The Free Market Currency Manifesto
Michael S. Rozeff
by Michael S. Rozeff: A
Run on the United States Government
the blood of human exchange. From currency arise prices, and prices
are the air that peaceful exchange breathes, an air that communicates
living information. Currency is the division of labor’s partner.
Currency is our means to transfer labor and energy through time
and space, to bring future goods into commerce today. It is that
vital means by which we convey the benefits of our labor to others
and they to us.
currency. It is absolutely essential to our welfare in any modern
Do we want
freedom and free markets? Then currency must be produced in freedom.
Do we want to be controlled and directed by government in totalitarian
style? Then currency will be in the hands of government as it is
What sort of
order do we now have and what sort of order do we want to have?
We now have an order of force. It is a corrupt and harmful order
that destroys lives. It is an order of unjust laws written by unjust
government to pay off privileged and select groups in society. It
is an order of excessive and overbearing government that destroys
healthy social relations. This is not a free market order. If we
want a peaceful free market order built upon private property and
recognizable and well-defined rights, we need to change direction.
The order of force in all respects leads away from the free market
If we want
freedom and free markets, we cannot and should not depend on one
supplier of currency. That supplier, government through its central
bank, playing dictator, has abused, will abuse and cannot help but
abuse the power of issue. Its hidden and unstated goal, its raison
d’être, is favoritism and privilege for itself and its
supply of currency is obviously not a free market institution, since
rivalry and free entry are hallmarks of free markets. Yet their
controllers sell themselves on the deception that the free market
cannot produce its own currencies and that government control preserves
the free market order. Any notion that monopoly control saves this
or any free market or perfects the free market or overcomes its
supposed negatives is the biggest sort of lie, imposed only to gain
advantage and privilege for its proponents. Monopoly currency corrupts
and poisons the free market order, transforming it into the order
need nor want a monopoly supplier of currency: We – as entrepreneurs,
in companies, in associations, in banks, in localities – as free
persons. Currency is a spectrum of media of exchange that includes
credit and money. It is many, not one. At one end, we can create
currency out of nothing, out of thin air, whenever and wherever
we want to. It will be credit, and the trust that exists between
us is its backing. In the middle range of currency, we can create
credit using assets of many kinds as backing (including money).
At the other end, we can use money, which is not credit, not a liability,
not a promise, but an asset free and clear.
Money has its
uses and its place, but we are not restricted to it. Centuries ago
in a great step forward, mankind added credit to its techniques
of trade; but modern man has taken a great wrong turn. In our fear
and ignorance of the free market, we have centralized credit in
the hands of a few central bankers, where they have changed it from
an instrument based on commerce and trust into an instrument of
force and privilege. In our ignorance, in our fear, in our misplaced
awe of government, and in our manipulation by overlords, we have
allowed a few to take control over credit. We have even allowed
them to banish real money and replace it with forced credit.
We are so indoctrinated
in government control that the most popular mass works of imagination
in science fiction are wedded to this totalitarian conception. In
24th century Star Trek, the currency is mainly
"credits" – origin presumably the United Federation of
Planets. In Star Wars, currency is more varied but includes
galactic credit standards and there is even an InterGalactic Banking
Clan. Any science fiction work without freedom of money and credit
creation leaves mankind in its present chains.
We need monetary
freedom. That is only a start to ending democratic totalitarianism,
but it is the essential start.
We need currency
issuers that uphold clear property rights transparently in the light
of day. Only competition can secure quality and advance. We need
customers in markets to drive out of business those companies that
undermine the value of their currencies by investing in the wrong
assets or by not living up to their charters. We do not need legislators
who clumsily and criminally claim and misuse the power to control
financial institutions. We do not need legislators accepting money
and favors from financial lobbyists and writing laws in their favor.
We do not need
central banks with powers to create credit that bail out failing
banks, failing insurance companies, failing foreign central banks,
and failing governments. We do not need misbegotten attempts to
control entire economies by controlling credit. We need to scourge
government-sanctioned credit and central banks from the marketplace.
We need to separate currency and finance from government power.
of exchange based on our compassion will drive out the bad in a
Sound liabilities and sound moneys from creative hearts will drive
out the bad media of exchange, but only if we divorce government
from financial control and embrace the free market. It's so simple.
We are being held back. We are being robbed of wealth and opportunity.
We are being prevented from choosing. The market will automatically
create a range of liabilities that can be media of exchange if it
is given a chance to be free. We in the market will choose our currencies.
To stand in our way is to destroy us.
If we are the
ones who build our cities, if we grow our food, if we clothe ourselves,
if we care for our children and our weak and aged, if we do all
this – and we do and not our government – then so can credit be
ours, of us, by us, and for us. Then so can we devise our own moneys.
Then so can we create our own currencies freely, without obstruction,
without instruction, without regulation, without monopoly, and without
government guns pointed at our heads.
our currency, and doing such a pitifully poor job of it anyway.
Let us create our own currencies.
Get out of
our way. Move aside. Begone.
financial system nearly collapsed in 2008. The order of force in
currency nearly fell. It remains vulnerable with stagnant economies,
inflationary economies, immense deficits, insolvent banks that are
too big to fail, and sovereign debts nearing default. The order
of force in currency risks disintegration before our eyes.
If there is
a collapse of the financial system, there is every likelihood that
government, to save this unjust and unworkable system, will transform
it and itself into something even more beastly and oppressive. The
near collapse prodded government into adopting measures that prolong
the system but impoverish us.
bring disorder. If we do not have working currencies in place, our
economy will fragment as it reduces to guns and barter. Disruption
will rule. Living standards will decline sharply. The unprepared,
the weaker and disadvantaged in society will scramble to survive.
Chaos and disorder will bring about calls and demands for order
in the form of more and stronger government. Working currency alternatives
are a necessity to avoid this outcome.
of the order of force with its accompanying stagnation is simply
a slower motion collapse. It too will provide many excuses for further
resort to the order of force. Government in much the same and worse
form will be maintained or restored. No crisis in American history
has yet done anything but enhance the order of force.
The free market
order is always vulnerable to demands for more government force
and especially so when there are highly publicized problems exacerbated
by media that agitate, distort and sensationalize. Attempts to alter
or end government that transform it radically and produce excessive
disorder become counterproductive.
We who are
the public have to support change and it has to be the right sort
of change or else it fails. Without a much deeper understanding
among us that produces the consciously different goal of a free
market in currency and free markets in general, we will remain slaves
to the order of force.
We must certainly
not let the government use smoke and mirrors to replace the existing
monetary system and currency with another government system of the
same kind. We must not exchange one system of tyranny for another.
The need for
alternative currencies now is urgent. With alternative currencies
in place, Austin continues to touch Boston and Tacoma without interruption
when the old currency dies. It continues to touch Hong Kong and
Ankara and Manila. Economic life goes on without being severed when
new currencies smoothly take over from the old.
resolve to terminate the order of force in currency. We declare
ourselves free to create our own currencies of money and credit
based on institutions of trust and property rights. We declare ourselves
ready to transform our monetary system and laws. We will employ
ourselves, pay ourselves, transport and distribute our product using
whatever currencies we deem fit. We will manage currency in freedom,
not by multiplying bad credit, but by bearing the losses for which
we are responsible and winnowing out the bad and ineffective currencies.
In order to
rid ourselves of the currency monopoly, we need alternative currencies
up and running. But before that we need the will and commitment
to open free markets in currency, in both money and credit. We need
to know the goal and to know that it is right and to know that what
we now have is wrong. We need a Free Market Currency movement.
S. Rozeff [send him mail]
is a retired Professor of Finance living in East Amherst, New York.
He is the author of the free e-book Essays
on American Empire: Liberty vs. Domination and the free e-book
The U.S. Constitution
and Money: Corruption and Decline.
© 2011 by LewRockwell.com. Permission to reprint in whole or in
part is gladly granted, provided full credit is given.
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