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Former Federal Reserve Economist David Barker discusses whether Americans should be able to print their own currency.
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Our government prints lots of money one way they cover the politicians deficit spend.
They also control the amount of currency in the -- and they have a monopoly on currents solve climate happy and -- -- government keeps the valuing them.
I might want to print my own dollars to compete with the government.
-- -- -- -- -- would have to use these but yet could if you want to.
And you and I could trade with these may be people would come to trust stock sold dollars more than federal dollars.
Competition is generally good why have.
Competition in currencies.
We'll come most people we are worried about that said that -- should be illegal.
That's simply complete anarchy and I've no.
-- absolutely god.
And in America private currencies -- illegal.
But why Federal Reserve can former Federal Reserve economist David Parker asked he says I should -- -- -- -- docile -- so.
Why why would that be a good thing.
Well there are a lot of ways that private money might be better that it might have embedded chips that would make it easier to count -- that would prevent theft.
It might have ownership shore or to prevent counterfeiting right.
You might have advertising on currency.
As has happened in the past when we had private competing for yeah.
We have some examples of that I mean in the late seventeen hundreds there was a shortage of Koreans and parts of great Britain and businessmen is sold iron and ten.
Made these -- which advertised his business we have another example from -- railroad company Georgia railroad company.
This became illegal and 1864.
And we generally assumed -- government's very careful about preserving the value of the dollar it was news to me researching this segment that.
FDR adjusted the value of the dollar from his bad.
Based on thing that's like.
His lucky number that's true.
And up.
He.
At at one point was asked how he picked the change in the price of gold that and he said I think it was he changed by 21 cents because seven was a lucky number in 21 was three times seven.
And it at the time gold very from about twenty.
Dollars to 35 dollars per ounce of gold and it was fair -- arbitrary.
In this diary secretary of the treasury under rose under FDR -- -- wrote.
If anybody ever knew how we really set the gold price through a combination of lucky numbers they.
Be frightened.
Well this is a -- some people have been advocating a gold standard -- the gold standard really is just another government mandated money.
And the government.
Might be as has often it's often been too rigid -- under a gold standard has caused economic problems but has often also been too -- -- -- arbitrary.
And what -- -- -- you get rampant inflation I have.
Bill from Zimbabwe here this is a 100.
Trillion dollar bill.
Because how does this -- well when the government wants revenue it can print more money.
And there's a limit to how much profit it can take because that in the limit you get you know hyperinflation.
Now that's never happened in the case of private competing currencies and all of those instances in world history where we've had it.
We haven't had rampant runaway inflation but we have many examples of that under government monopoly.
On the other hand there are some experiments going on.
There's something called that point which some electronic money that some people are experimenting with the legal status is a bit unclear.
But it could be it's and very interesting experiment there are -- the ten dollars people are using pick points to buy marijuana illegally because they feel union.
That true they're -- will people use cash to do that'll so.
But -- -- some books few other kind of random retail items that are for sales and service is also.
They you what's worked at the Fed but -- you think we should get rid of the -- well.
The Federal Reserve isn't the first agency of government that I would get rid of I I've enjoyed working at the Fed I think people there are brilliant and well meaning.
But I think they have really an impossible job.
The job of the Federal Reserve is really to be a central planner for our monetary system.
And one thing we've learned over the last several decades is that central planning doesn't work as well as markets I think they're all kinds of ways that.
What the Federal Reserve does could be privatized.
And that that would be more efficient.
Career -- Newt Gingrich -- some debate he was saying well such a plan does to work but we need a Central Bank.
But I have to wonder if central planning doesn't work why would it work for the currency.
He too -- I don't think that there's any reason why we should expect it to be different particularly when we look at the historical evidence.
All of these examples of freer banking that -- worked quite well.
Thank you David --
