Thursday, May 10, 2012

"Statists’ antagonism toward the gold standard"

Nilesh Shah writes:
  • "We should seriously push for return of gold standard. In this turbulent time many economists are advocating return to gold standard. We should encourage global debate on debasement of paper currencies through the expansionary policy of central banks to potential break down of currency union. We should push academic studies to show that growth and employment received as much encouragement under gold standard era as in the era of loose monetary and fiscal policies. Indian diaspora around the academic world should be encouraged to speak for gold standard. We should highlight subdued inflation under gold era. We should remind the world about the prophetic statement by an eminent Federal Reserve governor, “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. The financial policy of the welfare state requires that there be no way for the owners of wealth to protect themselves. This is the shabby secret of the welfare statists’ tirades against gold. Deficit spending is simply a scheme for the confiscation of wealth. Gold stands in the way of this insidious process. It stands as a protector of property rights. If one grasps this, one has no difficulty in understanding the statists’ antagonism toward the gold standard.” The full article is here.

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