A Brief Look at Government and Money

With the recent events in Canada, it is worth a brief investigation of how governments have controlled the flow and supply of money throughout the world and throughout history.  (cover photo by sebastiaan stam on Unsplash)

Canada (2022)

Trudeau invokes the Emergencies Act and authorizes banks the ability to immediately freeze or suspend bank accounts without a court order.

Lebanon (2022)

The government forces convertibility of foreign currencies into the Lebanese pound, devaluing currencies up to 93%.

Lebanon plan sees 93% currency slide, turns bulk of FX deposits to pounds

A government plan for tackling Lebanon’s financial crisis projects a 93% devaluation of the Lebanese pound and converts the bulk of hard currency deposits in the banking system to local currency, according to a blueprint seen by Reuters.

ReutersSamia Nakhoul

Ecuador (1999)

After a banking crisis, the government freezes bank deposits for a full year to prevent continued withdrawals.

1998–1999 Ecuador economic crisis - Wikipedia

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United States (1934)

Congress passes the Gold Reserve Act which nationalizes all gold and regulates ownership of all monetary gold in the United States.  The act authorizes the president to establish the gold value of the dollar by proclamation. Overnight, the US Dollar is devalued by 40%.

Turkey (2022)

Inflation hits 48% as reported by official government estimates.

As Turkey’s inflation rate climbs, workers strike for pay hikes

This year has witnessed a sharp spike in the number of strikes by organised labour in Turkey.

Al JazeeraPaul Benjamin Osterlund

Zimbabwe (2008)

Hyperinflation and runaway government money printing lead to the eventual printing of a 100 trillion dollar bank note (now worthless).

Hyperinflation in Zimbabwe - Wikipedia

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United States (2020-2022)

Inflation hits an official 7% as of January 2022 as the US Federal Reserve creates more than $6 trillion out of thin air.

Money Fundamentals - Who is to Blame for Inflation?

This article offers a look into the fundamentals of money - it’s history, how basic economics work in conjunction with money, how money is created in the United States, and what tools our government (Federal Reserve) has for managing the money supply.

Exponential LayersAndy LeRoy

Today, more than 1.1 Billion people live in countries with confirmed double digit inflation.

Every single one of these examples highlights the ability of a government to manipulate and control the money flow and/or supply.

It is imperative we separate government and money (and its implicit rights and freedoms) *especially* as we enter an increasing digital age.

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