Sound Money Incentivizes Limited Government

Which is why many control-obsessed centralizing politicians are against it.

If you want to rob somebody and get away with it, the best way is to ensure they don’t even know how much they have of something.

Thus, you can rob them without them even noticing.

If you can sow doubt and confusion, and leave people unsure of what they actually have, then it’s so much easier to take it from them.

By contrast, if you wish to deal with people in a fair and ethical manner, wishing to conduct trades that can be mutually beneficial and which build up trust, then you want the other person to be certain of what they have, and the value of what they have.

Unsound Money

What am I getting at here?

Well, the idea is that since so many politicians have become obsessed with expanding their power, and leeching power away from individuals and towards the state, they have an interest in promoting ‘unsound money.’

Money that is unconnected from anything tangible, money that can be easily manipulated, money that can be created at a whim, all of that benefits those who seek to centralize power, because it sows confusion within the population.

As I wrote earlier, we can see this in how politicians and government institutions are gaslighting us on inflation:

“As I’ve been saying for some time, there is a clear link between what we are seeing in terms of rising inflation, and the unhinged climate promises being made by leaders in Canada, and other Western nations.

The fact is, to hit the ‘targets’ set by our public officials, our standard of living would have to go way down.

Politicians like Justin Trudeau, and institutions like the Bank of Canada that now serve the statist agenda know this, they just can’t admit it.

So, they need a way to make it appear that people have ‘more money,’ even as they get poorer and lose purchasing power.

Voila, inflation is the perfect tool to do that.

If everything goes up in price 6% in a year, while the average person gets a 2% wage ‘increase,’ people will see a bigger number in their bank accounts, while being 4% poorer overall.

Do this year after year, and you can dramatically lower the purchasing power of most individuals, without it being directly obvious in people’s bank accounts.”

Who protects the value of our money?

In theory, the Bank of Canada is supposed to protect Canadians from all of this.

But, as Opposition Finance Critic Pierre Poilievre noted in an interview with the National Post, the Bank of Canada is increasingly political under the Trudeau government:

“Asked whether he’s crossing a line by going after Macklem, Poilievre flipped the question back onto the Liberals.

“I’m only criticizing the Bank of Canada’s lurch into fiscal policy,” Poilievre said. “When the government decided to use the Bank of Canada to print money and pay its bills, they crossed the line. They politicized the bank. And they moved the bank from monetary policy to fiscal policy. As the finance critic, it’s my job to hold them accountable for that.””

A politician like Justin Trudeau, who wants to centralize power at the expense of the individual freedom and financial freedom of Canadians loves nothing more than seeing money become less and less ‘reliable.’

By politicizing the Bank of Canada, the Trudeau government has weakened and subverted what is supposed to be the last line of defense for the maintenance of our earning power.

Of course, the federal government is supposed to play a key role in maintaining the earning power of Canadians, because a country cannot grow stronger as a whole if the personal finances of individual Canadians are worsening.

This is where it’s essential to see how ‘unsound money’ incentivizes big government and statist power grabs.

Because of this, truly countering the statist Liberal agenda requires a return to sound money.

National & Private Sound Money

One of the most interesting trends in the world today is the rise of sound private money.

In particular, Bitcoin is a cryptocurrency that is decentralized, scarce (there will only ever be 21 million Bitcoins), and cannot be controlled by politicians or central bank officials.

Because of this, it is private money.

The rise of sound private money like Bitcoin demonstrates that in the absence of sound government money, there is still a demand for sound money, and that demand will be filled.

Of course, since most economic activity still involves fiat currency, the damage being done by inflation and unsound government money will significantly erode the earning power of countless hardworking people who are in effect being betrayed by a government they expect to protect them.

For this reason, it is essential to get as many people into the cryptocurrency world as possible (learn how to get started here).

Additionally, we need to return to sound money at the national level.

This starts with clear limits on the power of the Bank of Canada, to ensure the Bank of Canada can’t simply create endless amounts of money to finance the political agenda of big government proponents. We also need to link our money to something scarce and tangible, ensuring that people can get a clear picture of how the value of our money is changing.

Returning to sound money would also mean governments actually having to make difficult choices, rather than just spending a bunch of money to ‘fix’ every ‘problem’ or to fund absurd utopian solutions.

This would make it far tougher for the government to pull the trick they are currently playing with inflation. Inflation forces the difficult choices onto individual Canadians by eroding their spending power, while governments look ‘innocent.’

With sound money, if governments imposed policies that eroded our earning power (high taxes, onerous regulations that cause price increases, etc) people would accurately see their earning power fading, rather than having the whole picture be confused by inflation making it seem they have ‘more’ money.

Governments that wanted to massively increase spending would have to cover it with much higher taxes, and surging government debt would lead to higher interest rates, both of which would show people the true cost of state spending.

Regaining trust

It would be great if we could trust the government.

But trust must be earned, not just demanded or giving on a whim.

As things stand today, the federal government in Canada is far too big, far too intrusive, and far too willing to manipulate our money for us to have any trust in it.

Until and unless we return to sound money, there’s no way for us to trust the government.

Of course, the true potential of private sound money like Bitcoin could lead to a future where private economic activity is so unconstrained by government that governments are forced to shrink solely because of their loss of economic power. Governments know this, and fear this, which is why we need to watch out for their attempts to subvert blockchain technology for their own purposes.

Expect to see more and more central banks and governments pushing Central Bank Digital Currencies (CBDC’s), which they will then claim makes private cryptocurrencies redundant. Obviously, they will be lying, since CBDC’s will be just as easily manipulated by politicians and central bankers as current fiat currency is, and will have the added danger of making it even easier for the state to track everything.

The fact is, the statists will do anything to maintain their hold on power, and their attempts to subvert crypto will only demonstrate how important private sound money like Bitcoin is to protecting and spreading economic and financial freedom.

Spencer Fernando


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