Reply #4: I read the link. I disagree about using gold/silver as currency.

[Selatius]

Fiat currency is fine, as long as its value isn't routinely debased with the creation of more money beyond the level that would cause inflation. With fractional reserve banking, any banking entity can create money, and inflation is a built-in consequence. Eventually, a loaf of bread will cost $5.00.

Pennsylvania's currency prior to the Revolution was one of the best examples of Colonial Scrip. It was a fiat currency issued and controlled by the state legislature, and only they could create more of it, not the banks. They only issued enough to act as an appropriate means of exchange and to avoid inflation, backed by the full faith and credit of the state of Pennsylvania. The effect was that inflation was at or near zero, and people weren't tempted to take risky bets with cheap credit.