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[Kevin Palmer]

In the early 1900's his quote was exactly correct.



However,,, as times have moved from the 1900's to present, that is no longer the case. Don't misunderstand, I WISH it was true. But the reality is, you can no longer go to the bank and exchange the "IOU" for the gold it represents.



In the real world, it is now accepted that the paper money is in fact the true money.



You and I will always have to pay back the IOU's where the government does not. They will either print more money or sell bonds to generate money. The issue with the selling of bonds is, when it is time for you to cash in your bond, they will simply sell more bonds to generate the funds needed to cover your bond.



We are now a paper world, that is reality...

 

[Kevin Lang]

Fiat money in our retarded fractional reserve system comes from, as Coastiejoe pointed out, debt...an infinite and ludicrous cycle of debt.



Works well enough, except for the rampant inflation...which the Fed is supposed to be able to manage by controlling the money supply, which is hilariously not happening...and since the Fed has/is been actually bankrupt, that puts even less credibility to them.



The losers should raise the interest rates back to what they used to be. High interest accounts were reduced by over half of their interest rate, and then plummeted for months after Obama took over, leveling off for one of mine @ 1.30% APY, which is crap considering that it once was over 5%.



With low interest rates, it is almost not worth it to save...which is terrible for the economy.



Fiat blows.