The present experience of the United States from the abuse of fiat money has been a recurring human drama for millennia.  Pharaohs, Kings, Dictators, Republics and Empires have imploded from within due to unsound money.  The Western Roman Empire fell a century earlier than the Byzantine Romans largely due to debasing their coinage to fund military adventures.  The US Federal Reserve has already created and prolonged The Great Depression of the 1930's. 

There has been no shortage of commentary on the phenomenon over time.  The traditional American view of central banking is best expressed by three Presidents.

JeffersonSm If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around them will deprive the people of all property until their children wake up homeless on the continent their Fathers conquered...I believe that banking institutions are more dangerous to our liberties than standing armies...

- Thomas Jefferson

"Corporations have been enthroned and an era of corruption in high places will follow, and the money power of the country will endeavor to prolong its reign by working upon the prejudices of the people until all wealth is aggregated in a few hands, and the Republic is destroyed. I feel at this moment more anxiety for the safety of my country than ever before, even in the midst of war."

- Abraham Lincoln


"History records that the money changers have used every form of abuse, intrigue, deceit, and violent means possible to maintain their control over governments by controlling money and its issuance."

- James Madison


America's founders made fiat currency unconstitutional largely due to the hyperinflation experience during the Revolutionary War.  Gold or silver had to back State-issued currencies by law.  No national currency was established.  The founders never seriously considered establishing a national bank.  Most opposed the entire idea with passion as Jefferson did.

The first two US national banks were abolished after less than a generation of their corrupt, counter-productive influence.   Americans then would not stand for it.

Unfortunately, the present century long experiment in central banking, now with fiat money, has brought the greatest nation in the world to the brink of economic collapse, the fate of past superpowers.  The accumulation of wealth at the very top is higher now than ever before in the United States.

Fiat currencies have been abolished endless times throughout history only to arise again and again from the vices of overly powerful government.  This destructive process of class warfare has reached its zenith in the US and beyond once again, like never before.

The present mega-storm has been building since the monetary/fiscal irresponsibility of the 1980's. That same irresponsibility continues in hyper-drive today, surpassing even the greed of Roman emperors.  The inevitable result will be the destruction of the US dollar and, for certain in the end, a third abolition of central banking in the US.   It is the same sequence that has played out so often before, modern and ancient.

Magic money has always been the Bain of economic growth for all, a vehicle primarily aimed at enriching the rich and further empowering government.  Keynesian dreamers say modernity rules out the policies of sound money as practiced for centuries.  Yet, the laws of economics have not changed in modern times any more than the laws of physics have.

 It seems the human being, in the end, is unable to resist the destructive temptations of easy, false money.  The affair always ends in disaster.  The proof is everywhere today, again. 

There are good reasons counterfeiting is a very serious crime.  So should be the Keynesian folly that supports the tidal waves of legal counterfeit now gushing from the central banks of the world.

Fiat currencies are not the only possible modern terms of trade for the world economy: far from it.   Free markets for currencies and other "money" is by far the best path to long term economic growth that will raise all boats.  That is the level playing field for a free economy: the American way, past and future.