Monetary Policy as Socialist Microcosm

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Isn’t it funny how much gold and silver have gone up in value since the government commanded that they are not money?

The contradictions of state socialism are everywhere: Ever since the government stopped declaring war, we haven’t had a moment of peace. The more the state ups its law enforcement, the more lawless the society becomes. And so forth.

But this whole the-state-and-Fed-combat-inflation myth is nearly beyond my comprehension: How can people believe this, and furthermore automatically claim that the alternative view is kooky, crazed and dangerous? All you have to do is look at some charts on the value of the dollar over the last hundred years, or just look at the whole enterprise with some common sense. On the one hand, this monetary policy stuff is indeed quite complicated. On the other, the conventional view just seems counterintuitive in the extreme, and commonly held myths would seem easily dispelled once a few ideas are grasped. If we want the basics of the economy to be sound and free, we need the American masses and grassroots intellectuals to really begin to question the fiat money system, and distrust it, as they once did. They will have an opportunity to soon, I fear, and let’s hope the totally wrong conclusions aren’t adopted, as I also fear.

9:01 pm on July 23, 2008