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Andrew D. White, "Fiat Money Inflation in France".

They printed money to stave off inflation just Like the US Fed says it will.

I believe you are living through the scenario below if you read it you should find some very chilling similarities with where we are today.

And, first, in the economic department. From the early

reluctant and careful issues of paper we saw, as an immediate

result, improvement and activity in business. Then

arose the clamor for more paper money. At first, new issues

were made with great difficulty; but, the dyke once broken,

the current of irredeemable currency poured through; and,

the breach thus enlarging, this currency was soon swollen

beyond control. It was urged on by speculators for a rise

in values; by demagogues who persuaded the mob that a

nation, by its simple fiat, could stamp real value to any

amount upon valueless objects. As a natural consequence a

great debtor class grew rapidly, and this class gave its influence

to depreciate more and more the currency in which

its debts were to be paid.

The government now began, and continued by spasms to

grind out still more paper; commerce was at first stimulated

by the difference in exchange; but this cause soon ceased

to operate, and commerce, having been stimulated unhealthfully,

wasted away.

Manufactures at first received a great impulse; but, ere

long, this overproduction and overstimulus proved as fatal

to them as to commerce. From time to time there was a

revival of hope caused by an apparent revival of business;

but this revival of business was at last seen to be caused

more and more by the desire of far-seeing and cunning men

of affairs to exchange paper money for objects of permanent

value. As to the people at large, the classes living on fixed

incomes and small salaries felt the pressure first, as soon

as the purchasing power of their fixed incomes was reduced.

Soon the great class living on wages felt it even more sadly.

Prices of the necessities of life increased: merchants were

obliged to increase them, not only to cover depreciation of

their merchandise, but also to cover their risk of loss from

fluctuation; and, while the prices of products thus rose,

wages, which had at first gone up, under the general stimulus,

lagged behind. Under the universal doubt and discouragement,

commerce and manufactures were checked or

destroyed. As a consequence the demand for labor was

diminished; laboring men were thrown out of employment,

and, under the operation of the simplest law of supply and

demand, the price of labor—the daily wages of the laboring

class—went down until, at a time when prices of food, clothing

and various articles of consumption were enormous,

wages were nearly as low as at the time preceding the first

issue of irredeemable currency.

The mercantile classes at first thought themselves exempt

from the general misfortune. They were delighted at the

apparent advance in the value of the goods upon their

shelves. But they soon found that, as they increased prices

to cover the inflation of currency and the risk from fluctuation

and uncertainty, purchases became less in amount and

payments less sure; a feeling of insecurity spread throughout

the country; enterprise was deadened and stagnation

followed.

New issues of paper were then clamored for as more

drams are demanded by a drunkard. New issues only increased

the evil; capitalists were all the more reluctant to

embark their money on such a sea of doubt. Workmen of

all sorts were more and more thrown out of employment.

Issue after issue of currency came; but no relief resulted

save a momentary stimulus, which aggravated the disease.

The most ingenious evasions of natural laws in finance which

the most subtle theorists could contrive were tried—all in

vain; the most brilliant substitutes for those laws were

tried; "self-regulating" schemes, "interconverting" schemes

—all equally vain. All thoughtful men had lost confidence.

All men were waiting; stagnation became worse and worse.

At last came the collapse and then a return, by a fearful

shock, to a state of things which presented something

like certainty of remuneration to capital and labor. Then,

and not till then, came the beginning of a new era of prosperity.

Just as dependent on the law of cause and effect was the

moral development. Out of the inflation of prices grew

a speculating class; and, in the complete uncertainty as to

the future, all business became a game of chance, and all

business men, gamblers. In city centers came a quick growth

of stock-jobbers and speculators; and these set a debasing

fashion in business which spread to the remotest parts of

the country. Instead of satisfaction with legitimate profits,

came a passion for inordinate gains. Then, too, as values

became more and more uncertain, there was no longer any

motive for care or economy, but every motive for immediate

expenditure and present enjoyment. So came upon the

nation the obliteration of thrift. In this mania for yielding

to present enjoyment rather than providing for future comfort

were the seeds of new growths of wretchedness: luxury,

senseless and extravagant, set in: this, too, spread as a

fashion. To feed it, there came cheatery in the nation at

large and corruption among officials and persons holding

trusts. While men set such fashions in private and official

business, women set fashions of extravagance in dress and

living that added to the incentives to corruption. Faith in

moral considerations, or even in good impulses, yielded to

general distrust. National honor was thought a fiction cher-

ished only by hypocrites. Patriotism was eaten out by

cynicism.

Thus was the history of France logically developed in

obedience to natural laws; such has, to a greater or less degree,

always been the result of irredeemable paper, created

according to the whim or interest of legislative assemblies

rather than based upon standards of value permanent in

their nature and agreed upon throughout the entire world.

Such, we may fairly expect, will always be the result of

them until the ñat of the Almighty shall evolve laws in the

universe radically different from those which at present

obtain.

And, finally, as to the general development of the theory

and practice which all this history records: my subject has

been Fiat Money in France; How it came; What it brought;

and How it ended.

It came by seeking a remedy for a comparatively small

evil in an evil infinitely more dangerous. To cure a disease

temporary in its character, a corrosive poison was administered,

which ate out the vitals of French prosperity.

It progressed according to a law in social physics which

we may call the "law of accelerating issue and depreciation."

It was comparatively easy to refrain from the first

issue; it was exceedingly difficult to refrain from the second;

to refrain from the third and those following was practically

impossible.

It brought, as we have seen, commerce and manufactures,

the mercantile interest, the agricultural interest, to ruin.

It brought on these the same destruction which would come

to a Hollander opening the dykes of the sea to irrigate his

garden in a dry summer.

It ended in the complete financial, moral and political

prostration of France—a prostration from which only a

Napoleon could raise it.

Where are you Lowrentyieldmakesensehonest? This used to be your job!!

Edited by gravity always wins

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Ludwig Von Mises description of the clamour for more free money in the Wiemar Republic. They printed money to stave off inflation just Like the US Fed says it will.

I believe your quote is from Andrew Dickinson White's description of fiat money inflation in late 18th century France.

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Isn't that quote from Andrew D. White, "Fiat Money Inflation in France"?

Still, where are the Austrian economists? And why do those economists in positions of influence seem to have forgotten everything about the Austrians? No cojones the *******!! They're going to let us sink despite the history lessons makinjg it very clear what we should and shouldn't be doing. Traitors, the lot of them. :angry:

Edits: Drats, beaten by rented!

Edited by mikthe20

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Isn't that quote from Andrew D. White, "Fiat Money Inflation in France"?

Still, where are the Austrian economists? And why do those economists in positions of influence seem to have forgotten everything about the Austrians? No cojones the *******!! They're going to let us sink despite the history lessons makinjg it very clear what we should and shouldn't be doing. Traitors, the lot of them. :angry:

Edits: Drats, beaten by rented!

Yes misquote shameful apologies.

The Austrains are too busy making money I suspect thanks to Ben. If they won't listen then you might as well take advantage.

It still going to end the same way.

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  • 141 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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