prasad1
Active member
Mr. Hare Rama Hare Krishna,
You are fixated on this topic. You think that the corruption in India would disappear if we banish "Fiat Money". You also contend that British introduced us this type of currency.
Can you prove that corruption would be eliminated, if we get back to gold standard? I am sure you can not prove it.
A little history of Fiat money:
Fiat money - Wikipedia, the free encyclopedia
Fiat money originated in 11th century China, and its use became widespread during the Yuan and Ming dynasties. The Nixon Shock of 1971 ended the direct convertibility of the United States dollar to gold. Since then all reserve currencies have been fiat currencies, including the U.S. dollar and the euro.
By World War I most nations had a legalized government monopoly on bank notes and the legal tender status thereof. In theory, governments still promised to redeem notes in specie on demand. However, the costs of the war and the massive expansion afterward made governments suspend redemption in specie. Since there was no direct penalty for doing so, governments were not immediately responsible for the economic consequences of printing more money, which led to hyperinflation – for example in Weimar Germany.
Attempts were made to reassert currency stability by anchoring it to wholesale gold bullion rather than making it payable in specie. This money combined pure fiat currency, in that the currency was limited to central bank notes and token coins that were current only by government fiat, with a form of convertibility, via gold bullion exchange, or via exchange into US dollars which were convertible into gold bullion, under the 1945 Bretton Woods system.
From 1944 to 1971, the Bretton Woods agreement fixed the value of 35 United States dollars to one troy ounce of gold.
Other currencies were pegged to the U.S. dollar at fixed rates. The U.S. promised to redeem dollars in gold to other central banks. Trade imbalances were corrected by gold reserve exchanges or by loans from the International Monetary Fund. This system collapsed when the United States government ended the convertibility of the US dollar for gold in 1971, in what became known as the Nixon Shock.
So all currencies in the world are fiat money. If corruption is due to fiat money, then can you explain the disparity in corruption between countries?
Corruption is due to the erosion of moral value, and not linked with money.
People practice corruption without money ever changing hand.
Stealing of merchandise, nepotism, favoritism, bribe in kind are all corruption and may not involve any fiat money.
So please do not interject your idea of eliminating corruption in every thread. Let us keep a separate thread for this topic.
You are fixated on this topic. You think that the corruption in India would disappear if we banish "Fiat Money". You also contend that British introduced us this type of currency.
Can you prove that corruption would be eliminated, if we get back to gold standard? I am sure you can not prove it.
A little history of Fiat money:
Fiat money - Wikipedia, the free encyclopedia
Fiat money originated in 11th century China, and its use became widespread during the Yuan and Ming dynasties. The Nixon Shock of 1971 ended the direct convertibility of the United States dollar to gold. Since then all reserve currencies have been fiat currencies, including the U.S. dollar and the euro.
By World War I most nations had a legalized government monopoly on bank notes and the legal tender status thereof. In theory, governments still promised to redeem notes in specie on demand. However, the costs of the war and the massive expansion afterward made governments suspend redemption in specie. Since there was no direct penalty for doing so, governments were not immediately responsible for the economic consequences of printing more money, which led to hyperinflation – for example in Weimar Germany.
Attempts were made to reassert currency stability by anchoring it to wholesale gold bullion rather than making it payable in specie. This money combined pure fiat currency, in that the currency was limited to central bank notes and token coins that were current only by government fiat, with a form of convertibility, via gold bullion exchange, or via exchange into US dollars which were convertible into gold bullion, under the 1945 Bretton Woods system.
From 1944 to 1971, the Bretton Woods agreement fixed the value of 35 United States dollars to one troy ounce of gold.
Other currencies were pegged to the U.S. dollar at fixed rates. The U.S. promised to redeem dollars in gold to other central banks. Trade imbalances were corrected by gold reserve exchanges or by loans from the International Monetary Fund. This system collapsed when the United States government ended the convertibility of the US dollar for gold in 1971, in what became known as the Nixon Shock.
So all currencies in the world are fiat money. If corruption is due to fiat money, then can you explain the disparity in corruption between countries?
Corruption is due to the erosion of moral value, and not linked with money.
People practice corruption without money ever changing hand.
Stealing of merchandise, nepotism, favoritism, bribe in kind are all corruption and may not involve any fiat money.
So please do not interject your idea of eliminating corruption in every thread. Let us keep a separate thread for this topic.
