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Source link: http://archive.mises.org/18783/what-is-sound-money/

What is Money?

October 22, 2011 by

{ 5 comments }

Franklin October 22, 2011 at 11:17 am

Three cheers for mises.org, providing the gateway to these sessions.

Joseph Salerno laced his entire discussion with “uhh” or “errr.” This man is a terrific scholar but fails to deliver crisply. Lydia Mashburn is even worse, but..uh.. is thankfully on…uh… for only the first couple of… uh… minutes.

A nit? Hardly. If the goal is to capture more hearts and minds, then don’t check the bat; instead swing for the fence. Articulate as masterfully as you research. Otherwise, it sounds like uncertainty, lack of credibility, puzzlement. Pauses of silence sound more scholarly than utterances of “errr.”

Generally nice information, however.

Mike Sproul October 22, 2011 at 11:32 am

Why do we accept pieces of paper with green ink on them?

Because they are backed by the gold and bonds held by the Fed as “Collateral Held Against Federal Reserve Notes”. The green bits of paper are not currently convertible into gold, but they are convertible into the Fed’s bonds, which are themselves backed by taxes and other government assets, i.e., by the government’s real resources. Should the day ever come that the Fed is liquidated, the green pieces of paper will have a claim to all of the Fed’s assets, including its gold.

Peter October 22, 2011 at 1:56 pm

Then let’s hope that, should the day ever come, the value of all those green pieces of paper won’t turn out to be unexpectedly smaller than the value of Fed’s assets, i.e. that you don’t buy them for too much…

Jimmy Richards October 23, 2011 at 7:15 am

The only reason I accept them is because I can immediately go and turn them in for Gold and Silver, which at the very least I consider to be my modern 21st Century savings account.

Why anyone still believes in the paper, backed by nothing other than debt, fiat green piece of paper, I don’t know.

Tom E. Snyder October 23, 2011 at 3:05 pm

Mike: “The green bits of paper are not currently convertible into gold….”

Actually they are at most dealers who sell gold.

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