Saturday, June 8, 2024

The Achilles Heel Of The Fiat Money System

We know from monetary theory that fiat money is not "Natural" or "Innocent." Unlike moneys emerging from voluntary agreements in the free marketplace, fiat money was introduced through state intervention-involving coercion and violence-leading to many negative effects.

Fiat money fosters what I have previously described as "Collective corruption," wherein many people become proverbially ensnared by the structures that fiat money establishes, fostering dependency and entrenching its influence.

Gradually, people become profoundly reliant on the perpetuation of the fiat money system, consenting to nearly any measure proposed by the state to keep the fiat money system going.

The Achilles' heel of the fiat money system lies in its dependence on the demand for money.

Much like Achilles had a vulnerable heel in Homer's Iliad, the fiat money system also possesses vulnerabilities that can be addressed.

To mitigate the damage caused by the fiat money system, or even dismantle it altogether, the first step must be targeting its Achilles' heel, weakening the demand for fiat money.

The less fiat money people demand, the smaller the damage inflicted by the fiat money system will be. 

https://mises.org/mises-wire/achilles-heel-fiat-money-system

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