“In the absence of the gold standard, there is no way to protect savings from confiscation through inflation. … This is the shabby secret of the welfare statists’ tirades against gold. Deficit spending is simply a scheme for the confiscation of wealth. Gold stands in the way of this insidious process. It stands as a protector of property rights. If one grasps this, one has no difficulty in understanding the statists’ antagonism toward the gold standard.”
- Alan Greenspan
“By a continuing process of inflation , governments can confiscate, secretly and unobserved, an important part of the wealth of their citizens. 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.”
- John Maynard Keynes
Quantitative easing = printing money = creating money out of thin air = increasing the money supply = inflation = hidden tax on monetary assets = theft!
- First Hong Kong, Now Aussie Central Bank Gets Ugly Case Of Truthiness (ZeroHedge, Dec 12, 2012):
It seems the AsiaPac central bankers did not get the ‘shut up and print’ memo as today during another speech, an Australian central banker followed Hong Kong’s lead and pronounced quantitative easing as potentially harmful and the volatility-dampening effects of excess monetary policy as “ultimately inimical to financial stability and hence macroeconomic stability.” In the speech below Glenn Stevens (RBA Governor) provides some much-needed doses of sanity to the grossly addicted world desirous of moar money printing.
“Central banks can provide liquidity to shore up financial stability and they can buy time for borrowers to adjust, but they cannot, in the end, put government finances on a sustainable course… They can’t shield people from the implications of having mis-assessed their own lifetime budget constraints and therefore having consumed too much.“
Why are these AsiaPac bankers breaking ranks with the status quo? Perhaps they see a looming threat and prefer to front-run their governments’ demands to “get to work”.
Challenges Of Central Banking – Glenn Stevens (RBA Governor)
Monday marked the 70th anniversary of the commencement of operations of the Bank of Thailand, on 10 December 1942. Conceived under war-time occupation, the Bank has grown to be a key institution in Thailand. It is a pleasure and an honour to come to Bangkok to take part in one of a series of events to mark the anniversary, and I want to thank Governor Prasarn for the invitation. Continue reading »
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