A Note On Sound Money Amendment - 993 Words

Name: Speikes, Foster D. Date: 2/10/2016 Class: Robert Yowell Sound Money Amendment For as long as money has existed, governments have sought to control its supply for their own benefit. The ancient Romans, for instance, regularly debased their coins so that, by the end of the 3rd century AD, the actual content of silver had declined to less than 5% purity. The debasement of and inflation of the money supply has historically been a tool of governments to expand their power. In conventional economics, which this paper will assume as a positive background in defending the feasibility of a sound money amendment, the result is a redistribution of real wealth from savers to the government, the banking and finance system, and other†¦show more content†¦In other words, schemes of redistribution which are organized to counter the symptoms of government interference in sound money misdirect our focus from a cause (debasement of the currency for government and friend’s benefit at the expense of everyone else) to a â€Å"solution† proposed by the sam e organization which caused the problem! It would be like proposing to solve mob violence by making the Capo di tutti capi police chief. The amendment would therefore be formulated to prohibit government interference in the production of any money supply. All money would be private, with contracts between individual depositors, lenders, banks, and other financial parties being enforced like any other privately agreed contract. This is obviously a political impossibility at the moment, but the contemporary global socioeconomic order is poised for massive reforms in the wake of a collapse of the financial system and/or political revolutions. The regular operation of the global financial order is so thoroughly corrupted by government interference that all three political cultures would be able to agree that a sound money amendment would be an improvement. Individualists would be pleased that restrictions on the financial autonomy of individuals, communities, and other organizations wou ld be removed. At present, financial options for individuals and organizations are substantially restricted due to an