Letter: Fallacy of fiat currencies
May I please offer another view in response to "It’s tin-foil hat time, again" (G-J editorial, Jan. 31 issue)? This editorial fails to take into consideration some rather pertinent facts in regards to the current financial condition of this nation.
Since 2008, the currency in circulation has tripled. The national debt exceeds $16 trillion. America is experiencing trillion-dollar deficits. Congress is unable to curb spending or to pass a budget. Since 1971, the dollar has not been backed by anything of value other than the full faith and credit of the federal government, which, by the way, is bankrupt. With 40 cents of every dollar spent by the federal government having been borrowed or created, how much longer can this charade continue?
I believe the historical record clearly illustrates the fallacy of fiat currencies. No fiat currency has ever endured beyond a century. Unfortunately, America has had ample experience with fiat currencies. A few of those failed examples are the Civil War "greenbacks," the bills of credit of the original American colonies, the ill-fated Continentals—none have survived and I fear neither will the Federal Reserve Notes that we now refer to as dollars.
Unfortunately, when the Federal Reserve fails, all of the fiat currencies in the world will fail with it. No less than 30 countries of the world have experienced currency failures as a result of hyperinflation, and these were all in the 20th century. The reasons for these inflations were all prompted by fiat currency creation on an unprecedented scale.
Delegate Marshall’s bill to establish a Virginia and alternate currency is on a firm economic and political foundation.
Does anyone recall President Kennedy’s silver certificates issued by the U.S. Treasury Department?
Port Haywood, Va.