Saturday, May 29, 2010

Currency should be based on banks not governments

The European Central bank should base its currency on banks and not governments. The ECB should now look for major banks in each European country to back and support in order for the Euro to remain a viable currency in each country. Then they support those banks right now if necessary, but set up higher capital requirements for all banks that use its Euro going foward. And if all banks in a particular country are not even worth helping, then they must let those go.

There is no reason for the ECB to care if a government defaults nor should they worry about employment or any other issue other than the stability of its monetary value against gold, its currencies wide acceptance, and the health of the banks that hold accounts in its currency. Concerns regarding employment, health of governments, and even price stability (other than against gold) are all ploys by governments to increase their power and steal from the people.

2 comments:

Jacobus said...

Dude, why should anyone be compulsed to sink his labor in whatever fiat funny paper is mandated.... The world economy did fine when people choose their own currency, why is limiting this freedom by force a bad idea?

"Sex Toy Dave" Levine said...

Since fiat money is "funny paper", that is why it is bad to force people to use it.