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To: sourcery
Traditionally, it is capitalists who favor hard currency, and communists who favor fiat currency.

I've always suspected that Alexander Hamilton was an undercover communist... do you have any proof for your assertion above?

Meanwhile, this just in:


5 posted on 07/19/2003 7:11:20 PM PDT by Nick Danger (The liberals are slaughtering themselves at the gates of the newsroom)
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To: Nick Danger
I've always suspected that Alexander Hamilton was an undercover communist... do you have any proof for your assertion above?

How Socialism is INEXTRICABLY Linked to Our Monetary System

6 posted on 07/19/2003 8:07:59 PM PDT by sourcery (The Evil Party thinks their opponents are stupid. The Stupid Party thinks their opponents are evil.)
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To: Nick Danger
From "The Theory of Money and Credit, Part II, Chapters 13-14 [Ludwig von Mises]:
What war began, revolution continued. The socialistic or semi-socialistic state needs money in order to carry on undertakings which do not pay, to support the unemployed, and to provide the people with cheap food. It also is unable to secure the necessary resources by means of taxation. It dare not tell the people the truth. The state-socialist principle of running the railways as a state institution would soon lose its popularity if it was proposed, say, to levy a special tax for covering their running losses. And the German and Austrian people would have been quicker in realizing where the resources came from that made bread cheaper if they themselves had to supply them in the form of a bread tax. In the same way, the German government that decided for the "policy of fulfillment" in opposition to the majority of the German people, was unable to provide itself with the necessary means except by printing notes. And when passive resistance in the Ruhr district gave rise to a need for enormous sums of money, these, again for political reasons, were only to be procured with the help of the printing press. II.13.17

A government always finds itself obliged to resort to inflationary measures when it cannot negotiate loans and dare not levy taxes, because it has reason to fear that it will forfeit approval of the policy it is following if it reveals too soon the financial and general economic consequences of that policy. Thus inflation becomes the most important psychological resource of any economic policy whose consequences have to be concealed; and so in this sense it can be called an instrument of unpopular, that is, of antidemocratic, policy, since by misleading public opinion it makes possible the continued existence of a system of government that would have no hope of the consent of the people if the circumstances were clearly laid before them. That is the political function of inflation. It explains why inflation has always been an important resource of policies of war and revolution and why we also find it in the service of socialism. When governments do not think it necessary to accommodate their expenditure to their revenue and arrogate to themselves the right of making up the deficit by issuing notes, their ideology is merely a disguised absolutism.


7 posted on 07/20/2003 1:46:04 AM PDT by sourcery (The Evil Party thinks their opponents are stupid. The Stupid Party thinks their opponents are evil.)
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