The biggest issue right now for Australian families is the high cost of living. The economy must return to “sound money” backed by real assets like gold or silver. Asset-backed money protects your wealth by ensuring you can exchange it for a fixed amount of the backing asset.
Fiat money (“unbacked currency” or “paper money”), which is not tied to any asset, can be endlessly created by governments and central banks. This leads to inflation – an increase in the money supply that erodes purchasing power. Inflation acts as a hidden tax, enriching those close to power while disadvantaging ordinary citizens. It drives up asset prices, like housing, benefitting asset owners but making it harder for new buyers. Wage earners suffer as prices rise faster than incomes.
Currency devaluation redistributes wealth, harming most while enriching a few. Inflation also undermines trust in the economy.
Even when inflation is within the RBA’s “target” range of 2-3%, it devalues money. Inflation enriches the government at the expense of hardworking Australians. Inflation is the silent thief of your hard-earned money. Sound money protects your wealth and rewards hard work and innovation, driving prosperity.
Competition also drives prosperity – Bitcoin and other innovations can provide that competition.
The Libertarian Party will:
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Constrain the Reserve Bank’s focus to maintaining a stable money supply.
Restrict the RBA’s focus to maintaining a stable money supply through its charter. While it exists, the RBA will have no mandate to consider gross domestic product growth, unemployment, or exchange rates in its decision-making.
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Limit government debt and prioritise fiscal responsibility.
Ensure government debt never exceeds 60% of the value of government assets, meaning the government must run surpluses until this target is reached. The proceeds of government asset sales will be used exclusively to pay down debt and reduce taxes. Selling government assets will also significantly reduce the government’s borrowing power.
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Recognise alternative currencies and foster competition.
Gold and Bitcoin will be recognised as legitimate currencies. The Australian dollar will compete with other options such as gold, Bitcoin, and foreign currencies. Consumers will have the freedom to choose the most stable, inflation
resistant currency. Banks will also be permitted to issue competing private currencies, either backed by their balance sheet assets or supplemented with gold or Bitcoin backing.