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The reason we accept paper money as a store of value is habit. This habit has its origins in history, when banks took our gold as deposit and issued paper receipts for it. The gold has gone, but the paper with its habitual value remains, and we accept it without question. The only backing is a vague government promise. There is no sound ...
Governments grant central banks a monopoly on the creation of hard currency. At the same time, we ordinarily make transactions with other means of payment supplied by commercial banks. This is possible because in our monetary system commercial banks are able to create so-called bank money. These means of payment consist of different ...
Recently Rob McEwen of McEwen Mining Co. and Michael Crofton of Philadelphia Trust discussed the pros and cons of the gold standard. In this debate, Mr McEwen made an excellent case for gold as “the ultimate currency”. He argued that using gold as currency could help restore fiscal discipline in governments; and that, in ...
Missouri is the latest US state that is trying to follow Utah's example by allowing physical gold and silver to be used as legal tender. According to the Constitution, gold and silver coins – such as the American Gold and Silver Eagle – should be accepted as legal tender in all of the US, but of course this has long since ...
Spanish speakers rejoice! The late Ferdinand Lips’s epic book Gold Wars: The Battle Against Sound Money as Seen From a Swiss Perspective has just been published in Spanish for the first time, with sponsorship from the GoldMoney Foundation. The first versions of the book (in English and German) were published back in 2001 – on ...
In a recent article in Fortune, Warren Buffett reiterated his well-known view on money. Far less celebrated, however, is the discerning view of his father, Howard Buffett, expounded in a brilliant speech in 1948 while serving as a 4-term congressman from Omaha. In contrast to his son WB, HB insightfully considers the importance of money ...
"The Gold Standard is the right answer to realise a stable financial market." This is the proposition that participants will be debating at a one-day conference organised by the Ludwig von Mises Institute Europe on March 7 in Brussels. This institute was officially established in 2002 as a think tank dedicated to advancing the ...
Sons often rebel against their fathers, but what accounts for the difference between Howard Buffett’s view of gold, and that of his son – the famed investor Warren Buffett? While the latter is famous for his disparaging remarks about gold, his father Howard – who represented the Omaha district of Nebraska for four terms ...
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