Tag Archives: Keynes

Keynes Quote On Currency Debasement

As those familiar with this blog know, I am very concerned about the vulnerability of the U.S. Dollar to a substantial decline.  I have written extensively about this situation.

I think the following quote on the subject of currency debasement is particularly noteworthy.  It is from John Maynard Keynes, from his book Economic Consequences of the Peace, chapter 6:

“Lenin was right.  There is no subtler, no surer means of overturning the existing basis of society than to debauch the currency.  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.”

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A Special Note concerning our economic situation is found here

SPX at 1296.63 as this post is written

Keynesian Theory – A Few Comments

Up to this point, I have yet to mention “Keynes” or any derivative thereof.  The reason for this is simple – I don’t believe that the efforts taken to stimulate the economy are reflective of the theories that Keynes espoused.  Instead, they are a type of “bastardized” Keynesian Theory – used by various parties in an attempt to “legitimize” the tremendous amounts of money spent on various stimulus plans.

I’ve been meaning to write a blog post about this and other related topics.  I still intend to write a fuller post.  However, what prompted me to write about this now is a very interesting article I ran across in Fortune Magazine.  It is a February 5 interview with Allan Meltzer and can be found at this link.

As Meltzer indicates in the interview, Keynesian Theory is not aligned with the stimulus actions we, as a nation, have undertaken.

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SPX at 1105.24 as this post is written