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Dear UnSound Money, It’s not me, it’s you…

Posted by
May 25, 2012
in Blog

Here at Sound Money we may sometimes leave the impression that we are demanding a Gold Standard. This is not true. We are demanding that people be free to choose their money, like they are free to choose their other market relationships (We know, there are very few free market relationships left, but you get the point…).

We are not looking to install some particular monetary regime, but merely striving for freedom to walk away from bad money. This process, like the selection process of evolution, will help to find which money is good under which circumstances. That gold has a history of protecting wealth and limiting government (by which we mean, limiting the growth of organizations who counterfeit money in order to usurp resources) just implies that it will be useful for those purposes in the future, not that it is the only sound choice.

Like in any negotiation, the person with the power to walk away will win. If you want to be a winner, you must be allowed to walk away from unsound money.

The following is from CafeHayek.com, by DON BOUDREAUX

The Quotation of the Day… is from page 27 of James M. Buchanan‘s important 2005 article, in Public Choice, entitled “Afraid to be free: dependency as desideratum” (original emphasis):

For far too many members of the body politic, the market order requires that persons subject themselves to “the blind forces of the market”, as if the independence so offered carries no offsetting gains.  There is a widespread failure to understand that the independence offered by the entry and exit option of the market offsets the dependence on others when markets are closed or displaced.  And such dependence, importantly, includes dependence on the state, and on its bureaucratic agents.  The individual can readily walk away from a market relationship.  He cannot walk away from the taxing authority.

(Or, he cannot walk away with sufficient ease.)

Read more at Cafe Hayek…

image: flickr.com/Temari09