How do you back 7t cash with 4t gold

[fsk]

Why not just leave it to the people? No national currency

That really is the correct way to do it. Have no regulation at all of money and banking and let the market decide.

 

[JosephTheLibertarian]

That really is the correct way to do it. Have no regulation at all of money and banking and let the market decide.

Pretty much. I also am a stickler (lol) for this concept of voluntary contributions as opposed to taxation, therefore, government would pretty much have to budget what it receives from then people by basing their assets on the market. You know, if someone contributes a pound of copper, the government would have to budget as much as the pound of copper is worth. Government could also choose to back what they have with a monetary system, that's entirely up to the government.

 

[weatherbill]

price of things would not be equal....simple as that.....if a competing currency enters the market place, a loaf of bread will cost $3 USD, but only a silver quarter. There would be two prices on all items, a USD price and a silver price. The silver price would be much more consistent....the dollar price would keep rising due to people dumping it for silver.........

 

[fsk]

That's the entire point.

If there weren't taxes and regulations preventing people from using REAL MONEY (gold or silver), then why the **** would anyone use Federal Reserve Notes at all?

 

[williameis]

I don't think the transition would be as terrible as that. Believe it or not, the Fed can destroy currency as quick as they can print it, and if they stayed resolved at a 1 to 2 percent core inflation rate I think it would be a relatively painless transition.

 

[fsk]

If Federal Reserve Notes are still considered "legitimate" for paying taxes, then the demand for them won't completely dry up.

Income taxes are the *ONLY* reason that people use Federal Reserve Notes at all, instead of real money.