Tag Archives: Fiat money

The Evolution of Fiat Money, Endless War, and the End of Citizenship, by ICE-9

This is a well-researched, thought-provoking, provocative, and all around excellent article. From ICE-9 at theburningplatform.com:

One topic missing from historians’ analysis of the West’s transition from a physical gold and silver based money system to a fiat money system is the defining events that facilitated and enabled this transition.  One can find no detailed and critical political / historical assessment of this transition, and it would be not for lack of effort.  The transition is always presented as if it is prima facie the refined and evolved state of things that warrants no investigation other than superficial praise followed with dogmatic platitudes.  But has this transition away from the “barbarous relic” money system actually made mankind more refined and evolved, or has it instead plunged mankind into an even more heightened and efficient state of barbarism?

One encounters additional blank pages when searching for any attempt at correlating the evolution and spread of fiat money to the prevalence and severity of war.  A collective learned silence descends when attempting to identify why it is, as money evolves, that war become more ideological, destructive, widespread, and prolonged.  We are all familiar with the endless adulations describing the global spread of “democracy”, but why is it so many are unwilling converts and it became imperative to spread “democracy” via war and regime change?  And closer to home, as our own nation “evolves” from a Constitutional Republic into pure “democracy”, how is it we as “citizens” feel more and more disenfranchised rather than empowered despite even greater doses of “democracy” at home?

This essay attempts to identify the defining events that facilitated and enabled the West’s transition to a fiat based money system, examines cause and effect between the evolution of money and the prevalence and severity of war, and binds together money evolution with the history of warfare by demonstrating cause and effect between money’s evolution, the rise and necessity of endless war, and the inevitable transition from “citizens” to subjects.

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The new deal is a bad old deal, by Alasdair Macleod

The Internet’s best economist explains why the New Deal was a huge mistake, and why we’re about to repeat it, except this time only huger. From Alasdair Macleod at goldmoney.com:

So far, the current economic situation, together with the response by major governments, compares with the run-in to the depression of the 1930s. Yet to come in the repetitious credit cycle is the collapse in financial asset values and a banking crisis.

When the scale of the banking crisis is known the scale of monetary inflation involved will become more obvious. But in the politics of it, Trump is being set up as the equivalent of Herbert Hoover, and presumably Joe Biden, if he is well advised, will soon campaign as a latter-day Roosevelt. In Britain, Boris Johnson has already called for a modern “new deal”, and in his “Hundred Days” his Chancellor is delivering it.

In the thirties, prices fell, only offset by the dollar’s devaluation in January 1934. This time, monetary inflation knows no limit. The wealth destruction through monetary inflation will be an added burden to contend with compared with the situation ninety years ago.


Boris Johnson recently compared his reconstruction plan with Franklin D Roosevelt’s New Deal. Such is the myth of FDR and his new deal that even libertarian Boris now invokes them. Unless he is just being political, he shows he knows little about the economic situation that led to the depression.

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The journey to monetary gold and silver, by Alasdair Macleod

The coronavirus and the current financial crisis may not be all bad. They’ll probably be the death of fiat money. From Alasdair Macleod at goldmoney.com:

Markets are just beginning to latch on to the economic consequences of the coronavirus. Central banks are slashing interest rates and beginning to throw new money into the mix and governments are increasing deficit spending.

Few analysts have yet to understand the enormous consequences of the coronavirus for missed payments and accumulating current debt, which is and will rapidly drain liquidity from wholesale money markets. It is increasingly certain that the eurozone’s banking system will require rescuing from insolvency with knock-on consequences for the global monetary system. Concern over the consequences for the $640 trillion OTC notional derivative market, particularly for $26 trillion of fx swaps, is so far absent.

Continuing on our theme that the fates of the dollar and US Treasury values are closely bound, the extraordinary overvaluation of the bond market will translate into a collapse for both. This article charts how the collapse of the dollar and financial asset values is likely to progress and concludes that we are witnessing the end of the neo-Keynesian fiat currency fantasy, which will be done and dusted with surprising rapidity.

Only then will sound money, after varying time periods for different nations, return.

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Real High Crimes and Misdemeanors, by MN Gordon

Fiat currency is a much bigger crime than Trump, Clinton, Nixon, and Andrew Johnson together ever committed. From MN Gordon at economicprism.com:

Christmas is no time to be given the old heave-ho.  This is a time of celebration, redemption, and excess libation.  A time to shop ‘til you drop; the economy depends on it.

Don’t get us wrong.  There really is no best time to receive the dreaded pink slip.  But Christmas is the absolute worst.  Has this ever happened to you?

Well, believe it or not, this is precisely what House Speaker Nancy Pelosi and her Democrat degenerates in the House did this week with their partisan impeachment of President Trump.  Not even Ebenezer Scrooge had a cold enough heart to fire Bob Cratchit on Christmas.  In fact, Scrooge gave Cratchit Christmas day off – with pay.

For the record, Trump is a repulsive fellow.  He chows Big Macs in bed and bloviates sulfurous gas back at the boob tube.  After that, he feeds his resentments over a phone call with Sean Hannity.  Then he uncorks on twitter.  The sequence repeats every night and rolls into the morning like clockwork.

Perhaps this sort of behavior is beneath the stature of an esteemable President.  But so what?  It’s remarkably entertaining.

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The Hidden Link Between Fiat Money and the Increasing Appeal of Socialism, from Patrick Barron

Alan Greenspan wrote a good essay on monetary gold back when he was friends with Ayn Rand. Among many pertinent points, he argued that gold as money made welfare states impossible. Fiat money has made a lot of bad ideas possible. From Patrick Barron at mises.org:

What causes the seemingly unfounded confidence in socialism we encounter more and more in the news media and among political activists? In the Extinction Rebellion movement, for example, activists are quite certain they have learned that there is an alternative to markets as the means to economic prosperity. It’s a means that does not involve meeting the legitimate needs of one’s fellow men in the marketplace.

It is likely not a coincidence that most people living today have lived most of their lives in a world dominated by fiat money. It has now been nearly fifty years since the United States broke all ties between the dollar and gold. It’s been even longer since other major currencies were tied to gold at all. Consequently we now live in a world where the creation of wealth is seen by many as requiring little more than the creation of more money.

In this kind of world, why not have socialism? If we run out of money, we can always print more.

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The Degrading Facts of a Fake Money Hole in the Head, by MN Gordon

Fake money devalues hard work, saving, and taking care on one’s self. From MN Gordon at economicprism.com:

Today we begin with the facts.  But not just the facts; the facts of the facts.  We want to better understand just what it is that’s provoking today’s ludicrous world.

To clarify, we’re not after the cold hard facts; those with no opinions, like the commutative property of addition.  Rather, we’re after the warm squishy facts; the type of facts that depend on what the meaning of the word ‘is’ is.

The facts, as far as we can tell, are that we’re presently living in a land of extreme confusion.  The genesis of this extreme confusion is today’s fake money system.  And the destructive effects of this fake money system have spread out like a virus into nearly all aspects of daily life.

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America 2018: Dicier by the Day, by Charles Hugh Smith

The US is a giant Jenga tower, and there aren’t too many more blocks that can be removed before the tower collapses. From Charles Hugh Smith at oftwominds.com:

Scrape all this putrid excrescence off and we’re left with a non-fantasy reality: everything is getting dicier by the day.

If we look beneath the cheery chatter of the financial media and the tiresomely repetitive Russian collusion narrative (that’s unraveling as the Ministry of Propaganda’s machinations are exposed), we find that America in 2018 is dicier by the day.
The more you know about the actual functioning of critical subsystems, the keener your awareness of the system’s fragility, reliance on artifice and an unceasing flow of “free money.” Keynesian economics boils down to a very simple premise: a slowing or stagnant economy can be goosed by distributing plenty of “free money” which can be freely blown on either speculation or goods and services.
The “free money” (either created out of thin air or borrowed into existence at rates of interest so low that they’re less than zero when adjusted for inflation) dumped into speculation gooses assets higher, generating the “wealth effect” beloved by Keynesians, and the “free money” dumped into goods and services gooses consumption, tax revenues, hiring and so on.
The catch is “free money” is never actually free. Creating trillions out of thin air reduces the purchasing power of all existing currency, and pretty soon you’re following Venezuela into “our money has lost all its value” territory.
Borrow trillions into existence and at some point even ludicrously low rates of interest start piling up serious sums of interest due, and the system eventually collapses under the weight of defaults and interest payments that stripmine the economy’s productive capacity.
Every subsystem in America has compensated for structural stagnation and increasing friction by reducing redundancy and buffers. Have you noticed how many airline flights are now delayed by mechanical issues? Nobody keeps spare parts in stock, and servicing is now concentrated in a handful of hubs; there’s no spare aircraft or flight crews available. All the buffers and redundancy have been stripped out to lower costs and maintain profits, lest the management team be fired for missing a quarterly earning target.
To continue reading: America 2018: Dicier by the Day

Full Faith and Credit in Counterfeit Money, by MN Gordon

Is there a link between the fake money the US has had since 1971 and the  general slide the last few decades in veracity and morals? From MN Gordon at economicprism.com:

There are nooks and corners in every city where talk is cheap and scandal is honorable.  The Alley, in Downtown Los Angeles, is a magical place where shrewd entrepreneurs, shameless salesmen, and downright hucksters coexist in symbiotic disharmony.  Fakes, fugazis, and knock-offs galore, pack the roll-up storefronts with sparkle and shimmer.

Several weeks ago, the LAPD seized $700,000 worth of counterfeit cosmetics from 21 different Alley businesses.  Apparently, some of the bogus makeup products – which were packaged to look like trendy brands MAC, NARS, Kyle Cosmetics, and more – were found to contain human and animal excrement.

“The best price is not always the best deal!” remarked Police Captain Marc Reina via Twitter.  Did you hear that, General Electric shareholders?

Yet the Alley, for all its dubious bustle, offers a useful public service.  It provides an efficient calibration for the greater world at large; a world that’s less upright and truthful than an honest man could ever self-prepare for.  In 30-seconds or less, the Alley will impart several essential lessons:

The price you’re first quoted is the sucker’s price.  To negotiate effectively, you must appear to care far less about buying than the merchant cares about selling.  Don’t trust someone that says, “trust me.”  And, most importantly, don’t believe what you see and read…or what you hear.

Reality Bites

For everything worthwhile, there exists a counterfeit.  This modest insight extends well beyond the boundaries of flea markets and tent bazaars.  It extends outward to news, money, prescription drugs, wars, public schools, Congress, corn ethanol, medical insurance, public pensions – you name it.  There’s plenty of fraud, phony, and fake going on.

For example, in the year 2018, the most reputable news outlets have been reduced to mere purveyors of propaganda.  The stories they spread are stories of fiction.

Investigative reporting is defunct.  Veracity is for bores and troublemakers.  We don’t like it.  We don’t agree with it.  But we can’t change it, nonetheless.

So, we embrace the deception with proper perspective.  We drink from the firehose of deceit with unquenchable thirst.  We smile at false prophets who sell salvation without repentance, benefits without taxes, and new programs and new deals that promise to sprinkle money around and make everyone rich.

To continue reading: Full Faith and Credit in Counterfeit Money

Debt-Based Money Corrodes Society, by Brian Maher

Phony money doesn’t just debauch economies, it debauches morals and the culture. From Brian Maher at dailyreckoning.com:

We open today’s reckoning with a hypothesis:

The current monetary system debauches the culture.

Long-suffering readers are familiar with our… diminished regard for paper money.

Paper money — or digital money nowadays — is the great bogeyman of the boom/bust cycle. It inflates bubbles of every model and make.

Meanwhile, paper money fuels big government… as oxygen fuels fire.

But paper money’s effects on the culture?

“It has a very important impact on our culture,” writes economist Jorg Guido Hulsmann.

Under “natural money” like gold Hulsmann explains, prices tend to fall over time.

So natural money encourages the virtues of saving… thrift… deferred gratification. It sets the mind to the future:

In a free economy with a natural monetary system, there is a strong incentive to save money… Investments in savings accounts or other relatively safe investments also play a certain role, but cash hoarding is paramount.

Before the 20th century, explains Hulsmann, debt was a cultural taboo… a big scarlet “D.”

Credit for households was virtually unknown, he says. And only the poorest households resorted to debt-financed consumption.

Ah, but then the 20th century came along with its wars… its social movements… and its cranks…

Gold is a famously uncooperative agent of change.

It resists social uplift, in the same way an old man resists a new pair of shoes.

It turns away from the sound of trumpets.

“You go over there,” gold says. “I’m staying here.”

“The trouble with gold is that it turns its back on world improvers, empire builders and do-gooders,” wrote Bill Bonner and our leader Addison Wiggin in Empire of Debt.

“The nice thing about gold is that it is so unresponsive,” they continued. “It neither laughs nor applauds.”

And that’s why it couldn’t last…

Only a debt-backed system of paper money could finance the great wars, the social improvements and the fevered dreams of the 20th century.

To continue reading: Debt-Based Money Corrodes Society

The Economics of Debt, Deterioration, Deflation, Depression, and Disorder, by Robert Gore

Economies are analogous to ecosystems. Environmentalists’ base state is an ecosystem in a state of nature, unsullied by man. Economists’ base state is an economy in which, other than establishing and maintaining essential conditions—protection of property and contracts rights and physical security—the government is absent. Both systems rely on the autonomous actions of their constituent elements, organically adapting to the myriad stimuli and signals around them. Analyzing the changes and distortions caused by humans on ecosystems is a big part of environmental science. Similarly, much of economics analyzes the perturbations caused by governments in economies.

Money can be broadly defined as whatever enjoys widespread acceptance as a medium of exchange and store of value—a means of saving—within an economy. Demonstrably more efficient than barter, money plays a central role in any advanced economy. A distortion virtually every government has introduced into their economies has been the production of fiat money—money not backed by and therefore not exchangeable into a set weight of a metal or other good—whose acceptance is compelled by legal tender laws.

The ostensible reasons advanced for fiat money are mostly specious; governments do it because they benefit from doing so. Money buys things, and if government is the source of money, it also has an issuer’s advantage. While monetary depreciation eventually leads to price inflation, the government is ahead of the curve. It purchases goods and services with the money it is creating and debasing before the resultant inflation sets in (this issuer’s advantage is known as seignorage).

Fiat money has another benefit for governments, dwarfing seignorage: it supports deficit financing. A government that cannot borrow must extract taxes or fees from its populace, which is never popular and often resisted. Monetary depreciation allows the debtor to repay with money that is worth less than it was when the debt was incurred. If government is a debtor, it realizes that benefit, which is why inflation has been called a hidden tax.

More insidiously, a government can either issue its debt directly as money, or—the more modern approach—a central bank can “monetize” the government’s debt by buying that debt with money it creates. The central bank buys debt either with currency it produces or by increasing the selling counterparty’s account with the central bank (the latter practice is far more prevalent). With fiat money, a government’s debt represents a promise of repayment with either more debt or fiat money, and nothing more.

The central bank is a large, interest-rate insensitive buyer of its government’s debt. Its buying pushes the rate the government pays below what would prevail if there were only interest-rate sensitive private buyers in the market, and lowers most other rates, which are often benchmarked to the interest rates on government debt. A below-market interest rate increases borrowing and decreases saving below what would have prevailed at a higher rate. It is a misleading signal for investment; a lower cost of capital leads to more investment, and consequently more production, than if the economy had a true market cost of capital. Mis-priced money also encourages consumption and speculation in excess of what would have prevailed under higher rates.

Governments and central banks around the world have stretched ultra-low—or in some cases negative—interest rates, sovereign debt, debt monetization, and the promotion of consumption and speculative bubbles to historic extremes (see “A Skyscraper of Cards,” 10/19/14). Metaphysically, just stating the idea that value and real economic growth can be created by governments borrowing money, creating money, and using that created money to buy their own debt casts heavy suspicion on the whole enterprise. It sounds like magic, and it is. Reality confirms the skeptics. While these policies can produce short-term increases in growth and goose financial markets, in the long run those effects are reversed and the net effect is contractive rather than expansionary.



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No nation has practiced this “magic” longer than Japan, whose economy has cycled from recession to anemic recovery to recession since the early 1990s (it just reentered recession). The Japanese once had one of the world’s highest savings rates, but the government has been drawing down its citizens’ savings on a two decade debt binge. Now it is the most indebted government, in terms of debt-to-GDP ratios (227.20 percent), in the developed world. Ultra-low interest rates (the Japanese 10 year interest rate is .47 percent) make saving an exercise in masochism. The central bank owns most of the government’s debt, and has expanded its purchase to private financial assets, including equities.

Japan offers ample proof that in the long term, debt and money magic retard production and growth. Despite a five-year rally, the Nikkei 225 stock index is not even half of what it was in 1989. As for a telling economic indicator, nothing captures people’s assessment of economic prospects and the future so well as the decision whether or not to have babies. Reflecting dwindling opportunities, Japan has one of the world’s lowest birthrates; its rapidly aging population now buys more adult than baby diapers. The elderly cohort will be yet another drain on Japanese savings as it pays for retirement. “Magic” economics requires running ever harder just to stay in place. The world’s financial markets got a Halloween treat when the Japanese central bank announced a 60 percent increase in asset purchases with funny money, but the prior, already massive, purchases have not stopped Japan from sliding back into recession.

Japan has been the pacesetter, but Europe and the United States are not far behind. Despite mammoth expansions of the European Central Bank’s and the Federal Reserve’s balance sheets in pursuit of unprecedented asset monetization, growth rates have been far below historical trend. European growth in 2013 was .1 percent, and the continent currently has either no growth or is in recession, depending on how many statistical angels are dancing on which pin heads and who is doing the counting. In the US, 3 percent plus growth used to be routine; 2 percent is the new normal. The last time the US saw 3 percent annual growth was 2005.

The labor market demonstrates the ongoing deterioration of the US economy. Taking the seasonally- and business-birth-and-death-adjusted, subject-to-future-revision employment statistics as offering a passable approximation of reality (perhaps a heroic assumption), there has been job growth, but the labor force is shrinking. However, it is the qualitative aspect of the labor market where the real story is told. David Stockman recently did a masterful analysis. Since the turn of the century, jobs in what Stockman terms the Breadwinner Economy: construction, manufacturing, white collar, finance, insurance, real estate, transport, information, and trade, have shrunk, replaced by much lower-paying jobs in hospitality, food service, and medical care. Readers are referred to Stockman’s article for a full analysis and explication (http://davidstockmanscontracorner.com/the-feds-paint-by-the-numbers-delusions-about-the-labor-market/ ). During the greatest Federal Reserve balance sheet expansion in history, labor market fundamentals and the economy have deteriorated. It’s no mystery why a plurality of voters in the last election cited the economy as their chief concern, despite the much ballyhooed “recovery.”

Adding to labor’s pain: below market interest rates have promoted the substitution of capital for labor, and by promoting consumption, have fueled the US’s perpetual trade deficits, which create jobs in foreign countries. In a world where money is not the whimsical creation of central bankers, no country would be able to run trade deficits in perpetuity. Pressure on the currency and withdrawals of whatever stands as the government’s reserves backing it would force a deflationary price adjustment, including in wages, and an increase in interest rates to make the country’s economy more competitive in world markets.

No such adjustment is necessary when the world must accept an ever expanding supply of dollars, the so-called “reserve” currency, backed by no reserves but redeemable for more dollars or treasury debt. The usual do-gooders lament the state of the labor market, but champion a higher minimum wage. However, wages in this country must come down relative to wages in other countries—the flip side of years of living beyond our means—before the employment situation can meaningfully improve.

The liquidity that is not promoting economic growth is promoting bubbles in select financial markets, primarily sovereign debt and equities. Paraphrasing President Nixon, we are all speculators now. Central bankers have been candid about one of their motivations for microscopic interest rates: they want to push savers farther out on the risk spectrum, forcing them to buy either lower quality or longer-dated bonds, or equities. Everybody is speculating, from retirees switching money out of money market funds to stocks or bonds to earn a return, to corporations, who can find nothing better to do with their cash than buy their own stock. The expected rate of return on productive investment has equilibrated with the corporate cost of funds—close to zero—due to many years of overinvestment and overproduction. The theory has been that rising asset prices, particularly stock prices, produce a wealth effect, which prompts beneficiaries to go out and spend, in turn producing economic growth.

If, in light of dismal economic growth, that sounds like holding a lit match to a thermometer to heat up a room, it is—more magic. It reverses causality, trying to put the stock price cart before the economic growth horse. Thus, after a four-year rally, in 2013 the US stock market gained almost 30 percent (S&P index) while economic growth was 2.3 percent. Even if one buys the theory that stocks are a discounting mechanism, or predictor of future economic trends, last year’s strong rise has “discounted” growth so far this year of 2.2 percent, or slightly less than last year. Since the turn of the century, neither the wealth effect nor debt “magic” have produced the kind of trend growth during expansions that most of the developed world had taken for granted for at least four decades prior.

Central bankers have been less than candid about two other motivations for microscopic interest rates. Although some central banks are ostensibly independent, like the Federal Reserve, even the Fed can be considered an arm of the government when to comes to the government’s debt. Low rates ease the government’s debt service burden, and central bank monetization provides a ready buyer of debt.

However, the primary reason for easy money is to promote inflation, which devalues governments’ massive debts. If unfunded pension and medical liabilities are added to nominal debt, it is clear that the only way governments can hope to keep their many promises is by substantially devaluing them through monetary depreciation. The 2 percent inflation mantra that central banks around the world chant as a policy goal has nothing to do with the real economy, and everything to do with a hoped-for escalation of inflation governments so desperately need.

That central banks have been unable to achieve even 2 percent inflation is another indication of their policies’ ineffectiveness. The marginal return of an additional unit of debt-based liquidity is actually negative. It is not producing inflation or economic growth, and the debt carries an obligation to pay back an amount greater than the original loan. Underlying the oft-expressed fear of deflation is recognition that it would crucify governments. Just as inflation devalues debt, benefitting debtors, deflation makes debt more expensive to pay back. Deflation would make governments’ mounting debt loads that much more onerous, thus the almost hysterical fear of it.

Part and parcel of shrinking private-sector opportunity is expanding public-sector rapacity. Although taxes and fees keep rising, governments keep running deficits. The productive have been increasingly milked for the vote-buying benefit of the unproductive, with the state taking its cut. Its dead-hand grip on economic activity is tightening, not for the purported public-benefit justifications, but to increase economic rents to the government and its officials. Individuals and businesses lobby, curry favor, donate, and bribe to get subsidies, tax breaks, and regulatory dispensations. It speaks volumes that the Washington D.C. metropolitan area is now the nation’s wealthiest. Obamacare promises bounteous new opportunities for payola, taxes, and regulatory extortion, which was the real reason it was passed.

When “magic” economic nostrums can no longer keep an economy running in place, it falls backwards, painfully. In “non-magic” economics, debt growth well in excess of economic growth for an extended period, rising taxes, and increased regulatory sand in the gears and government rent-seeking eventually produces an economy that not only stops growing, but contracts. Almost immediately, debt in the most leveraged sectors of the economy starts unravelling, and in a debt-saturated economy that unravelling spreads quickly, because virtually every financial asset is someone else’s debt (or equity, which occupies an even lower rung on the priority-of-payback ladder). In 2008, it started with mortgages and mortgage-backed securities and engulfed the world’s financial system with frightening speed.

For years the world has looked one way down the railroad track, watching for the inflation locomotive, oblivious to the deflation locomotive coming from the other direction. There are always quibbles about the accuracy of price indexes, but the just-around-the-corner outbreak of skyrocketing inflation has remained just around the corner, despite years of massive central bank balance sheet expansion. Debt has become the medium of exchange (even the US currency, which is not usually thought of as debt, bears the title: Federal Reserve Note) and the global economy runs on debt. When debt plays such a central role and the gross amount starts to shrink, the result has to be economically contractive and deflationary. Debt shrinkage acts as a margin call: assets are sold, economic activity curtailed, and debts repudiated as debtors try to reduce their debt burdens. Their creditors must write off assets, sell other assets, curtail their economic activity, and repudiate their debts as the vicious cycle gathers steam.

The collapse of the world’s skyscraper of debt will take prices and economic activity with it. If the crash is proportional to the debt build up that preceded it (and it wouldn’t be wise to assume that it won’t be), it will take down governments as well. The Orwellian nightmare of totalitarian government, amplified by the Edward Snowden revelations, may be another case of the world fixating on the wrong fear. Come the crash, most governments will be flat broke, unable to borrow except at prohibitive rates. Command and control—monitoring, repressing, incarcerating, and torturing the populace—is expensive and stifles economic activity. Destitute governments will have their hands full maintaining the barest semblance of public order.

The smart money bet for what emerges from the rubble is chaos and anarchy, not government-maintained order. Which suggests that investments in self-sufficiency and self-protection, including firearms and training in their use, are prudent (There are a multitude of organizations and internet sites that provide guidance and sell provisions.) The people who have made those investments have been derided as the fringe, but events will probably give them the last laugh, if anyone is laughing in such a world.