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Of course the central banks money usually is NOT backed by land as collateral, but by the capability of the people to produce goods, because most CB money is build on gov't debt.

Der Amerikaner ist die Orchidee unter den Menschen
Volker Pispers
by Martin (weiser.mensch(at)googlemail.com) on Fri Feb 20th, 2009 at 08:14:00 PM EST
[ Parent ]
What little Central Bank money that exists is backed by the government's power to levy and collect taxes.

CB money is not built on government debt; to all intents and purposes it is government debt:

The vast bulk of money in existence never went anywhere near a Central Bank. Over 60% of money in existence in the US and the UK was created as interest-bearing loans backed by mortgages over land.

"The future is already here -- it's just not very evenly distributed" William Gibson

by ChrisCook (cojockathotmaildotcom) on Fri Feb 20th, 2009 at 08:47:02 PM EST
[ Parent ]


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