Re: Cheney's Halliburton to Control Iraqi Oil?

-----BEGIN PGP SIGNED MESSAGE-----
Hash: SHA1

On Saturday May 10, 2003 09:25, Andreas Pour wrote:
> No, that is what Congrss is supposed to do, the Federal Reserve itself
> is unconstitutional.  Read the Constitution.

The Constitution doesn't require that US currency be on the gold or any 
other standard.  It just reserves to the Congress the exclusive authority 
to print money.  So guess who authorized the Fed?  The Congress, in Title 
12, Chapter 3 of the US Code.

So in what way is the Fed unconstitutional?

> In the case of the Fed, if you would be so grand to tell me, as you are
> so expert at economics, how all the US money supply comes into being? 
> Let's start at day 0, and you can take a coconut island with two
> inhabitants as your example.  The important thing to note here is that
> the Fed has only fiat money, it is not backed by any assets, so keep
> that in mind with your
> "economics 101" analysis of our simple hypothetical island.

Well, it's fun to call it fiat money and all, but what makes a US $100 bill 
intrinsically more or less valuable than a bar of gold or a diamond?  
Supplies of both *are* limited, but why should something man-made be less 
valuable?

> Of course once they have printed one $100 bill, they can afford to print
> - what, 500 more? - yes, 500 more, so they can convert the $0.20 to $100
> and then to $50,000 and you can see how soon the Fed can have all the
> money it wants, there being exponential growth to the whole affair.

Yup, it'd be *very* easy for the Fed to trash the value of the dollar.  
That's why the Constitution prevents the states from printing money in the 
first place.  I think it was Rhode Island who in the post-Revolutionary 
period was just printing endless amounts of money, causing lenders there 
to take a bath.

If only we had any inflation right now...

- -- 
Neil Stevens - [email protected]
"The shepherd drives the wolf from the sheep's throat, for which the
sheep thanks the shepherd as a liberator, while the wolf denounces him
for the same act as the destroyer of liberty." -- Abraham Lincoln
-----BEGIN PGP SIGNATURE-----
Version: GnuPG v1.2.1 (GNU/Linux)

iD8DBQE+vtQlf7mnligQOmERAnXoAJ9DMIZASphTIt56cSe8vP0vg1HtVQCfeypY
GUnqH34To8qf6zMbIyhpmqY=
=gNTa
-----END PGP SIGNATURE-----


Kde-cafe mailing list - [email protected]
http://ofb.biz/lists/listinfo.cgi/kde-cafe

DISCLAIMER: The views expressed on this mailinglist are the personal
opinions of the author and do not represent OfB.biz: Open for Business, KDE or the author's employer.