• Fiat money has enabled governments to become more authoritarian and has allowed them to expand their power.
• The central control of money gives those in power the ability to steal the wealth of their nations at will.
• Central banking is attractive for governments because it allows them to run deficits on their budget without having to face the consequences of taking on debt under sound money.
Fiat Money and Government Power
Fiat money has enabled governments around the world to increase their power over citizens. This monetary system gives those in charge a great amount of control, which they can use to steal from their nations and grow their own authority. The main benefit that comes with this kind of system is that it allows governments to run deficits on their budgets without facing the consequences that come with taking on debt under sound money.
The Rotten Fruits of Fiat Money
The incentives that come with fiat money have led to some rotten fruits such as a welfare/warfare state, a surveillance state, a police state and militaristic tyrannies. Governments have been able to use these systems as a way of increasing their own authority and controlling citizens lives in an authoritarian manner. This type of power has been seen throughout history but has been especially prominent during the last 100 years due to fiat money’s influence on government policies.
Central banking is also an attractive option for governments because it obscures the effects that printing new money can have on society. This means that those in power don’t have to face up to the repercussions that come with taking on debt under sound money, allowing them greater freedom when it comes making decisions about spending and taxes.
Taking on debt under sound money usually requires tight budgeting or raising taxes, both unpopular options among citizens, which creates an opportunity cost for spending that is lessened by fiat monetary systems like central banking. Budget battles used to be about trade-offs between different items but now its about who can hand out rent-seeking favors rather than how best allocate resources efficiently and equitably amongst citizens.
In conclusion, fiat currency incentivizes governments towards an authoritarian vision where they are able control citizens through various systems while expanding their own power without facing any real consequences or accountability from citizens or other nations’ leaders alike due its obscured nature.. As Jimmy Song explains this is one of the most dangerous aspects of using fiat currency as it leads us away from democracy towards tyranny