Nostr Web Client

“In no period of human history, has paper money spontaneously emerged on the free market. The only sure way to bring paper notes into circulation was to impose them on the citizenry.

Historically, private coinage came first and only later did governments take over. It carries the risk of total and permanent value annihilation.

In a truly free market, paper could not withstand the competition of commodity monies. The more farsighted and prudent market participants would get rid of their paper money first, and the others would follow in due course

Inflation is that part of the money supply that comes into being because of the invasion of private property rights. As in the case of debasement, banknotes have been falsified both by ordinary criminals and by the “guardians” themselves, as in 1781 when the Bank of Amsterdam started counterfeiting its own banknotes.

Economic science has put us in a position to understand that competitive coinage is an even better way of preserving the trustworthiness of coins. There is no economic reason not to allow every private citizen to enter the minting business and to offer his own coins.

As long as the citizens are free to produce and use the best money available, sound money prevails, whereas debased money and fractional reserves lead a fringe existence".

- J.G.Hülsmann

#Bitcoin > #CounterfeitMoney

Reply to this note

Please Login to reply.

Discussion

Vandelay ₿TC Industries⚡ 2y ago

“Inflation provides provides illegitimate gains. Its alleged benefits are not really different from the benefits of robbery and fraud.

Many princes blushed when they were caught debasing the currency of the country. But modern presidents, prime ministers, and chancellors can keep a straight face and justify inflation with the alleged need to stabilize the price level and to finance growth.

There is a solid historical record documenting how governments have abused the trust that the citizens put into them.

There was in fact, hardly a dynasty that did not in this way abuse its monopoly of coinage. Ancient Greeks and Romans, medieval princes, dukes and emperors, as well as democratic parliaments have recklessly debased the coins of their country.”

[or as Satoshi put it, "The central bank must be trusted not to debase the currency, but the history of fiat currencies is full of breaches of that trust."]

“Moral hazard is implied in the very existence of paper money because its producer can bail out virtually anybody.

Central planning and hyperinflation is what the future holds for an economy under paper money. The only third way is to abolish paper money altogether and to return to a sound monetary order”

Fiat inflation is what happens when people increase the money supply by fraud, imposition, and breach of contract. Thus it leaves a characteristic cultural and spiritual stain on human society.

Inflation spurs the growth of central governments. It allows these governments to grow larger than they could become in a free society. And it allows them to monopolize governmental functions to an extent that would not occur under a natural production of money. The printing press allows the government to tap the property of its people without having obtained their consent.

The old way for ordinary citizens to make savings was the accumulation of cash. Under fiat inflation this strategy is suicidal - Fiat inflation is a juggernaut of social, economic, cultural, and spiritual destruction.”

#Bitcoin: Defund parasites.

Vandelay ₿TC Industries⚡ 2y ago

GameBoyBTC 2y ago

Interesting text somewhat in line with the book I am starting to read these days by Hayek of "The Denationalization of Money."

Noted it to the to-read list.

Thanks