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From: stefbot
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  • I love Peter. He sees through the nonsense of governmental policy without ever needing to mention ethics. Not that ethics is unimportant, but he cuts through the bs. The statist believe the government has so magical ability to fix things

  • So...I need a list of emails of every politician in the US. I want to email this video to them. This is unbelievable. Obama NEEDS NEEDS NEEDS NEEDS NEEDS NEEDS to watch this, or have a sit down lunch with Peter. Awesome interview!

  • Fantastic interview, how in the world did I miss it?

  • I see the train coming but can't get off the tracks! Think I'm gonna go out and stock up on razor blades and shaving cream today. Thanks for the great interview its interesting looking back to see how the logic inherent in "Austrian" economics proves correct over time....and yet disheartening because the greater majority must be brainwashed because what should have been done wasn't and our future is now that much more precarious.

  • It doesn't matter how many people point out the Emperor (read Obama and his fellow, Keynesian, champagne socialists) has no clothes. No one listens.

    Good work Peter, if only the "money men" (read Rothschilds and Rockefellers et al) would listen and be more altruistic, so we, the masses, do hear this sort of message.

  • i'd vote for Peter Schiff

  • What an amazing video...Thank you for this!!

  • This was a stellar interview. Glad I found your channel Stefan

  • Comment removed

  • Excellent. Well done to both Stefan and Peter!

  • Funny to watch this video after so long, yet everything that Schiff has said has come to pass.

    Including his denial of another Japan which Stefan proposed.

    History repeats itself over and over, it is entirely symptomatic of a psychopath.

    Diagnosis: Insanity.

  • killuminati

  • Both these guys should know better than to think politics is banking for the people. What's Schiff trying to do, delay the inevitable collapse? America is producing more than ever, but no one but Americans are buying it up, despite Schiff's claim there is not enough production, because of a propped up US dollar for a couple different reasons -- reserve currency and to buy Chinese goods. Economics is the modern religion, both BS at the end of the day.

  • none of the systems work. none. dominion is a failure and the only way to survive and flourish is to quit feeding these systems and return the tangible sustainable aspects of our culture to Natures Laws. all else is futile.

  • stef why the suit?

  • my two favorite youtubers in the same video!

  • I wonder if Stef would ever interview Ron Paul... that would be quite interesting to watch.

  • Peter Schiff is a good man. But it is too late.

    The only green shoots I find today is on molded bread.

  • What a treat! My favorite modern philosopher talking with my favorite modern economist! Great video!

  • @chuska8383 Thanks, hope you liked it...

  • @chuska8383 Both Stefan and Peter are amazing!

  • @stefbot

    This is your best interview, period. You and Peter Schiff make an unbeatable duo!

  • I think the word everybody is looking for is PONZY SCHEME

  • My Economics professor once said that "Economics is the science of common sense". The problem is, common sense is not common anymore. Another great interview. Thanks for doing this.

  • @16:00-16:23

    I am 19, I know about the bleak future of the USA and I am making plans to leave by the end of 2010. Who knows when this system will come down, the sooner you leave the better off you will be.

    I also think they will close borders when our economy collapses, essentially trapping everyone here, so those of you watching this better consider moving out; before its too late.

  • @AxiomaticObserver You are very intelligent. I am 27 years old and a former Police Officer and 911 Dispatcher. I left America in April of 2010 and now live in Germany. It was the smartest decision of my life. Get out of America before "Owe"bama has Ben Bernanke's money press on warp speed and inflation skyrockets into the stratosphere. Get out before it's too late. Look to Ron Paul and Peter Schiff. Don't listen to the others when they say you are a traitor or crazy.

  • @msungs ~ that was quite a jump in your life. Did you do it because of your political views? How are you finding it?

  • @AxiomaticObserver Really, can they just close the borders like that? But what am I supposed to do? I'm an indebted college student with no job.

  • new age is commin.

  • This is what it's all about! This is the truth & our future!

  • Schiff for Senate!

  • omg its the guy from robocop!¬

  • Peter Schiff's dad is a political prisoner in an American penitentiary.

  • @TheMrnonviolent What is your point? Are you talking down on him for that?

  • @violetta3333 America should not have political prisoners. Irwin Schiff has been wrongly imprisoned and should be released immediately.

  • @TheMrnonviolent whaaa?

  • @TheMrnonviolent

    you mean he is a convicted felon and gimp in an American prison because of tax evasion.

  • @MySockPuppeteer No, he's actually the rare person who stands up for his principles, something I'm guessing you have no clue about.

  • @pretorious700

    oh so, you approve of tax evaders and embezzlers. well, why don't you join him in prison then, you gimp.

  • @MySockPuppeteer Good rule of thumb if you are a real man-don't say shit on the internet you wouldn't say to someone's face, you clown. The world is full of big mouthed 20 something jerkoffs like you.

  • @pretorious700

    i would say it to your ugly peasant face any day. fuck off, retard.

  • @TheMrnonviolent you clearly haven't got a clue what political imprisonment is.

  • i guess americans are spending my tax money on booze or whatever.

  • @geekst

    I wish.

    At least that way, they wouldn't generate additional dependents.

  • None of them are wearing pants.

  • I respect both Schiff and Stefan but anyone--including Schiff--believing Schiff will be anything more than just another deadbeat sucking up a federal paycheck, benefitting from the Senates socialized medical program, and the much better than the workingmans Senate retirement plan is delusional.

    And running as a republican speaks volumes! Change my butt!

  • LOL- you are crazy.... Schiff has millions, he will lose money if he gets elected and retires from his business.

  • @Voy2378

    Being a Senator does not mean Schiff will lose his millions. It means that he´ll be partly living off the public dole while perhaps not earning as much income off of other enterprises. Schiff can still invest--are you aware that Senators have a better investment return than most Wall Street brokers?—and reap the rewards of his millions working on his behalf.

  • He won't lose millions that he has, he will lose millions that he could have earned by expanding his business...(going on TV=>bringing clients to his firm). If he is a senator he won't be able to spend his time on europac.

  • @Voy2378

    He´s making the choice, is he not?

  • Yes, but your comment was like: Schiff is going to Washington to make money.

    "[...]Schiff will be anything more than just another deadbeat sucking up a federal paycheck, benefitting from the Senates socialized medical program[...]"

  • @Voy2378

    Does he plan to refuse any of the benefits, pay, etc.? Of not he´ll be just another dead-head living off the public dole! He´ll not affect change because the system works perfectly for the ruling corporate oligarch.

  • He plans to cut government spending. If he is successful he will save 10000x the money he is paid. I understand why you think that he will probably fail in his mission, but I don't understand why you don't want him to try.

  • @Voy2378

    Ain´t gonna happen! Becoming part of the problem isn´t the solution. Peter knows full well that he won´t be able to do anything of affect change. Makes me wonder what´s the real motive. There isn´t anything like insider info to make one super-wealthy.

  • 1. Schiff was drafted

    2. You have wild imagination. So you probably think that 1. was faked by Schiff

    3. You should listen to Schiff's interviews in 2005... (he is saying the same things)-if he is that smart to plan 5 years in advance he should be the president :)

  • @ChimeraWarrior73

    You are insane. Not only will he lose millions just in what he intends to spend on his campaign from his own pocket, but he will lose tens of millions by not spending any time at Europac promoting and growing his firm that now manages around $6 billion. He spent $500K just the other day and thats just 1 day that I know of. Trust me, Schiff is not going into politics for the money, and most senators dont have a better investment return than Peter Schiffs firm

  • @jjrglobal

    Okay.

  • @Voy2378

    Schiff will not make any changes because the ruling corporate oligarchy will not permit any change that it does not deem profitable. Do you think it an aberration that the only legislation that ever gets through the faced of partisan division in the Congress is that which further enhances the fortunes of the ruling oligarchs?

  • Schiff alone(1 vs 99) won't be able to change anything, but what is your solution? To send Simmonds to Washington and have 0 vs 100. If Schiff wins I hope more politicians will do what he does.

  • @Voy2378

    That´s why I said that contrary to his bold statement nothing will change! History teaches us very well what is needed to affect real change. It´s a shame because humans refuse to accept the lessons of history, that´s why it seems cyclic.

  • @Voy2378

    There are already several other people with the same ideas as Schiff that are running for Congress in both houses. We gotta start somewhere. Dont listen to this defeatist fake warrior, If it were up to people like him the world would be a really fucked up place run by tyrants.

  • @Voy2378

    Sorry that should read ¨the façade of partisan division.¨

  • And if I go to Washington, believe me, things are going to change. Nothing is going to be the same as when I get there. Peter Schiff

    I don´t know whether to laugh or cry! Has Peter fed himself so full of shite that he´s believing his own propaganda? Should Peter be sent to Washington he´ll either play ball like the rest and obey his corporate masters or he´ll be silenced into oblivion like Paul, Sanders and Kucinich.

  • please physically-restain any American from voting if can't prove they have listened to this conversation... or any voter, anywhere

  • cool vid keep it up

  • Really good vid

  • Linda Runyon survived in the New York wilderness eating the plants on the ground.. also raised 3 children.

    starvation is impossible if you have her knowledge about wild edible foods. ofthefield(.)com

    Here is my favorite quote: "Austrian economics is to astronomy, as Keynesian economics is to astrology" ~ @ 9:00

  • Looking good Stefan or should I say Mr. Molyneux. And as always a great video.

  • Thank you Stefan Molyneux! Great interview! Peter Schiff is incredible! People must wake up, and do the right thing before its to late.

    Vote for liberty, Ron Paul, Peter Schiff, Rand Paul...

  • Nice interview. This host has a weird accent.

  • he's british/canadian

  • Uber-fantastic video. Please do this again -- I'm sending this out to friends and posting it to message boards.

  • Thank you so much my friend! :)

  • man the camera is zoomed all up into your face, its like, BA-DOW!

    still a good video. Schiff is right, GDP is only half the balance sheet.

  • This is so weird! Two of the guys I listen most to and talking. This is awesome!

  • "It's like a depressed person saying I' better cos' I'm on cocaine"

    Stef, your comparisons get better everyday

  • Money must be backed either by gold and silver or by production and manufacturing

    of goods and manufactures. But a gold and silver backed money is of no use if you do not have a local production and manufacturing economy that manufactures goods, products, and manufactures for exports so that to assure your trading partners that their gold-backed money is good & have no need to redeem their gold-backed money for physical gold that will affect your gold reserves. Unfortunately it's not being done

  • Outsource manufacturing then you also outsource service-information services for the local markets for services went overseas so naturally the services will follow it overseas also. When you shifted from agriculture to manufacturing you did not outsource agriculture you automated it. When you shifted from manufacturing to services you should have automated manufacturing instead of outsourcing it overseas, thus preserving the markets for services provided by the service-information economy.

  • Production = number of unit of goods

    Productivity = amount of work done per unit of good.

    Americans thinks that consumption is progress but what is there to consume when there is no production? A consumption economy must have a parallel production economy. Americans think that service-information economy is production when in fact it is just a complement to the real economy which is the manufacturing economy.

  • darth: I can't disagree with you more. The whole structure of the manufacturing process is "software" based. It is based upon the "idea" first. Hence, ideas are more valuable than the manufacturing of goods. The Structure of Capitalism as an economic model is without geographical/political boundaries. An idea germinates a product; Capitalism awards both the idea and the product. Political Limits simply reduce productivity, because Capital will always move toward greatest efficiency.

  • Ideas can only become valuable only if they are backed by an industrial infra-technostructure which is technically the manufacturing sector of an economy. Look at Thomas Alva Edison, his idea of an electric light only became feasible because there is the industrial infra-technostructure w/c is manufacturing to turn his idea into a mass produced item & it is because of the manufacturing sector's machine tool/machine building capabilities allowing it to create a light bulb manufacturing factory!

  • darth:

    Once again, the IDEA came BEFORE any form of infrastructure was in place. Ideas = data, which is much more valuable than infrastructure, and Bill Gates is one of the prime examples of how an Idea becomes so valuable.

  • 11 nations has already rejected the dollar silently, Russia is ready to introduce the gold backed Russian ruble (chervonets), China and Japan are buying all kinds of raw materials & commodities in order to convert their paper dollars into tangible material physical manufactured products ranging from iron ingots to sophisticated machine tools, barter trade is being set up between several certain nations that excludes the dollar.

    Production = number of goods

    Productivity = amount of work done

  • Hard to believe i was once a virgin now 5hat i am trying bukkake...

  • Folks this video is long, but well worth it..

    Mr Schiff is one of the few that get it, and he is really brilliant!!!

    Watch this whole video...it could change your life....

  • The fed doesn't print money....that is probably much too expensive to print 10 trillion dollars...what they do is bring up a dialog box, type in the amount, and hit the "Send To" button!.....

  • What I can't get over my head, in the 90's

    some of my friend wearing AC~DC and Ozzy Osbourne teashirts, (in the Eastern Europe), idolatrizing America, when you've asked them: "O.K. but US has a big national debt, right?" The only answer you'll get was something like: "They don't care!" and that's that, well, to them ...how pathetic Perhaps now they DO care.

  • Long live Rock and Roll!!

  • How come on the free domain forums there's a lot of "hahah lol Ron Paul" type posts, including by stef, but then he goes after peter for a (very deferential) interview?!?!

  • @Stefbot

    I just want to thank you for asking him the question about "What if you don't have the money, but you have a good sense of economics, how do you pre-pare?"

    That was a question that struck home with me. Because I am a young person, just starting out.. I see the shit getting ready to hit the fan, and I was wondering what to do.

    (although I was really hoping he would have a better answer)

    Alas I'm still in the boat to screwedovervill it seems...

  • Thanks Stef and Peter, great video!

  • There is a scene in the movie Road to Perdition where Tom Hanks leaves his son in a train station to wait for him and ALL the people have their heads burried in newspapers. When I watched that I thought "Wow! the powers that be REALLY had a hold on them back then"! There was only newspapers and radio and they controlled both! Yet, you can slap the average person in the face with the truth and they would rather hear the "official" version. Sad, isn't it?

  • I didn't think I would watch this whole interview, but I it was so outstanding that I did and listened to every minute of it.

  • nice 50 mins of peter

  • Thanks for this interview.

  • great stuff!

  • The economic earthquake coming to America will have more devastating effects than the Haitian earthquake. The only difference is that thugs will do the killing not buildings.

  • I agree government should get out of the way. However, this problem cannot be solved until Glass-Steagle is put back in place. We cannot allow the people who create money to also create financial tools.

  • Glass-Steagal is irrelevant. There's no special reason why commercial and investment banking should be separate. The problem is with the fractional-reserve system of banking, which is propped up by the federal reserve.

  • You're wrong. Investment banks should not be able to borrow money from the FED at the overnight rate so they can gamble with it in the stock market.

  • They shouldn't be able to do that, either.

  • In fact, there should be no fed.

  • I agree that the FED is not a good system. I believe it should be nationalized allowing the Government to print money and lend it to the banks just like the FED does. If this happened taxation would no longer be needed as the interest generated by loans made to private-sector borrowers would more than fund the government.

  • If the government printed enough money that it could fund itself from the loan interest, it would cause runaway inflation. The problem with this system is that the government is creating new money that isn't backed by any real value, which is causing massive malinvestments that are eventually going to collapse.

  • While I agree that the FED should just go away. I disagree that fractional reserve lending is bad. Gold worked well before refrigeration when people homesteaded land. At that time currency changed hands far less, as people got what they needed from their land.

    Now, everyone lives in a cities where they must have enough currency to exchange it for all needs.

    BTW - it was the repeal of Glass-Steagal which caused this mess.

  • Also, any given supply of currency can supply the needs of commerce in an economy, provided that it is stable. If people find trading in gold coins inconvenient, they can trade in warehouse receipts fully backed by gold.

    "the repeal of Glass-Steagal caused this mess."

    No, it was caused by the federal reserve massively expanding credit, leading to bubbles in the real estate and other markets. It was helped along by other federal policies, but the fed was the chief source of the inflation.

  • fuckin awesome!!

    u guys are super stars!

  • This is disappointing. And I quote, "If I go to Washington, believe me, things are going to change." (37:24)

    Stef, does it matter what this guy says if he wants to use violence, e.g. government, to attain his means?

    I'm merely confused, and do not mean to be rude, but it seems to me that this interview has quite a few valid points, yet goes against much of your philosophy as far as it suggests that via government, the state of the economy can improve. Should we VOTE for Peter Schiff?

  • The problems can't be fixed from within the electoral political system. But election campaigns can be used as an opportunity to shift the thinking of people.

    Get people to start thinking, and many will eventually come to the right conclusion.

    I think this point was missed during the Ron Paul campaign. His campaign got people to start reconsidering things.

  • Also, an interviewee does not need to be jumped on for every flaw he has.

  • I agree, perhaps I am being a bit picky. I do try to take the good with the bad for the most part, and I do see the value in what Mr. Schiff has to say. It just seems to me that one of Stefan's major talking points is the consistency of ideals and actions. So it seems to me this is kind of saying that yes government is a bad thing, and we can use the government to make the government smaller. I'm not really offering anything better, I just have trouble understanding how two wrongs make right

  • No, you can't use the government to minimize the government, but the process can work as a backdrop to get attention.

    We have to change the way people think. Schiff does that, even if his intentions aren't pure.

    Sometimes a bit of deal has to be made to get an interview. The deal is often that a plug will be made.

  • do you expect govt. to be minimized or outright eradicated at the flick of a switch? ever hear the phrase "baby steps" before? do you consider yourself a realistic person?

  • No, but it would be nice to have a no government switch wouldn't it? Should my baby steps be to participate in a violent act, such as voting, to solve the violence that government perpetuates? I consider myself realistic in my understanding that violence does not solve violence. I certainly do not expect government to be minimized via more participation in government, do you? I do appreciate the insights this interview provides, I just question Mr. Schiff's true political motives.

  • I wonder about his motives too. I get the impression that he really thinks that he can reduce the government by joining it. Maybe I need to look a bit deeper.

    I know Ron Paul has often said that ideas are what matter and politicians are pretty useless. He has also said that he doesn't get frustrated because he doesn't expect much out of Washington.

  • I agree with Scott Horton's perspective that Ron Paul has just been on a speaking tour for over 30 years, and has just realized that the backdrop of all the marble in Washington gets more people to listen to him.

  • Fair enough. It's been insightful.  Thanks for your point of view.

  • Great interview!!!! Schiff for senate

  • You both did an excellent job on vid. thanks for posting!!!!

  • You are so right on. Being able to keep your God given sense and use it is what a whole lot of people lost, especially in this current administration.

  • Paul/Schiff 2012 !!!

  • great vid! Nice job gettin an interview with Schiff, Stef.

    :)

  • That was a very good interview

  • Damn you got steph wearing suit, and peter shiff......... damn whats the occasion

  • The final blow to, and the death of, "the american dream".

  • @ffunit

    He doesn't run a hedge fund. He runs a retail stock brokerage. He is not a money manager.

  • Comment removed

  • @ffunit Schiff's investing strategy is a reaction to what government is doing. Why would his book say "how to profit from the economic collapse", if it weren't profitable to bet against the dollar? The point is if the US economy was really booming, he'd be investing in it- it's not like he's biased against the dollar- he would if it weren't so debased by the Fed. And why not criticize those politicians who only want to get relected? Schiff has said he has no interest in a career in poltics.

  • Adding to the comments on those without a lot of money... I think storing food such as canned food or dried grains is a great idea -- or liquor, or necessities. Keep in mind that some foods store better than others, so learn all about that. As to a backyard garden that won't work if you don't have access a good (off the grid) water supply.

  • Wow, what a treat. Seff, and Peter on the same screen, finally.

    Thanks!

  • July 2008

    Henry Paulson But if youre used to thinking about the issues, it is very intuitive. That if youve got a squirt-gun in your pocket you may have to take it out. If youve got a bazooka, and people know youve got it, you may not have to take it out. By increasing confidence, it will greatly reduce the likelihood it will ever be used.

    Bazooka "bush/bama" and company have no more bullets.

    WTF now???

  • _...By increasing confidence....._

    They thought this was a confidence problem, NOW they're worried it is much more.

    Welcome to the party... O !!

  • Great interview! I disagree with Peter when he says the government doesn't know how jobs are created.

    If they didn't know how jobs are created they wouldn't know how to destroy them!

  • The thing is there are MANY ways to destroy productive jobs(business cycles, minimum wage hikes, trade restrictions, subsidies, taxes, all sorts of regulations, etc.) and very few ways to create them (you need the profit motive, and no minimum wage unless the prevailing market wage happens to already be above it, lol). So I agree that they don't know how to create jobs. They do what makes them look good to their constituents and cause lots of harm in the process.

  • Again Peter schiff says it straight It just a matter of time before the scenario plays out. Here it goes.the mass exodus of brains.

  • Yeah - Well done Stef - Good interview.

    I think peter schiff knows the real problems, but like Ron Paul, he has to watch what he says to get votes. Most people couldn't take the real truth of how it all works - Too much of a shock to the conditioned brain.

    Smart guy and articulate. I guess he seems honest enough. Will be interesting to see how much success he has inside govmnt.

    I'm not sure he can influence much from within.

    Good luck to him though.

    Yer doin a great job - Gaun yersel!!!

  • I think if he gets elected, it'll be good just to have him in the Senate cus you can fillibuster in the Senate. He's already stated that he doesn't plan on introducing new legislation, just on stopping some of the stuff that the Senate will try to pass.

  • Great Interview!! 5 stared&shared..

  • You have been doing some kickass interviews lately Stef. I posted this on my facebook page :)

  • It is my understanding that money is a commodity. And currently our money (United States) is a commodity backed by nothing, i.e. Fiat. I vote for a currency backed by something. Gold may have been the answer 100 years ago but it is my understanding that the worlds gold is owned by a handful of individuals. I vote for a currency backed by corn or wheat. I want some cereal...

  • Great stuff, Stefan. Thank you.

  • I don't think anybody is suggesting that gold can be used to somehow inject real value into the FRNs in circulation.

  • You obviously have NO IDEA how the gold standard works,

  • Aw did I hurt your pet idea? You either make the gold into coinage(that is the 1% that I was talking about) or you use the dollar as a certificate for gold (which would be fairy dust). There simply isn't enough gold due to the undervalue of the dollar.

  • Of course there's enough gold.

    Remember: Every paper currency eventually falls to Its Intrinsic Value: Zero.

  • The intrinsic value of gold and silver is also zero.

  • Gold has intrinsic value. Lets list them:

    1. Gold is durable - it does not rust or decay.

    2. Gold is scarce.

    3. Gold is impossible to counterfeit - even governments cannot do it.

    4. Gold can easily be assayed for purity.

    This is why gold has been money for 6000 years.

  • "this is why gold has been money for 6000 years"

    And will continue to be for at least another 6000.

  • cyrusp100

    You said "lets list them" and didn't list them. Please do so.

  • mcduffiesteven - I did list the intrinsic properties of gold. Those properties happen to be valuable to humans - therefore gold has intrinsic value.

    If you disagree with me then please give me your definition of "intrinsic value" and tell me what does have intrinsic value. Only food and water?

  • I don't have a definition of 'intrinsic value'. There is, however, a definition of intrinsic value that I am aware of.

    What you listed were the reasons that humans subjectively value gold. Gold in and of itself isn't valuable.

    "Some people speak of the intrinsic value of gold. Whenever you hear anyone say this, you can know for sure that you are dealing with someone who knows nothing about economic theory." - Gary North.

  • Only because that is what humans value in a currency because it will in the long run satisfy their wants.

  • 8000 tons isn't enough to replace or back up 8.3 trillion dollars, and that is just the M2 supply.

  • TheAtheistPaladin:

    Rothbard showed that any* amount of gold (or whatever commodity being used) is suitable for a money.

    *Within reason, of course: if there were four atoms of gold in the universe, obviously, that wouldn't work too well.

  • There is only about 8,000 tons of gold and the M2 money supply is about $8.3 trillion. You do the math and figure out how much coinage that will be or how much gold will back each FRN. Either way there isn't enough to prevent a massive contraction.

  • You clearly haven't read much on this subject.

  • You clearly haven't a reply that deals with the points I make.

  • There isn't really enough space here to get into a good rebuttal. It takes a lot less time and energy to take a shit than it does to clean it up.

    Seriously, go to the mises website and search for the relevant keywords, and get educated on this issue.

  • Yeah, go to that website all the time. Go figure you point me to a place that hasn't dealt with anything I have said and tell me that I should "get educated on this issue." That really doesn't help your case.

  • Go figure: they deal with the issue on that site. It's a big site. Search for it. No Austrian economist that I know of (certainly no misesian) agrees with your claim.

  • I am all for piratical money solutions. I am NOT endorsing fiat money. I agree that money should have some sort value that is not easy inflated (like gold). However, if you don't have specific link that deals exactly with my problem then don't bother. I am merely pointing out that we are in a bad catch-22 situation. Fiat money is bad but going back to gold is not piratical for the previous reasons I stated.

  • You seem to be contradicting yourself; I'm not sure what you mean by this 1% figure. Is there some obvious connection between "making gold into coinage" and "backing about 1% of the total dollars in circulation?" What does the minting of gold coins have to do with FRNs?

  • It is about the using of gold as money supply. Either by making it into coinage or backing FRN. But not both. Either way there isn't enough gold to prevent a contraction.

  • I don't even have to defend myself... I love the internet!