D4L UPDATE for 3/4/2013, “Freedom Day?”

by Chuck Donovan

“Money is different from all other commodities: other things being equal, more shoes, or more discoveries of oil or copper benefit society, since they help alleviate natural scarcity. But once a commodity is established as a money on the market, no more money at all is needed. Since the only use of money is for exchange and reckoning, more dollars or pounds or marks in circulation cannot confer a social benefit: they will simply dilute the exchange value of every existing dollar or pound or mark. So it is a great boon that gold or silver are scarce and are costly to increase in supply.  …But if government manages to establish paper tickets or bank credit as money, as equivalent to gold grams or ounces, then the government, as dominant money-supplier, becomes free to create money costlessly and at will. As a result, this ‘inflation’ of the money supply destroys the value of the dollar or pound, drives up prices, cripples economic calculation, and hobbles and seriously damages the workings of the market economy.” – Murray N. Rothbard  [1]

“Instead of being habitually pelted with tomatoes and rotten eggs, the chairman of the Federal Reserve Board is universally hailed as Mr. Indispensable to the economic and financial system.” – Murray N. Rothbard  [1]



Today is “Freedom Day”, a family celebrated date for one of the returned POW’s from the Viet Nam War.  If you read the full story at www.TalesofSEAsia.com I promise you won’t be bored or disappointed.

The 1973 homecoming of a long-held POW is certainly cause for remembering and celebrating, and more Americans should be aware of it and our history in Viet Nam.  I wonder though, how much freedom do we still have to celebrate today and will we have even less next year?  What is there in our lives and our business that the central government does not directly regulate, control, or limit?  Where is the “free” market?  Where is freedom of choice; freedom of contract; freedom of trade; freedom of association?  Could we still have those rights if we don’t have the freedom to say a simple, “No thank-you.”  If we cannot say “No thank-you” to licensing, fiat currency, government run “education”, forced payments into “entitlements”, expanding debt, expanding interventions of all kinds, where is our freedom?

I want you to consider the sacrifices so many people have made for this country and what they felt the United States stands for.  I want you to be honest about what you think they would say to the endless growth in the size of our government, our debt, our currency, our international and our individual intervention, and to the seemingly endless shrinking of our privacy, our prosperity, and our peace.  Would they be proud of what you are now politically standing for, or would they be ashamed?

Over this next year, what will you do to make us more free on “Freedom Day” 2014?  If you understand how precious our freedom is and how difficult it will be to reclaim it after once lost, you won’t be so afraid to let freedom win.



“Two Sides of the Same Debased Coin”, by Hunter Lewis, The Free Market, January 2013, http://mises.org/journals/fm/January2013.pdf

COMMENT:  John Maynard Keynes thought that printed currency counted as savings.  To Keynes, savings didn’t count as savings, it counted as “hoarding”, and that had to be dis-incentivized.  His common theme was that market prices don’t matter, the opposite of what Mises had proven a decade earlier.

Keynes believed in what can only be described as an upside down world.

“You take a long established observation, for example, that over-spending and debt are the road to bankruptcy and ruin, and turn it on its head. No, spending and debt are the road to wealth.” – Hunter Lewis

Ludwig Von Mises showed in “Human Action” how economics is more than mere accounting calculations.  He proved that economics affects everything in a society right down to ethics and morals.  Understanding that we can see the terrible affect Keynesian ideas have had on our civilization

“…<Keynes> insinuated the very odd, but now very prevalent idea, that old-fashioned wisdom and morality is out of date, even a bit retarded, and odder still, in conflict with science. This is all such nonsense, but it permeates our culture. And the very people who preach honesty and sustainability outside of economics, for example in our treatment of the environment, entirely fail to understand that Keynes is preaching dishonesty and unsustainability in economics. …when we strip down Keynesianism to its essence, the relationship to crony capitalism becomes even clearer. Crony capitalism represents both a corruption of capitalism and a corruption of morals. Keynesianism also represents both a corruption of economics and a corruption of morals.” – Hunter Lewis

In the Keynesian world of central banking, every transaction between honest people is contaminated with the lie of fiat currency.  We to lie each other individually and internationally.  How else could our world be so upside down?

If you are wondering how we could end up with such a massive national debt and a pack of “representatives” in D.C. who are more frightened of a balanced budget than in runaway debt, look no further than the ideas of John Maynard Keynes.


“Hidden Secrets of Money – Currency Vs Money”, by Mike Maloney, http://www.youtube.com/watch?v=DyV0OfU3-FU

An excellent discussion of the history of “money”.  Mike Maloney is a man who is not afraid to let freedom win.


“Sequestration and Immigration Enforcement”, Cato Institute Daily Podcast, Featuring Alex Nowrasteh, http://www.cato.org/multimedia/daily-podcast/sequestration-immigration-enforcement

More reason to not fear the very small cuts from Sequestration or the success of freedom.



[1] Murray N. Rothbard, “Taking Money Back”, The Freeman, September/October 1995, http://mises.org/daily/2882