Friday, August 24, 2007

Counterfeit Nation

"Though it is hardly the sort of thing you read about in heroic histories of America's rise to greatness, the credit system in the United States has often been, in effect, a confidence game writ large, relying heavily on shaky paper promises, shell games and other trickery. ... All these moneymaking operations blurred the line between what was counterfeit and genuine. ... Genuine counterfeiters no longer lurk in every corner of the financial system", Stephen Mihm, in the NYT, 19 August.

Of course we no longer need genuine counterfeiters. We have the Fed. American history as taught ignores monetary history. We have had disputes over paper money, a central bank, etc., ever since 1792. It's not likely to end soon. We have had a pure paper system since 1971. I don't know how much longer it can go on.


robert fligel said...

Unfortunately, I believe you are so right. Many years ago, a mentor recommended the book "Fiat Inflation in France" by Andrew White which detailed one of many failed historical attempts to manipulate currency. Fast forward to the present and you have none other than the Comptroller General of the United States, David Walker, traveling around the country trying to alert the public to the many financial issues facing the country.

What to do? I am curious what you and others are considering to protect yourself from what will be some serious inflation or recession/deflation.

Please also see my blog at

Jr Accountant said...

I'm still amazed McTeer used "counterfeiters" in nearly the same breath as "the monetary alchemists of the Fed"

As if - who buys that? As I said... if they aren't counterfeiters or alchemists, then they must be thieves.

Bah indeed.