Catalonian Independence and the Currency Issue

One issue in the current Catalonian crisis which I have not heard addressed is the issue of currency. Can the Catalans really be independent if they use a Euro which is controlled by the bureaucrats in Brussels and the ECB? Should not the Catalonians be clamoring for their own independent currency if they truthfully want to call themselves free?

It is worth noting that support for Catalan Independence really got going in 2009, when the financial crisis caused by the new soft Socialist-Fascism, which rules in Europe, the US, Aussie and Canada, led to the inevitable financial crises which Austrian School Economics had predicted would occur. The resulting mass inflation of the money supply, in order to bail out the huge corporate banks and insurance companies at the expense of the Individual Capitalist, the small shop keeper, and the lowest paid workers, brought havoc to Spain, and like everywhere else under socialism, led to massive unemployment and underemployment. The word Greece can easily be supplanted by the word Spain or the word America.

So even if the Catalans win their so-called independence from the Spanish Federal government, and I hope they do, they will still be in thrall to the European Central Bank if they continue to use the Euro.

If they issue their own national currency they will certainly soon run into problems with their import-export market, as well as transaction costs every time they want to convert their Catalonian “Gaudis” (as I think they should name their currency), or perhaps the “Barcelon”, to Euros or Yen.

The only solution to this problem, according to Libertarianism, is to issue their own precious-metal backed currency and coins, and to allow alternative currencies to be used as legal tender for all private debts.

Since the corrupt school systems in Europe and the US have been designed over the last thirty years to keep the young completely ignorant of true economic education and the praxeological axioms of the Austrian School of Economics, which apply to all human beings at all times, I doubt very much that the young rebels of Catalonia have given much thought to the currency issue, or to sound money and the economic implications of adopting a fiat monetary system, which is always prone to general inflation.

Since the level of economic understanding is so dismally low in the West, and Keynesian economic brainwashing continues unabated, and rules every major political party in the West except the Libertarian Party (and even that has a huge number of compromisers),  and with the strong Leftist sentiment among the Catalonians, which is perhaps a legacy of the Spanish Civil War, I think they will run into problems on the currency issue.

Given history, I do not think they will succeed, even if they do secede.

—Paul Grad, Libertarian Vegan

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2 thoughts on “Catalonian Independence and the Currency Issue

  1. I reckon Catalonia will probably hold onto the Euro at least in the short term, or use a currency that would run in tandem with exchange rates for the Euro. Maybe there’s something else in the pipeline though; I don’t think anyone’s certain as to what independence would actually entail.

    1. If they continue to use the Euro, they obviously aren’t independent of those Keynesian dorks who run the ECB, but I think you are correct that they probably will opt for the joke-Euro. What they ought to do is issue a 100% copper-backed “Barcelon”, though paying for their groceries would become a “weighty” issue with copper at $3/lb. All kidding aside, I figured they’d adopt the Bolivian Peso, because of its fiscal soundness.

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