarily forfeited the right to coin currency when they joined the Union...there was no force involved.

Economic systems require stability, so a unified currency makes perfect sense to rational people.

As a business, you're free to use any currency you desire, notwithstanding the fact that you must accept US currency. There are plenty of currencies competing against the US Dollar. Enjoy.

 

You can use whatever medium of currency to trade in your trade partner will accept. Euro, $, £. Bitcoin. Live Chickens if you like.

People use their own national currencies typically because it is easier.
It is a free market and the USD has not failed.

 

That doesn't answer my question.

You claimed the US Constitution, and not the Federal government, is responsible for the USD's effective monopoly status.

But the Federal government only exists because of the US Constitution, and every power enumerated by the Constitution is enforced by Federal officials and agents.

So how does a legal document like the US Constitution "do" something without federal officials and agents?

Markets are stable.

The idea of a "unified currency" is nothing more than economic central planning, the same kind of economic central planning that was practiced by every authoritarian government in history, starting with the ancient Chinese warlords who invented FIAT money.

There is nothing novel or innovative about a "unified currency". And the repeated and manifest failures of FIAT monies throughout history proves your reference to "stability" is nothing more than a canard.

In reality, "unified currency" is about the consolidation of power and wealth with the elites.

They want to monopolize money because it gives them immense control over society.

References to "stability" are nothing more than pretexts meant to deceive credulous simpletons.

Simply not true.

Market-based currencies are effectively criminalized by the US government's counterfeiting laws, and even if they weren't, they're rendered noncompetitive by the US government's tax and legal tender laws.

If you don't believe me, then try to make a competing currency in America and see how well it goes for you.

The only currencies in real competition with the USD are other government FIAT monies like the Euro.

 

You can use Bitcoin, sure.

But if Bitcoin appreciates relative to the USD, the appreciation is taxed at 15%.

So Bitcoin is at an automatic disadvantage relative to the USD in terms of its monetary utility.

And that doesn't even begin to address the substantial impediments that Bitcoin faces in terms of its legal status.

The US attorney's office in Manhattan has been doing everything in his power to undermine Bitcoin, for example: Manhattan U.S. Attorney Announces Charges Against Bitcoin Exchangers

Kind of hard to compete against the USD when the US government is taking 15% off the top and heaping onerous regulations on your operations.

So please stop pretending like there is a free market for money, because that is a pure fantasy.

The USD is a centrally planned government monopoly, and that is the only reason it is used in the mainstream economy.

 

You said the US Dollar was forced upon the States. I just pointed out the States voluntarily accepted it when they joined the Union.

Thanks to stable unified currencies.

So you're one of the irrational people who sees a conspiracy behind every banking transaction.

I simply meant you could accept foreign competing currencies, like the Pound Sterling, Ruble or Euro.

The US Dollar is not "fiat" currency. The US Dollar is backed by the GDP of the US (plus all US Dollar-denominated transactions globally).

 

That's not what I said.

I said the USD's value comes from its monopoly status, which is enforced largely by the federal government's taxing powers.

And that is true.

Absolute nonsense.

Markets are stable because of supply and demand.

And no such currency existed between 1790 and 1912 and the US economy grew more or less exponentially, thus proving you wrong.

Stop being so dishonest.

Nowhere did I say or imply that "every banking transaction" is the result of a conspiracy.

I simply said that "unified currencies" serve to consolidate wealth and power with the political class.

And you did nothing to refute or rebut that statement.

You simply trafficked in dishonest innuendo.

You said businesses could use "any currency" they want.

That is not true.

Government tax and regulatory policies make market-based currencies effectively illegal and unusable.

Of course it's a FIAT currency.

It's value is derived through decree.

The US government levies taxes that are only payable in USD; the US government effectively criminalizes private money; and to the extent that private monies exist, the US government levies a 15% tax on them.

In a free market where such conditions did not exist, the USD would not be used because it has no intrinsic value. It's just a piece of paper backed by government decrees.

 

What about Visa?

 

Is it your understanding USD are mandated as the only means to buy in America?

 

What role does the Fed have regarding monetary value?

 

I'm not sure I understand the question.

 

The amount of notes it decides to keep in circulation. Quantative easing.

It increases or decreases the value of money buy the number of notes it prints. Supply and demand.

 

No.

There is no law or set of laws that says you can only buy things with USD.

If you really wanted to, you could live your entire life using only gold and silver to buy goods and services.

However, due to the government's tax policies, that would be very difficult and costly, because any appreciation in the value of gold relative to the USD is taxed as capital gains at a rate of 15%. And the tax liability incurred is only payable in USD.

So it makes no financial sense to use gold and silver as money because it's already at a 15% disadvantage relative to the USD.

And this doesn't even address the legal ambiguity and risk inherent to using gold and silver as legal money.

There was one case of a man emitting his own gold and silver coinage in an attempt to compete with the USD and he is now in prison for violating the US government's counterfeiting laws: Defendant Convicted of Minting His Own Currency

I could go on and on about the onerous tax and regulatory policies that create an effective government monopoly over the issuance and use of money.

 

The federal reserve is just a board of technocrats who centrally plan the supply of money through the control of interbank lending, reserve requirements, and asset purchases, to name a few.

Simply put, it is a centrally planned government monopoly, and the federal reserve is the institution that manages it.

 

The reason we,as the Issuer on the Gold Standard had to give it up
in 1971 was that The United States had less Gold Reserves than Foreign
Held central banks.The very thought today of us,using the Gold Standard
which means every dollar is backed by gold,is SO preposterous as to seem
like Parrots run the Federal Reserve.
Our Unfunded Liablilties run in the Hundreds of Trillions.
That means that stacked one dollar bill atop of each other
One Trillion dollar bills would be appx. 68 thousand miles.
Is that 1/4th a trip to the moon.
Multiply that by Hundreds.
Are you literally out of your gourd.
Er what.
I get it ... you listen to your local Union Boss who propably
got as far as the 9th grade.

 

It only took three years for the sentencing, and then it was to home detention for 6 months. Prosecutors wanted 14 to 17 years. That's your wonderful government for you, protecting you from people who want to use their own money. They called it "domestic terrorism" because so many people wanted to use something other than the US dollar. Home of the brave, indeed.

 

You can't go to your local bank and cash in gold or silver.
Not even Gold or silver coins.Unless you want to redeem them for what
the face value is.Like a Gold coin with face value of $ 20.oo or $ 50.oo.
A silver dollar for a Buck.
You can't go to Wal*Mart and buy a snickers bar with a gold or silver
coin.The only place would be a pawn Shop.
Not exactly a comforting thought.

 

During F.D.R.'s reign in the 1930's there was a confiscation of Gold by
Government edict.What's to stop this " outright corrupt " Big Brother Government
from repeating that policy.?

 

The Feds role is to regulate the Money supply by tinkering with Prime
and overnight lending rates.To keep money tight and controlled as far
as borrowing and not letting Inflation or Deflation rear it's head.
Keep the economy growing as far as production and inventories.
Companies have to be able to borrow in order to keep producing.

 

Yes, don't I feel so much safer.

 

And the several States voluntarily agreed to it.

Feel free to amend the Constitution if you don't like it.

How's that working out in Venezuela?

The Law of Supply & Demand does many things, but providing Market stability is not one of them.

Was the population stable, or was their exponential population growth?

That's a misguided belief held by you. Are you envious that you're not part of the political class (whatever that is)?

Businesses may use any legal currency they want (but they are required to accept US Dollars as legal tender).

No, it's value is derived through the GDP.

Currency is merely a medium of exchange to facilitate trade and commerce, not an end unto itself.

 

What is your understanding of the role Visa plays in the exchange of goods and services in America?