Starting the section on money and the economy today, and was looking for a picture of a dollar bill to show the attempts to prevent counterfeiting. Then a question suddenly came to me.
Why the efforts at stopping counterfeiting?
I mean, let’s look at it this way. We’ve been told that inflation is good, that printing money can lead to economic growth. Well, if a trillion dollars of quantitative easing is good, why not two? or ten? And if more money is good, then instead of arresting counterfeiters, why don’t we encourage them?
Of course, there are obvious answers to this, most notably that the state wants complete control of our lives and no better way to do this than through legal tender laws and fiat currency. Simply make illegal anything but the state’s money, and viola’, instant control.
Money is one of the great inventions of the modern world. Yes, it is an invention. It originated as a medium, a good, that both parties had and desired. They could then easily trade goods and services without suffering the double coincidence of wants. It was magic in a very real sense.
For money alone makes possible the two greatest achievements of man: division of labor and comparative advantage. The ability to specialize and to trade have made mankind infinitely more prosperous. But for both to occur, they must be left alone, in as free a state as possible. Both are the highest forms of man’s expression of his liberty. I produce and trade with you, value for value, freely and mutually agreeable, without force or coercion. We are both better off for it. We need each other, and not in the socialist collective sense which is the antithesis of liberty.
The division of labor and comparative advantage also are the greatest ways to prevent war. Why destroy my neighbor when I so need him? Why injure my neighbor when it causes me injury as well? Liberty is the bane of the warfare state.
When we choose our money, the state has no control over us. If it cannot control our trade, it cannot control anything. So, obviously, counterfeiting drives a stake into the heart of the state and its yearnings to control.
But the Fed has been on a counterfeiting rampage, not just the most egregious example of the past couple of years, or even the past decade and a half, but since its inception in 1913. It then seems rather ironic, to say the least, that the great counterfeiter, and the state that countenances it, are so opposed to counterfeiting.
Of course, to be anything but would exposed its gross hypocrisy. If counterfeiting destroys a currency, as it most certainly does, then what answer could the fed give in defense of its actions? So it must lie and live a lie, that somehow its worthless paper is valuable.
I’m not a believer in divine intervention, but surely, if ever there was a case to be made, it is this. For thousands of years, men have tried and have always failed, to counterfeit gold.