Charles Buckley buckley at refuge.Colorado.EDU
Mon Feb 13 17:45:11 EST 1995

In article <3hfv39$99n at cuboulder.colorado.edu>,
Frank Crary <fcrary at benji.Colorado.EDU> wrote:
>In article <byoderD3rMFI.MLD at netcom.com>,
>Brian K. Yoder <byoder at netcom.com> wrote:
>>>> Close... but instead of taxing to make up the short fall, they cut the 
>>>> federal government back to what it was intended for... national defense.
>>>Almost there; the _federales_ should, optimally;
>>>	1. Print the money,
>>Why?  Have they not demonstrated their inability to do that effectively?
>>Private banking would be able to do it just as easily and reliably.  
>Perhaps, but then we'd have several national currencies and a 
>complete mess with the exchange rates. The important part
>of this federal power isn't so much the actual printing of
>money but the "regulate the Value thereof" part. 

  When paper money was first introduced into the US, it was printed
by private banks. The amount of forgeries were staggering. It was 
estimated that up to 1/3 of all currency in the US was counterfeit
(source: The hacker Crackdown. Bruce Sterling). Also, there would
have to be strict oversight to ensure that the level of currency on 
the market stayed below a certain level, otherwise inflation (and
deflation of currency value) would occur.

Charles Buckley

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