• This article by Jimmy Song explores the nation-state level incentives of fiat money, which have enabled governments to become more authoritarian and militaristic.
• The central control of money has made it possible for governments to run deficits on their budgets without having to pay high interest rates or raise taxes.
• This power dynamic has resulted in a surveillance state, police state, and other oppressive regimes around the world.

The Power of Fiat Money

Fiat money has given governments tremendous power, allowing them to create an authoritarian system that stifles individual freedoms. This is accomplished through a variety of mechanisms such as running budget deficits, implementing rent-seeking policies, and creating a surveillance state. All these components are facilitated by the central control of money which gives governments the ability to print currency at will.

The Effects of Fiat Money

The effects of this power dynamic have been far-reaching and devastating. It has allowed governments to expand their authority beyond what was previously considered acceptable, resulting in welfare/warfare states, police states, and tyrannical regimes. Additionally, it has allowed Marxists visions positivist law to spread further than ever before with little resistance from citizens who do not understand how fiat money works.

Oppressive Regimes Around The World

Unfortunately, many countries around the world have embraced this type of system with little regard for its consequences. In recent decades we’ve seen numerous oppressive regimes come into power as a result of this unchecked monetary power granted by fiat money. These regimes use their newfound authority to engage in practices like censorship, human rights violations and other forms of oppression that would not be possible without access to unlimited funds through printing new currency at will.

Time Preference & Savings Vehicles

Furthermore, fiat money has also had negative impacts on individuals due largely in part because it encourages higher time preferences among citizens while simultaneously limiting access to necessary savings vehicles that can protect people against economic recessions or depressions caused by government policies. Without access to these savings vehicles individuals are left vulnerable when economic downturns occur as they lack the means to protect themselves financially during such times.


In conclusion, fiat money is an incredibly powerful tool that gives governments unprecedented authority and should be used with caution if at all possible due its potential for abuse and exploitation when used recklessly or without proper oversight and regulation from independent governing bodies who can ensure its use is fair for all citizens regardless of class or status within society .