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Fiat Money(1) The operating principle behind fiat money is to require taxes be paid using it. This creates a demand for the fiat money that cannot be satisfied without widespread trade that makes use of it, or is conducted for the sole purpose of obtaining the money needed to pay the taxes.
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Fiat Money(2) The second evolution of fiat money is to legislate that the fiat money be accepted for all debts public and private. This effectively creates a discounted market for fiat money that gives it a competitive advantage against other currencies. In turn this allows the state or government to purchase goods and services at a discount by printing money to do so, and then distributing that discount across all holders of money and assets. We call this inflation or credit expansion depending upon how it’s accomplished.
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Fiat Money(3)The third evolution of fiat money is to legislate that the fiat money be the ONLY, accepted currency for the payment of debts public and private. This further expands the discount that the state can use to increase purchases of goods and services while distributing the increased costs across all money and asset holders by increasing the amount of money by printing additional money or expanding credit.
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Fiat Money(4)The fourth evolution of fiat money is to legislate the elimination of all currency in favor of electronic records, the purpose of which is to eliminate the tax evasion rampant in any cash economy, and therefore to increase the government’s income from it’s least wealthy citizens.
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Fiat Money(5) The fifth evolution of fiat money is electronic redistribution of gains from productive efforts, and the elimination of the ability to save, thus creating a monetary slave economy of total dependence that is no different from the totalitarian feudalism of the pharaohs and the early Mesopotamian states.
Freedom consists of money, property, and the common law under a written constitution that protects money and property and the common law. The only government any population requires is a constitution and the common law, and a body of judges who resolve disputes according to that constitution and common law. Everything else can be privatized, and should be.