Currency Debate Intensifies: Paper Vs. Gold

A most fundamental and crucial debate is now in full swing.

The two main protagonists are the Goldbugs and the Interest-Free Money community. The battle was ignited by Gary North who attacked Ellen Brown, calling her a 'Greenbacker'. Brown and North agree that Fractional Reserve Banking needs to go, but Brown wants the Government to print debt free (and therefore interest free) money.

To North this is incomprehensible, because he thinks paper money is paper money. It is not though. Interest bearing debt to a bank is a very different beast indeed than is debt free, interest free money printed by the Government. However, North, as do other Goldbugs, fear Government will always print too much money to cover their expenditures and Big Government programs. The question is: will Gold stop these inflation by Government? History suggests it won't."

Here's Ellen Brown's retort. Here's a high class framing of the debate by Eric Blair which was widely posted.

The Goldbugs and the Interest-Free Money people have been living in peaceful coexistence for many years. They have a common enemy: paper based fractional reserve banking. But now that the chances of the FED collapsing are becoming more real, the question what to do next arises.

Most people awakening to the Fractional Reserve hoax simply assume that the problem can be solved by Gold-based currency. After all: Gold cannot be printed. (more)