A Conspiracy of Counterfeiters


Pat Buchanan has an outstanding article out.

“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.”

“Lenin was certainly right,” John Maynard Keynes continued in his 1919 classic, “The Economic Consequences of the Peace.”

“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.”

Keynes warned that terrible hatreds would be unleashed against “profiteers” who enriched themselves through inflation as the middle class was wiped out. And he pointed with alarm to Germany, where the mark had lost most of its international value.

Well, Keynes was certainly right about that.  Too bad these words of wisdom are not what he’s remembered for.  Now all the ‘mainstream’ economists widely quoted in the press do nothing but advocate more spending and more printing, crediting Keynes with the idea.  Of course they leave out the pertinent part of Keynes’s theory, which was that you save during times of prosperity and it is THAT savings that is used in times of economic contraction.  Since the first part of Keynes’s theory has never actually been done, it’s hardly fair to credit (or blame) Keynes for the idiotic monetary policies our government is implementing.  Spending without first saving is not anyone’s monetary theory but their own.

What should be done to high officials of the U.S. government who consciously set out to dilute and destroy the savings and income of working Americans? What should be done to those who have sworn an oath to defend the Constitution and then steal the wealth of citizens by secretly manipulating the value of the currency, the store of wealth upon which those people depend?

Is inducing inflation — debauching the currency, the systematic and secret theft of the savings of citizens — a legitimate policy option for the Federal Reserve? Has Congress authorized official thievery?

Who do these economists think they are?

Inflation rewards debt — and erodes savings. It is legalized counterfeiting, the deliberate creation of money with nothing to back it up.

 What indeed.