Paul Craig Roberts: How The Law Was Lost
This talk is older than this blog and the information disclosed remains relevant. A younger Dr. Roberts said this:
VERY IMPORTANT: Near the close of this talk, Roberts describes inflation in almost exactly the same terms as does Riegel. Excess dollars literally created by government without any intention of taxing them back (since governments are not businesses and have nothing we want to buy from them) sooner or later must express themselves as higher prices.
What do we say when someone has to pay more for something just because there's more money around? We identify that with inflation and each unit in that system is losing its ability to measure value in a sale; the money is losing value.
Roberts also discusses various tricks the central bankers use to open the money spigots and then close them down, the tendering and withdrawing of money, the booms and busts this brings about. The typical reaction is to blame this on "fiat money" when in fact that fiat was stolen from each and every one of us. This is something that even Roberts would be loathe to admit, but it happens to be true as Riegel understood it.
If one suddenly discovers one has a natural right, does one relinquish it to another as though it were of no value when one discovers that it has value? That's what giving away our fiat to issue money has accomplished.
We'll say here and now that under the proposed system, there would NEVER be more money issued than would be absolutely required by the solid rules of basic barter; labour for goods and services. It would be very difficult to raise prices without some significant value added to products and even then, there are elements to production and pricing that, until recently, were constantly disputed by the "know it all" types among the Marxists and those favoring more centralized planning.
As we've said now in a few place, only those producing anything have any idea of what it costs for them to even take the risks involved, planners and governments literally can have no idea, which is why this idea NEVER works and ALWAYS leads to failure and by the way, even over production that results in vacant cities is proof that central planning, whether under private or public auspices, accomplishes as much waste as doing things locally and allowing people who really know what things cost to determine their eventual pricing.