"[I]f the spectre of "under-employment" appears again in the world tomorrow, as is probable, (the Keynesian philosophy) will be the universal recourse of peoples and governments. If it is true, it will be the salvation of the world; if it is false, it may lead to catastrophe by turning the world to ineffective remedies which may make the evil much worse. ... Whom Jupiter wishes to destroy, he first makes mad."
" Morgan swiftly assembled the very best financiers to assist him with the rescue effort…. The task force had two assignments. The first … was to decide which banks caught in the upheavals were to be bailed out and which left to go under. The second… was to raise the money for the rescue effort. By early November, despite having injected $3 million of his own cash, raised over $8 million from the other banks collectively, secured a commitment from the secretary of the treasury to provide $25 million in deposits, and even managed to extract $10 million from John D. Rockefeller, Sr., Morgan had been unable to check the panic. Depositors continued to withdraw their money and one of the largest trust companies in the country, with over $100 million in deposits, tottered on the edge of collapse. "
— Liaquat Ahamed, Lords of Finance (Penguin Books, 2009, p. 53)
As far as the ongoing Rueffian Renaissance goes, in India just last week the internationally regarded former deputy governor of India’s equivalent of the Federal Reserve System, S.S. Tarapore, wrote in a column entitled The Resurrection of the Gold Standard , “As Jaques Rueff says in his Monetary Sins of the West (1972), there was catastrophic suffering till 1934, when President Franklin Delano Roosevelt raised the price of gold from $20 to $35 per ounce; this was in effect a devaluation of the US dollar!"
In modern times the role of money has been almost totally perverted by the commentariat. Though money’s sole purpose is as a measure that facilitates the exchange of actual wealth (your bread for my wine), the desire to get...
Fifty years ago this month, the Allied nations met at Bretton Woods, N.H., to create the postwar monetary system. Bretton Woods re-established international convertibility of the major currencies into gold or gold-convertible dollars.