Intentional Debasement

Debasement of the money isn’t new.  Money was most commonly debased by shaving off the edges of coins and diluting the metals.  These coins were different from other coins.  The layman could distinguish what coins have been altered from ones that haven’t.  This intentional falsification is known as counterfeiting.  These altered coins could be distinguished, but the paper currency we use can’t.

Coin clippers were attempting to deceive the people into thinking they had more money than they actually have.  This is exactly what modern bankers do.  However, it’s much easier for them than counterfeiters in the past.  They can counterfeit on an extraordinarily large scale.  Much larger than any private counterfeiter could ever dream of.  Not only that, what could’ve been detected by the layman goes nearly unnoticed now.

Counterfeiting happens by the very people that were supposed to protect us from this evil act.  There is a clear breakdown between knowledge and appearance.  The masses appear to be getting goods for nothing.  The reality is that the money comes from somewhere.  Goods can’t be printed.  The value that comes from this new paper comes from already existing paper in circulation.  The holders of money are robbed secretly.

There is a fraudulent intention behind this.  Many of the overlords know the masses are harmed.  This is not a concern.  They care about getting elected.  Currency is being debased and the masses will be harmed.  A lot can happen in the short run.  In the long run, it’s the next guy’s problem.  They’ll be out of office.  Modern counterfeiting is much more efficient than the process in the past.

The modern “protectors” do much more harm than private counterfeiters ever have, combined.   Counterfeiting is an excellent source of funds for them.  It’s not taken directly with taxes.  However, it will be in the long run.  The money borrowed must be paid back, barring repudiation.  Even with intentional debasement, people aren’t getting something for nothing.  Government spending is a tax.

References

Jörg Guido Hülsmann; The Ethics of Money Production

Carl Wennerlind; Casualties of Credit

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