Please explain why fiat money not backed by gold and silver is
the way to sound economics in our world
Backed by gold and silver?
That means that there will be a check on the expansion of the money
supply.
Economic activity needs capital in order to operate smoothly.
When a business wants to expand, it borrows it's capital from banks
in order to finance that expansion.
If there is a check on the money supply, the banks will not have
enough money to lend out to the businesses to help them
operate.
It's like you want to go places in your car, but the fuel supply is
now checked.
Money supply expands and contracts to meet the demands of the
economy.
If you impose checks on the money supply, the economy cannot expand
as it should.
That is why banks create money out of nothing.
Any third grade banker can tell you that.
Here are some lectures on the USA banking system if you are
interested.
This is to counter some of the insidious propaganda circulating on
the web.
Banks And The Banking System
http://www.ndu.edu/library/ic3/icaflectures1.html
