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THE PARABLE OF THE CARDS
A little learning is a dang'rous thing;
Drink deep, or taste not the Pierian spring;
There shallow draughts intoxicate the brain;
And drinking largely sobers us again.
-- Alexander Pope
About a month ago I
published an article that criticized a Nevada bill to mint silver
coins. I charged the bill with fraud as a fiat money scheme
dressed up in silver.
THEN IGNORANCE STOOD UP
That article drew an
astonishing number of responses – some questioning and intelligent,
some appallingly ignorant, and some outright rude. Astonishingly,
some of the most ignorant and rude came from people who (I
take it) fancy themselves the friends of silver, gold, and
sound money. The Internet, it seems, has not made people wiser or
more knowledgeable. It has only made propagating ignorance faster
and more efficient. As Will Rogers observed, “The trouble with
people is not what they don’t know, but that they know so much that
just ain’t so.”
ANCIENT WISDOM
No matter how long one
studies money, certain fundamental principles remain clear. Chief
among those stands this principle, that any sound and honest money
must offer value for value, or it will defraud the many and
enrich the few. There are, in fact, only two schools of
monetary thought. The fiat money school believes that money
is whatever somebody declares it to be. In their view, money in
itself is valueless; only artificial social convention gives it
value. The sound money school believes that all money should
offer value for value. Money itself must have value in the
marketplace, independent of social or government artifice.
Another principle recognised
since ancient times by Aristotle (among others) is that unrestricted
usury (the taking of interest) is impossible with a sound money
system. The fiat system that presently rules us is backed by
nothing, of course, but debt. All our money is borrowed
into existence, and that single fact determines the entire
system and predicts it will inevitably unfold into instability,
tyranny, and poverty.
SYSTEMS, NOT PARTS
Now systems are built of
articulated members. What would you think of a mechanic who knew
all about carburettors and brakes and air conditioners and
transmissions, but had never seen all the parts assembled together
into an automobile? Or a chef who had only studied food in cans,
but had never prepared a meal? If we only study the members without
studying how they fit and work together, we understand only
disconnected, unarticulated facts, unrelated to the whole system.
We know everything about the parts but nothing about the
whole.
Fiat
money never appears as an isolated phenomenon. It is not
merely a single evil conspiracy to suppress silver and gold,
as some seem to think (having drunk too deep at the Internet’s
Pierian spring). Seeing only that, they’ve got it all wrong.
Rather, fiat money aims always to achieve control over a
whole society, indeed, the whole world. It will inevitably enslave
a people and transfer all assets into the hands of a few.
Miss this point and
you do not and cannot understand fiat money. Like war and
death, fiat money always walks hand in hand with debt, usury,
income tax, oligarchy, big government, militarism, and, in the end
always produces tyranny and impoverishment. Fiat money is
not just an isolated enactment, but the jugular vein of a system.
THE PARABLE OF THE CARDS
Now hear the parable of
the cards.
It came to pass that five
men, strangers all, took ship for a distant land. And whilst the
ship was in the way, a fierce storm overtook it, and it sank, and
all aboard drowned, save the five passengers, who swam to a desert
island.
And when they awoke, they
traversed the whole island, and found fruit and game in abundance,
but very little in the way of entertainment.
Wherefore the first
stranger, whose name was Everyman, said to his companions, Industry,
Finance, and Government, Go to! Truly, we will die of
boredom in this place long before starvation gets us. Let us
therefore play a game of cards!
And Industry and Finance and
Government did smile on Everyman, and rejoiced at this pleasant
suggestion. But then sadness overcame them, and their countenances
darkened, and Industry said, “Alas, cards have we none.”
Now the fifth stranger,
Banker, stood in the coolness of the shadows eavesdropping, and when
Industry discovered they had no cards, Banker stepped forward, out
of the shadows, and whispered, Let not my brothers be downcast,
neither let them fret for want of cards. For behold, said he,
pulling a deck of cards from his pocket, See, cards have I in
abundance, and I will lend freely, upon execution of certain
necessary mortgages, notes, and encumbrances upon all your real and
personal property.
And lo! The countenance of
Everyman, Industry, Finance, and Government did brighten, and they
rejoiced with one another, for they were simple men, and trusted
themselves to Banker. For behold, said they, doth he not desire our
good, and will he not freely lend us all things, even cards?
Then Banker did lend
Everyman, and Industry, and Finance, and Government thirteen cards
apiece, but upon this condition, that Everyman and Industry and
Government and Finance might borrow the cards for but one hour only,
and at the hour’s end each must return to Banker fourteen cards or
forfeit. And in return for the thirteen cards they were lent, every
player did execute certain necessary mortgages, notes, and
encumbrances upon all their real and personal property.
And Banker had them.
And Banker knew it, but
Everyman, and Industry, and Finance, and Government had not a clue.
And lo, the hour did end,
and Everyman had but ten cards, while Government, Industry, and
Finance were possessed of fourteen apiece, and with great shew of
sadness and brotherly commiseration Banker did dispossess Everyman,
and foreclose upon him, and did take his duffle bag, and all his
coconut shells, and his flip-flops, and all his clothing, until
Everyman stood naked under the sun, as in the day he was born,
without a card to his name, and verily, he was out of the game.
Yet were not Government,
Industry, and Finance downcast by Everyman’s loss, for in their
haste to play cards, they forgot his need, and heeded not the
warning of his downfall. So they clamoured to Banker, Give us cards
again, that we may play, and make merry, and while away our time in
this desert place.
And Banker came close, and
said, Brothers, gladly will I lend again, only give me mortgages,
notes, and encumbrances upon all your real and personal property.
And they did execute the same.
And Banker did lend
seventeen cards to Industry, and to Finance, and to Government,
demanding at the hour’s end the return of eighteen cards apiece.
And lo, they did play, and when the game was over, alas, Industry
had but fifteen cards, and Government and Finance had eighteen.
And so Banker did foreclose
upon Industry, and did take his duffle bag, and his pocket knife
wherewith he made clever things for his brothers, and his sandals,
and all his clothing, until Industry stood naked under the sun, as
in the day he was born, without a card to his name, and verily, he,
too, was out of the game, and busted clean flat.
And Government and Finance
must play yet again, and Banker must lend to them, and he did, and
they did, and Finance met the same fate as Everyman, and Industry,
and they gathered themselves together, naked and wretched, under a
palm tree, watching Banker and Government play the last hand. And
lo, Banker did win, and took from Government all he owned.
Then Government joined
Everyman and Industry and Finance, naked under the palm tree, and
they lamented the low estate whereunto their borrowing had brought
them, and wot not what next to do.
Then Government asked,
Brothers, why sit we here idle? For although we be poor, mayhap
have we something left we may offer as collateral, and yet play
cards again. And the others said, Yea, and Amen, what else have we?
And they approached Banker
right humbly, and gat them down on their knees, and entreated him,
saying, O Banker, we have nothing left for collateral, but lo! in
the future we will once again have stuff, and between now and
then we will have stuff, and we will gladly execute in your favour
mortgages, notes, and encumbrances on all our future stuff,
but only lend us cards, for the boredom of this place surpasseth all
bearing, and our souls are like to expire within us if we cannot
play cards, and what availeth us life or liberty without cards?
And Banker smiled a great
smile, and welcomed this offer, and did cheerfully and quickly offer
for their signature mortgages, notes, and encumbrances on all their
future stuff, and they did sign.
And Banker dealt out cards,
and again they played. And in the course of time and cards, Banker
did own all the future stuff of Everyman and Industry and
Government and Finance. Verily, Banker did own it all, all their
goods and their lands and their labours, and their children’s
labours, and their children’s children’s labours, world without
end. And Banker waxed fat.
And Everyman and Industry
and Finance and Government were glad, and did honour to Banker, and
rejoiced to serve him, for verily they loved playing cards, and
unless they served him, how else could they get cards?
Here endeth the Parable
of the Cards.
-- Franklin Sanders
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