Ep. 2 | The Federal Reserve Series | The 2 Pillars of Sound Money

Sound money isn’t a luxury—it’s basic infrastructure.

In the second episode, I break down what real currency should do for the American people—and why stable purchasing power matters more than you think.

Watch now and follow the series. Drop your comments below.

Transcript:
Hello America. Welcome back to A Working Man's Guide. It's a pleasure to be with you. Let's jump right into our new series on the Federal Reserve.

What we want to discuss here is the whole idea of sound money. See, in these modern times, we must have a sound currency that is a public good. It is basic infrastructure that a government should be expected to provide. And there are two aspects to sound money. One is it has to be very difficult to counterfeit. And on that regard, our government does a very good job of giving details.

In this book, A Working Man's Guide, Chapter Seven, you'll see charts and quotes, etc. But the counterfeit rates against the US dollar is they're very low. Our government has succeeded. That happens through basically the US Mint as a part of the US Treasury, and they print the money, and also the Secret Service. They do the investigations to prevent counterfeit and they do a very good job. It's very solid from that standpoint. You see, for a currency to provide value to a country, it has to be convenient. It has to be something we can use with ease, that facilitates transactions and that facilitates commerce, and we build wealth in that context. So if it's easy to counterfeit, then it can be faked and it becomes worthless. So that's the first requirement.

The second requirement for sound money is it must have stable purchasing power over time. In other words, of the value of $1 in the marketplace today needs to be very similar to what it was a year ago, two years ago, a year from now, etc, that facilitates commerce. When that varies, that goes up and down, that creates uncertainty, it creates disparities in wealth. It creates many problems in your society, and that must be addressed, and that's what we're going to focus on. Thank you for this session. We'll come back soon. We'll jump right into it again. Take care.