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February 22, 2005

Keynes is whirling in his grave

From WorldNetDaily:

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. If there were, the government would have to make its holding illegal, as was done in the case of gold.

If everyone decided, for example, to convert all his bank deposits to silver or copper or any other good, and thereafter declined to accept checks as payment for goods, bank deposits would lose their purchasing power and government-created bank credit would be worthless as a claim on goods.

The financial policy of the welfare state requires that there be no way for the owners of wealth to protect themselves.

The quote is actually by Alan Greenspan, writing in Ayn Rand's publication, The Objectivist in 1966. Marilyn Barnewall quoted it for our amusement in her story for WND. For those who don't get the significance,

In essence, Greenspan said that deficit spending is simply a scheme for the confiscation by government of private wealth. Having a currency tied to gold stops this legal—though immoral—government taking....

During his term, Mr. Greenspan has increased the money supply by more than all former Fed chairmen who preceded him, combined.

What do you think that has done and will do to the value of the dollar?

Posted by Jack Lewis at February 22, 2005 11:42 AM

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