A discussion on sound money

Editor's note: In the book Money Manipulation and Social Order by Denis Fahey, C.S.Sp. (1944) on issuing a lawful exchange-medium by the state, the first point of any monetary reform is that the creation or issuing of an exchange-medium must be taken out of private hands. Those who are skilled in the manipulation of money must be the servants of the state and there can be no exceptions, and not the dictators of government policy. The way it stands now all forms of government, whether conservative, liberal or labor, fascist, socialist or communist all fall under the control of a politically powerful group that is ultimately dominated and controlled by the money creators and manipulators. 

The Birth of a New Currency - ZiG. Will it make a difference?
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A Conversation with Lynette Zang: Why Sound Money Matters

November 13th, 2024 | By Sound Money Defense

In an era marked by fiscal uncertainty, Jp Cortez, the Executive Director of the Sound Money Defense League, sits down with Lynette Zang of Zang Enterprises to discuss the urgent need for sound money principles in the United States.

Cortez's passion for the principles of Austrian Economics and his dedication to preserving individual liberty through sound money guide his advocacy, resonating in legislative wins across over a dozen states since 2016.

 

Why Sound Money Matters

Cortez emphasizes that the drive for sound money goes beyond price speculation; it is a safeguard for a free society. Historically, sound money has constrained government overreach, avoiding unnecessary wars and bureaucratic inflation.

The essence of sound money, particularly gold and silver, is its proven ability to retain value, providing an economic foundation for societies worldwide.

Global Case Studies: Zimbabwe and the BRICS Alliance

Zimbabwe offers a cautionary example, says Cortez. In its attempt to stabilize its economy through a gold-backed currency, Zimbabwe fell short due to poor fiscal discipline. Despite creating a gold-pegged currency, the government’s inability to maintain its value resulted in further devaluation.

This scenario is a stark reminder that establishing a gold-backed currency is only half the battle; maintaining it is even harder. Similar moves by countries like Russia, India, and members of the BRICS alliance reflect a growing global inclination toward alternatives to the U.S. dollar, with gold and silver as the favored standards.

The Role of Convertibility and Accountability

For a currency to be truly sound, convertibility is crucial. Zang points out that without the ability to exchange currency for physical gold, a currency is only pegged and not genuinely backed. This lack of convertibility enables governments to manipulate currency values unchecked, diminishing public trust.

Cortez echoes this sentiment, noting that true reform would mean stepping away from simply creating gold-backed currencies and, instead, allowing people to use physical gold and silver as legal tender.

Empowering Citizens Through Legislation

Cortez believes in grassroots legislative efforts to reintroduce sound money at the state level. The Sound Money Defense League has collaborated on legislation that has seen success in states like Wisconsin, Alabama, Nebraska, and Kentucky.

Cortez argues that citizen involvement in state legislation is vital. Unlike federal systems, state legislatures are more responsive to public opinion, and citizen engagement could tilt the scales in favor of sound money policies.

Please go to Sound Money Defense to continue reading.

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