Music | October 10, 2008 | 20 comments

Confidence Is Leaving the Fiat Money System

source: http://mises.org/story/3146

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Were it not for ever-greater increases in central-bank money and the market expectation that governments are about to make taxpayers shoulder commercial banks' huge losses, the fiat money systems would presumably collapse right away.

International interbank short-term lending rates say it all: the latest drastic increases in yield spreads between money-market rates and official central-bank rates are indicative of the growing reluctance among banks to extend loans to each other, for fear that borrowers could default on their payment obligations.


Under today's fiat-money regime, banks, under governments' auspices, increase the money stock "out of thin air" whenever they extend loans. The money supply is built on credit, which, in turn, hinges on peoples' confidence in banks and banks' confidence in their borrowers' ability and willingness to service their debt.
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20 comments // Confidence Is Leaving the Fiat Money System

  • Commentor
    • 0
      Commentor  

    • Interdependance is not achievable without first having independance.

      And interdependance isn't controling ... I can depend on others I trust they can depend on me without controling me or me them.

      There are many people I am willingly help many of which are willing to help me without reguard for exchange.

      Remember:
      The Democratic Republican party split into 2 parties when it more or less became the only dominant party.

      the Republicans aka the Grand Olde Party retained the more "right leaning group" and the Democrats split off to form the other party

      They more or less have really always been the 2 halves of one party that choose a canidate and a debate partner.

      == I want my REPRESENTIVE REPUBLIC BACK ==
      The electorial college system the way it was ment to be... people vote for electors from their districts not for the presidetial canidate .. those electors get to press the canidates for answers and vote based on thier districts concerns --- the number of electors should never have been limited when they limited the number of seats in congress -- the constitution should have been changed so that the number of electors is based on the origional way congressmen where based --- delinking the congress seats from the electors at the very least. The all or none 2 party system should be abolished ... each elector from an electorial district should represent that district's choice while the 2 state wide electors (representng the senate electors) should be given direction by the state's government

      US Senators should actually be chosen by State government and should serve at the pleasure of the state with right of recall should the senator not vote in the intrest of the state as deemed by the state government. Likewise any congressionall district should have the right of recall over that seat as well .... but since the districts are now re-apportioned rather than grown the right of recall should fall to the electors elected by the people of the districts that seat represents.

    • 3 years ago
  • Walks_in_Storms
  • Commentor
    • 0
      Commentor  
    • Walks_in_Storms:

      Yes. I probably could and definitly should do more I know its not "free" (Like free beer)

      Thanks for leading the way and well I've not been here long enough to have been fighting as long as you.

      I didn't know about Third Party .com ... but would like to find the site you're talking about.

    • 3 years ago
  • pissedoffinarkansas
  • Commentor
    • 0
      Commentor  

    • If WE THE PEOPLE did what we'er supposed to do ... be informed and serve on Juries to be the finall check on the Laws -- finding the LAWS bad not just weather someone is guilty or innocent of the law.

      Sure its scary to be responsible for youself but grow up we're all better when people exercise personal responsibility rather than rely on the government to do it

    • 3 years ago
  • HolyCity2012
  • HolyCity2012
  • critic
    • 0
      critic  

    • World markets are plunging in a panic as the banksters have severed access to credit making investment and speculation impossible. The Dow futures market is dropping points in response to a borderline crash in Asia and Europe. It appears Morgan Stanley will be the next big bank to go under. In all likelihood this week will see the biggest stock market crash in history. Rumors abound that municipalities and States will default on their bonds this week. California and Massachusetts look like good candidates. The cessation of many government services and checks could follow. Iceland and Pakistan are on the verge of bankruptcy. Wonderful, a nuclear armed Islamic state thrown into chaos.

    • 3 years ago
  • critic
    • 0
      critic  

    • pissedoffinarkansas - Sir, I suggest that you ask questions and find out my political stance before you make comments like that. - I swear by my life and my love of it, that I will never live for the sake of another man, nor ask another man to live for mine.

      I seek a world of liberty; a world in which all individuals are sovereign over their own lives and no one is forced to sacrifice his or her values for the benefit of others. I believe that respect for individual rights is the essential precondition for a free and prosperous world, that force and fraud must be banished from human relationships, and that only through freedom can peace and prosperity be realized. It is every person's right to engage in any activity that is peaceful and honest, and we should welcome the diversity that freedom brings. The world I seek is one where individuals are free to follow their own dreams in their own ways, without interference from government or any authoritarian power.

      I Sir am an Anarcho-Capitalist, Government is corrupt the economic meltdown and the depression that we are seeing and heading for is proving this. - This Government is run by the special interests and corporations of which I do not subscribe. - So my friend if you would like to be controlled and told what you can and what you can not do, then go ahead vote for one of the lessor of two evils. But before you do, do yourself a favor and check out - http://www.thirdpartyticket.com/ otherwise just vote for one of the lessor of two evils.

      For Peace, Freedom & Prosperity - critic! :-)

    • 3 years ago
  • pissedoffinarkansas
    • 0
      pissedoffinarkansas  
    • critic:

      critic,
      My response was to your suggestion that regulating operations and profits was a bad idea. I too believe in complete liberty for the individual. However, a corporation IS NOT an individual and IS NOT guaranteed the same liberties and freedoms. Once corporate licence is granted that entity becomes a servant of the state, existing solely by the states discretion bound by it's laws and regulations. And who is the state? That's right, us, those granted the freedoms and liberties granted by our Constitution. Now the supreme court disagrees with this point of view but they have been swayed by the greed for power that has stained what once was the shining beacon for the rest of the world for what a true republic looked like. But those days have long past us now. Replaced by corporate hegemony and neo-conalistic ideals of empire.

      So you see critic, we are really not that different idealistically, except that I'm not so sure that our nation can be saved by merely expanding the presidential candidate field.

    • 3 years ago
  • critic
    • 0
      critic  
    • critic:

      pissedoffinarkansas -

      The two party system is corrupt.

      Currently, the presidential debates are secretly controlled by the major parties, through the private bipartisan corporation called the Commission on Presidential Debates, resulting in the stultification of format, the exclusion of popular candidates, and the avoidance of pressing national issues.

      The major party candidates never pay a political price for their antidemocratic practices; posing as an independent sponsor, the Commission on Presidential Debates shields the major party candidates from public criticism and public accountability.

      The Presidential debates -- the single most important electoral event in the process of selecting a President -- should provide voters with an opportunity to see the popular candidates discussing important issues in an unscripted manner. But the Presidential debates fail to do so, because the major party candidates secretly control them.

      Every four years, negotiators for the Republican and Democratic nominees secretly draft debate contracts called Memoranda of Understanding that dictate precisely how the debates will be structured; co-chaired by the former heads of the Republican and Democratic parties, the CPD obediently implements the contracts, shielding the major party candidates from public criticism.

      Such deceptive major party control severely harms our democracy. Candidates that voters want to see are often excluded; issues the American people want to hear about are often ignored; the debates have been turned into a series of glorified bipartisan news conferences, in which the candidates exchange memorized soundbites; and debate viewership has generally dropped, with twenty-five million fewer people watching the 2000 presidential debates than watching the 1992 presidential debates. Walter Cronkite called CPD-sponsored presidential debates an “unconscionable fraud.”

      Its a SHAM! Its CORRUPT! And "We The People" need to CHANGE this!

    • 3 years ago
  • peregrinfalcon
    • 0
      peregrinfalcon  
    • critic:

      i agree have you seen 'the shift' and 'the venus project' there are many people in this world who want the controlling power of the media, corporation and government removed they want a life of freedom of love spirituality yeh in words it sounds like some hippy commune but everyone is equal responsibility towards all life is the objective harmony, balance, love is the incentive i am a good person with a good heart yet there are people in this world who are making decisions on my behalf and the results of these actions make me sick to the core it has to stop

    • 3 years ago
  • pissedoffinarkansas
    • 0
      pissedoffinarkansas  

    • Sounds to me like you like to hear yourself type critic. Have you not seen enough of dereguation to know that ,given the opportunity, those in power will take advantage of the common people? If not you have obviously had your eyes closed.

    • 3 years ago
  • critic
    • 0
      critic  

    • dkincheloe - it sounds to me that you want to be controlled!
      I on the other hand do not wish to be controlled, life is a risk and no one has the right to tell anyone how to run their business. Why don't we just open up our lives and let the government tell us what we can and what we cant do in our own homes!

    • 3 years ago
  • critic
    • 0
      critic  
    • critic:

      Walks_in_Storms

      "I on the other hand do not wish to be controlled"

      I did not say that I was not controlled. Of course I use money, the highway all of the above. But I do not accept it and I am trying to change it.

      I accept The Philosophy of Liberty, Self-Ownership. That is what this country was founded on and that is why my American friend, You threw my English people out of this country. Yes by now you have probably guessed it. I am an English man living here in the US, legally of course. I love this country more than my own, sadly to say, because of the socialist BS back in England. So sit back and enjoy the video.

    • 3 years ago
  • dkincheloe
  • critic
    • 0
      critic  
    • dkincheloe:

      dkincheloe - it sounds to me that you want to be controlled!
      I on the other hand do not wish to be controlled, life is a risk and no one has the right to tell anyone how to run their business. Why don't we just open up our lives and let the government tell us what we can and what we cant do in our own homes!

    • 3 years ago
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