The sequence of events leading up the French Revolution are likely unfamiliar to most. Yet
money printing and a debauched French currency played no small part in those events. As a
sequel to “Shorting the Federal Reserve”, 720 Global aims to provide an historical example of
excessive money printing which lead to financial crisis, and ultimately the revolution of a major
sovereign nation. More than a history lesson, this article effectively illustrates the road on
which the U.S. and many other nations currently travel. The story relayed in this article is not a
forecast for what may happen but a simple reminder of what has repeatedly happened in the
past.
As you read, notice the story lines the French politicians used to persuade the opposition and
justify money printing. Note the similarities to the rationales used by central bankers and neo‐
Keynesians today. Then, as now, it is promoted as a cure for economic ills with manageable
consequences and where failure to generate a sustainable recovery are thought to be a failure
of not having acted boldly enough.
Our gratitude to the late Andrew D. White, on whose work we relied heavily. The exquisite
account of France circa the 1780‐1790’s was well documented in his paper entitled “Fiat Money
Inflation in France” published in‐1896. Any unattributed quotes were taken from his paper.
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