to The Jolly Roger Dollar
by George F. Smith: From
'Golden Fetters' to Handcuffed Investors
is the preface to my forthcoming book, The
Jolly Roger Dollar: An Introduction to Monetary Piracy, which
will soon be available on Amazon.
Money and banking
should be permanently divorced from the State.
should be divorced from the state but thats going well beyond
the scope of this little book. For now, at least, our goal should
be to kill central banking wherever it exists and open up the market
to alternative moneys alternatives to the fiat paper issued
by central banks. Market participants should be free to choose what
they wish to use for money without government interference. Legal
tender laws, since they constitute invasions of private property,
should be repealed. For the same reason, banking should lose the
legal privileges that protect the practice of fractional reserve
lending. What is needed is freedom freedom to conduct our
monetary and banking affairs regulated only by private property
rights and economic law.
The cover of
this book was created to remind readers that the monetary and banking
system we have is fundamentally an act of theft. It is monetary
piracy because the currencies we swap for real goods and property
titles are hijacked versions of the real thing. What constitutes
the real thing, who did the hijacking, when, for what purpose, and
the results it has brought are discussed in the remainder of this
The money we
now carry in our pockets or checking accounts serves the purpose
of providing a medium of exchange. If it didnt banks would
be in the wallpaper business. But it also serves to transfer wealth
from those unconnected to the money creation process to those closely
associated with it. This is why monetary policy is more accurately
thought of as monetary piracy.
In 2010, Federal
Reserve officials celebrated the centennial founding of the Fed
at Jekyll Island, Georgia. The institution that was finally passed
into law in 1913 was supposed to make financial crises and bad money
virtual impossibilities. It has instead made crises and bad money
permanent conditions. If freedom is not allowed to work its curative
powers, the Fed and its currency-on-demand machine will continue
to harm us.
always on the defensive, having to bargain and plead with a state-backed
ruling elite. We should not have to justify human freedom. The free
market, centered as it is around consumer preferences, open competition,
and private property rights, will keep us honest, to borrow an expression
from my fathers era. If there is to be a ruling elite, let
them rise to their positions naturally, as entrepreneurs on a free
market. Only in such an environment will those on top be on permanent
probation, forever subject to the markets approval, because
the customers who put them there always have the option of removing
them when they fail to deliver.
For the most
part this book is based on articles I wrote over the past decade.
I have redacted some of the material to clarify certain points or
update sources. If the same thoughts reappear now and again, I offer
this explanation: the subject of money and banking is so corrupted
with myth, misinformation, and half-truths that repetition is a
necessary corrective. It strikes me as incontestable that, as Goethe
is said to have observed,
to be repeated constantly, because Error also is being preached
all the time, and not just by a few, but by the multitude.
with permission from Barbarous
December 22, 2011
F. Smith [send him mail] is
the author of Eyes
of Fire: Thomas Paine and the American Revolution and
Flight of the Barbarous Relic, a novel about a renegade Fed
chairman. Visit his website
and his blog.
© 2011 George F. Smith