Pan fried or cooked with onion and cheese, the German egg noodles called spätzle can have a healthy golden glow. For more than 300 centuries, spätzle has been an alpine culinary standard. The long strands of done are easily cut and divisible and a standard part of a southern German meal.
But a good monetary standard must be universally acceptable. Unfortunately in Germany spätzle is a source of division rather than unity, noted the New York Times’ Nicholas Kulish, who described the recent desecration with spätzle of a bronze statue of artist Kathe Kollwitz in Berlin.
Native Berliners are upset by the increasing numbers of well-off Swabians who have moved to the German capital from more prosperous southern Germany – pushing up prices and pushing out poorer Berliners. Swabia is generally considered the state of Baden-Württemberg and eastern Bavaria in the country’s southwest. “The swabians, for their part, resent their reputation as careptbaggers and the slights they have been forced to endure, with graffiti reading “Schwaben raus,’ or Swabians out,’ a slogan often directly at foreigners, an increasingly common sight,” wrote Kulish.
The statue protest was carried out by group called “Free Swabylon” which claimed to want independence for an area of East Berlin called Prenzlauer Berg that included the home of an outspoken critic of the Swabian invasion.
The critic, Wolfgang Thierse, the vice-president of Germany’s federal parliament, the Bundestag, had said: “I hope the Swabians realize they are now in Berlin. And not in their little towns, with their spring cleaning...They come here because it’s all so colourful and adventurous and lively, but after a while, they want to make it like it is back home. You can’t have both.”
The Berliner Zeitung declared the statue defacers“dough terrorists.” Obviously, a good monetary standard should never be weaponized. Furthermore, gooey spätzle doesn’t travel well in one’s pockets. Eat it while it’s hot. But never in Berlin.
Today’s economic conditions reflect a fiat monetary system held together by many tricks and luck over the past 40 years. The world has been awash in paper money since removal of the last vestige of the gold standard by Richard Nixon when he buried the Bretton Woods agreement — the gold exchange standard — on August 15, 1971.
Since then we’ve been on a worldwide paper dollar standard. Quite possibly we are seeing the beginning of the end of that system. If so, tough times are ahead for the United States and the world economy.
In terms of public policy, though, we favor honest money. It works out better for more people. And there is a moral dimension to the question of honest money. This was a matter that was understood — and keenly felt — by the Founders of America, who almost to a man (Benjamin Franklin, a printer of paper notes, was a holdout), cringed with humiliation at the thought of fiat paper money. They’d tried it in the revolution, and it had been the one embarrassment of the struggle. They eventually gave us a Constitution that they hoped would bar us from ever making the same mistake.
Publisher's Note: Originally released in June/July of 1991, this detailed report discusses Jacques Rueff's economic theories and applies them to modern economic events.
By John D. Mueller
Rueff Restates the Quantity Theory of Money
... Rueff argued that the real problem with the monetarists is not that they focus too much, but rather too little on the supply of money; namely, they assign too little importance to the concrete mechanisms by which money is actually created. Most monetarists adopt the convention that the government can control the nominal supply of money, while demanders of money control its value. Rueff pointed out that under a properly functioning monetary system, even the nominal supply of money is determined by people’s demand for it.
"The economist defines money as a medium of exchange. It is the token we supply in order to effect payments for the goods we demand. Money is especially a standard like a yardstick – a unit of measure by which we value and price economic goods. Money units express prices which are the vital information necessary for efficient exchange. Money is surely a store of value."
Indian culture long has held a high appreciation for gold.
The Vedic faith records four historical ages, the highest being the Satya Yuga. Per Wikipedia, "when humanity is governed by gods, and every manifestation or work is close to the purest ideal and humanity will allow intrinsic goodness to rule supreme.
“Here’s the short story: The U.S. has exited from financial crisis: Asia and Europe have not,” wrote Rana Foroohar in TIME at the beginning of this year. “China, the second largest economy in the world, is pretty much where the U.S. was five years ago – deeply in debt...Japan, where...