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<p>[QUOTE=&quot;fatima, post: 1165282, member: 22143&quot;]The proof was posted right after your post.&nbsp; None the less, most authors on this subject don&#039;t realize the difference between fiat money and asset based money.&nbsp; (also known as lawful money in official government terms)&nbsp;&nbsp; </p><p><br /></p><p>Until 1914-1933, US dollar was defined as a certain weight of silver or gold.&nbsp; The currency represented an actual asset i.e. the actual gold or silver in the coinage, or in dollar gold or silver certificates whose printing was limited to bullion on hand by the government.&nbsp;&nbsp; <u>The currency was nothing more than a government backed assay of the metal.</u>&nbsp; Because of this, the supply of dollars required an increase in the productive output of the USA.&nbsp;&nbsp; Hence inflation was practically nil.&nbsp;&nbsp; (~130 years)&nbsp; It only came into play when the government decided to print fiat currency.&nbsp; (most notably during wars)</p><p><br /></p><p>For the last forty years, we have been using a completely different dollar.&nbsp; It no longer represents an asset, it doesn&#039;t represent anything. It is a piece of paper printed by the Federal Reserve that doesn&#039;t promise anything.&nbsp;&nbsp; The Federal Reserve can increase the supply of dollars at any time&nbsp; without any consideration for the economic output of the USA, consideration to the harm it does to people, consideration to anything except its own secret policies.&nbsp; &nbsp; it should be interesting to note that while millions of people have been put out of work over the last few years the supply of dollars has been increased substantially.&nbsp;&nbsp; This is what causes inflation.&nbsp;&nbsp; </p><p><br /></p><p>To summarize, the dollar was once defined in terms of silver and gold.&nbsp; People were trading the value of the silver and gold.&nbsp; Government currency was only an assay of this metal.&nbsp;&nbsp; The dollar is now defined as a piece of paper provided by the Federal Reserve.&nbsp; By using the same name for both, all of us are witness one of the greatest obfuscations of the 20th century.&nbsp; It&#039;s been so complete that most people now simply refuse to believe it.</p><p><br /></p><p>When authors decide to write on the subject they make the great jump to conclusions that the dollar from a century ago works the same as the dollar of today and this is where they always get tripped up.&nbsp; Hence, they come up with nonsense because they don&#039;t understand this fundamental difference.[/QUOTE]</p><p><br /></p>

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