Asset money vs Debt money

Historically, money has flip-flopped between being asset based and being debt based.

Asset based monetary systems, aka hard money, favor the net producer and saver, as the purchasing power of savings is preserved well in a hard (not easily inflated) money system.

Debt based monetary systems, aka soft money, like today's irredeemable fiat system, favors the net consumer - i.e, the "I'll have it now and pay you later (unless I default)" type of person.

Both hard and soft systems are barbarous relics that will go down in history as belonging to the monetary dark ages.

Unfortunately, we are still in the monetary dark ages.  The good news though is that the day of monetary enlightenment will soon be upon us.


This enlightened monetary system will have two halves - the debt half and the asset half - the soft half and the hard half - the yin and the yang - the debtor's fiat, and the saver's gold.

Welcome to Freegold.


There is essentially only one rule in Freegold - only one law that needs be passed to prevent the devolution of Freegold - and that is that the distinction between soft money and hard money remain clear and unambiguous - i.e., that the debtor's currency and the saver's currency do not mix - i.e., that gold cannot be lent.

Practically, this simply means that IOUs cannot be denominated in gold, or, put another way, that contract law requires that disputes can only be settled in legal tender.

So, each to their own.  The debtors and the savers need never conflict again.