The Immorality Of Paper Money

Tyler Durden's picture

Submitted by Bob Livingston of Personal Liberty Digest,

One of today’s most common economic fallacies is that the soaring stock market is evidence of economic recovery. Nothing could be further from the truth.

Stocks have almost tripled since the 2008 collapse, but that stock growth stems from Federal Reserve money printing (inflation) and near zero interest rates. The Fed’s balance sheet has grown more than fourfold since 2008 — to $4.3 trillion — and was used to prop up the “too big to fails.” That money had to go somewhere.

It has found its way into the stock market because U.S. Treasuries are paying less than the rate of inflation; and corporate bonds, certificates of deposit and other fixed-income products pay even less. This and price inflation (currency devaluation) is fueling the rise, not positive economic growth or common sense.

Stocks are being bought by the banksters and large corporations. Average people aren’t buying them. A study by the Pew Research Center found fewer than half of all Americans (45 percent) own stocks. The number is down from 65 percent in 2002. Individual investors are cashing in their retirement funds just to survive.

Government printing press money distorts economic reality, dilutes morality and is the true source of “income inequality.” Financial speculation rises with the increase in paper money and the general work ethic deteriorates. The something-for-nothing mentality pervades society.

Paper money promotes the “quick buck” syndrome like narcotics peddling and hookers on the streets. Hookers, incidentally, were widespread in the Weimar Republic in Germany in 1923 because the women had to sell their bodies for food for themselves and their families.

In a paper money society, the social order visibly deteriorates. The morality of the stable gold standard gradually changes to the amorality of fiat. Few people see the cause and effect, and the politicians try to legislate human behavior. They always fail, as the system is overrun with jails and prisons.

Fiat promotes an illusory reality where non-substance like financial speculation and gambling replaces the substance of industrial production and long-term value. When consumption surpasses income, as the government and the politicians promote, distorted human emotions replace stable behavior. Social breakdown increases, and real values are forgotten.

Prices of labor and craftsmen escalate beyond all reason when there is never enough money. Service repairmen charge fees like medical doctors.

When labor and supplies are valued in fiat, everything becomes distorted. In the final stages of hyperinflation, there is no anchor to sanity and common sense.

Paper money expands consumption way beyond income. This eventually guarantees debt collapse and social breakdown. The foundation of the household collapses and the middle class is destroyed. Paper money is an illusion because it is non-substance and can be created by the government to infinity. When the people accept numbers on green strips of paper or computer symbols for money, they accept illusion for reality. They accept non-substance for substance. Real money (gold and silver) comes from the earth and human production. It is no illusion.

As paper currencies come to their end, governments greatly step up suppression of the people. They start foreign wars. They attack their own population with high-sounding hypocrisy. Government makes criminals out of honest men–“in the public interest,” of course.

What follows? Default of the United States? Not formally, but by stealth depreciation of the currency (inflation). Will the U.S. world system hold? Yes, as long as world fear factor dominates as a result of superior military power. But that fear factor seems to be slipping as the elites behind the scenes use Russia and China to create a system outside the dollar.

Sober people (there are a few) understand monetary realism — to wit, that fiat implies stealth (slow) default. No payment is ever intended and is impossible even if intended. The main feature or attribute of sovereign debt default is gradualism.The public cannot grasp gradualism even as they are impoverished. The debt propaganda — that the U.S. owes debt — is a cover for the fiat regime. It’s a hoax! How can the U.S. owe a “debt” when it can print money to infinity?

A fiat paper money regime always becomes autocratic or fascist toward the last days of its existence. This is the time when the state makes war on its own people. Most never know it because it is not announced, but hidden in propaganda within such terms as “for the common good.”

An unlimited supply of paper money buys sophisticated arms that create fear and the propaganda to manipulate the people against their personal freedom and best interest. Fiat paper money is tyranny or becomes tyranny. It guarantees criminal government.

Paper money, personal freedom and privacy are incompatible. Paper money centralizes power to the state and diminishes the individual. This is the first cause of all you see happening.  All modern wars are paper money wars. Paper money pays the politicians their lavish profligacy, and they keep their mouths shut about the fiat system.

The only way for true economic growth is by the transfer of services, goods or wealth between people (or businesses) who actually produce something. In other words, if someone provides a service and gets gold or silver (actual wealth) or widgets for compensation, both the service provider and widget maker have benefited and each has something that has bettered his standard of living.

If the one who performed the service uses the widgets to acquire trinkets that help him perform his service, then the service performer has benefited. The trinket maker has also benefited, and he can put the widgets to use. This sort of transfer has worked from the beginning of time, when the farmer took his produce to market, where it was sold or bartered in exchange for wealth, tools, supplies and seeds so he could begin producing food for next year.

But the Fed produces nothing but more paper money, and it takes from the producers. Therefore, its only solution for the collapsing financial system is to steal wealth from the producers of goods and services through taxation and provide more and more fiat money and credit. This can only mean final and complete collapse of the U.S. dollar.

A second and primary concern of the Fed is its control of public perceptions. The Fed must keep the crowd quiet. It positively does not want a panic and run on the banks. The very last thing central banks want is transparency. The vested interest (the paper money crowd) will color the news more and more.

Everyone should be aware of this and move as much as possible out of the dollar.

*  *  *

It appears the BRICS agree

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
F0ster's picture

My wealth is measured in Kilos.

Mr Pink's picture

This is what happens if we ignore the Jewish problem

Kirk2NCC1701's picture

LOL.  In poor taste, but funny nonetheless.

Pool Shark's picture



At least 'paper money' is tangible and fairly limited in supply (<$3 trillion vs. USA National Debt of $17 trillion).

The 'truly immoral money' is credit which the fed and bankers create out of thin air.

When the collapse comes, 'paper money' will be worth at least something; credit, not so much...



daveO's picture

That's why real assets are so important. If the debt fails, the 'debt based' money becomes useless. We've been in the current process of failure since 2008.

daveO's picture

That's how we got their puppet, BHO, and $5 Trillion in additional debt. We should just let the debt eat us so as not to offend anyone. 

Escrava Isaura's picture

Mr. Pink,

Do you have an issue with the writer.... Livingston?


Mr Pink's picture

Umm...noooo. I dun jus posted me uh funny moving picture,,,dats all

Escrava Isaura's picture


That was pretty good!

FightingtheFed's picture

Funny but unfortunatly too true...

COSMOS's picture

I am more worried about the Viewer Problem.  Who the fuck watches that shit, that is what scares me, forget about the Jewish problem.

NOTaREALmerican's picture

There's that M word again.   

Kaiser Sousa's picture

frame this article...

send it to all you know...

then it can be said that at least you know...and at least you tried...

if then you decide not to act on behalf of you and yours...

rest comfortable knowing that you r a slave of your own making...

Silver, "1" of the only "2" forms of REAL money  is an absurd measily fucking $20 an ounce...

there r no excuses....

alfred b.'s picture


    Could also have been titled...'The Immorality of the Federal Reserve'


Tall Tom's picture

Could have also been titled, "The Loss of Moral Fiber in a Nations's People"


The Moral Fiber of a Nation is directly reflected by the Currency which they use to conduct business.


If that Currency is based upon Fraud and Deceit then you can know that it is being traded by fraudulent and deceitful people.


Instead of production "Beggar Thy Neighbor" is now more of the rule rather than an exception.

nmewn's picture

"Sober people (there are a few) understand monetary realism — to wit, that fiat implies stealth (slow) default."

Thats why I drink so much ;-)

AUD's picture

There is never enough money. That's what makes money, money. It's the one & only thing you cannot have too much of.

It's also the reason why those who control 'money' will not let their grip loosen without a fight. What would you do if you had what everyone else wanted?

Kaiser Sousa's picture

What would you do if you had what everyone else wanted?"

better yet, what would they have it no one wanted what they "tell you" you should want?


ramacers's picture

ready the blade w/intrepitude.

Kaiser Sousa's picture

"However, if an individual, business, or government depends upon something that has real value, such as safely stored gold bullion or silver coins, then their risk is considerably reduced. Consider the benefits of gold and silver:


a) No counter-party risk. Gold and silver are not dependent upon a government or bank for their value.

b) Gold and silver are not currencies that can be printed to the point of hyperinflation.

c) The “sword” of derivative failure is largely irrelevant if you hold your assets in gold and silver.

d) The “sword” of currency devaluation will have little effect upon your precious metals investments and your savings.

e) Your gold and silver will appreciate in nominal dollars, euros, and yen as people experience the devaluation of those dollars, euros, and yen.

f) An ounce of gold is forever an ounce of gold, valued globally, and always exchangeable for food, gasoline, and clothing.


If you live by the “sword” of debt based paper currencies, you can reasonably expect detrimental consequences as the purchasing power and confidence in those paper currencies gradually dies.  However, if you live based on the continuing value of gold and silver, you should experience a safer and more secure financial future.

Gold sold for about $42 in 1971 when President Nixon severed the connection between the dollar and gold. The Dow Jones Industrial Average was about 900 in 1971, and gasoline sold for about 34 cents per gallon. Times have changed, prices have increased, but an ounce of gold has retained its value, unlike the US dollar and most other paper currencies.

If you live by the sword, you die by the sword. If you live with paper money, you will need much more as its purchasing power is diminished each year. Consider the risks!


If you are one of the few who understands and trusts real money – gold and silver – then take advantage of the current low prices, politics, and continual “money printing”. History is on your side in the ongoing conflict between unbacked debt based paper currencies and real gold."   


just sayin'.

El Hosel's picture

Yeah, like the "safely stored" German gold.

NoPension's picture

If ya don't hold it, ya don't own it. Rule #1

Colonel Klink's picture

I thought rule #1 was Cardio!?!

OC Sure's picture




Paper can be money and money does not have to be gold.

What necessarily defines money, versus counterfeit, is whether or not it mediates an exchange of something for something or an exchange of nothing for something.

This is why bitcoins or chickenfeathers can be money too, or not.

The mediator does not determine the definition; instead, it is what is being mediated on both sides of the exchange that matters.

So, it is not the medium that indicates the immorality but instead it is the actions of the individuals on both sides of the exchange that identifies the morality.  

pods's picture

What about the third side who creates the medium by having one of the other two take out a loan and charging them for it?


OC Sure's picture

That depends on whether or not the medium is represented by earned wealth to support it or not. For example, is it counterfeit from a fractional reserve multiplier or a note from Midas Mulligan?

NoPension's picture

Go back to school. Paper can't be money. When you learn why it can't, come back and tell the class.

TheHound73's picture

Kaiser Sousa wrote:

    f) An ounce of gold is forever an ounce of gold, valued globally, and always exchangeable for food, gasoline, and clothing.

In skollywool they taught me to test our hypotheses.  I went to every store and petrol station within a mile radius of my house (densely populated area).  Not a single one of them would exchange my gold coin for the above listed items.  Every single one of them accepted paper money.  A restaurant and an accountant accepts Bitcoin.  I, on the otherhand, accept only bullion or bitcoin in exchange for my time and programming skills, I do not accept paper.

OC Sure's picture

@ NoPension,

As an end, yes I agree with you, Menger, Cantillon, and Aristotle that money itself becomes its own product as it too fills a demand and that the best form of money is indeed precious metals. In all of my writings you will find that I agree that this is true but here was the purpose of my post above (although now I see that I was not clear enough):

The hurdle that the austrians are having trouble with is their precise definition of money as taught in their modern curriculum. Mises defines it as just a "medium of exhange and nothing else." This may have been okay to say when money was represented by gold, either directly or indirectly with receipts for gold.

However, now that there is no more standard of gold to measure the receipts against what used to be paper receipts for money (the gold) are now easily counterfeited. That is to say that we no longer are in an environment of the medium of exhange being just money because money, as a medium of exchange now competes with another medium of exchange, counterfeit.

Opponents of counterfeiting are not identifying the counterfeit because they don't use the definition of money that caused the invention of money. Instead, they are saying that "bankers" are printing money but they are not printing money; they are counterfeiting.

 By pointing out that money must represent an exchange of productive work for productive work, something for something, then it is easier for fence sitters to understand how tyranny is counterfeiting; that is, exchanging nothing for something. When they lower interest rates and the fractional reserve multipliers kick in, or by any other means that they conjure, they are not printing "money" or doing productive work but instead are stealing from productive work.

The purpose of defining terms correctly is so that opponents of tyranny can communicate effectively among themselves and especially when discussing economic issues to ill informed fence sitters. The purpose of tyranny keeping the terms obfuscated is not to allow the ill informed to jump the fence.

Introducing this understated link into the curriculum of the austrians and explaining it to fence sitters or the unintiated is an easy and quick tool to aid in understanding how tyranny steals from wage earners and that the counterfeiting is the primary reason of the widening gap between the richer rich and the poorer poor.


bombdog's picture

You obviously think that some benevolent force exists in the world that can issue money without being totally corrupted. That's simple naivety.

daveO's picture

If the supply of money outpaces 'real' (not gov. paper pushing) productivity, it is immoral theft. That's why gold and silver have always worked. There's no problem if productivity outpaces metal production. Prices drop for everyone and bankers(aka Ponzi artists) commit suicide.  

bombdog's picture

FAIL. Money is only money if it can be saved and store value and any fool can create bits of paper and use it as money. The medium has to be neutral too, that's the real morality part. Only a commodity can provide the neutrality, and commodities also provide a fixed reference in the real world, not just a unit of account. Paper money must be backed by the violence of the state in order for it to appear as some kind of value store. That means mandating taxes in the paper unit and also paying for wars to expand its influence. So your subjective view of two people making a moral exchange is completely irrelevant. Thanks for stopping by though.

localspaced's picture


Nailed it right here! 

This is also where you find the link with culture, or morality as the author calls it (morality is a product of what I call culture, or the arts as they used to be called). In a fiat society art and culture become useless and simple ostentation. Often ending up subsidised and coopted by the fiat machine to propagate its message and power (the message is power and power is the any Hollywood film of recent years with that in mind and see it at work). 

The real purpose of culture is to store value that can't otherwise be represented in goods. You can sell a flock of sheep for gold and store the value but how do you store an idea or invention? The idea that you are born free and have the right to self determine, for instance. Or how you can turn a tree trunk into a wheel and make a cart so you can carry more stuff to market. 

In a fiat society the artist is a court jester. In a normal society the artist is more of an inventor and capturer of ideas, finding ways to store and transfer them, whether thats in the form of a painting or a more practical application. This is happening less and less in our societies. Attempts are still made but never really gain traction. Most what's considered 'art' today is high on concept but low on substance. Complex ways to transmit simple messages. It should be the other way around. We still invent a lot of things but somehow it feels like we're being less innovative.. I don't want a bigger airliner, I want an alternative to airline travel. Where is my flying car?!

Art, philosophy, the world of ideas, innovation, production..they wither and become complacent in a fiat society. Art becomes entertainment, philosophy a thought excerise and an inventor a trinketmaker.

Socialists see themselves as the defenders of the arts. The artist, in a world where his work doesn't hold value will be happy with the handout. Hey, in past times great artists worked for wealthy donors as well, no problem in the state taking that mantle, is it? In effect, over time, it chokes the ideas and thus vitality out of a society. The danger is there's an adjustment period where it all appears to be working really well. Like the parts in Scarface where they do the montages of Tony on the beach, Tony at the disco, Tony buying a Porsche... 


datapanik's picture

Meet the new masters of eugenics - wipe out the 99% through inflation!

Escrava Isaura's picture

Eugenics? Inflation? Not possible! The Nazis are dead.

daveO's picture

Reminds me of Prescott Bush who was found guilty of trading with the enemy in '42.

Colonel Klink's picture

Just like Thomas Watson and IBM.

Reaper's picture

The problem with fiat paper is that it can be printed on paper or in electronic form in unlimited quantities. "Power corrupts. Absolute power corrupts absolutely." The power to print corrupts all rulers in government or central banks.

Kirk2NCC1701's picture

Since all Value Add goods and services use Resources and Labor, it is logical and fair to use those as reference frames for "pricing" currency in Absolute Units.  For example...

X grams of Gold or (better still) a Basket of PMs plus Y Mega Watts of (electrical or carbon-fuel) power would cover the Resource part.  Z hrs of labor for the Avg. Factory Worker would cover the Labor part.  When the price of a car, house, or Taxes are expressed in Hrs of Labor or Grams of PM, or MW of Power, we see what's really going on.

Thus everything we buy and all human services we use are compared to these baseline units that everyone understands, and upon which social and economic policy can be based.  Price inflation and Tax Inflation become readily transparent in these Absolute Units.

Alas, the Usual Suspects, whose parasitic and over-leveraged lifestyles depend on the (current) Ponzi scheme that runs modern US/Western Capitalism cannot and will not tolerate such a Transparent, Rational and Equitable system.

TheHound73's picture

Good luck with that.  Wait a sec, who provides the backing?  MegaWatts and LaborHrs would have to be some sort of derivative or futures contract since MegaWatts consumed powering the factories where the laborers are chugging away obviously cannot also be used as the collateral.

yogibear's picture

The only thing that stops the Federal Reserve's swindling game of transferring wealth to the 1% is a US dollar currency crisis.

Escrava Isaura's picture


It's not that simple. And the dollar is in crisis.

JailBanksters's picture

Paper Money is a con of Biblical Proportions.

You could use anything as money, the problem is you can make something like Jammie Dodgers a Legal Currency, Oh and you can only get them from me. And I'll create the  place where you can store your precious Jammie Dogers in.

This really is exactly what Paper Money has become, made worse by not even making Jammie Dogers any more, it's just a number in a computer that represents how many Jammie's you have in "my" safe place.

Latitude25's picture

$1295/oz is a great place to get out of the dollar.  A great big thank you to those who have made this possible.

MountainMan's picture

Enough of this ridiculous talk of silver and gold as the only true money. Dosen't matter if we are trading in sea shells, it's the debt, stupid!

Latitude25's picture

OK invest your dollars in sea shells.  You'll have a bright future.

bitterwolf's picture

Metals,salt, and any other natural  element from terra firma used as a monetary unit of value in the 21st century's increasing globally integrated market ,is as ludicrous a proposition as ones deity of choice poping up to save the day. The future of "money" is mathematics and the power of global governance.

NoPension's picture

Durable,fungible,divisible and universally recognized.

Now, what meets those requirements?