March 22, 2011
The writer of the review, if not the author, has adopted the libertarian false use of the word "fiat" which somewhat confuses his article. If the article is read as though the word "fiat" never appears in it, the article is basically true concerning good money juxtaposed to bad.
What should be emphasized is government created and spent into circulation money opposed to private banker "credit" (bookkeeping entries) loaned into circulation as debt at interest.
The first is a measure of value which facilitates exchanges at no cost while the second is the world's most profitable (because it's a criminal scam) business which steadily steals all wealth, created and natural.
Although seldom mentioned, even by those against private money, there is a deadly problem with all PRIVATE money, a thing of which libertarian "theorists" are in love. It's what the usury attached to fed notes is all about. No usury, no profit; no profit, no money business. Pretty simple.
People like Ron Paul, as well as the whole "Austrian" mis-education center (can't call it a school in reality), insist on misusing the word "fiat" to mean paper. That is not what it means. Loosely translated into English it means "so be it." It indicates that there is a law which says "this is our money (so be it)." Whatever carries the government fiat IS the nation's money. Proof of that to the people is that the government accepts it in payment of taxes.
Much of the monetary confusion in the U.S. is due to a criminal act of the United States Congress in its giving of the fiat to private banker debt (usually called "credit") as our money. Since federal reserve notes are, in fact, evidences of debt, they cannot be money in reality. However they presently must suffice as money by government pretense and enforcement. This government condoned scam is at the bottom of almost every economic problem existing.
Until this lie and injustice is corrected there will never be anything close to economic justice or fairness in the U.S. As one district federal reserve banker publicly stated in the past, if all debts were paid there would not be a single dollar left in circulation. We are totally without any permanent money system. He could have added that many debts wouldn't even be paid because the interest on the loans is never created and cannot be repaid without constant new and exponentially bigger loans rolling it over. The government share of this unpayable interest is usually called "the national debt." The rest is the debt of the citizens of the nation.
People such as Ron Paul are correct that our money is not proper money but neither is their desired substitute which amounts to the thing we already have plus the even worse mistake of insisting on it being metal. No matter what money is physically composed of, without the government fiat it is not proper money. The thing which makes money be money is LAW, not substance. Law and barter are not the same thing.
However, even as law, PROPER money can not be debt but it must carry the government fiat. And it must be governmental created and circulated partly because only government can do this without being forced to make an immediate profit from its circulation, thus eliminating the "third hand" of a private money creator in every transaction.
Further, loans are a banker operation and no government should also be a banker. Government can more easily regulate banks for fairness and justice in loaning than itself can be so regulated by the people.
But with federal reserve notes we have a medium of exchange which can not exist without being loaned, thus combining banking and money creation in a privately owned devil's cocktail of instant corruption and theft of all wealth through the national medium of exchange, the most essential of all modern necessities.
To the extent that this book makes these facts clear it is worthwhile. There is much too much confusion about money. That is because those in control of creating and circulating the world's money today, private bankers all, want it to be confusing.
The last thing they want to happen is for the people at large to learn just how simple is the concept of honest money. And how criminal is the economic mishmash we now live under. For good reason. Their lives would not be worth a dollar of their own false debt if the people understood what they have done and are still doing to them, I care not what their race, ethnicity or background.