“Paper currencies don’t float, they just sink at different rates”

“Currencies do not float, they sink at different rates” is a line popularized by Clyde C. Harrison, a popular financial speaker. Harrison was referring to what is called paper currency or “fiat” currency. The currencies all eventually sink (compared to gold, for example), but some currencies sink faster than others.
 
Peter Schiff called this an “old saying” in 2006.
     
 
Forbes.com Clyde Harrison Profile
06.29.09
Clyde Harrison
Director
Golden Phoenix Minerals, Inc.
Sparks ,  NV
Sector: BASIC MATERIALS /  Gold
67 Years Old
Clyde C. Harrison. Mr. Harrison has been a director of the Company since June 27, 2009. Mr. Harrison was appointed Chair of the Company?s Audit Committee, effective February 1, 2010. Most recently, Mr. Harrison was the Founding Member of Beeland Management Company, LLC. During his 5-year tenure as its CEO, Mr. Harrison managed the Rogers Raw Materials Index Funds, which gained 150% while the benchmark S&P index gained 1%. From 2004 until 2007, Mr. Harrison was a member of the board of directors of Geocom Resources, Inc., an early exploration stage mineral resource company. Mr. Harrison has served as a pension fund consultant and has extensive experience as a derivative trader. Mr. Harrison began his career in 1968 in finance with Lamson Brothers. In 1974, he became General Partner with Carl Icahn, managing hedge positions for corporate takeovers. Mr. Harrison later served as a consultant to Commerz Bank, creating the risk control system employed to relocate their futures headquarters from Europe to Chicago. Mr. Harrison has also served as General Partner for a number of private investment and trading funds. Mr. Harrison is a former member of the Managed Futures Committee of the Chicago Mercantile Exchange. He has consulted for NBD Bank and Northern Trust, and Mr. Harrison has served as a Special Consultant to the Chairman of the Chicago Board Options Exchange. Mr. Harrison is a prior member of the International Monetary Market.
 
Resource Investor
The Future of the Dollar
Clyde Harrison
Published 6/4/2005
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Currencies do not float, they sink at different rates. Currencies are abstractions not redeemable in any specific amount of anything, they are an I owe you nothing certificate. 
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Mr. Harrison is the Founding Member of Beeland Management Co., L.L.C., which manages the Rogers Raw Materials Index Funds.
 
SafeHaven
All Currencies Beginning To Sink?
By: Paul Kasriel | Tue, Jun 14, 2005
A wise acquaintance of mine, Clyde Harrison, is fond of saying that fiat currencies do not float; they just sink at different rates. How can all fiat currencies sink? If dollar is appreciating vs. the euro, the euro is sinking, but the dollar is floating higher, isn’t it? Yes, it is floating higher vs. the euro, but they both might be sinking. How’s that? Consider what has been happening of late to the price of gold - both in dollar and euro terms.
     
SafeHaven
Gold’s Rise is no Conundrum
By: Peter Schiff
Sat, Jan 28, 2006
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The old saying that “paper currencies do not float, but merely sink at different rates” is becoming increasingly evident with each up-tick in the price of gold.
 
The Market Oracle
Currencies Do Not Float, They Sink at Different Rates - The Crack-up Boom Series Part VII
Jul 24, 2007 - 04:47 PM
By: Ty_Andros
 
BullionVault
Floating Fiat - 30 June 2008
Currencies don’t “float” against one another. They just sink at different rates…
 
The Market Oracle
Financial Markets and Economic Outlook Conclusions 2010, When Hope Turns to Fear, Part V
Mar 26, 2010 - 03:38 AM
By: Ty_Andros
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“Currencies don’t float, they just sink at different rates.”-Clyde Harrison