I’ve been asked many times how we can (or could or should) transition from our current political organization (nation-states) to a libertarian post-state society. This is my if I ran the world plan for a transition. It’s what I would try to do if I controlled the American federal government. The end goal is that you get 100,000 dollars!

In the simplest formulation, this is what I would make happen. The government would:

1. Raise money (about 30 trillion dollars at current dollar value) by selling most government assets and pursuing Fed operations.
2. Buy 30 trillion dollars worth of liquid commodities (crude, gold, diamonds, etc.).
3. Give $100,000 to every single American citizen/resident in shares of those liquid commodities, immediately redeemable and privately managed.

The point of this is bait-and-switch.

The national debt is almost entirely intergovernmental and intragovernmental. I want to siphon off the remaining real value the American currency has and give it back to the people before I inflate the currency to pay off the debt. I would put forward #1 as an austerity plan, i.e. I would insinuate that I’m going to pay down the debts and liabilities of the US government in American currency, and that currency will thus maintain value.

But I don’t. I buy as many liquid commodities as I can with that real value, give them to the American people, then pay off the debt i.e. debase the currency.

30 trillion dollars might seem like an impossible number, but it’s probably not. The US federal government is the largest single asset holder in the world and can feasibly inflate M3 by enough to make up the difference. Keep in mind that since #1 is being sold as austerity, it is quite likely that the US dollar will increase in relative value significantly until the commodities are purchased.

For example, the recent “Wall Street Bailout” alone has disbursed almost 5 trillion dollars and has a max exposure of almost 14 trillion dollars. Furthermore, M3 is currently declining rapidly for reasons too complicated to get into here.

So, after the inflation, new private currencies and/or foreign currencies would replace the American dollar as a dominant medium of exchange in the United States. With the American currency gradually becoming worthless, the American government would become irrelevant. Washington D.C. would be like the Vatican. Without monetary operations to raise funds, enforcing taxation would be unfeasible (plus any taxes currently have to be paid in US dollars, which would be worthless). Some government sectors, particularly the US military, will almost certainly continue to exist in some form on voluntary donations. However the state would be dissolved, the currency would be denationalized, the economy would transition to post-statism, and the society would be free.

Anyway that’s my plan.