mises.org
"...In Germany in 1923, as in all other previous disastrous paper money inflations, when the value of the paper currency collapsed, gold and silver coins, as well as the redeemable moneys of other countries, soon appeared and market activities could quickly be resumed. In his last years, Mises often expressed his apprehension that this could not happen in this country, if the inflation of dollars followed the path of the German mark in 1923. There were no foreign currencies redeemable in gold and it was then illegal for Americans to own or accumulate gold coins. He strongly urged that Americans be allowed to own monetary gold. This valuable legal right was regained shortly after his death, yet few Americans seem to appreciate it. Unfortunately, most monetary gold is still in the possession of governments eager to demonetize it. Consequently, whenever the market value of gold has risen, the agencies of these governments unload enough gold to discourage most private investors. Like the inflation itself, such policies must sooner or later come to an end."
Regards, Don |
