Love the smell of freshly printed Juba dollars in the morning

The Daily Maverick runs an article about a “bewildering” currency war that’s broken out between the Sudan and the newest state in the world, South Sudan.  No, the Daily Maverick doesn’t understand monetary theory, so we shouldn’t expect them to know what this is about.

We have argued probably over a hundred times on this blog that control over the monetary unit is the most powerful tool for the centralisation of power any government has at its disposal. It is the single best way to steal wealth from the people, to grow rich by doing nothing.

I love the smell of freshly printed fiat in the morning!!!!

I love the smell of freshly printed fiat in the morning!!!!

That’s probably why this guy is so happy.  You can bet your bottom Zim $$ that this guy is close to the printing press, and will stay close to the press in the foreseeable future.

On the currency “war”, the South broke the terms of the agreement that they would continue to use the Khartoum dollar (I know it’s the Sudanese pound – that just has a better ring to it) for at least six months after secession.  The Juba dollar is already being printed up, not backed with any precious metal or productivity, so we will see a couple of hundred seriously wealthy southern Sudanese pop out the woodwork in no time, and thousands more seriously poor southern Sudanese in the future.

The “bewildering” currency war is about maintaining control over the most effective tool of theft availablt to government: inflation of the monetary unit.

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