Money isn't magic unicorn piss
Jack Balkin, A Yale law professor, suggested that the Treasury mint two $1,000,000,000,000 coins, and toss those coins at the national debt to make it go away.
Apparently you can believe King Midas exists and still teach at Yale.
All of us want money, but most of us don't understand how it works.
Money is basically an IOU. It is evidence that you have done something for someone. If you have it, it proves that you are a helpful member of society. And you can pass it on to other people who do something for you.
Most of us get money every two weeks in the form of a paycheck. It is proof that we have worked forty hours a week for our employer. It's a certificate of performance.
How did your employer get that money? The same way you did. He traded goods or services with someone else, in exchange for these certificates of performance.
If we keep tracing money to its source, we find an almost endless trail of people helping each other, and freely trading things with each other, until we get to the Federal Reserve.
The Federal Reserve almost does seem like King Midas. Here is this magical place, where these magical people make this magical money that everyone wants. What great guys! Right?
Unfortunately the Federal Reserve corrupts and destroys this wonderful system. They are the reason our money buys less year after year. They are the reason a loaf of bread that would have cost a nickel eighty years ago, now costs three bucks, even though bakers have gotten much more efficient at making bread.
The Federal Reserve literally pulls money out of their butts. Instead of providing some useful good or service, they just print the money, and loan it to banks, who then loan it to us.
One could argue that printing money is a service, and that the paper and ink are a good, worthy of exchange. But why is the Federal Reserve so special? Why can't you print money and loan it out to people with interest?
Because the Congress has given The Federal Reserve (a private corporation of rich bankers) a monopoly over money production. The only difference between you and the Federal Reserve, is that the government will throw your ass in jail if you print money.
There's nothing inherently wrong with money production. Just as there is nothing wrong with producing shoes, bread, cars, or any other useful good.
But, one might argue, if anyone could print money, there'd be chaos. That's the real kicker.
If some jerkwad just starts printing money, it ruins the whole money system. While the rest of us are trading goods and services for money, some a-hole is just printing the stuff, and laughing his ass off on the way to the bank. But his money isn't magic unicorn piss. It's an IOU, a certificate of performance, that he has counterfeited. So every dollar that he passes on as if it were real, has to be paid for by somebody. It means that the rest of us have to work a little harder, and trade a little more, for every dollar.
In other words, when the Federal Reserve counterfeits money, by printing it without trade for any good or service, the rest of us have to pay for it in higher prices. Which is why Ron Paul calls it a "secret tax" on the poor.
Which is why our money, the dollar, used to literally be an IOU. You used to be able to exchange a dollar for a small piece of gold.
There's no reason a hunk of rock is better than a piece of paper. Except for one. Gold is inherently expensive, meaning it's harder to obtain than paper or other metals.
That means if you had to dig up a hunk of gold before you could print a dollar—you'd have to work for your money—just like the rest of us.
The Federal Reserve is a drain and a burden on our society, and should be abolished
. People should be free to develop their own system of IOUs, without interference from a bunch of useless and pampered bankers.
Further Reading:
The Case Against The Fed by Murray N. Rothbard
America's Great Depression by Murray N. Rothbard
What Has Government Done With Our Money by Murray N. Rothbard
A History of Money and Banking by Ludwig von Mises
Apparently you can believe King Midas exists and still teach at Yale.
All of us want money, but most of us don't understand how it works.
Money is basically an IOU. It is evidence that you have done something for someone. If you have it, it proves that you are a helpful member of society. And you can pass it on to other people who do something for you.
 |
| You can't give something you don't have. |
How did your employer get that money? The same way you did. He traded goods or services with someone else, in exchange for these certificates of performance.
If we keep tracing money to its source, we find an almost endless trail of people helping each other, and freely trading things with each other, until we get to the Federal Reserve.
The Federal Reserve almost does seem like King Midas. Here is this magical place, where these magical people make this magical money that everyone wants. What great guys! Right?
Unfortunately the Federal Reserve corrupts and destroys this wonderful system. They are the reason our money buys less year after year. They are the reason a loaf of bread that would have cost a nickel eighty years ago, now costs three bucks, even though bakers have gotten much more efficient at making bread.
The Federal Reserve literally pulls money out of their butts. Instead of providing some useful good or service, they just print the money, and loan it to banks, who then loan it to us.
 |
| Literally |
In other words, when you buy a car, or a home, your bank borrows money from the Federal Reserve. You then borrow money from the bank. You then pay back your bank with interest, and your bank pays back the Federal Reserve with interest. The Federal Reserve has made a profit, by doing absolutely nothing.
One could argue that printing money is a service, and that the paper and ink are a good, worthy of exchange. But why is the Federal Reserve so special? Why can't you print money and loan it out to people with interest?
Because the Congress has given The Federal Reserve (a private corporation of rich bankers) a monopoly over money production. The only difference between you and the Federal Reserve, is that the government will throw your ass in jail if you print money.
There's nothing inherently wrong with money production. Just as there is nothing wrong with producing shoes, bread, cars, or any other useful good.
But, one might argue, if anyone could print money, there'd be chaos. That's the real kicker.
If some jerkwad just starts printing money, it ruins the whole money system. While the rest of us are trading goods and services for money, some a-hole is just printing the stuff, and laughing his ass off on the way to the bank. But his money isn't magic unicorn piss. It's an IOU, a certificate of performance, that he has counterfeited. So every dollar that he passes on as if it were real, has to be paid for by somebody. It means that the rest of us have to work a little harder, and trade a little more, for every dollar.
In other words, when the Federal Reserve counterfeits money, by printing it without trade for any good or service, the rest of us have to pay for it in higher prices. Which is why Ron Paul calls it a "secret tax" on the poor.
 |
| It's not my fault you dumbasses keep doing what I say. (edited by Double Birds) |
There's no reason a hunk of rock is better than a piece of paper. Except for one. Gold is inherently expensive, meaning it's harder to obtain than paper or other metals.
That means if you had to dig up a hunk of gold before you could print a dollar—you'd have to work for your money—just like the rest of us.
The Federal Reserve is a drain and a burden on our society, and should be abolished
. People should be free to develop their own system of IOUs, without interference from a bunch of useless and pampered bankers.Further Reading:
The Case Against The Fed by Murray N. Rothbard
America's Great Depression by Murray N. Rothbard
What Has Government Done With Our Money by Murray N. Rothbard
A History of Money and Banking by Ludwig von Mises
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