How Fiat Money Destroys Culture–Guido Hülsmann

Authored by Jörg Guido Hülsmann who is also the author of Mises:  The Last Knight of Liberalism and The Ethics of Money Production  [websites for book immediately below]:

https://mises.org/library/mises-last-knight-liberalism-0

https://mises.org/library/ethics-money-production

And Dr. Hülsmann’s website: http://guidohulsmann.com/

From the post:  “A number of economists have observed that fiat money is a prerequisite for tyrannical government, and the idea that monetary interventionism paves the way for tyrannical government is very old and goes back to Nicolas Oresme in the fourteenth century. It has not been emphasized in the twentieth century, but Ludwig von Mises is among the few who has stressed the importance of this relationship.

Now, if we abandon a strict connection between what the citizens pay and what government spends, then we find that we move away from rule by the citizens who are being taxed, and toward greater rule by the elites.

The first way this shift can happen is by the government going into debt. The financial relationships then shift toward the new group that is funding the government, namely those who are extending credit to the government. This then weakens the relationship to the citizens who are being taxed, and it also allows the government to spend more money than would have been possible with taxation alone.

Now of course fiat money allows government to take out loans to an unlimited extent because fiat money by definition can be produced without limitation, without commercial limitation or technological limitation, and can be produced in whatever amount is desired. In this way, the government benefits from the support of a central bank, which is to be expected because the central bank itself depends on the legal framework of monopoly provided by the government.”

https://mises.org/blog/how-fiat-money-destroys-culture