Government and Money

Most governments today control their money supply. They are able to increase the money supply by simply printing more bills. Through this method, the government gains the ability to spend without the need for taxation. It can also increase the amount of money in the economy in the false attempt at improving the economy.

When the government prints money, it is an act of theft. Since money is valuable in its ability to buy other goods, the printing of new money allows goods to be purchased without real exchange. It lowers the value of everyone else's money since the money's value is inversely related to the quantity. The government steal goods and services giving nothing in return. The goods are taken from the population as a whole. Everyone with money loses value.

Government did not create money. It stole it. Commodities, such as gold, were the first real money. Governments have been able to replace their paper currency by demanding that people accept it as the equivalent of gold. "Legal Tender", they call it. Better known as the initiation of force. Through this method, they slowly replaced gold with paper, and then finally disallowed gold to be exchanged at all. Now, they are able to print money without end.

A proper government does not control the money supply. It should have nothing to do with money. The market will decide which product, such as gold, which will be used as money. While the government has power over what is money, and the ability to print it, it has the ability to steal and destroy all private wealth. The ability to print money is incompatible with property rights.

Copyright 2001 by Jeff Landauer and Joseph Rowlands