For private money

Sauvik has an article in Mint on private money, plus his daily antidote where he demolishes the ET editorial on the “barbaric metal.” The editors at ET are puzzled about gold’s “intrinsic value.” What applies to beauty and the beholder also applies to all economic goods. All values are subjective in nature-

Gold was some $30 an ounce when Nixon de-linked the dollar from gold, in the early 70s, thereby putting the entire world on a purely fiat money system. Gold has shot over $1000 an ounce now. This is why ordinary common people “respect” gold. These editors worship State-issued papers with Gandhi’s photu on them.

They doubt whether gold possesses “intrinsic value.” Actually, nothing has “intrinsic value,” not even gold. All “value” lies in the minds of valuers. Value is “subjective.” The common people who are buying gold “respect” the value of gold. What, indeed, is respect? The first article of mine ET ever published was titled “Respect Must Be Earned.”

The power to issue fiat money must be taken away from government. But, at the same time, so must the power to tax. In a state where the government has the power to tax, private property can never be safe. Even this position is dodgy though, because Rothbard turned Mises’ impossibility of economic calculation in the Soviet Union argument against the provision of “public goods” by the state. I’ll leave that for another day. This dialogue, however, fits-

Auda: Now! I will tell you what they pay me, and you will tell me if this is a servant’s wages. They pay me, month by month, one hundred golden guineas.
Lawrence: One hundred and fifty, Auda.
Auda: Who told you that?
Lawrence: I have long ears.
Auda: And a long tongue between them.
Lawrence: A hundred; a hundred and fifty; what matters? It’s a trifle…a trifle which they take from a great box they have…
Ali: In Aqaba.
Auda: In Aqaba!
Lawrence: Where else?
Auda: You trouble me like women.
Lawrence: Friends, we have been foolish. Auda will not come to Aqaba.
Auda: No.
Lawrence: For money.
Auda: No.
Lawrence: For Feisal?
Auda: No.
Lawrence: Nor to drive away the Turks. He will come because it is his pleasure.

[…]

Auda: Paper! Paper! There is no gold in Aqaba. No gold! No great box!
Lawrence: Did Auda come to Aqaba for gold?
Auda: For my pleasure as you said, but gold is honorable, and Aurens promised gold. Aurens lied.

“Aurens” promised, and lied. Just like the state.

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