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Ludwig von Mises on the Eurozone Crisis

Shouldn't the ECB print! Print! PRINT! to rescue Europe from disaster...?

"A NATION, they say, can be menaced by evils which are incomparably more disastrous than the effects of inflation...

"[So, they go on,] if it is possible to avoid the total annihilation of a nation's freedom and culture by a temporary abandonment of sound money, no reasonable objection can be raised against such a procedure...

"The emergency that brings about inflation is this: The people or the majority of the people are not prepared to defray the costs incurred by their rulers' policies. They support these policies only to the extent that they believe their conduct does not burden themselves. They vote, for instance, only for such taxes as are to be paid by other people, viz. the rich, because they think that these taxes do not impair their own material well-being. The reaction of the government to this attitude of the nation is, at least sometimes, directed by the sincere wish to serve what it considers to be the true interests of the people in the best possible way. But if the government resorts for this purpose to inflation, it is employing method which are contrary to the principles of representative government, although formally it may have fully complied with the letter of the constitution. It is taking advantage of the masses' ignorance, it is cheating the voters instead of trying to convince them.

"It is not just an accident that in our age inflation has become the accepted method of monetary management. Inflation is the fiscal complement of statism and arbitrary government. It is a cog in the complex of policies and institutions which graqually lead towards totalitarianism."

- Ludwig Von Mises, The Theory of Money & Credit (Yale, 1953)

Adrian Ash is director of research at BullionVault, the world-leading physical gold, silver and platinum market for private investors online. Formerly head of editorial at London's top publisher of private-investment advice, he was City correspondent for The Daily Reckoning from 2003 to 2008, and he has now been researching and writing daily analysis of precious metals and the wider financial markets for over 20 years. A frequent guest on BBC radio and television, Adrian is regularly quoted by the Financial Times, MarketWatch and many other respected news outlets, and his views from inside the bullion market have been sought by the Economist magazine, CNBC, Bloomberg, Germany's Handelsblatt and FAZ, plus Italy's Il Sole 24 Ore.

See the full archive of Adrian Ash articles on GoldNews.

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