Fiat Money: The Unseen Power of Government Control

Summary of Article

• Fiat money gives governments the power to become more authoritarian through welfare/warfare and surveillance states.
• Central banking is attractive to governments because it obscures their ability to print money and run deficits on their budget.
• Government authority and power have expanded due to fiat money, creating an unprecedented destructive power in the last 100 years.

Individual-Level Incentives of Fiat Money

Fiat money has had a major impact on individuals by making personal lives have much higher time preferences. This is due to ubiquitous debt and lack of savings vehicles that incentivize people to make decisions with short-term gains in mind. As a result, financial decisions are made based on immediate gratification instead of long-term thinking.

Company-Level Incentives of Fiat Money

At the company level, fiat money has replaced families as the main communal unit in society. This has created unnaturally large companies that prioritize artificial growth over real value creation. This zombie-like approach has led to a less humanistic society where connections between people are strained by corporate greed.

Nation State Level Incentives of Fiat Money

At the nation state level, fiat money provides great incentives for governments to become more authoritarian. The central control of money allows them to steal their nation’s wealth at will, while also allowing them to take on more debt without having to tighten budgets or raise taxes. This gives rise to welfare/warfare states, surveillance states, police states, militaristic tyrannies and other forms of oppressive government rule. The unprecedented destructive power from governments in the last century can be attributed largely to fiat money.

The Power Dynamic Between Government and People

Fiat money gives those in power an immense amount of control over how resources are allocated within a society. While this makes it easier for governments to increase their own wealth through printing more currency or taking on more debt, it also creates an unequal dynamic between citizens and their elected officials. By printing new currency or taking on more debt without consequence, citizens become economically weaker while those in government gain greater economic advantage over them.

Conclusion

Overall, fiat money has had a major impact on all levels of society from individuals up through nation states. It provides powerful incentives for those in power which can lead towards authoritarianism if left unchecked. For this reason it’s important for citizens everywhere to understand how these incentives work so they can protect themselves against them and create systems that ensure greater fairness across societies worldwide..