Sunday, 13 May 2012

Printing money is not harmful

The government forces us to use currencies which can be printed by the banks. This means we have no means to avoid the seigniorage (inflation) caused by fractional reserve banking. Taxation is why we cannot escape the banks. Given that we have taxation (and the government is unwilling to repeal it) then the problems caused by the banks are merely the problems of counterfeiting. Banks do no more harm than counterfeiters... the real problem is that we are forced to use fiat currencies. Fractional reserve banking is just counterfeiting and does not initiate force. As much as we might expect to find an ethical problem with frb there is none... the fact of our being forced to tolerate it is not the fault of the banks it is the fault of the government. Banking is not a problem of the private sector the roots of the problem lie with the government and prohibition of counterfeiting in general.

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