Re: The Economy Of Plenty

The Free Marketeer (tfm01@sprynet.com)
Fri, 19 Sep 1997 09:11:41 -0800


> Yes, the power to print currency is reserved to the Fed in the
> Constitution. But one must ask, "Why?"

There is intentionally no provision for printing "legal tender" in
the so-called Constitution, only coining "lawful money". That the
private Federal Reserve managed to defraud the Congress for a power
it did not possess, confiscate gold from the American people, make
debt liabilities the only "legal" medium of exchange, et al. is
merely in keeping in line with the intentions of the malevolent
powers behind it. Recall what the so-called 14th Amendment states:

"The validity of the public debt ... shall not be questioned."

> Clearly, allowing local scrips is inflationary. Or, at the very
> least, creates money where money would not have been. This is of
> course very, very bad for central fiscal policy. No matter what
> the Fed does to reduce inflation, anyone with poker chips (or the
> capacity to make poker chips) may add to the money supply at will.
> In short, I'm not surprised they hate new currencies.

Ithaca Hours in Ithaca, New York, which is a very successful scrip
that has been cloned worldwide, closely matches the issuance of new
scrip with actual labor/goods produced in the community. Thus,
inflation is nonexistent. This is no threat to the Fed/IRS since
it helps offset the currency inflation (since any gain in Hours
terms is "required" to be included as a tax liability.)

The Fed has more than a monoply on just printing currency for its
reason to fear true competitors. It rakes in nearly infinite
profits by devaluing it before it's placed into circulation.

On a central bank level, the Hong Kong Monetary Authority is solely
unique among the world's central banks in that it does not have the
ability to print currency at all. (The Hong Kong Dollar is pegged
to the U.S. Dollar however). Hopefully, the Chinese terrorcrats
will see fit to leave it alone.

TFM