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[Arachno-capitalist]

Well that brings us to one of the spin offs of full bodied currency which is currency competition. We use banks and trust them to hold on to our money in the same way we would use currency producers or warehouse receipt issuers. The discussion goes to a whole other planet when we start talking about apocalyptic scenarios. Instead what Im talking about here is that the government lifts its monopoly on currency production. A newly issued private currency would operate like any other currency, except it would be exchangeable for a store of wealth and protect its value.
Imagine if you will a credit card from A-CAP'S TRUST. Now as long as ACT paid vendors in their preferred currency (just like we do now), the ACT currency would float around the market. ACT makes its money by speculating in currency (because as other currencies of the world inflate around it, the bet is practically guaranteed), seigniorage, and transaction fees.
As for a nationalized full bodied currency - that is more a romantic idea where government can't devalue my currency, and therefore steal my wealth, as I hold it in my hand or have it in a bank. Inflation is one of the greatest robberies and everyone seems to look the other way. Practically, however, we are too far entrenched in a government literally funded by hopes, dreams, and promises that to say "we actually have to have something to back it up" at this point would collapse the financial debt structure.

It would obviously take a lot more to convince people as smart as you all, Im just sketching broad strokes.

[wombat]

Aren't you supposed to be a human skin container for Tequila by now?

I thought he already was, when I read that post.

(The setup was so obvious, somebody had to say it.)

[Dexter]

People have considered gold valuable for so long, it would be a difficult habit to break. (like Imperial units and not-speaking-Esperanto)

Dude, while I am (in theory) all for an international auxiliary language, there are plenty of good reasons why Esperanto isn't the one.

[theinevitable]

how can we invent a language when we have trouble figuring out the rules for the ones we already have?
this seems like a prescriptivist plot to make a simple language where the rules always apply.

[Doc]

how can we invent a language when we have trouble figuring out the rules for the ones we already have?
this seems like a prescriptivist plot to make a simple language where the rules always apply.

Li koni too multa!

[Pedro Picasso]

A newly issued private currency would operate like any other currency, except it would be exchangeable for a store of wealth and protect its value.
Imagine if you will a credit card from A-CAP'S TRUST. Now as long as ACT paid vendors in their preferred currency (just like we do now), the ACT currency would float around the market. ACT makes its money by speculating in currency (because as other currencies of the world inflate around it, the bet is practically guaranteed), seigniorage, and transaction fees.

I like your private currency idea.  Is this illegal?  It seems like you could do this right now.  I used to have an eGold account and a pepperCoin account.  When eGold folded, I sold my gold and got a check for $20 based on my $10 investment and the fact that gold prices went nuts after the eleventh of September 2001.  The pepperCoin business didn't shake out at all because it was based on the fact that people would go to a lot of effort for the ability to pay each other in 5 cent increments.  But pepperCoin was a truly private currency that could be converted to other kinds of currency.  Paypal survives, but they handle things in existing currencies.  Anyway, I'd totally snatch up some ACT script were it available.

As for a nationalized full bodied currency - that is more a romantic idea where government can't devalue my currency, and therefore steal my wealth, as I hold it in my hand or have it in a bank.

It is my understanding that the US Government doesn't print more currency than is physically destroyed in a given year.  Am I wrong on this?

Inflation is one of the greatest robberies and everyone seems to look the other way. Practically, however, we are too far entrenched in a government literally funded by hopes, dreams, and promises that to say "we actually have to have something to back it up" at this point would collapse the financial debt structure.

Inflation is enabled by an increasing money supply which is fed not by printing more money, but by increased lending.  When the Fed drops interest rates, more people/banks borrow money and then lend it out to multiple people thereby 'creating' more liquid cash.  This doesn't have to do with printing money.  Our protections against it are to raise interest rates and to more strictly regulate banks as to how much money they have to keep on hand in relation to how much has been deposited. 

It would obviously take a lot more to convince people as smart as you all, Im just sketching broad strokes.

I appreciate your posting about this.  Your ideas are interesting.  I suppose if I really wanted to take a detailed beating on this, I would sign up at forums.aynrandfans.com or somesuch though they might lack the civility you have.  Perhaps I'll do that.

[jay-ell]

It is my understanding that the US Government doesn't print more currency than is physically destroyed in a given year.  Am I wrong on this?

*weeps*

http://www.hithimagain.com/2008/01/19/bush-congress-fed-all-hapless-to-stimulate-economy/

It's a terribly biased editorial, but the basic facts presented are correct, even if you disagree with their interpretation. 

Pedro, ask my dad next time you see him about the three ways monetary policy can influence the economy.  He'll tell you more than you want to know, I'm sure.  Just because they prefer to use interest rates to manipulate the economy most of the time doesn't mean that they can't, won't, or don't print more money than is required to replace that which is destroyed. 

[Pedro Picasso]

Pedro, ask my dad next time you see him about the three ways monetary policy can influence the economy. 

I am not in the habit of exposing my absolute ignorance to people who are not imaginary-friends-on-the-internet.

[jay-ell]

As. 

If. 

[Limmo]

Should we just leave you two alone for a minute?

[jay-ell]

Dude, remember what happened *last* time we were alone together? 

[Limmo]

Dude, remember what happened *last* time we were alone together? 

Point.

[theinevitable]

you haven't been alone together since then? so sad. I want to say that I will hug you, but maybe instead I will leave for a few minutes or an hour.

[lprkn]

The child is disturbed by the camera, or perhaps something happening behind the camera.

[Doc]

Man, even she looks kind of freaked out by the whole thing, like 'Damn guys, don't leave 'em alone again... look what happened!'