When we blame the euro for Europe's ills, we're letting politicians and central bankers — who have only ever viewed the euro as a stepping-stone toward their grand objectives — off the hook.
Japan's Shinzo Abe has turned to Europe in hopes of stabilizing Japan's fiscal and and monetary situation. But Europe is a shaky foundation on which to build anything.
"The main thing is that the government should no longer be in a position to increase the quantity of money in circulation and the amount of checkbook money not fully — that is, 100 percent — covered by deposits paid in by the public."
100 years ago, coordination among central banks was engineered to speed up the renunciation of the gold standard, and greatly enlarge the freedom of all central banks to inflate money supplies.
It is not true that capital — once created — will lead to future wealth gains forever into the future. Only constant adaptation — via entrepreneurs — can make sure that the production process will provide the flow of consumption goods in the periods to come.
The destruction of sound money over the past century stems from actions at the federal level, but there are steps which states can take — and even have already taken — to move toward sound money.
