1. Skip to navigation
  2. Skip to content
  3. Skip to sidebar
Source link: http://archive.mises.org/6756/just-print-the-necessary-funds/

Just Print the Necessary Funds

June 18, 2007 by

Over the weekend I watched “Flags of our Fathers” and one quote stuck out (among others). It comes from a Treasury Department official (Bud Gerber) who is trying to convince the flag raisers of Iwo Jima to use their celebrity status in assisting him in a new bond drive.

He laments:

You know what they’re calling this bond drive? The Mighty Seventh. They might’ve called it the “We’re Flat F*cking Broke And Can’t Even Afford Bullets So We’re Begging For Your Pennies” bond drive, but it didn’t have quite the ring.

They could’ve called it that, though, because the last four bond drives came up so short we just printed money instead.

Ask any smart boy on Wall Street, he’ll tell you our dollar is next to worthless, we’ve borrowed so much. And nobody is lending any more.

Ships aren’t being built, tanks aren’t being built, machine guns, bazookas, hand grenades, zip.

You think this is a farce? You want to go back to your buddies? Well stuff some rocks in your pockets before you get on the plane, because that’s all we got left to throw at the Japanese.

And don’t be surprised if your plane doesn’t make it off the runway, because the fuel dumps are empty. And our good friends, the Arabs, are only taking bullion.

If we don’t raise $14 billion, and that’s million with a “B,” this war is over by the end of the month. We make a deal with the Japanese, we give whatever they want and we come home, because you’ve seen them fight, and they sure as sh*t ain’t giving up. $14 billion! The last three drives didn’t make that much all together.

In the revealing 1983 debate with then-Federal Reserve governor Charles Partee, congressman Ron Paul jokingly notes that if stranded on an island, the true value of fiat money comes full circle, because printing more of it will not in any form or fashion, increase the wealth or standard of living of the inhabitants. Thus the Fed would be persona non grata. More: 1 2 3 4 5

{ 3 comments }

Muddy Mo June 19, 2007 at 2:34 pm

Using this as an indictment and cautionary tale of the travesty of a strong central government?

Ships aren’t being built, tanks aren’t being built, machine guns, bazookas, hand grenades, zip.

Really? Exactly how many days was it during WWII that zero tanks, machine guns, bazookas and grenades were built? This is classic salesman BS.

This bit highlights the fact that even in the midst of the most dangerous and formidable challenge to our nation’s very existence, tax collection using the the honor system and incentives failed miserably. This may be the very best argument for a robust payroll tax withholding system.

The final irony that caps your post: The greatest threat to our existence came from a dictatorship spawned from the failure of a weak central government beholden to wealthy private reactionary interests. From of all places: Austria.

Tim Swanson June 19, 2007 at 4:56 pm

This may be the very best argument for a robust payroll tax withholding system.

You mean, you buy into the argument that coerced philanthropy (aka taxes) are ethical and civilized. I believe that due to their unwillingness to finance the war, the taxpayer was stating its desire to end the war (as opposed to continue it another year).

The final irony that caps your post: The greatest threat to our existence came from a dictatorship spawned from the failure of a weak central government beholden to wealthy private reactionary interests. From of all places: Austria.

I would argue that the greatest threat to anyones existence then and today is organized crime in the form of “government” — i.e., forcing you to pay tribute/taxes to prevent other “bad” people from stealing money from you.

Quite the full circle.

Webster October 10, 2007 at 4:10 pm

You assume that having a strong central government that can produce weapons with scarce resources that could have been used for goods that would more directly satisfy the wants of the people by forcing them to give up their money is a good thing.

Additionally, you seem to assume that weak governments are automatically beholden to special interests. The only government that can be beholden to special interests is one with the power to satisfy their desires, which a truly limited government would not have.

There was a time when a war that could not guarantee popular support sufficient to fund it and provide the men was deemed too unpopular to continue, as the people did not wish to bear the burden.

Comments on this entry are closed.

Previous post:

Next post: