Monetary History 2

                                         

A small increase in the quantity of money, even if intended to just match the increase in productivity or the economic growth rate “inevitably introduces malinvestment as those getting the new money put it to uses that only later recessions show to have been unproductive.” Free market competition in money gives the people, not the politicians, power over the monetary system. It is “a free people’s ultimate protection from spendthrift and untrustworthy government.” “The road to monetary destruction has been long and circuitous, but we are coming to the end of it. Sixty-seven years of central banking have brought us to the edge of depression and hyperinflation. However, the alternative to today’s monetary fraud and tomorrow’s chaos is readily available to us. The spirit of freedom, and the desire for honest money, still run strongly among our people.”

History provides many examples of governments of all types destroying the monetary unit through uncontrolled inflation. History teaches that the only means yet discovered to harness the natural tendency of government to debase the currency is a monetary system which is backed by a commodity. Over the centuries, countless societies have selected gold as that commodity. However, the particular commodity chosen of little importance provide the decision is the result of an unhampered market process.