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Paper Money – Part 1 (Guest Post)

August 8, 2012

Most people have heard of the federal reserve. It’s the branch of government that prints our money. They keep us above bartering like inefficient, savage cavemen. Right?

A couple years ago, that is what I believed. In actuality, the above statement is completely false. The federal reserve is a private bank that is given a monopoly on printing/creating American dollars.

Do you see a problem?

To start, according to the constitution, the power of coinage rests in the hands of congress. In the status quo, this power belongs to a small group of insiders who are free to print as they like, practically picking money off a tree.

So if we let congress print our money, now we are following the constitution. But that just means we are giving the power to an elected group of insiders who have little qualms about bribery/lobbying. They still hold the power to control inflation rates. And this means a discreet tax on all money held in cash and bank accounts. When a new dollar is printed, all other dollars are worth a smaller fraction of the economy. This means over time a stash of cash decays in value, until it is worth only the paper it is printed with.

Therefore it is in the interest of the people to use a system of currency such as the gold standard, where the currency is valued by the markets, not a select group of violence-backed insiders.

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From → Ideology

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