Saturday, March 10, 2012

Be careful using the term "Gold Standard." The last thing we want is for the government to enforce it. As if it has any incentive to do so: the State is the entity within society most dedicated to a "flexible" unit of currency.

Not surprisingly, as the power to counterfeit is the power to pay off politically-connected pals without (directly) raising taxes. Money is a market phenomenon. Under competing currencies, a precious metal like gold will probably emerge as the "gold standard" (appropriately enough), because of its characteristic durability, divisibility, portability, uniformity, cognizability, and stability of value.

The State exists to preserve the disorder. Give spontaneous order a chance. You'll be amazed what the Invisible Hand can do.



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