Money serves as a medium of exchange. A person works for or sells something in exchange for money. They can then use that money to buy what they need. Money is another type of property such that any fraud associated with money is a violation of property rights.

One type of fraud associated with money is counterfeiting. We use a money which has no value in itself, but rather represents the value of the real services and products that we exchange for the money. As long as everyone is willing to go along with this, it works fine. So what would be wrong with printing or counterfeiting money? Counterfeit money does not represent any real service or product. If it is put into circulation, it will dilute the value of all the money. The logical end of counterfeiting is that everyone prints money so there is lots of money, and no one works so there are no services or products to buy with the money.

Government and Money
The government prints a certain amount of money and replaces worn out money. What if the government increases the supply of money? It will have the same affect as counterfeiting and dilute or devalue all the money. The government does do this routinely because it is an easier way for them to get more money without raising taxes. This is why we have inflation and prices tend to go up. At the time the increased money is issued, the government and early users of the money pay current prices. When the increased money filters down to ordinary citizens, they will pay higher prices. It is a subtle form of fraud and violation of property rights that a libertarian government would discontinue.

Banks and Money
We have fractional banking in Canada which means that banks can lend money that they don’t have. A bank can make a loan by an accounting entry to increase the balance in a chequing account. That increase to the account balance does not represent any real value and when a cheque is drawn on the account, the money spent will dilute all money in the same way as counterfeit money. A libertarian government would discontinue the fraud associated with fractional banking.