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Fiat Serfdom16/12/2009 20:09:00
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Fiat money is a medium of exchange, but it has no commercial commodity value, no producer or consumer value, nor does it convey any title to an underlying commodity property. The only method of impartingvalue to an irredeemable paper fiat money is through government decreebased solely upon the enforcement of legal tender laws with threat of  penalty. In total and absolute contrast, commodity money, such as gold money, is a medium of exchange which retains an underlying commercial commodity value, it retains both a producer and consumer value and sincethat value is inherent in the underlying commodity of the money it actually conveys title to the commodity as private property of the individual holdingthe commodity money. Additionally, there is no necessity to involve theimpartation of value to a commodity money by government, nor is there aneed to enforce the use of commodity money by legal tender laws.Given the generalized acceptability of gold commodity money, any form of that money, based upon weight would translate into a universal medium of exchange and do so on a global scale even though the coinage may be of foreign origin. Because of this characteristic of gold money, it is possible toconstruct all currencies based upon weight and the exchange opportunitiesof such currencies would be subject to both producer and consumer opportunity costs that cannot be found in any other type of money,especially fiat money. Gold money, unlike fiat money, is based upon themost fundamental principles of a barter economy; as such the indirect exchange involved with gold money maintains a direct interaction with theunderlying pre-existing barter economy. In fact, gold money is the direct result of the barter economy. Gold maintains its high marketablecharacteristic because of its connection to the most basic barter economic  principles, which make up its foundation.Today, the world is plagued with fluctuating fiat currencies that provideabsolutely no consistency as a medium of exchange. Exchange becomesdifficult since there arises a double coincidence of wants in order for any exchange to take place, this system is dysfunctional on several levels, but especially in the balance of trade between countries. Such fluctuatingexchange rates between different currencies, instead of facilitating exchange
 
make it much difficult for the money to promote exchange. Gold money, onthe other hand, based upon weight is a very stable As a medium of exchange, money normally serves as a measure of value,but in order to actually contain a measure there must be an imputation of value otherwise there can be no real measure on which to base value. Assuch, fiat money does not serve as a measure of value since the face valueis in contradistinction with the underlying value, which is essentially thevalue of the paper itself. The imputation of value found in fiat monetary systems has absolutely nothing to do with the money itself for there is novalue to fiat money, all value is imparted to fiat money via the government legal tender laws used to enforce its use and the manipulation of interest rates which serves to provide fiat money with a pricing structure.It is apparent within the world that we live that most people associate themeasure of value of their fiat dollars in terms of face value, but that is far from a meaningful measure of value and only is a numerical valuation that does not relate to the ordinal value of fiat currency since the currency issubjected to inflationary depreciation. As such, the ability to actually measure value within a fiat monetary regime becomes increasingly difficult as time progresses and depreciation takes place. With an unstable purchasing power, it becomes impossible for fiat money to actually serve asa concrete measure of value, this is particularly true considering the natureof our political economy since the continuous state of government and central banking intervention precludes a stable constant of valuemeasurements.Since fully functional money always arises as commodity money with all themarket characteristics of a commodity value; that being said the questiontherefore, is how does fiat money arise and what is necessary to transformwhat amounts to pieces of paper into a medium of exchange? Fiat money isa forced unit of value and exchange, which never arises naturally from avoluntary exchange with an underlying measure of value. Fiat money isdeveloped as a money substitute that carries with it some of thecharacteristics of money but essentially is not money in the purest sense of the word.
 
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Such money substitutes cannot convey title to any underlying valuesince there is no underlying value in fiat currencies. Since it is not possiblefor title to be conveyed all claims of ownership are null and void; indeed,under a fiat monetary regime there are usually numerous claims to each fiat monetary unit and those claims range from the U.S. Government, to theFederal Reserve System, to national and regional banks and then tocorporations, as well as individuals, but these claims do not convey absolutetitle to something that cannot, in the strictest sense, be considered private property at any point in ownership.
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