Brown is a Greenbacker. She is open about this. Most people have never heard of Greenbackism. It has been a fringe movement in American political life ever since the 1860s. The Greenback Party in the 1870s was the first American political party to come out in favor of a pure fiat money economy, a paper money system controlled by Congress with currency irredeemable in gold coins or silver coins.
The Greenbackers are committed to paper money. They are opposed to any form of gold standard. They are opposed to fractional reserve banking. They are opposed to central banking, unless the central bank is 100% owned and controlled by Congress.
What it is all about is the Goldbug people versus the Interest Free Money crowd. It is one of the most crucial debates around. As I have mentioned before both on this site and elsewhere, Gold is the preferred currency of the Banking Fraternity and they plan to reinstate it in their world currency, which is coming closer every day….
…North has managed to do something profoundly dishonest and unwise. In this enormous article of his he actually does not mention the problem of interest at all.
This is so totally unfair to Brown’s work, because this is surely one of the most important aspects of her narrative….
Interest free money, either printed debt free by the Government or through interest free credit either by private organizations or again by the State, is simple, proven technology and centuries old.
Yes, many systems have been abused resulting in inflation.
No, interest bearing Gold is definitely not an acceptable solution.
In turn, it’s a given that the liberty movement supports the restoration of the Constitution which clearly states that the coinage of money shall be in gold and that only the elected Congress is authorized to issue and control it. However, the Constitution says nothing of allowing a fractional reserve gold standard run by private bankers which is promoted by some Goldbugs. Furthermore, some Constitutionalists still maintain the strange notion that the government should belong to the people. Therefore, if we were able to restore the Constitutional principle for a government of, by and for the people, it would seem that interest-free currency issued and controlled by our elected government would be considered more constitutional than the current system.
It is true that gold has been valued in society for thousands of years and it will likely continue to maintain its terrific investment value for the foreseeable future. Gold clearly has a physical value derived from the incredible energy it requires to mine and refine it. But gold, as a limited resource, is interest bearing and can be hoarded by those with the wherewithal to do so. This would seem to suggest that gold could then be manipulated by the few who control vast sums of it. And that sounds a lot like the economic tyranny we face today with the private Fed.
North attacks Greenbackers because they “are opposed to central banking, unless the central bank is 100% owned and controlled by Congress.” As if to say, how dare the people demand ownership of their own currency. It shows a blinding distrust for Constitutional government and obvious preference for private banking interests. Goldbugs seem caught up on the fact that a unit of exchange must have intrinsic value, either backed by gold or as an instrument of debt, or both. They feel so strongly that fiat currencies are utterly unreliable, but spend little time discussing the motive behind the interest and supply manipulators. Additionally, it is unfair to suggest that fiat currencies are not redeemable in gold, as any widely acceptable unit of exchange can be traded for gold. Currently, one can buy an ounce of bullion for around 1400 Fed-deflated U.S. fiat Dollars.
I don’t want people to get the wrong impression. I believe gold is a great investment, especially in these turbulent times. And I also believe gold has a place in securing America’s currency. However, I worry that those who hold dear that a currency must be backed partially by gold in order to have legitimacy are susceptible to supporting a global currency if it includes gold as part of its currency basket. Perhaps I’m naive, but I’m not sure why a combination of the two solutions is not feasible, with interest-free paper Greenbacks redeemable in gold or silver, while also producing silver and gold coins for circulation — all tightly controlled by Congress, not a private organization, as per the Constitution. After all, Fort Knox is supposed to be the people’s gold, right?
Let the debate begin. Tell us what you think would be the best system to replace the Fed.