There are essentially three different types of currency; three systems with very distinct characteristics and economic effects.
1. Commodity currency (usually gold, or gold certificates)
2. Debt-based currency (coupons issued by a central bank such as the Federal Reserve and loaned into circulation)
3. Debt-free currency (money issued by a sovereign state and spent, not loaned, into circulation)

Gold has always been the preferred currency of elitists; its scarcity makes gold currency a natural instrument for financial oppression. The gold standard, for example, enabled the Great Depression to be inflicted on the masses — giving rise to the Third Reich and very nearly global fascism. But gold, as a commodity, has little utility beyond adornment — so its much vaunted “intrinsic value” is dubious at best.

The other two currency types are fiat monies; so-named because money is created by decree rather than by accumulation of gold. A system of fiat money can be bad or good, depending first of all on whether it is debt-based or debt-free.

A proper currency is neither chained by gold nor privatized by the banking elite. Money is rightfully issued by each sovereign state as a public asset, used to pay the operating expenses of the state. This imbues fiat money with intrinsic value: the value of those goods and services for which it was initially exchanged. Thus fiat currency could be debt-free and possess a more solid intrinsic value than that of some glittery metal.

Now the question arises: How does one control inflation under a debt-free system? And the answer is that controlling inflation is the proper role of taxes. With debt-free currency, since the state can issue whatever money it needs, taxation is only necessary as a means to soak up any excess money supply. When inflation is low, tax rates would automatically go down. If inflation should spike, tax rates must immediately rise according to a pre-established scientific formula. But so long as the money being created is not wasted, its intrinsic value poses an effective barrier to inflation.

Legally, debt is to be considered odious if the government used the money for personal purposes or to oppress the people. Moreover, in cases where borrowed money was used in ways contrary to the people’s interest, with the knowledge of the creditors, the creditors may be said to have committed a hostile act against the people. Creditors cannot legitimately expect repayment of such debts.