Quote from: johnyj on July 04, 2013, 11:21:15 PM

Quote from: pedrog on July 04, 2013, 11:14:28 PM

Quote from: johnyj on July 04, 2013, 11:05:04 PM

Quote from: Nemo1024 on July 04, 2013, 10:17:51 PM

How is this different from the 52 states (plus the rest of the world) borrowing dollars from the Federal Reserve, dollars, which too get printed out of thin air?

It's same everywhere, but before 1971 fiat money were backed by gold, so they were not printed out of nothing

It's like a magic, you built the second floor of a house and removed the first floor, and the second floor just floated in air. But for how long will it float there?

Why is that better? Would that helped folks in Cyprus or Greece?

Of course it will help, it is the money backed by debt created today's problem. When money is backed by gold, every piece of money is already paid, you are free to do anything with it. But when money is backed by debt, you must spend all those money in order to pay back the debt, and even if you spend all of them, you still can not pay back your debt, since there is interest

So, no loans with interest, no more corruption, no more tax evasion, no more incompetent politicians?