Monday, April 18, 2016

Fiat Money Fairytales
GoldMoney's John Butler sees the mainstream media as propagating fairytale explanations of historical accounts relating to sound money, the Federal Reserve & gold .. he refutes a recent article by Professor Charles Postel of San Francisco State University on his recent tirade against sound money .. Butler: "The Federal Reserve Act was initially drafted in secrecy by a small group of elite Wall Street bankers and Senators on Jekyll Island, deliberately out of the public eye. Second, it was passed at the start of the Christmas holidays in 1913, with a large number of Representatives and Senators absent. In the Senate there were 43 'yeas’, 23 ‘nays’ and 27 absent (and more on the record as opposed than not). This hardly implies widespread support. Indeed, it suggests that the Act was conceived in secret and brought to a vote during holidays precisely because public opinion was opposed. Did this change dramatically in the following years? Well, given that the Fed did not begin to actively manage the money supply until the late 1920s, it is fallacious to argue that (non-existent) monetary activism was ‘widely accepted’ at this time." .. Butler asks what explanation the maintream media will give when the current fiat money regime ends: "If the Second Great Depression has occurred under an activist, fiat money regime, should we still blame a rigid gold standard for the First Great Depression? Now how do you think they will answer that, Mr Postel?"
LINK HERE to the essay

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