Quote:
Originally Posted by Unarmed Gunman
Having our money backed by a hard asset such as gold or silver does not by definition disallow fractional reserve banking. The only way that would be true is if we actually used the hard asset as our day-to-day currency.
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Which is why FDR confiscated bullion from private citizens.
Obviously a hard money system (commodity money) is only part of the solution. Which is why gold bugs and the Money Masters folks don't see the whole picture.
FRB is legal counterfeit. Until this is stopped, the problems will reappear.
Ideally, there is free market money. There is no fixed commodity backing currency. If someone tries to manipulate or confiscate a supply, people can just start using a different good. In other words, repeal legal tender laws.