[geocentrism] "Social Credit" versus Private AND COMPETITIVE Currencies

Last updated: March 19, 2007
   
  Private AND COMPETITIVE Currencies
   
  A better way than a State-run business is called a private laissez-faire 
COMPETITIVE market. Anyone should be free to start their own clothes 
manufacturing
business tomorrow morning. Likewise, anyone should be free to start their own
currency manufacturing business tomorrow morning.
  See also libertydollar.org  
  
Do we need Corporate Fascism in the clothing industry or Corporate Fascism in 
the currency industry, run by a private company and given a State monopoly? No.

Many agree with that and think they are geniuses for knowing that the Federal 
Reserve is 
privately owned. Then these same people suggest State Communism as a solution. 
Let a 
State monopoly take care of it and charge no interest they say ( also called 
"Social Credit ).
  Have the state issue it's own currency. But you know what? I can already 
envision 24+ percent currency inflation per year under this system and, as a 
result, the prices of goods and services rising 24% per year. I can also 
envision ever-increasing amounts of
  money going to the...................FRIENDS of the State bureaucrats and the 
stringpullers
  behind the scenes who control the State.

Having a state monopoly for currency would not work for the same reasons
it has not worked in any other industry. There are 1,001 good books available
on the corruption of the state and the immorality of forced communism. It would 
not
work because of the "criminality" and inefficiency inherent in the state. And 
having one hundred countries each with it's own currency monopoly is NOT real 
competition,
  it's just one hundred corrupt, immoral and inefficient statist monopolies.
  
A private AND COMPETITIVE ( many suppliers ) currency industry is the real,
  practical, moral and Biblical solution that works. COMPETITION would keep 
currency businesses honest and producing the best products, probably
  gold-backed currency, but more important than that, backed by whatever two 
parties VOLUNTARILY agree upon.

The only possible role for the State and their police would be to prosecute 
people for criminal acts like stealing clothes or counterfeiting currency. And 
that my friends is the simple easy solution that solves all questions and 
problems in the currency
business once and for all. But there are a lot of government intellectuals
and investment newsletter writers who make a good living by keeping
the waters muddied and avoiding at all costs a final, single and simple 
solution. So expect
the debate to continue and only two solutions offered, Corporate Fascism or
State Communism. But never suggest what works in every other business, a private
AND COMPETITIVE laissez-faire, free-enterprise market.
  
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  Food, Clothing and Shelter should be built, owned and
  operated by government.
   
  The above headline is false. It is NOT true. That would be State communism
which everyone knows is disasterous economically. That headline was
to shock people into the truth by using analogy.

OK, the same is true of the currency industry. There is no good practical,
philosophical, moral or Biblical reason for the State to own or control the 
currency industry. The food, clothing, shelter and currency industries are too 
important for the State to assume ownership and/or control.

A lot of people will say words to the effect of: "We need to abolish the 
private control of credit and bring  it under government control, with no 
interest charged." 

Now here is what the correct economic liberty view is:

Imagine a clothing industry in your country run by a single private corporation 
which was granted a government enFORCED monopoly.
This is an example of fascism ( private ownership and State control ).
There are always all kinds of inefficiencies and corruption in this setup.

Now imagine a solution proposed for this clothing industry which is for the 
government to run the clothing system. This is an example of State communism ( 
State ownership and State control ). There are also all kinds of inefficiencies 
and corruption in this setup. 

Now the correct solution for all the problems in the clothing industry would be 
to have economic liberty. In other words competition amongst many suppliers, 
freedom of entry into the business and freedom by customers to choose and trade 
with any supplier.

Again, having one private corporation with a state granted monopoly over an 
industry,
enFORCED by state gunpower is NOT a free-enterprise system. That is fascism.

So also, just apply the above logic to the "currency" industry ( credit is just 
a derivative of a currency ) and that's that - you have your solution to the 
1001 issues and controversies in the money/currency industry. The correct 
solution for all the problems in the currency industry would be to have 
economic liberty. In other words competition amongst 
many currency suppliers, freedom of entry into the currency business and freedom
by customers to choose and trade with any supplier.

In fact currency inflation would be eliminated and the prices of all goods and 
services would FALL each year by the rate of productivity increase, say 3% a 
year on average ( get your calculators out and see how little a new car 
"should" cost now compared to
the year you were born in ). 

And don't believe statist university propaganda that a free market in currencies
was tried 150 years ago and it didn't work. Don't believe your commie,
  government- intellectual professor. The free market HAS worked 9,999
times/industries in a row and it would work here also. If the State previously 
did a poor job
of catching and prosecuting for fraud or counterfeiting then that is an 
indictment of the inefficiency of the State's police and is just an argument 
for government to get out of
  the police business also.

The only function of the State in the above scenarios would be to recieve a 911 
call 
from a business saying that a robber had just stolen clothes or a criminal had 
just passed counterfeit currency, and would you please catch and arrest them.
   
  see also: libertydollar.org
  
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    Was Milton Friedman a Socialist ?
   
  The very first thing I look for in a person's ideas to determine if they are 
a true libertarain is to see if they believe in a Competitivised and Privatised
market in the Money/Currency Industry.

Milton Friedman does not seem to be one of these people which makes him A 
BELIEVER IN FORCED COMMUNISM or Fascism for the Money/Currency Industry.

Now, I should give him a break here because he secretly probably did believe in 
that free market but knew too much said articulately would result in a Kennedy 
style public execution by military style triangualtion fire. Or just simply 
being shunned by the media and every other institution that the financial elite 
control. Or very likely the
now common and over-used small plane crash (a la John Kennedy junior).

He should have wrote a book entitled "Free to Produce" instead of "Free to 
Choose."
In there he could have had a chapter about how people should be able to freely 
produce in the Clothing Industry. Then he could have had another chapter about 
how people should be free to produce in the Money/Currency Industry. He could 
have answered the
  question of how to determine the correct supply of money by asking, "How does
  the free, competitive market determine the correct amount of clothes for a 
society?"  

He could have explained that a free market would consist of a currency backed 
by gold.
Then he could have said that he just made a mistake about the gold backing 
idea, and that a REAL free market would be competitive with easy entry into the 
industry and that
currencies should be backed by anything two or more people voluntarily agreed 
upon. That could be gold or silver or copper or titanium, or playing cards for 
that matter.

If 100 million people in the USA decided they wanted a currency backed by 
cherry wood or silver or titanium it would be "illegal" to force them by a 
State Law to use gold as a backing.
  Would Friedman have agreed with that? 
  
-------------------------------------------------------------------------------------
  Quote:
  "In 1942, during world war two, Friedman actually went to work for the US 
government. While there he helped design the payroll tax that in Britain is 
known as PAYE, Pay As You Earn, and in the US as withholding tax, the system 
that allows the government to administer the taking of income tax directly from 
salaries and pay packets. Unlike everything else he argued for, withholding tax 
has withstood the test of time and is in use all around the world. It was the 
best thing that Keynesian-style government could ever have wished for..."
  ---------------------------
  Signed Bernie Brauer
   
   
   

   

 
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