What is really interesting is that under the Constitution, each state is free to issue certificates 100% backed by gold (or silver), and some are planning to do so: their banks would not have to pay any interest to account holders- actually, they could, like the original goldsmiths did, charge a fee for holding bullion. The original sin of the goldsmiths was fractional reserve banking, a euphemism for printing certificates for gold that did not exist. Back in 1790, each bank that issued gold certificates had to have 2 bank officers personally sign each one, and the penalty for non-redemption was pretty simple, too: Death. Somehow, fractional reserve banking was again allowed to rear its ugly head, and when Britain abruptly went off the gold standard in 1931 (its 100-year gold bonds(consols) up to that time yielded a mere 1%), Americans, seeing the writing on the wall, scrambled to exchange their certificates for gold- but, thanks to that old devil, fractional reserve banking, as the banks only had $40 in billion for every $100 outstanding, they fell like dominoes, and the Great Depression was on. And today, they think they can fool everyone with cryptos (!!!)
It is an utter betrayal of the Constitution which mandates that the Government coin and/or print its own bills based on gold or silver.
What is really interesting is that under the Constitution, each state is free to issue certificates 100% backed by gold (or silver), and some are planning to do so: their banks would not have to pay any interest to account holders- actually, they could, like the original goldsmiths did, charge a fee for holding bullion. The original sin of the goldsmiths was fractional reserve banking, a euphemism for printing certificates for gold that did not exist. Back in 1790, each bank that issued gold certificates had to have 2 bank officers personally sign each one, and the penalty for non-redemption was pretty simple, too: Death. Somehow, fractional reserve banking was again allowed to rear its ugly head, and when Britain abruptly went off the gold standard in 1931 (its 100-year gold bonds(consols) up to that time yielded a mere 1%), Americans, seeing the writing on the wall, scrambled to exchange their certificates for gold- but, thanks to that old devil, fractional reserve banking, as the banks only had $40 in billion for every $100 outstanding, they fell like dominoes, and the Great Depression was on. And today, they think they can fool everyone with cryptos (!!!)