One sure-fire way to end up being charged with a felony is by competing with a monopoly that is run by the State. Crimes against the State are always pursued aggressively and punished to the highest letter of the law. Creating copies of the only approved fiat currency ranks at the top of the list.
The State does not tolerate counterfeiting of Federal Reserve Notes. The creation of competing fiat currencies would lift the veil of magic that cloaks the shady operations of the central bank and expose the fraudulent system. The masses would quickly realize that the emperor has no clothes. This will be discussed later.
First let’s review a recent case of alleged counterfeiting charges brought against eight suspects in High Point, North Carolina. WFMY News 2 reports the suspects have been charged with two state counts of felony counterfeiting and will probably face federal charges.
When it comes to counterfeiting the Secret Service almost always gets involved. The federal agency that most people think is primarily tasked with protecting the President and world leaders actually had a different singular focus when founded. The reason the Secret Service was created in 1865 was solely to suppress counterfeiting of U.S. currency.
Before we continue, it is important to define the type of money that is used in the United States and throughout the world. The United States government only accepts Federal Reserve Notes as legal tender. Federal Reserve Notes (FRNs) are fiat money. This means that the government has declared them to be legal tender, despite the fact that they have no intrinsic value and are not backed by gold or silver reserves.
Fiat currency is backed by government force, which means it is backed by the threat of violence. If you want to test this fundamental fact, try paying your taxes in anything other than FRNs. Eventually an employee of the State will show up at your house with a gun, demanding you pay your taxes with FRNs. (Edit: Taxes can be paid with gold and silver coins issued by the US Mint. They are legal tender and would be accepted at face value. Only a moron would do this, because market value for gold and silver, far exceeds face value. This is another consequence of the printing press.)
Why is counterfeiting fiat currency such a threat to the health of the State? The answer is pretty simple. If individuals were free to create fiat money that competes with government paper, then the value of all fiat currency would quickly fall to the market value. Market value for fiat money is almost zero.
For this reason it is essential to the State’s survival that they maintain a monopoly on money. Under the current system, when the State prints money government agencies, banks, and special interests get access to the money first. The rest of the society gets screwed. When the monetary base is inflated the common man doesn’t gain access to the newly created money until it has lost purchasing power.
If the State lost control of the money supply they would no longer be able to finance the warfare and welfare State by printing more money. Inflating the money supply is indirect taxation by way of the hidden inflation tax. If money was determined by the market, then a centralized government would be forced to tax the people directly in order to grow in size.
This is why the State invests so much in fighting counterfeiting. The State would lose their life blood if they lost control of the money supply.