May 24, 2016—Jacob Hornberger, president of the Future of Freedom Foundation, shows how Donald Trump’s politically incorrect approach to debt and inflation doesn’t quite address the true solution.
One of the issues that is bound to arise in the upcoming race between Donald Trump and Hillary Clinton is the issue of inflation. Well, more so, the national debt, the mountain of debt that the government has incurred and continues to do so to fund the welfare-warfare state.
In the run up to the nominating process, Donald Trump said that the solution to the national debt problem is just default. Negotiate a deal with creditors, where they take what they call a haircut in the financial world. They accept less than what they’re owed, and this caused a big uproar, because politicians are not supposed to talk about default like that, and so Trump said, ‘OK, I take that back, but we’ll just print the money, and we’ll pay them off’ in essentially cheapened, debased dollars.
Well, that caused an even bigger uproar, because they’re not supposed to expose that system either, but that’s exactly what they’ve been doing for decades. They’ve been printing the money to accommodate the ever-increasing welfare-warfare state expenditures. And then people are not supposed to notice what the government’s doing. That’s what Trump was exposing.
That’s why we walk around with cheap, alloyed coins instead of the gold coins and silver coins that formed the foundation of the monetary system of the American people, and was that way for some 125 years. They’ve just been debasing the currency decade after decade after decade. What is the solution to this?
It’s the libertarian solution – a separation of money and the state, the denationalization of money. As Friedrich Hayek, the Nobel-prize-winning libertarian economist pointed out, get government out of the money business and turn it over entirely to the free market. That is the key, not only to a free society, but to a prospering society.