Uncle Billy, I do see your point about how gold or silver would not be suitable for use as a standard value for money primarily due to the amount in the world and them being pretty weak metals. However, I still believe that we need some sort of standard to prevent inflation and keep the value of the dollar somewhat constant. Just having laws that say "don't print this much money in this quarter" will be amended and overlooked I think. I agree that a moral government would be the solution to this problem but I believe there will never be a moral government at least in my time. What is your argument for preventing inflation if not with some kind of standard with a "not perfect" government?
Michael, thank you for reading my Substack and for taking time to write a thought-provoking comment and question about it. This subject could be treated at length, I will try not to be too long-winded in my response. I hope we can discuss in future in more depth.
You are right to infer that, in my opinion, gold and silver ought not to be used as the standard of value for a nation’s currency, although I do not directly say that in my essay. I do say, “Fiat money ought to be valued according to the transactional requirements of society; it should be manufactured, and its value set by just and moral government, with the cooperation of the people of the nation…” This is pretty much what the Constitution of the United States says in fewer words in Section 8, “The Congress shall have Power To…coin Money, regulate the Value thereof…” The legislative branch of government, presumed to be prudent, intelligent, and moral, possesses the responsibility and authority to manufacture money and to say how much it is worth. (They do not have the authority to delegate that role to a private bank).
There is and can be no standard for the foundation of any law except the moral and natural law. What right has one man or group of men to declare to another man or group of men, “You WILL or WILL NOT do ___________”? What right to demand, “If you do or do not do _______ I (we) will deprive you of your freedom, if necessary, by force”? If we are equal, my desires and proclivities are no less to be indulged than are yours. So, who is one man (along with others in society) to tell another man “no”? Obviously, there must be some law that overarches all human desires and that underpins all human laws. If this is not true, there can be no basis for human law except brute force.
The founders of the USA understood this. (They were only two hundred sixty years or so removed from an integral, although imperfect, Christendom, so, for all their faults, they retained much right understanding of Christian society). They knew the necessity, and therefore they presumed the perpetual existence, of moral government. That presumption prompted them to write a brief Constitution that does not spell out step by step how to accomplish just and moral governance.
The standard for valuing a nation’s currency is a thought-out calculation that involves: Population numbers, value transaction numbers, value transaction frequency, national production quantities of specified basic commodities, and constant vigilance to make adjustments in currency quantity as material values and products in society change (i.e. new products are introduced: steam engines, locomotives, telegraph, telephone, automobiles, aircraft, computers, cell phones; old products diminished or abandoned: Stage coaches, freight wagons, Pullman cars, ticker tape machines, etc.). If diligently overseen, this ongoing calculation can keep the value of a nation's currency constant.
Of course, human nature being fallen, and our tendency to corruption, self-indulgence, and desire for power being so powerful, nothing but the grace of God bestowed upon a godly population vigilantly overseeing government can safeguard against a maleficent government. So, what happens if the population becomes corrupt? The people of government are chosen from among a corrupt population and a corrupt population oversees them - a perfect storm, as they say.
So, “What is your (my) argument for preventing inflation if not with some kind of standard with a "not perfect" government?” I’ll turn the question back to you, what sort of “standard” will a wicked government adhere to? That’s right – none. So, the answer is to return our society and government to Christian standards of right. That always has been the answer from Eden to today, and it always will be the answer until Christ returns.
You and your generation have an opportunity to pick up the rusty swords and shields of righteousness abandoned in so lazy and cowardly a fashion by my generation. I hope you and your friends will take up the challenge.
Thank you for the detailed reply uncle Billy. I have never heard your full stance on the topic and now I see your full point. I would also like to discuss it with you in person some time.
Thanks, Kristen. I, too, hope it garners some comments (debate?). It is fascinating to me how attached some people are to the notions that gold and silver have intrinsic value, and therefore, they are the only "real" money. Both are false. It is not merely an academic subject. It overlaps to the role of government as well as the nature of value. I would very much like to debate about it. We will see.
Uncle Billy, I do see your point about how gold or silver would not be suitable for use as a standard value for money primarily due to the amount in the world and them being pretty weak metals. However, I still believe that we need some sort of standard to prevent inflation and keep the value of the dollar somewhat constant. Just having laws that say "don't print this much money in this quarter" will be amended and overlooked I think. I agree that a moral government would be the solution to this problem but I believe there will never be a moral government at least in my time. What is your argument for preventing inflation if not with some kind of standard with a "not perfect" government?
Michael, thank you for reading my Substack and for taking time to write a thought-provoking comment and question about it. This subject could be treated at length, I will try not to be too long-winded in my response. I hope we can discuss in future in more depth.
You are right to infer that, in my opinion, gold and silver ought not to be used as the standard of value for a nation’s currency, although I do not directly say that in my essay. I do say, “Fiat money ought to be valued according to the transactional requirements of society; it should be manufactured, and its value set by just and moral government, with the cooperation of the people of the nation…” This is pretty much what the Constitution of the United States says in fewer words in Section 8, “The Congress shall have Power To…coin Money, regulate the Value thereof…” The legislative branch of government, presumed to be prudent, intelligent, and moral, possesses the responsibility and authority to manufacture money and to say how much it is worth. (They do not have the authority to delegate that role to a private bank).
There is and can be no standard for the foundation of any law except the moral and natural law. What right has one man or group of men to declare to another man or group of men, “You WILL or WILL NOT do ___________”? What right to demand, “If you do or do not do _______ I (we) will deprive you of your freedom, if necessary, by force”? If we are equal, my desires and proclivities are no less to be indulged than are yours. So, who is one man (along with others in society) to tell another man “no”? Obviously, there must be some law that overarches all human desires and that underpins all human laws. If this is not true, there can be no basis for human law except brute force.
The founders of the USA understood this. (They were only two hundred sixty years or so removed from an integral, although imperfect, Christendom, so, for all their faults, they retained much right understanding of Christian society). They knew the necessity, and therefore they presumed the perpetual existence, of moral government. That presumption prompted them to write a brief Constitution that does not spell out step by step how to accomplish just and moral governance.
The standard for valuing a nation’s currency is a thought-out calculation that involves: Population numbers, value transaction numbers, value transaction frequency, national production quantities of specified basic commodities, and constant vigilance to make adjustments in currency quantity as material values and products in society change (i.e. new products are introduced: steam engines, locomotives, telegraph, telephone, automobiles, aircraft, computers, cell phones; old products diminished or abandoned: Stage coaches, freight wagons, Pullman cars, ticker tape machines, etc.). If diligently overseen, this ongoing calculation can keep the value of a nation's currency constant.
Of course, human nature being fallen, and our tendency to corruption, self-indulgence, and desire for power being so powerful, nothing but the grace of God bestowed upon a godly population vigilantly overseeing government can safeguard against a maleficent government. So, what happens if the population becomes corrupt? The people of government are chosen from among a corrupt population and a corrupt population oversees them - a perfect storm, as they say.
So, “What is your (my) argument for preventing inflation if not with some kind of standard with a "not perfect" government?” I’ll turn the question back to you, what sort of “standard” will a wicked government adhere to? That’s right – none. So, the answer is to return our society and government to Christian standards of right. That always has been the answer from Eden to today, and it always will be the answer until Christ returns.
You and your generation have an opportunity to pick up the rusty swords and shields of righteousness abandoned in so lazy and cowardly a fashion by my generation. I hope you and your friends will take up the challenge.
Uncle Billy
Thank you for the detailed reply uncle Billy. I have never heard your full stance on the topic and now I see your full point. I would also like to discuss it with you in person some time.
Michael
I hope this might get some interesting comments, UB. Very good Substack.
Thanks, Kristen. I, too, hope it garners some comments (debate?). It is fascinating to me how attached some people are to the notions that gold and silver have intrinsic value, and therefore, they are the only "real" money. Both are false. It is not merely an academic subject. It overlaps to the role of government as well as the nature of value. I would very much like to debate about it. We will see.