We must question the long-held assumption that government ought to produce and administer the currency that we must use for trading. Government has been doing that for many generations, and it is just assumed that because that’s the way it’s been, then that’s the way it ought to be. However, we all have natural rights, among them the right to life, liberty and the pursuit of happiness. In my opinion, individuals have the right to use whatever they want to as a means of trade. And whichever currencies become the most popular and valuable at whatever given time will lead over the competing currencies, some of which will fail and go out of business.
Economist Murray Rothbard advocated a “separation of money and state,” and believed that the money and banking system we have now is “legalized counterfeiting.” There should be no government involvement in the business of currency, because once some arbitrary force intrudes, it distorts the market of that commodity. That is the ongoing theme in modern times of every economic aspect of daily life. Government causes markets to become dysfunctional with its intrusions, and when government gets into the business of something-anything-it causes great distortions and devaluations, and the government’s production and control of the “dollar” is the best example of that. At some point the dollar will be worthless, if it isn’t already, and, because of the state-caused distortion, it has a domino effect on all economic activity, as we have seen now. So, it really is important to challenge assumptions that government must have a monopoly on our money supply.
Now, in an earlier post, I noted that former Fed chairman Alan Greenspan went from being an Ayn Rand capitalist to being a big government control freak. And now, we can plainly see that Greenspan’s successor, Ben Bernanke is clearly uncomfortable with any public scrutiny of the Federal Reserve. What has caused these grown adults to become so enmeshed with government power? That’s what it is–the power. When people get themselves in positions of power, of the armed officialdom of governmental power, it becomes addictive, like a drug. Can you imagine suggesting to Ben Bernanke the idea of not only ending the Fed, but ending the Dollar and privatizing currency altogether? He’d start to tremble and convulse like a heroin addict suffering from withdrawal.
We must challenge the assumptions that government should control our means of trade and that our elected and appointed political leaders have the citizens’ best interests at heart.