• The power of fiat money gives governments the ability to become increasingly authoritarian, leading to a welfare/warfare state, surveillance state, police state and militaristic tyrannies.
• Central banking obscures the government’s ability to print money and run deficits on its budget.
• Fiat money deprives people of sound money’s opportunity cost, allowing governments to engage in unchecked spending.
The Unchecked Power of Fiat Money
Fiat money is a powerful tool that gives governments the means to become increasingly authoritarian. Through their control over the printing of currency, they are able to create a welfare/warfare state with all its accompanying surveillance, police and militaristic components. This has been especially evident in the last 100 years as government power has expanded far beyond what was previously possible.
Central Banking
The main beneficiary of this obscured ability to print is the government that can run deficits on its budget; something not possible under sound money. Central banking allows them to do this without being held accountable for it by obscuring how these funds are created and allocated. Free market interest rates usually hover around 5.6% or higher, depending on economic circumstances and credit worthiness; so taking on debt under sound money significantly limits spending options due to its costliness.
Fiat Money’s Opportunity Cost
Under fiat money however, this opportunity cost is largely removed as budgets can be spent freely without having negative consequences for either citizens or government officials themselves who may benefit from such spending policies. This has allowed governments to engage in unchecked spending which has had enormous impacts throughout history that have often been disastrous for those living within them.
Marxism & Positivist Law
The power of fiat money also encourages Marxism and positivist law which emphasize a strong central authority with unquestioned loyalty from citizens regardless of any ethical considerations surrounding said laws or policies . This has led many countries down dangerous paths where individual rights have been sacrificed for an illusory “greater good” promised by those in charge but rarely delivered upon in practice .
Conclusion
Ultimately, it’s clear that fiat currencies offer immense benefits but come with serious drawbacks as well that must be addressed if countries are going to make progress towards greater freedom and justice for all citizens regardless of their social class or political views . It’s up to us then , as individuals ,to ensure our respective nations move away from any form of central control over the issuance of currency if we hope for a better future where human dignity is respected above all else .