Let’s have the Separation of Money and the State!


DownsizeDC would like you to send a message to your elected representatives. I'd like you to vote everyone of the them out. Picking anyone at random from a street corner could not give us any worse of a result.

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Money is a complex subject. We can't explain it all here. The same is true of the Federal Reserve System. Its origin, and the question of whether it's privately or publicly owned, is controversial. (Some have said that the Federal Reserve is as "federal" as Federal Express.) But we do know that the size of government has exploded, and the value of the dollar has imploded, since the Federal Reserve was created in 1913.

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I don't agree with that.

Money is pretty simple.

It's an intermediary in economic transactions that allows us not to have to barter. How would I give a farmer an hour of consulting for a steak? Simple, I give my employer and hour of consulting and he gives me some "dollars". The farmer and the butcher conspire to give me a steak for some of my "dollars".

Real simple.

Where the problem comes in is who decided that the government should have a monopoly on money?

Yup some king of old who figured out that you could shave every gold coin coming through the Royal Bank and at the end of the day the shavings would equal several new coins.

FOR EXAMPLE, the original French Franc of Louis I was a gold coin that looked more like a small hockey puck than a coin. The last French Franc of the monarchy Louis XVI was a tissue paper thin button. That is what governments do. The debase the currency. They redefine money to give themselves more and the people less. Paper money is even easier to inflate. No coins to shave!

Look up the root of the word "dollar", and you'll find there was a silversmith who made nice coins.

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Monetary inflation is a tricky way for politicians to get you to pay for increased government without you knowing about it. 

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That's why they don't want anyone to know what M3 is. You might figure out that they put a third shift on over at Printing and Engraving.

We need to make govenment into a "crystal box". Even if it is ugly, we need to see the sausage being made.

Let's not kid ourselves about what makes inflation. Whether it was the French and English kings shaving gold off the coins, the post WW1 German government prinitng bigger denominations twice a day, or "our" Federal Government running the printing press, messing with the money is a bad idea.

There's a reason that gold is 600 $ per ounce.

And, it's not because we have too few dollars.

Let's have the Separation of Money and the State!

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