“Fixes To Fix The Fix” [“Reflections On Adam Smith's Book An Inquiry Into The Nature And Causes Of The Wealth Of Nations Indianapolis : Liberty Classics, 1981 (Vol.I and II) Book 1, - Chapter 4A”]

In Chapter Four Smith spells things out
’Bout cash we seldom think about –
Six steps he uses to lay out
Its history – removes all doubt –

That each new tool to help in trade,
Was fix, to fix “fix” others made,
Until today (stage seven that is),
Where Kings still tweak what cash their areas.

First stage, once people split up tasks,
And trade sprang up in scale quite vast –
A cow for salt, or arrows, spear,
Unequal was – new need was clear.

So people kept some cool resource
To sweeten trades (can’t split a horse),
So “Add this in to sweeten things”
(Things widely valued, closure brings).

Stage three, the sweeteners oft would fade
In time, so metals soon would trade
As sweeteners in some awkward deal
But how to measure copper, steel –

Became an issue – quality
Was critical, a fool could see
Preciseness of a weight was key
If gold was used to sweetener be.

Then quality came to the fore –
Gold watered-down just look like more,
So Kings would weigh and test all coin,
Then stamp, lest shysters would purloin.

Then Kings would fiddle with the coins –
Became the ones who thus purloined
The value from its stated worth,
Which they still do, for better, worse.

Where’s evil in this tool for trade?
Old as the hills – a switch is made
Between apparent and the real –
Covert the shift, for satan steals.

No, not himself, “Suggestive” he –
“Why don’t you kneel and worship me?
The Kingdoms of the world are yours
If you do life my way (of course)”.

So Lord, that says that “Arbitrage”
Twixt types of coins, which often has
The look of innocence today
(Buy back and forth to make it pay) –

Or riding out inflation rate
To scoop the value such acts make,
Are both availing of some crime,
Which government says is just fine.

But is it? Maybe we’re just fools,
Who think that ‘bait and switch’ is cool;
As one wag said – “Trade’s hard enough
Without devalued-coinage guff”.

Whatever we choose as our route,
At least Smith states there is no doubt
That such shenanigans by Kings
Must factor in what trading brings.

Thanks Lord for this.

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