Title: Democracy: The God that Failed | The Song Series | Episode 2 (WiM087)
Host/Author: Robert Breedlove
Release Date: December 8, 2021
Description: "What is Money?" is the rabbit that leads us down the proverbial rabbit hole. It is the most important question for finding truth in the world. In this podcast, we will pursue this "rabbit" by engaging in a diversity of deep conversations with deep thinkers from different walks of life.
Introduction
In this episode of "The 'What is Money?' Show," host Robert Breedlove and co-speaker engage in a profound discussion on the interwoven nature of democracy, property rights, and monetary systems. They argue that democracy, especially when combined with fiat currency, acts as a failed deity undermining societal structures. The conversation spans historical examples, economic theories, and philosophical insights, ultimately advocating for decentralized systems like Bitcoin as safeguards against systemic failures.
The Failure of Non-Voluntary Trade
The conversation begins by highlighting the perils of non-voluntary trade systems, drawing parallels to historical instances of exploitation:
[00:18] Speaker A: "The alternative to capitalism, the alternative to voluntary trade is some form of slavery, which is not a very good prospect."
They discuss how societies like the Roman Empire and the Soviet Union relied heavily on coercive labor practices, demonstrating that without voluntary exchange, societies regress into exploitative models where one group benefits at the expense of another.
Fiat Currency and Central Banks
A significant portion of the discussion focuses on fiat currencies and the role of central banks in fostering involuntary exchanges:
[00:56] Speaker B: "Every time we print money, they're stealing from the productive economy."
The speakers argue that fiat currency inherently involves unequal exchanges, allowing central authorities to control the money supply and effectively expropriate wealth from productive sectors. This invasion extends to both personal and group identities, turning politics into a battleground for resource distribution:
[00:56] Speaker B: "...they're stealing from the productive economy... politics is this mass psychosis induced by fiat... currency."
Democracy as a Proxy for Socialism
Building upon the issues with fiat money, the conversation shifts to democracy's inherent flaws, likening it to socialism:
[02:05] Speaker A: "Fiat money definitely raises the stakes of politics... it's the flaws of democracy... combine democracy with fiat money, it makes the stakes get way higher."
Drawing from philosophers like Hans-Hermann Hoppe, they argue that democracy embodies collective ownership, which dilutes individual property rights and leads to resource expropriation. Without a higher principle like natural rights or divine ownership, democracy becomes a system where collective claims override personal property, resulting in inefficiency and exploitation.
The Role of Property Rights
Central to the discussion is the sanctity of property rights in fostering a thriving civilization. The speakers emphasize that individual ownership is the cornerstone of responsibility and economic calculation:
[49:10] Speaker B: "Property is the crux of the whole thing... Property rights themselves... emerge from the Judeo Christian ethos."
Property rights, they argue, align individual incentives with long-term investment and societal benefit, contrasting sharply with democratic systems where public ownership diminishes personal accountability.
Bitcoin as a Solution
In light of the systemic issues with democracy and fiat currency, the speakers advocate for Bitcoin as a decentralized, non-coercive form of property that safeguards individual wealth against government expropriation:
[05:32] Speaker B: "Bitcoin is like hands down, better than anything that we've ever seen."
They posit that Bitcoin's decentralized nature renders it resistant to government seizure, thus preserving individual property rights and fostering a sustainable, voluntary economic system.
Monarchies vs. Democracies
Transitioning to a comparative analysis, the speakers contrast monarchy with democracy, highlighting the former's incentives to preserve and grow the state's capital:
[38:52] Speaker A: "With a monarchy, you have to take care of their property because they're taking care of their property."
In monarchies, rulers have "skin in the game," as they and their heirs bear personal responsibility for the nation's prosperity and are constrained from excessive exploitation. In contrast, democratic leaders lack long-term accountability, leading to higher immediate expropriation for short-term gains.
Public Property Issues
The dialogue delves into the perils of public property, using examples like national parks and public spaces to demonstrate how collective ownership leads to neglect and abuse:
[60:27] Speaker B: "...when everybody owns everything, nobody takes care of anything."
Public property, the speakers argue, lacks clear ownership boundaries, fostering neglect and making it susceptible to misuse by governing elites without accountability to individual proprietors.
Government Growth and Debt
A critical examination of government growth and debt under democratic systems follows, emphasizing the absence of rulers' personal liability for debts:
[68:12] Speaker A: "...they have no interest if all the wheels come off."
Democratic governments accumulate debt without rulers bearing personal consequences, promoting a cycle of borrowing that elevates time preferences and undermines long-term economic stability:
[21:55] Speaker B: "Every government should be expected to have an inherent tendency toward growth in maximizing its own wealth and income by means of expropriation... expanding source of decivilizing forces."
The speakers link rising national debts to increased economic fragility and diminishing prospects for sustained civilization.
Conclusion
Concluding the episode, the speakers express concern over the current trajectory of democracy intertwined with fiat currency, advocating for decentralized solutions like Bitcoin and smaller governance models to mitigate systemic failures. They warn of impending civilizational collapse if current trends persist but remain hopeful for informed resistance and innovative socioeconomic restructuring.
Notable Quotes
- Speaker A [00:18]: "The alternative to capitalism... is some form of slavery, which is not a very good prospect."
- Speaker B [00:56]: "Every time we print money, they're stealing from the productive economy."
- Speaker A [02:05]: "...combine democracy with fiat money, it makes the stakes get way higher."
- Speaker B [49:10]: "Property is the crux of the whole thing."
- Speaker A [38:52]: "With a monarchy, you have to take care of their property because they're taking care of their property."
- Speaker B [05:32]: "Bitcoin is like hands down, better than anything that we've ever seen."
- Speaker A [45:44]: "With a monarchy you have to take care of their property because they're taking care of their property... [monarchy] is one who owns the car."
- Speaker B [68:12]: "...they have no interest if all the wheels come off."
This summary encapsulates the key discussions and arguments presented in the podcast episode, highlighting the speakers' critique of democracy and fiat currency systems, the valorization of property rights, and the advocacy for decentralized monetary systems like Bitcoin as protective measures against systemic exploitation.