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Posts Tagged ‘quantity’

Obverse of the Series 2006 $20 bill

Dr. Stan Monteith, host of Radio Liberty, and author of Brotherhood of Darkness, is no friend of fiat money. Especially not privately issued fiat money.

However, in the second hour of his September 5, 2011 episode, he stated at 46:56:

The fiat money system works well if it’s tightly controlled.

He then added:

But you’ve gotta be willing to take away the punch bowl when the party gets interesting.

Bill Still has stated that fiat money systems work well, so long as the quantity of the money is controlled. No system lasts forever, including one based on a gold standard, as I have explained in my article, The gold double standard.

Nor is the gold standard the panacea that some make it out to be, whether we’re talking about a government-guaranteed gold standard or an illusory so-called free market gold standard, which has never existed.

The English tally sticks demonstrate a fiat currency that lasted over 500 years, and George Whitehurst-Berry of Crash! Are You Ready? has repeatedly cited The Bank of Venice as an example, according to his sources, of a bank that issued fiat money for hundreds of years without any boom-and-bust cycles, and encountered only two minor panics, unlike the many panics and crashes that occurred with a gold standard in the United States at various times in the 1800s until 1934.

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