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.
Alan GreenspanRelated topics
absence bank case claim confiscation convert copper credit decided done everyone example gold good goods government holding illegal inflation lose payment policy power purchasing safe silver standard state store value way wealth welfare savingsRelated quotes
It was a global depression, had many causes, the whole story requires you to look at the whole international system. But policy errors in United States, as well as abroad, did play an important role. And in particular as I said, the Federal Reserve failed in this first challenge in both parts of its mission. It did not use monetary policy aggressively to prevent deflation and the collapse in the economy, so it failed in its economic stability function. And it didn't adequately perform its function as lender of last resort allowing many bank failures and a resulting contraction in credit and also with the money supply. So, in that respect, again, the Fed did not fulfill its intended mission.
Ben Bernanke
Here at Adbusters, we decided to tackle the issue head on and came up with a carefully researched list of who appear to be the 50 most influential neocons in the US (see above). Deciding who exactly is a neocon is difficult since some neocons reject the term while others embrace it. Some shape policy from within the White House, while others are more peripheral, exacting influence indirectly as journalists, academics and think tank policy wonks. What they all share is the view that the US is a benevolent hyper power that must protect itself by reshaping the rest of the world into its morally superior image. And half of them are Jewish.
Kalle Lasn
Thus money is almost always something hovering between a commodity and a debt-token. This is probably why coins-pieces of silver or gold that are already valuable commodities in themselves, but that, being stamped with the emblem of local authority, became even more valuable-still sit in our heads as the quintessential form of money. They most perfectly straddle the divide that defines what money is in the first place. What's more, the relation between the two was a matter of constant political conversation. In other words, the battle between state and market, between governments and merchants is not inherent to the human condition.
David Graeber
Pray go back and recollect one of the conclusions to which I sought to lead you in my very first lecture. You may remember how I there argued against the notion that the worth of a thing can be decided by its origin. Our spiritual judgment, I said, our opinion of the significance and value of a human event or condition, must be decided on empirical grounds exclusively. If the fruits for life of the state of conversion are good, we ought to idealize and venerate it, even though it be a piece of natural psychology; if not, we ought to make short work of it, no matter what supernatural being may have infused it.
William James
The centrally planned economies, dissatisfied with the outcome of their own efforts to achieve good economic growth performance, have changed strategy and decided to import high technology from the West. as well as necessary grains to supplement their domestic agicultural supplies. This new approach has opened their economies to Western inflation because imports have been reflecting rising world price. Gold and oil sales at correspondingly rising prices have been used by the Soviet Union to finance part of their import needs. but they are fully enmeshed in world inflation accounting in balancing rising export prices.
Lawrence Klein
