Fiat vs. Freedom

Fiat money is the enemy of the free society. Period.

History is littered with examples of failed and worthless paper money, wreaking economic chaos wherever it was implemented. Those in control of the money supply benefit the most, reaping the rewards of their cash machine. In the end, the common man always loses.

But what does money have to do with freedom?

In short, EVERYTHING. I submit that a currency backed 100% by gold, silver, or any commodity is the free society's best friend, and thus fiat currency is its worst enemy. You see, when you have fiat money controlled by a central government (or in our case, the Federal Reserve System and friends), deficit spending is actually possible. Endless government borrowing of fiat money allows politicians to implement any program they see fit, and squeeze in any little pet project they may have. The natural consequence is, of course, that the government grows larger and larger. And, it is true that the amount of freedom in society is directly and inversely proportional to the size of government.

Think about this for a second. The bigger the size and scope government, the less freedom there is to be had. In America today, you cannot open a business without going through paperwork, permits, licensing, fees, etc. Zoning laws dictate where you can operate, and what you can operate. The DHS seeks to prevent attacks across the nation. How else can this be accomplished except by monitoring, well, EVERYTHING? FEMA the money pit, in its mission to help those in a disaster zone, stifles local efforts and offers no real solutions (not to mention violating the 2nd ammendment). The FCC dictates what can and cannot be said or shown on radio and television through its fines and penalties. The Department of Education tells us how, when, and what our children will learn, and sets a national standard of mediocrity. A large government made possible through fiat money is the enemy of freedom.

Now imagine a world where sound money rules the land. There would be no subsidies, federal welfare programs, less regulation, and a strong middle class. ALL, I repeat, ALL money for federal programs and agencies would have to be taken directly from tax revenues. The people would not stand for ultra-high taxes, and thus, government would be reduced to its only constitutional duty: To protect individual liberty and defend the constitution. The nation would not go to war unless it was absolutely necessary. Our children would be educated by our standards, not some bureaucrat's idea of a good education. Freedom of the individual would rule the land. A free market would deliver goods and services more efficiently than any government regulation could ever enforce. That, my friends, is a utopian dream.

Abolish fiat money in America, and a return to freedom, peace, and prosperity will follow.