Spanish professor details the faults of the fiat money system

11:05a ET Saturday, August 23, 2014

Dear Friend of GATA and Gold:

The fiat money system has many faults, economics Professor Philipp Bagus of King Juan Carlos University in Madrid tells financial writer Lars Schall in an interview sponsored by Matterhorn Asset Management and posted at its Gold Switzerland Internet site.

The fiat system, Bagus tells Schall, encourages early indebtedness, penalizes savings through inflation, favors the privileged who have the quickest access to money creation, and makes people too materialistic.

Bagus adds that the nature of money is seldom examined because doing so would inconvenience governments and central banks, which control most study of economics -- which makes this interview so important, as it covers an essentially prohibited topic.

Bagus favors replacing the fiat money system with a system of competitive currencies, which sounds like what former U.S. Rep. Ron Paul proposed in his last years in Congress -- a system that would greatly constrain government power.

Schall's interview with Bagus is headlined "Our Money System Makes People More Materialistic" and is posted at Gold Switzerland here:

http://goldswitzerland.com/our-debt-driven-society-due-to-permanent-infl...

CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.