FROM AN EMAIL TO ECONOMIST WRITER
As an injineer, I’m not a social scientist. Some say I am not even social. As a “gold bug”, I am adding to supply of that relic. My question is one of philosophy, history, and practicality.
I first became aware of inflation (i.e., monetary fiat inflation as opposed to all the other distractions that are called inflation) when in Manhattan College in some course or another, vonMises was an assigned collateral reading. I had a prof, who I can’t remember, was always on Crusoe’s Island. I got a D, so I didn’t take much away from the course. My next brush with education about it was a visit to the Smithsonian where I saw the incredible shrinking French franc. 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. They 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! I then experienced the Carter inflation of the 70’s with 18% interest rates. And the WIN (Whip Inflation Now) absurd buttons. Lately I’ve read about the Liberty Dollar, silverization of the Mexican peso, and the golden dinar. I’m also remotely aware of Say’s Law which I will paraphrase as “if you had some gold and some paper, which would you spend first?”. I think is a fair translation.
So with that context, how do the people of say New Hampshire, with all those willing Free State Project members, transition from Federal Reserve Banknotes (that I sarcastically called FRBies) to a metal backed currency (i.e., the Liberty Dollar, gold or silver bullion coins, something else)?
I’ve posed this question to Walter Williams, Lew Rockwell, and anyone else who I thought might have an answer. Never had a good answer. Care to take a stab at it?
Does it take a TEOTWAWKI (The End Of The World As We Know It) scenario to get rid of the Federal Reserve? With all the fighting and bloodshed to get to peace and economic honesty? Or is there a peaceful path to end “counterfeiting”? With all the “stuff” that the Federal Gooferment could sell off, it would seem possible to make good on all the promises. Sell off land in Nevada and Alaska to pay for Social Security? I can’t see how anything good will come out of our current direction. Nothing likely except more inflation.
Care to share your thoughts about this topic?
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