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Posts Tagged ‘fractional reserve banking’

Michael Badnarik

Michael Badnarik, 2004 Libertarian presidential candidate and “Stepfather of the Constitution,” was asked the following question by a caller on his October 2, 2008 radio show (at 48:44):

During the Civil War, Abraham Lincoln printed Greenbacks in order to finance the army of the North and to pay his soldiers and buy goods. Couldn’t we do the very same thing? Couldn’t we abolish the Federal Reserve and the fractional reserve banking system and go to constitutional money printed by the Treasury and controlled by Congress, which would, we would not have to pay interest on that debt, and we could pay our debts without the interest applied? Wouldn’t that solve the whole problem?

Badnarik responded:

That’d be a step in the right direction, I think.

Despite being a hard money advocate, notice how he didn’t take exception with United States Notes being unconstitutional as he has with blatantly unconstitutional acts like the USA PATRIOT Act, 2001, and the Military Commissions Act, 2006.

For where some people get the idea that interest-free fiat money is constitutional, see my articles: The “necessary and proper” clause: it’s not meaningless, and The Constitution doesn’t prohibit both the states and federal government from issuing fiat money.

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