Last week, while Congress and the nation were preoccupied with the holidays, the Treasury made a Christmas eve announcement that it would be providing Fannie Mae and Freddie Mac unlimited financial support for the next three years. No one should have the power to debauch the currency and gut the economy as they do. Sign up for Insider Finance. Lenin was certainly right. Public profiles for Economics researchers, Various rankings of research in Economics & related fields, Curated articles & papers on various economics topics, Upload your paper to be listed on RePEc and IDEAS, RePEc working paper series dedicated to the job market, Pretend you are at the helm of an economics department, Data, research, apps & more from the St. Louis Fed, Initiative for open bibliographies in Economics, Have your institution's/publisher's output listed on RePEc. If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form . There is no subtler, no surer means of overturning the existing basis of society than to debauch the currency. This temptation has been understood by economists for many years, though the literature lacks a full model of the dynamic contracting problem in a setting of

This allows to link your profile to this item. While the report of the interview was not reprinted after 1919, it will be also shown here that Lenin responded to Keynes in a speech that was reprinted in his Collected Works . Keynes, Inflation, and the Public Debt: "How to Pay for the War" as a Policy Prescription for Financial Repression. Downloadable! You’ve got plenty of room.’ The old fellow scratched his head and said, ‘No. For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Michael P. Albert). Account active All material on this site has been provided by the respective publishers and authors. http://www.aeaweb.org/articles.php?doi=10.1257/jep.23.2.213. Bretton Woods II Won’t Repair Covid Aftermath, Published by Dan Popescu Debauchery and Original Sin: The Currency Composition of Sovereign Debt, The “Hierarchy of Institutions” reconsidered: Monetary policy and its effect on the rule of law in interwar Poland, The 2007 crisis and countercyclical policy. | A leading-edge research firm focused on digital transformation. You can help correct errors and omissions. If we look at the SDR global currency, which is a basket/index of the major currencies, we see that since it was created, its value has followed that of the US dollar with respect to gold. Put simply, in a single, coordinated stroke, the Treasury and the Federal Reserve have encroached on spending powers that are enumerated for the Congress alone. There is no subtler, no surer means of overturning the existing basis of society than to debauch the currency. GoldBroker moves its headquarters to London (UK) : more informations. The place is yours. This is just a personal example. If you price something in fiat (paper, electronic) currency, you can certainly believe prices always go up with just minor corrections. Of course, there are no longer bawdy houses,(sentencedict.com) where these unfortunates are displayed openly to debauched satyrs. Aug 30, 2016 Indeed, the applicable portion of the Act explicitly limits the total amount of mortgage principal (not losses, but total principal) as follows: "LIMITATION ON AGGREGATE INSURANCE AUTHORITY.—The aggregate original principal obligation of all mortgages insured under this section may not exceed $300,000,000,000.". You seem to meet all the requirements to get into Heaven. He is a member and was the president in 2004 of the CSTA and also was president in 2005 of the Montreal CFA Society. If you have authored this item and are not yet registered with RePEc, we encourage you to do it here.

Economic historian Frank W. Fetter and others have expressed doubt that Keynes was really quoting Lenin because they found no such statement in Lenin's collected published writings. Keynes' discussion of inflation in the Economic Consequences can then be read as an extended commentary on the remarks attributed to Lenin in the interview. There may be some truth to that rumour after all.’. At my inspiration he has created a set of charts visually showing what has happened to the price of assets since the introduction of paper and electronic currency. So the old-timer cupped his hands and yelled out, ‘Gold discovered in Hell!’ Immediately, the gold prospectors wrenched the lock off the door of the pen and out they flew, flapping their wings as hard as they could for the lower regions. It also allows you to accept potential citations to this item that we are uncertain about. Now let me tell you the story of the gold prospector who met St. Peter at the Pearly Gates. That’s where we keep the gold prospectors waiting to get into Heaven. You need neither words nor a Ph. As you can see, since 1700 the US dollar lost almost all of its purchasing power (98.51%), and most of it since 1940. Retrospectives: Who Said "Debauch the Currency": Keynes or Lenin?

Here are some charts created by my good friend Nick Laird who has the best chart database for gold and silver at www.goldchartsrus.com. We hear constantly on the news that stocks are at all-time highs. And it’s filled – we haven’t got room for even one more.’ The gold prospector thought for a minute and said, ‘Would you mind if I just said four words to those folks?’ ‘I can’t see any harm in that,’ said St. Peter. Today the SDR is valued based on four currencies (US dollar, EU euro, British pound and Japanese yen). (The Golden Constant & Silver: The Restless Metal, Roy W. Jastram). This story from Ben Graham that Warren Buffett likes to tell is actually about an oil prospector, but it’s just as fitting with a gold prospector. He is a member of the CFA Institute, the MTA, NYSSA, UKSIP, the CSTA and the Gold Standard Institute International. There is no subtler, no surer means of overturning the existing basis of society than to debauch the currency. If history repeats itself it looks more like we are in a correction within a major bear market started in 2000 rather than in a bull market.

Get our updates and information about our products and services delivered directly to your inbox. "the best way to destroy the capitalist system [is] to debauch the currency." Articles. ‘Move in. Academia.edu is a platform for academics to share research papers.

This will push the real price (in gold) of stocks down rather than up. But if you price something in real currency such as gold, the picture changes totally. Lenin was certainly right. Subscriber By clicking ‘Sign up’, you agree to receive marketing emails from Business Insider The passage, attributed to Vladimir Illyich Lenin, appears in Keynes' book The Economic Consequences of the Peace , which became an international bestseller when it was published in 1919. D. to see the evident distortion created by government manipulation of the currency. This is the illusion of inflation. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation. The next set of charts shows the distortion created in the price of commodities going from food like wheat and corn to industrial commodities like crude oil and gasoline. The passage, attributed to Vladimir Illyich Lenin, appears in Keynes' book The Economic Consequences of the Peace , which became an international bestseller when it was published in 1919. As you can see in the chart below, stocks are nowhere near all-time highs when valued in real money. Please note that corrections may take a couple of weeks to filter through That is more than 10 times the cost with no technological improvement of any kind.

This doesn’t exclude a continuation of the bull stock market in fiat currency and, at the same time, a larger decrease of the price of dollars in gold. When requesting a correction, please mention this item's handle: RePEc:aea:jecper:v:23:y:2009:i:2:p:213-22. He has a bachelor degree in physics (1993) from Concordia University in Montreal, Canada and has completed the Canadian investment management certificate (1999) of the CSI. “In the absence of the gold standard, there is no way to protect savings from confiscation through inflation.” Alan Greenspan, Past Chairman of the Fed, 1966. ‘You know, that’s a pretty good trick,’ St. Peter said. The Thomson Reuters CRB Commodity Index is an index of the most important commodities used. Treasury is now amending the PSPAs to allow the cap on Treasury's funding commitment under these agreements to increase as necessary to accommodate any cumulative reduction in net worth over the next three years.”. If you don’t mind, I think I’ll go along with the rest of them. Printing money would worsen inflation, debauch the currency and bring a balance - of - payments crisis. Fetter suggested that Keynes based his remark on stories about what the Soviets were supposed to be saying that he heard at the Paris peace conference of 1919. One frequently quoted passage from the work of John Maynard Keynes is that "the best way to destroy the capitalist system [is] to debauch the currency." as well as other partner offers and accept our. See that pen over there? The process engages all the hidden forces of economic law on the side of destruction, and does it in a manner which not …

General contact details of provider: http://edirc.repec.org/data/aeaaaea.html . It also allows the state to tax without the people realizing it. Starting October 2016, the Chinese Yuan will be added to the basket/index. Mr. Popescu is an independent investment analyst and studies the gold and silver market and their future role in the international monetary system. If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. 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.”. When told his occupation, St. Peter said, ‘Oh, I’m really sorry. Last but not least, below you have also the collapse of purchasing power of the US dollar. 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. Economist John Maynard Keynes described the effects of inflation citing Vladimir Ilyich Lenin this way: “Lenin is said to have declared that the best way to destroy the capitalist system was to debauch the currency. But we’ve got a terrible problem. By a continuing process of inflation, governments can confiscate, secretly and unobserved, an important part of the wealth of their citizens. As you can see, it also lost most of its 1970 value with respect to gold. Reproduction, in whole or in part, is authorized as long as it includes a link back to the original source. See general information about how to correct material in RePEc. since, “The best way to destroy the capitalist system is to debauch the currency.”, Vladimir Lenin, leader of the 1917 Russian Revolution. For people like me, old enough to remember the early ‘70s, it is no surprise. My flying lesson in 1972 cost around $12 and today, on the same plane, a Cessna 150, it costs around $150.