Quote :

" The auto dealer trades you a new car for an amount of gold. There need not have any "dollars" involved."

I would imagine that in order to avoid having to lug around pounds of gold that the dealership might prefer to deal in forms of credit of some sort. Perhaps slips of paper that could represent a promise to obtain real gold at a later date. Which of course leads us back to a form of currency that is now linked to a certain amount of gold, leading us presumably back to the same problems LS highlighted a few posts ago.

2/5/2009 12:03:13 AM

Quote :

"Name me an American war where we didn't finance it through fiat money. "

I'll do no such thing. You asserted that fiat money allowed "countries to wage war on one another," not that it enabled the United States specifically to do so. Now, fiat currency doesn't really make a significant appearance until the 1700s, give or take. Prior to that, governments had proven more than capable of waging wars. They also managed to prolong those wars and wage plenty of military mayhem with specie currency.

[Edited on February 5, 2009 at 12:44 AM. Reason : ]

2/5/2009 12:43:34 AM