Hat tip: Jesses Cafe Americain
It is worth reading the quote and surrounding material
Ayn Rand, Atlas Shrugged: Whenever destroyers appear among men, they start by destroying money, for money is men’s protection and the base of a moral existence. Destroyers seize gold and leave to its owners a counterfeit pile of paper… Click here for more.
Jesse also mentions that apparently some rather large customers are pulling their silver bullion out of storage in the Comex vaults.
Ayn Rand is not to everyones taste, but her views on the effect of destroying money seem to have the support of heavy weights from other areas of the political spectrum:
Lenin reportedly said:
Lenin: The way to crush the bourgeoisie is to grind them between the millstones of taxation and inflation.
Keynes reportedly agreed with Lenin:
Vox Popoli, Lenin, inflation and the destruction of capitalism: Lenin is said to have declared that the best way to destroy the Capitalist System was to debauch the currency. By a continuing process of inflation, Governments can confiscate, secretly and unobserved, an important part of the wealth of their citizens. By this method they not only confiscate, but they confiscate arbitrarily; and, while the process impoverishes many, it actually enriches some. The sight of this arbitrary rearrangement of riches strikes not only at security, but at confidence in the equity (or fairness) of the existing distribution of wealth.
As the inflation proceeds and the real value of the currency fluctuates wildly from month to month, all permanent relations between debtors and creditors, which form the ultimate foundation of capitalism, become so utterly disordered as to be almost meaningless; and the process of wealth-getting degenerates into a gamble and a lottery.
Lenin was certainly right. There is no subtler, no surer means of overturning the existing basis of Society than to debauch the currency. The process engages all the hidden forces of economic law on the side of destruction, and does it in a manner which not one man in a million is able to diagnose.
While there are some questions about the authenticity of the Lenin quote, it is notable that the Soviets never rejected it.