Quote:
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Originally Posted by Shoonra
The point about United States Notes is that they were "pegged" to anything. They were without precious metal backing, or T-bills, or anything else. They were, supposedly, unaffected by the scarcity or amount of gold, etc. They were simply issued by Congress as money -- the closest thing to a precaution was that the amount of face value was (and remained) rigidly limited. Essentially, the only backing was the credit and all the assets (not just gold) of the US govt; most of the time this would be more than adequate but in the darker days of the Civil War it wasn't such as sure thing.
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Sometimes when Shoonra says something like that, that is blatantly untrue it works up a bit of a sweat. I think how seldom Shoonra (Bernard J. Sussman) actually out and out lies here on Suijuris and start to wonder if I have been spinning a bunch of crap instead of him doing it when a few learned members force him to touch rubber to the road so to speak - a reality check.
In his post Shoonra is talking about fiat in the heart of the war and emergency of the Civil War. So in those times people do what they can against a hope of credit - see attachment from the Mason library. [Sometimes I wonder if Sussman is a Mason? He writes in alignment with the ADL; that's for sure. The Israelite Priest medals attached are found in the Mason museum. Note in particular the Dagon Pope hat on the rightmost medal...]
http://friends-n-family-research.inf...ll_juliard.jpg
Now pay particular attention to
Payment 294-3 in the right-hand column there. And considering the context of extending issuance of US notes - fiat currency (and all that means technically is paper that can be exchanged for a set amount of precious metal) being extended into peacetime.
- That the US will continue to issue US notes. The only reason the fiat currency - US notes - were being allowed into the post-war "peacetime"* was that they would have a set value - like Shoonra has already admitted lately.
Shoonra tells us the truth that US notes, in limited circulation within the Treasury
are inelastic. So therefore his post quoted here is a lie. He knows better than to say that the amount of gold to be redeemed by US notes was not and is not to this day
set. That would make US notes either unlawful or at best elastic as FRNs. (See the Title for the Federal Reserve Act attached.)
Provide an
elastic currency...
Since Shoonra knows US notes are inelastic, him saying the exchange rate back to metal floats is a lie.
Regards,
David Merrill.
* Actually the
emergency continues after the
war as no state or confederacy of states is allowed to secede from the Union.