Breaking the monopoly on money

Bust it up.

(From The Washington Times)

The idea of money has been around for several thousand years, along with precious metal coins to serve as money. The question has remained as to whether governments, private parties or both should create money. When the weight of a gold or silver coin determined its value, it mattered little to the user who struck the coin. After the invention of paper money by the Chinese, “over-issuance” (producing more paper value than the real value of the metal in the vault) became much easier than shaving the coin — the manifestation of which we know as inflation. Zimbabwe holds the record for paper inflation by having produced a 100 trillion Zimbabwe dollar note…

…Some of the smartest people in the world are developing cryptocurrencies, precisely to get around government monopoly money with all of its inefficiencies, intrusiveness and destructiveness. Black or shadow markets arise in response to government regulations and controls and, in particular, those that are economically damaging and with little public support. When the world was on the gold standard, there was no a black market in money. The higher the rate of inflation, the greater the regulation and the cost of money transference, the bigger the black market. Venezuela today is Exhibit I.

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