Day of Reckoning

A $100 Confederate note.

The day of reckoning is upon us. The people now recognize the inflation hoax for what it is, and are demanding reform. Congress responsibility is clear, but the choices are varied.

We can continue down the rutted road of the past half century, which will lead to monetary collapse and perhaps a new currency, as in Israel recently, and hundreds of times in other countries since 1900. But if the new currency is a fiat one, nothing will have been changed.

We could take the monetarists’ advice, and keep on inflating, but at a lower rate.

But if 4% is good, what’s wrong with 5% or 50%? If the growth in the money supply is to coincide with economic growth, what if there is a decline? Then the monetarists openly call for massive inflation.

They still cling to the idea that wealth and productivity are somehow created by an increase in the number of monetary units. Some otherwise excellent friends of freedom promote this theory, but it offers nothing but economic and intellectual confusion.

Whether the Federal Reserve, the Congress, or the bankers control the money system makes no difference. All inevitably abuse this control, which is why we need a money controlled only by the people.

The only moral, constitutional, and economically productive alternative is the 100% redeemable gold coin standard, which puts the citizen in control.

Some monetarists answer that gold has been abused in the past by government. But this is hardly an argument for a paper standard, since paper is infinitely more abusable. This is no different from arguing that since government has abused the right of freedom of speech, we should have no First Amendment.