Yes, i used the term 'State' to encompass all forms of 'Government'.
I do find your next statement quite intriguing. Gold/Silver were 'established' by Government as lawful money, and I see how that worked out. Although i do agree with your premise, it just seems there is always another side. But the Constitution does say Congress can emit 'credit', again another interesting anomaly.
I find the connection between how the way the Fractional Reserve Banking system works, and how the Law making system works to be almost identical in theory. They both function in a completely different form than they were intended to. Both were engineered to be chained down to reality. Both were made to have permanent restrictions built into them. Both were created to help man, NOT enslave him.
And when they both run into trouble, they either just print more money or make more Laws and POOF! They magically change reality and fix the real world problem with fiat solutions.

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