The belief is nearly universal that money can’t be free.  This implies that it must be controlled, regulated, manipulated, and created by the state.  Money is the most important good in society.  It’s nearly half of every transaction.  Sound money is absolutely critical to the economy.  Any manipulation by the state will wreak havoc.  The fact that it’s critical is why it needs to remain free and unmanipulated.

Fiat money is controlled.  The system of counterfeiting exists around the world.  Controls are awful for the economy.  If you understand price controls generally lead to shortages, you would oppose the central bank.  The central bank ensures prices are always controlled.  Not in the sense that a good has a price floor or ceiling.  The other half of the transaction is manipulated if there is fiat money.

It’s the transfer of wealth on a grand scale.  Central banks allow the state to bailout their friends.  The central bank just prints the money.  This might have an obligation attached to it so the corporation becomes an arm of the state.  This isn’t the only way they can become attached.  This takes the money directly from your bank account, retirement account, and future paychecks.  The price of goods will begin to rise. 

Fiat money can serve as a medium of exchange, but only if a real money existed before.  It might take this purpose, but it can’t replace a commodity as a store of value.  Fiat money can be printed at will.  That means 100 percent of the money you have can disappear into thin air.  Any money you have saved, including retirement funds, can disappear if enough money is printed.  At the current pace, it’s worth less and less.

Fiat money can be more destructive to the economy than anything else.  There are plenty of horrible things, but they are funded with fiat money.  Those wouldn’t exist if fiat money didn’t exist.  Using sound money can solve a lot of problems.  Many will admit the state is too inefficient to produce goods.  Producing money is not easier to produce than other goods.  If it’s too inefficient to produce one good, how is it efficient enough to produce a more difficult good?

References

Murray Rothbard; Man, Economy, and State

Murray Rothbard; The Case for A 100 Percent Gold Dollar