Central Bank Digital Currencies – A Sheep in Wolf’s Clothing?


Central Bank Digital Currencies – A Sheep in Wolf’s Clothing?

By Duncan Whitmore

The past twenty months or so of COVID hysteria have seen a rapid increase in the destruction of what remains of Western liberty. Those controlling the present political and economic order are desperate to steer us out of its irreversible demise into a replacement system in which their own power, control and wealth will be maintained. Regardless of whether one regards the emergence of COVID-19 as a planned event or merely an opportune occurrence, there is now little room for believing that public health is the primary motivation behind the smorgasbord of lockdowns, restrictions, vaccine mandates and COVID passports. We are being herded into a digital straitjacket of regimentation and control, a process, which, if left unchecked, could see state/corporate surveillance monitoring our every waking thought, movement, purchase, utterance and association.

However, as readers of my work during this time may recall, I have always doubted the ability of the COVID panic to accomplish all of this in one go, if only because people expect pandemics to wane after a year or two. Thus, unlike the bogeymen of yesteryear – Soviet communism and Islamic terrorism – viruses are difficult to paint as a permanent threat necessitating an ongoing sacrifice of freedoms in exchange for security. At the beginning of this year we suggested that governments would eventually begin to haemorrhage public trust over their policies on vaccines and restrictions. The reason this has come to pass is not merely the mission creep of shifting goalposts or the haphazard instatement, dropping and re-instatement of measures left, right and centre. Rather, it’s that governments are trying to square the circle by selling vaccines as a golden ticket back to freedom on the one hand, while, on the other, demanding that we suffer repeated “booster shots”, vaccine mandates and vaccine passports – all of which suggest that vaccines don’t actually work that well in the first place. Indeed, governments are having to admit as much when justifying these additional measures. Moreover, if restrictions are re-imposed regardless of vaccination status, or if “booster shot” requirements cause one to slip in and out of the category of “fully vaccinated”, governments themselves simply annul any propaganda aimed at blaming the whole saga on “the unvaccinated”. Thus, the notion of there being some other agenda of permanent regimentation and control has seeped into the public psyche. All of this is comes in spite of the fact that governments have, thus far, managed to prevent the possible extent of vaccine injuries from being examined in the full light of day.

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Crypto-scepticism


Crypto-scepticism

By Duncan Whitmore

The recent resurgence of the dollar price of Bitcoin in tandem with a steady decline in that of gold presents us with an opportune moment to assess the quality of cryptocurrencies (CCs) as a potential monetary medium of the future. The question becomes all the more pressing once we remember that the current order of state induced inflationary finance is likely approaching its end, a prime factor in governments seeking to assert greater degrees of control over their populations.

Although this essay will mainly be sceptical of CCs as a monetary medium, we should remember that the primary concern of libertarians is with unshackling monetary control from the state, and, thus, in promoting the freedom of money. This means that the most suitable monetary medium should emerge from voluntary trading in the marketplace, in much the same way as language emerged as a result of individual people trying to communicate. Precisely which commodity/ies will be selected as a result of this process is of secondary importance. There is, therefore, no need for libertarians qua libertarians to be particularly fixated upon, for instance, either gold or the gold standard, as many are wont to do. While gold would be far superior to state fiat money, it is not without disadvantages for the consumer. In particular, the relatively high value of very small quantities of gold makes it less suitable for day-to-day transactions compared to, say, silver or copper. In fact, this circumstance meant that the shift, during the nineteenth century, to the predominance of gold as the monetary medium at the expense of other metals necessitated a much wider use of money substitutes (e.g. bank notes) and the consolidation of the metal itself in bank vaults, well out of the public’s hands. This paved the way to the complete severance of the substitutes from the gold that backed them, leaving us with the 100%, state controlled paper standard from which we suffer today.1 Circumventing this state control is the priority. If this is achieved by CCs rather than by gold or by any other precious metal then no crypto-sceptic libertarian should cut off his nose to spite his face merely because his personally preferred alternative to state fiat money has failed to gain preference. Continue reading

“Money Heist”: State Counterfeiting on TV


Money Heist: State Counterfeiting on TV

By Duncan Whitmore

At first, Money Heist seems little different from any run-of-the-mill “cops vs. bad guys” series. A well-prepared group of eight, small time criminals, previously unknown to each other and using city names as pseudonyms, hijacks the Spanish Royal Mint in Madrid. Directed from the outside by their leader, the mysterious “Professor”, they capture tens of Mint staff and visitors to hold as hostages, including (deliberately) the teenage daughter of a prominent politician. Scores of armed police soon surround the building at the beginning of what turns into an epic, eleven-day siege.

One initial question concerns the objective of the hijackers. Is it robbery? Ransom? Terrorism? It soon becomes clear that the group, in spite of being armed to the hilt and having sequestered a major government institution, is imbued with an interesting set of morals. For they intend to neither a) kill anyone (although circumstance forces this scruple to be breached) nor b) steal as much as a penny from anyone’s bank account. They do, as it happens, intend to leave the Mint with more than one billion euros in cash. This, however, they plan to achieve by spending their eleven days holed up in the Mint printing the money they want (with the aid of the captured staff, whom they bribe with some of the loot) instead of raiding the vaults for cash that already exists. Their clever plan, therefore, is to escape with untold riches without having harmed a soul while, in the process, embarrassing the authorities and winning the sympathy of the public as “loveable rogues”. Continue reading

Why Libertarians Should Read Mises – Part Three


Why Libertarians Should Read Mises 

Part Three 

By Duncan Whitmore

In this final part of three essays exploring the importance of Ludwig von Mises’ for libertarian thought, we will examine Mises’ views on the fundamental importance of economics in society, and the meaning of this for understanding the particular nature of the state and statism in our own time. We will then conclude (in a separate post) with an annotated bibliography of Mises’ major works.

 The Fundamental Importance of Economics in Society

Mises had a particularly insightful understanding of the special, foundational status of economics and the influence of economic theory in human society. In his own words:

Economics […] is the philosophy of human life and action and concerns everybody and everything. It is the pith of civilization and of man’s human existence.

[…]

Economics deals with society’s fundamental problems; it concerns everyone and belongs to all. It is the main and proper study of every citizen.

[…]

The body of economic knowledge is an essential element in the structure of human civilization; it is the foundation upon which modern industrialism and all the moral, intellectual, technological, and therapeutical achievements of the last centuries have been built. It rests with men whether they will make the proper use of the rich treasure with which this knowledge provides them or whether they will leave it unused. But if they fail to take the best advantage of it and disregard its teachings and warnings, they will not annul economics; they will stamp out society and the human race.1

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Economic Myths #12 – The Deflation Danger


Politicians and mainstream economists are persistent in their warning of the so-called “deflation danger” – the idea that falling prices are calamitous for economic progress and that a perpetual, ceaseless price inflation is needed in order to bring us back to prosperity. Often, a deflation figure as small as 0.6% seems to be sufficient to trigger alarm – something of an hilarious travesty when, regardless of the merits of the deflation thesis, this figure amounts to little more than a rounding error.

The typical argument against deflation runs something like this: with continuous price deflation people expect prices to be lower tomorrow than they are today so that, as a result, they put off their purchases until a later date. This, in turn, causes prices to fall further and further and so we end up in an endless downward spiral of depression and impoverishment. Inflating prices, however, cause people to buy today so that they may insulate themselves from future price rises, thus bringing about economic prosperity and an increase in the standard of living. Continue reading

Economic Myths #6 – Price Stability


One of the mandates that our economic lords and masters have arrogated for themselves is that of maintaining so-called price stability, a constant purchasing power of the monetary unit in our wallets.

At first blush, price stability sounds rather appealing – not only does it “bless” us with the apparition of certainty but are we not also “protected” by the potential of higher prices in the future? If so we can assure ourselves that our cost of living will be sustained and manageable, relieved of the horror that the essential consumables may some day be out of our reach.

Unfortunately this ambition is not only disastrous for a complex economy but is also antithetical to the nature of human action in the first place. The whole purpose of economising action is to attempt to achieve more for less – to direct the scarce resources available to their most highly valued ends and to gain the highest possible outputs with the lowest possible inputs. In short, economic progress means that we are gradually able to attain more and more for the same amount of labour; or, to put it another way, we could attain the same quantity of goods for a lower amount of labour. Any consistent attempt to stabilise the prices in the economy would not only target the goods that we buy with our money but also the goods that we sell – and that, for most of us, means our labour! But if we cannot sell our labour for any more and if we cannot buy our wares for any less then it means that we will simply be locked into a repetitive cycle of working, buying, consuming and working again for the same prices for the whole of our lives with no improvement in the standard of living whatsoever. Instead of economic progress bringing goods at cheaper prices to the lowest earners, the only way to improve one’s wellbeing in such a world would be to become a higher earner – i.e. by working harder or longer. Continue reading

Economic Myths #5 – Banking is Capitalist


By both mainstream economists and the general public the cycle of “boom and bust” is believed to be a tendency inherent in any capitalist economy. The fact that the latest of such cycles, beginning in 2008 (and arguably not having ended), originated in the banking sector and that large banks and bankers ratcheted up huge earnings and bonuses only to cause disaster has implicated banking as representative of the very worst aspects of capitalism – the epitome of uncontrollable greed that ends in catastrophe.

Unfortunately this popular view of the mainstream could not be further from the truth. In fact, with its intimate ties to the state and its special, legal privileges it is hard to imagine a less capitalistic industry than banking. Part of the deception – wilfully inflamed by politicians and their lackeys – is one that engulfs other industries subject to state meddling such as utilities markets. This is the belief that, simply because the participants in the industry in question are private individuals or entities that are not officially part of the state, the enterprise must be classified as part of the free market and saddled with all of the supposed flaws of that system. Very often, however, private companies and brands are simply the public facade of what is essentially a state owned operation or state controlled cartel. Continue reading