French impressionist painter Claude Monet was famous for painting and repainting and repainting the same scenes – the Waterloo Bridge over the Thames, the Rouen Cathedreal, haystacks in fields, and, of course, water lilies.
But Monet did not begin to paint his water lilies until years after he bought his garden at Giverny outside Paris in 1883. As he got older, Monet was not content to simply record nature; he was determined to shape it. First, Monet remade the gardens and enlarged them to include the famous pond. He famously removed the detested fruit trees and replaced them with plantings that gave a more Asian atmosphere to his surroundings – as did the bridge he had constructed over the pond.
Only after he has reconstructed the Giverny gardens did he begin to paint them. Monet was not content to accept things as they were – though he was very good at doing that. He determined to record things they way that he thought they should be.
The problem with contemporary economists is that they only see things as they are. Economists like Menzie D. Chinn, writing in Foreign Affairs, have argued: “What Europe needs is...stimulus by those countries that can afford it, additional transfers from the creditor countries to the debtor countries, and a looser monetary policy. Moreover, austerity policies can ironicaly end up entrenching the structural problems they are intended to address, as unemployed workers drop out of the work force altogether and their skills degrade.”
The dangers of such policies seem invisible to professional economists. Forbes Editor-in-Chief Steve Forbes has written: “Virtually all the economic and political elites everywhere are appallingly oblivious to the corrosive destructiveness of a weak dollar....The necessity for a trustworthy currency was understood by Ronald Reagan and by [Paul] Rylan’s mentor, the late Jack Kemp.”
Like Monet, economists need to see things differently – pull out the hated fiat trees – and start with a new picture – one based on a gold standard.
George Gilder, whose new book publishes today, is one of the original pillars of Supply Side economics. As stated by Discovery Institute, which he co-founded, “Mr. Gilder pioneered the formulation of supply-side economics when he served as Chairman of the Lehrman Institute’s Economic Roundtable, as Program Director for the Manhattan Institute….”
He was the living writer most quoted by President Reagan. And he is back with his most brilliant work yet — one of potentially explosive importance if taken to heart by our political and policy thought leaders. It is a radical guide, with surprising insights on almost every page, to the creation of a new era of vibrant prosperity.
As reviewer Paul Brodsky, a professional investor in New York City, perceptively notes,
"Lewis Lehrman is one of a very small group of contemporary gold advocates able to successfully bridge the gap separating practical conservative intellectualism from fleeting, half-baked idealism. His CV lists great success across many fields including education (degrees and teaching fellowships from Yale and Harvard); industry (past president of Rite Aid); politics (narrow loser to Mario Cuomo in the 1982 New York governor’s race); finance, (past Morgan Stanley managing director); private sector entrepreneur (founder, L. E. Lehrman & Company); public sector advocate (founder, Lehrman Institute); historian (author, Lincoln at Peoria: The Turning Point); and recognized philanthropist (awarded the National Humanities Medal by George W. Bush in an Oval Office ceremony). ... Only someone erudite and elegant in demeanor could hope to pull it off . In an irreconcilably over-leveraged world where irritated bond vigilantes question economic sustainability and angry Tea Partiers protest the immorality of it all, Lehrman’s views are considered and his convictions carry weight. He brings gravitas to his cause, and he does so from within as a member of the club."
Before the Fed: JP Morgan Summons the Bank Presidents
"Finally, on the night of Sunday, November 2, Morgan summoned the presidents of the major New York banks to his new library, at the corner of Madison Avenue and Thirty-sixth Street, an Italian Renaissance-style palace he had built next door to his house to showcase his collection of rare books, manuscripts, and other artwork. Its marble floors, frescoed ceilings, walls lined with tapestries and triple-tiered bookcases of Circasian walnut, crammed full of rare Bibles and illuminated medieval manuscripts, made it an incongruous setting for a meeting of the banking establishment. Once the moneymen had gathered, Morgan had the great ornamental bronze doors to the library locked and refused to let anyone leave until all had collectively agreed to commit a further $25 million to the rescue fund."
— Liaquat Ahamed, Lords of Finance (Penguin Books, 2009, p. 54)
Lately we have been engulfed by headlines reporting financial turmoil on every continent, in almost every nation, large and small. The commissars of central planning who so marred the history of the 20th century have been replaced by central banks in the 21st. In Cyprus, the new leadership now dares to confiscate citizens’ wealth with a one-time tax of up to 60 percent on bank deposits above 100,000 euros. Self-interested prime ministers blame continental monetary policies for instigating the currency wars that they themselves surreptitiously carry on.
America recently celebrated — well, maybe we didn’t celebrate – the 80th anniversary of Franklin Roosevelt’s action to end to the gold standard. But America is also celebrating – well, maybe not everyone is celebrating – the 100th anniversary of the legislation creating the Federal Reserve System.
As Lewis E. Lehrman...
Constitution.org provides an extensive and thoughtful Memorandum of Law by Larry Becraft, Esq., of Huntsville, Alabama, on Article I, Section 10, clause 1 of the US Constitution.
Sir William Blackstone courtesy of Wikipedia
One of many interesting matters the Memorandum treats is Blackstone's Commentaries, a book that was a fixture in the...