Friday, September 5, 2008

Inflation

"Destroyers seize gold and leave to its owner a counterfeit pile of paper. This kills all objective standards and delivers men into its arbitrary power of an arbitrary setter of values. Gold was an objective value, an equivalent of wealth produced. Paper is a mortgage on wealth that does not exist, baked by a gun aimed at those who are expected to produce it."

Ayn Rand
"By a continuous process of inflation, governments can confiscate, secretly and unobserved, an important part of the wealth of their citizens. The process engages all of the hidden forces of economic law on the side of destruction, and does it in a manner that not one man in a million can diagnose."
John Maynard Keynes
both from The Journal , by Summit Ministries, August 2008

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