• The power of fiat money gives governments the ability to become more authoritarian.
• Central banking is attractive to governments, giving them the ability to print money and run deficits on their budget.
• This obscured monetary power has enabled unprecedented destruction in the last 100 years and brought forth a welfare/warfare state, surveillance state, police state, and militaristic tyrannies.
The Negative Consequences of Fiat Money
Fiat money has had serious consequences for individuals, companies and nations alike. On an individual level it has resulted in higher time preferences through debt and lack of savings vehicles. On a company-level it has allowed artificial companies to replace families with unnaturally large corporations. And at the nation-state level it has enabled governments to become increasingly authoritarian with a welfare/warfare state, surveillance state, police state and militaristic tyrannies being some of its rotten fruits.
Central Banking: The Gift That Keeps on Giving
The central control of money is an enormous prize that allows those in power to steal wealth from their nations at will. Central banking is attractive because it obscures this dynamic while making it easier for governments to take on debt by running deficits on their budgets without needing to tighten budgets or raise taxes – something that was not possible under sound money systems where taking on debt was costly due to high interest rates.
Government Power Expands Under Fiat Money
With central control over money comes greater government authority and power which have expanded greatly over the last century due mainly to fiat money systems. This increased government power brings with it increased responsibility but unfortunately this responsibility often falls short as evidenced by much death and destruction resulting from wars fuelled by excessive government spending thanks to fiat currency systems.
Marxism & Positivist Law: Unintended Consequences
The manipulation of currency also brings unintended consequences such as the siren song of Marxism and positivist law which have further empowered authoritarian regimes around the world leading only further oppression for many people throughout history.
In conclusion, fiat currency systems have had disastrous consequences for individuals, companies and nations alike enabling tremendous government abuses against its citizens through unchecked spending thanks largely due to its ability obscure how much monetary power is behind this system . Unfortunately this system continues today despite these negative effects as those in charge benefit greatly from having access such incredible powers over its citizens’ lives and livelihoods