Saturday, February 21, 2009

Keynes Knew It

"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… 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."

The Economic Consequences of the Peace, John Maynard Keynes, 1919

1 comment:

  1. I've always felt that there are some in government and in private industry as well who keep their eyes out on how to cheat others -- how they live with themselves I don't know...

    ReplyDelete

Thanks for posting. I really appreciate it.