0010, What Can Save Humanity From A Kleptocracy? 4075, 0010
Stillreport: Today we continue with SR 10 – the 10th in our series of 4075 Still Reports and over 400 other reports for a total of 4500 YouTube videos over the course of 18 years. This is the second part of an examination of what can effectively serve a sovereign nation as money. As we will see, this is a big problem which sovereign nations have tried to deal with over many centuries. The bottom line is who controls the quantity of money, not what backs it. The recent proposal by the State of Texas to issue gold backed money only works because we trust Texas to not issue more of its gold-backed money than it has gold in its vaults to back it up. But that will only work as long as the politicians overseeing the amount of gold are honest. If dishonest politicians get in control of such a monetary system – as they have in the Federal Reserve System – then the backing for the money will gradually become degraded. In other words, the politicians will start issuing more pieces of gold-backed money, then they have gold held in their vaults. This is, unfortunately inevitable because the glitter of gold bullion is the ultimate temptation for sinful humans. But what about gold or silver coinage? They are absolutely secure as long as the purity of the gold or silver content is verified. However, can you see the problem in using only coin for the exchange of goods. Can you go to the grocery store and expect the store to assay the gold content of a tiny gold coin before verifying every purchase? Very impractical!
