One of the basic lies is that there’s only a “fixed” amount of money available at any given time, and that the measure of this amount is based on how much of a particular metal you have. This metal has usually been gold. According to system lies, if more paper money is issued than is justified by the amount of gold the system holds, the result is inevitably destructive inflation.
The lies here are that money is a real thing in itself, that this real thing is naturally based on gold, and that inflation as such is a bad thing. The goldbuggers often add an element of moralizing, that money not based on gold would be immoral and reckless, and that inflation is the consequence of a moral failure.
(I’ll add that the banks always overstate the amount of gold which is actually available. If at any time, including today, everyone who has invested in gold were to demand physical redemption, they’d immediately discover that they’d been sold fraudulent paper backed by nothing. So even given the framework of the gold standard, the banksters were precisely the immoral inflationists they accused others of being, along with committing flat out fraud.)
The truth is that money is nothing in itself, but in a normal economy would merely reflect the real production of that economy. As one Populist put it, money is just the yardstick measuring the yarn. But the goldbug ideology claims that the yardstick itself is worth as much as the yarn it measures.
Money’s only constructive role would be to exist in sufficient form to represent the real economy’s production, and to represent its productive capacity. This latter means that there should always be somewhat more money in circulation than the value of what the real economy is producing at the moment, since this extra money is what greases the skids of new productive investment and innovation. (I’ll add that it also means that to have legitimacy, money must always be circulating. The “velocity of money”, in the jargon, must be high. Money’s legitimate functions are as a medium of exchange and, as Graeber emphasizes, a unit of account. But to hoard money, to use it as a “store of value”, is always illegitimate. Taking money out of active circulation renders it pointless and therefore malevolent, since it’s no longer reflecting real productivity.)
It follows from this that if you’re going to have a central government and centralized money, the government should directly issue money in a sufficient amount to lubricate the entire productive capacity of the economy. This is called greenbackerism, named after the “greenbacks” the Lincoln administration issued to finance the Civil War (which of course couldn’t be financed with the existing gold-constrained system). This would bring only mild, constructive inflation. This mild inflation is economically healthy and good for borrowers. Real production, wages, and quality of life would increase in tandem. In fact, it’s increasing productivity which ought to dictate the pace and amount of money issuance. But the goldbug straitjacket, dedicated as it is to the artificial scarcity of money and to a generally deflationary pressure (which favors creditors over debtors), constantly puts an artificial ceiling on productivity, resulting in frequent economic crises and depressions.
Goldbuggery is utterly incapable of dealing with the complexities and productive surge of a modern fossil fuel economy. To maintain bankster control of the money but render this control more flexible, the banks dictated the establishment of the Fed in 1913. The Fed is nominally a hybrid government-bank institution, but is 100% under the control of Wall Street. In this way Wall Street continues to issue the money, which the government borrows.
(Meanwhile the silver scam has twice been the system’s response, under duress, to an uncomfortable debate and confrontation between gold and greenbacks. Most famously, in 1896 the People’s Party, having heroically forced the greenbacker idea into the public discussion, committed ignoble suicide by selling out to silver and embracing the Democratic Party instead of fighting for itself and the Populist movement which extruded it in the first place. Sound familiar? In 1896, at the LATEST, history proved that the Democratic Party was a tar pit for all human aspiration. Yet to this day people rush in droves to entomb themselves in this pit.)
I can’t stress enough that the money belongs to the people. We create 100% of the real productivity and wealth, of which money is a reflection. It’s OUR MONEY. If there’s to be a central government at all, then directly issuing the money is indisputably one of the core functions of this government. The Constitution itself mandates this.
But under all systems of bank money, including the system centered on the Fed, the government abdicates this core role, the banks illicitly usurp it, and we the people now have to pay extortion rates to rent OUR MONEY back from the banks who stole it.
One of the infinite vilenesses of the liberals is how we the people had a golden opportunity (pardon the pun, and note the profound corruption of the vernacular itself) in 2009 to smash this system once and for all and take back our money. But instead the liberals presided over the aggressive bailout of Wall Street, using trillions in taxpayer money to bail out the robbers who intentionally crashed the economy. This example was at least as awesomely self-destructive as 1896, and far more malevolent. Will America learn a lesson this time?