Benefits of a Gold Standard

In 1925, when Britain went back to the gold standard, that was supported by the Conservative Party, the Labour Party, the Bank of England, the civil service, the CBI, the TUC, the Times, the Economist; that consensus was very strong. Ed Balls
In the absence of the gold standard, there is no way to protect savings from confiscation through inflation. There is no safe store of value.Alan Greenspan
I think a switch back to gold might be more likely to start outside the U.S. There’s always the disaster scenario of hyperinflation and then the only thing to use is krugerrands from the shoebox, but I also see potential for a repeat of a 1970s situation, not a total collapse but lots of problems with the currency. Then somewhere like Dubai or Vietnam might start issuing gold-linked currency and it might take off. Brian Doherty
There is little doubt that a gold-oriented monetary system is superior to a fiat monetary system, from the perspective of the average citizen and businessman. Monetary systems which are managed by central banks or governments, as opposed to systems which arise in the market and are self-equilibrating, are prone to inflation and repudiation. Joe Cobb
If the American people ever allow private banks to control the issuance of their currency, first by inflation and then by deflation, the banks and corporations that will grow up around them will deprive the people of all their property until their children will wake up homeless on the continent their fathers conquered. President Thomas Jefferson
By a continuing process of inflation, government can confiscate, secretly and unobserved, an important part of the wealth of their citizens. John Maynard Keynes
The problem with fiat money is that it rewards the minority that can handle money, but fools the generation that has worked and saved money. Adam Smith
At the end fiat money returns to its inner value—zero.Voltaire
The money power preys upon the nation in times of peace and conspires against it in times of adversity.President Abraham Lincoln
I am a most unhappy man. I have unwittingly ruined my country. A great industrial nation is controlled by its system of credit. Our system of credit is concentrated. The growth of the nation, therefore, and all our activities are in the hands of a few men. No longer a government by free opinion, no longer a government by conviction and vote of majority, but a government by the opinion and duress of a small group of dominant men. President Woodrow Wilson (mourning the birth of the Federal Reserve)
It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before morning.Henry Ford
By this means (usurious fractional reserve central banking) government may secretly and unobserved, confiscate the wealth of the people, and not one man in a million will detect the theft.John Maynard Keynes
Lenin is said to have declared that the best way to destroy the capitalist system was to debauch the currency. By a continuing process of inflation, governments can confiscate, secretly and unobserved, an important part of the wealth of their citizens. By this method they not only confiscate, but they confiscate arbitrarily; and, while the process impoverishes many, it actually enriches some. The sight of this arbitrary rearrangement of riches strikes not only at security, but at confidence in the equity of the existing distribution of wealth. Those to whom the system brings windfalls, beyond their deserts and even beyond their expectations or desires, become ‘profiteers,’ who are the object of the hatred of the bourgeoisie, whom the inflationism has impoverished, not less than of the proletariat. As the inflation proceeds and the real value of the currency fluctuates wildly from month to month, all permanent relations between debtors and creditors, which form the ultimate foundation of capitalism, become so utterly disordered as to be almost meaningless; and the process of wealth-getting degenerates into a gamble and a lottery.  Lenin was certainly right. There is no subtler, no surer means of overturning the existing basis of society than to debauch the currency. The process engages all the hidden forces of economic law on the side of destruction, and does it in a manner which not one man in a million is able to diagnose. John Maynard Keynes
The modern banking process manufactures currency out of nothing. The process is perhaps the most astounding piece of slight hand that was ever invented… If you want to be slaves of the bankers, and pay the cost of your own slavery, then let the banks create currency. Lord Josiah Stemp, Director of the Bank of England (1937)
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One thought on “Benefits of a Gold Standard

  1. Pingback: Stuff Usury | patricknelson750

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