Recent content by taotree

So, what we're saying is that the money in a bank account is not base money, it is units of credit. However, you cannot separate the two completely because at any time, any and all depositors (except time deposits that we'll ignore for now) can convert that credit into base money. I'm assuming...

I read this referenced article: http://www.newworldeconomics.com/archives/2008/020308.html But I have questions regarding this: "Now, nowhere in this exercise does the bank "create money." It borrows from one entity (the depositor mostly) and loans to another." Reading wikipedia on this...

I'm not sure what you were linking to being pertinent to the gold issue. My understanding is the pertinent section is: http://www.law.cornell.edu/uscode/search/display.html?terms=hoarding&url=/uscode/html/uscode12/usc_sec_12_00000095---a000-notes.html And you can see that it appears those...

Generally speaking, fixing the tax situation is not directly related to solving the absurd monetary policy (they can "lower taxes" but get it through the inflation tax). Just like fixing the monetary policy will not directly solve the tax situation (they could raise taxes to an even more absurd...

Not according to what I've read about legal tender law. It says that if you took them to court to make them pay the gold, you would lose because the court would say that they offered to pay you and so are not in default. I've read this several places. If not true, then legal tender has virtually...

Sorry, everything I have read so far says this is not true. http://www.law.cornell.edu/uscode/31/5103.html It says "all debts". Nothing about just public debts. The refusal of bills you refer to is allowed because there is no debt involved. When you pay for a good or service, you are paying up...

Common sense would agree. Unfortunately, the law says otherwise. The law says that if he took you to court to make you pay and you told the court you offered him sufficient paper, the court would not make you pay the ten ounces of gold, you could just give the paper and would be legal.

There are many laws that supersede contracts. Legal tender is one of them. If there is a debt involved and legal tender is offered in payment, it must be accepted. That's why many people don't like legal tender laws.

That's not the problem, nor why Ron Paul has introduced a bill to get rid of legal tender laws. The problem is that if you enter into a contract that specifies gold as payment, the debtor can pay by legal tender (FRN for example) and not gold. In spite of the contract explicitly specifying only...

From what I understand, legal tender says this: Let's say a debtor comes to a lender and offers legal tender for the debt but the lender refuses stating that the contract was in gold and so gold must be given. The lender takes the debtor to court demanding payment. The debtor tells the court...

Is the legal tender law it really any significant barrier to use of precious metal use? X writes up promissory note to Y that X will pay Y 10 grams of gold each month for the next year. Now, for whatever reason, Y comes back and says that because of legal tender laws, he can just pay in USD...

That would work if I was an employer, but I'm not. I've considered negotiating with my current employer, but... it's not a good time for that at the moment, I think. He says 6 - 10% above spot. Maybe 2 years ago (I don't know) but right now I think that is way too high. I see silver around 3.5%...

I'm not trying to avoid anything. 28% of the gains on 0.1 grams of gold would be a rather small amount anyway. But the burden of calculating that every time you buy a loaf of bread--1000 times a year, that's absurd. I'm more concerned about the paperwork burden.

What's to stop the local currency issuer from inflating it without bound? That's what the states did early on in the US--they issued their own money, it inflated and became worthless. I'm not sure how bad the rise would be (lots of downward pressure as well), or if a rise would be a bad thing...

I wasn't suggesting senate site was definitive, though it is rather curious that it is displaying incorrect information. It's all I could find in the few searches I did. Thanks for pointing out that site--a great deal of very useful information in there! So... apparently the verdict for the OP...