Fact Not Fiction | Libertarian Society Singapore

The Monetary Authority of Singapore (MAS) has been busy this year –  with a surprise notice of “easing currency” being its latest event. Granted that such a change of stance is happening so often (the third time this year) that one would no longer be surprised in any sense of the word, any person with an iota of understanding behind the events cannot help but wonder what shenanigans the central currency planners have in store for Singapore.
Most Singaporeans I know take money as an arbitrary invention, and find no quarrel with the MAS, which regulates their money. For them, regulation is good, because regulation allows for the recognition of their money i.e. legal tender.
What they do not know, however, is the nature of money and what it actually entails. If they knew, then surely they would not suffer in silence whilst our central currency planners, trained in the esoteric science and application of economics, artificially inflate our money “for our own good”.
The daydream of progress shatters if one would just take a moment to wonder: “Wait a minute, isn’t our economy OUR economy? What has that got to do with the rest of the world? Why is our money open to all the fluctuations and cycles of the world? Aren’t central planners supposed to counter external influences?”
Instead of protecting us, it almost appears as if our currency planners are stuck in some financial limbo, where they increase the amount of paper money we possess so as to “attract investors”. They have established a paradigm; whenever our currency grows too strong, more paper currency is printed, in saecula saeculorum.
But what exactly does the printing of money mean? And what really are the objectives of central money planners and how do we, in fact, measure their performance?
Since I desire this article to be more educational and informative than rhetorical, I’d like to go down the fundamental basics of the science itself.
Money is tied to products; it can mean nothing else but products. A stronger currency means that there is more products as opposed to paper money – the inverse is also true. Appreciation makes our imports cheaper, hence we are capable of buying more. Depreciation makes our exports cheaper, hence we are capable selling more.
On the surface, it appears that either appreciation or depreciation have their benefits; the economy progresses either way. However, in order to understand the actual issue, one has to take another step back to look at the event in its entirety.
The appreciation and depreciation of a currency is a reflection of the original demand of currency. Economies only exist because people exist. The trading amongst people is the causation; its consequences lead to the price (exchange rate of money). The final result that people observe is a consequence only made possible by the ultimate prime movers – Man.
When the Singapore Dollar (SGD) is appreciating, it does signify the result of higher demand of SGD either by goods and services or investments. Given that this is our rightful deserts as a result of our productivity, Singaporeans should be able enjoy the benefits of having cheaper imports – with the demand of our exports correcting itself by virtue of the free market. The free market, rooted in reality, is the protector of your currency.
However, amidst all this attempts to cheat reality, the MAS creates an artifice: an unidentified ideal rate of exchange to be attained at all costs, with no due regard given to whether such goals are attained by force or not. If there is a better example of a Machiavellian notion of the “ends justifying the means”, I ask you to find it.
It is only the state that can forcefully print money and cause a nationwide loss of value – to any and every citizen that uses the SGD as a medium of exchange.
And yet somewhere down this position, the tired and worn out “balance of payments” argument will arise to meet it – an argument which spits into the face of the people who have at least a basic understanding of money. Wealth is not the re-printable fiat floats we nominate our bank accounts to. Wealth is the amount of goods and services, produced, utilize, exchanged (locally and internationally) and saved. To put it simply, it is work done demanded.
The unchallenged premise that we cannot accept negative balance of payments is naive and even untrue, since it simply means that we can and are able to buy more goods and services out of what we earned before. What we have earned before is a static quantity; which, while capable of appreciation or depreciation, cannot possess any form of economic ideal unless ascribed by the owner himself. Money belongs to its owner, not the state.
Aside from its economic consequences, which till now I have been excessively describing; the printing of money is also in fact a perversion of morality.
“Easing” is a relatively positive spin on the actuality of the situation. What it actually means is the printing of paper money, much like how the Japanese printed banana notes (albeit now in a less profligate manner). What this does is that it no person who uses the SGD is safe from the whim of the government as it steals indirectly from its citizens. To forcefully take the products of a citizen, who has his property by right, is not merely immoral, it is unjust and downright illegal. Does it matter now whether it is a government or a mob or a private individual which does that?
Taxation is theft, so is artificial inflation.
If one does intend to make any change, he must start with possessing the right answers, rooted in reality. Before that can happen, he must understand the difference between that which is fact, and that which is fiction.

Co-written with Davin Chee

Libertarian Society Singapore

We believe that freedom and liberty is a moral right. The role of the Singapore government is not to run the economy and run our lives, but simply to protect the rights of Singaporeans. Find out more on various social media avenues!

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