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Free market money question.

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No2statism Posted: Wed, May 1 2013 3:14 PM

Does the govt stop creating new money under free market money, does the competition from other exchange mediums freeze the supply of govt created money?

I just don't see a system of free market money existing long term in anything but a free society or a confederation (the Articles of Confederation was a free market money document).

Going back to the classical gold standard wouldn't work because then the gold supply would be partially nationalized and there would also be market distortions from deficits and surpluses.

If the classical gold standard is brought back, then the Constitution should be amended to prohibit the govt from monetary nationalism (i.e., no mints) and entering into international money agreements and repeal all federal taxation except either borrowing and dispersing to the States based upon representation or nothing more than taxing 5% of the gold each time it leaves the borders.  That way, 95% of the gold supply would not be nationalized.

Even with a Constitutional amendment, it could still be totally ignored or repealed by supermajorities in Congress and 3/4 of the States so I must conclude that we'll never get out of slavery since centralist States must distort the natural order of the market.

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Monroe replied on Thu, May 2 2013 10:45 PM

Here is a good place to start - Tom Woods explanation of the Constitution and the government's role with money

"...if there is one thing that stings people just enough to commit violence, it is the feeling of powerlessness." - Monroe "yes, I just quoted myself..." - Monroe
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