Saturday, July 16, 2011

Is it Logical that to Let Federal Reserve Print Paper Money & not arrest them but put in jail counterfeits?

"my Aunt told me that dollars were worthless so I had to change them to pounds." Hmmmm. That's right queer, that is. Dollars are worthless yet they LET you "change them to pounds"? I assume you mean EXchange. But in any case, why would they let you exchange worthless dollars for pounds? The answer is, they wouldn't. Further, saying that the pound is worth 2X as much as the dollar would hardly indicate "worthless". That's like saying that someone has a $100 note, and since it's worth 2X the value of a $50 note, the $50 note is "worthless". Likewise, when you left "UK England" (I won't even discuss the error there), did you bring back some � notes? If you DID, have you yet tried to give them to a US merchant? A US merchant won't take those � notes. I suppose they're worthless, then? There's something called an "exchange rate". But I won't bother attempting to explain that, as it's a dead cert you wouldn't understand. Were you to attempt to give someone $500 dollars as a wedding gift (only not actual dollars, but the equivalent value in Japanese yen), you might be informed that yen are worthless. Of course they are, where you are. And yet not truly "worthless". As far as your facetious statement that the government counterfeits money by not having gold to back it up...I cannot think of any country that does not do this. Perhaps you have heard of an altercation in the 1800's in your country? It was called "The War Between The States", among other things. Essentially, one side had been printing currency and continued to do so. The opposing side began to print currency as well. When the Confederate side lost, all of the money it had printed became worthless. "Money" works like this: There need not be gold or silver to back it up. All that is needed is a willingness to accept it. In other words, assume I were to purchase a portion of the United States. I then give the residents there the opportunity to migrate to the U.S. or remain in my new country. I then issue money of my own design, at a set value. Any merchants in my new country have agreed to accept the currency I issue as "legal tender". Should I decide that more cash needs to be in circulation, I can print more. However, should an individual simply COPY my money, THAT is counterfeiting. Simply stated, the COPIES should not exist. I could go on and on, but I feel I have made my point.

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