A peek behind The Fig Leaf

The significance of gold is not to be found in its role to limit the rate of growth in the stock of money, but in the fact that it removes the power to create money from the government, and transfers it to the people where it belongs.

Monetarists insist that we need 'experts' to regulate the money supply. Well, we don't. Ordinary people, in providing for their every-day needs, can do the regulation themselves. Whenever they think there is too much money in circulation, they will take some of their gold coins to the goldsmith and have them converted into jewelry and plate. And whenever they think there is too little, people will respond by taking their jewelry and plate to the Mint and have them converted into the coins of the realm. There is great inner wisdom in these arrangements. Just as we don't need the government to regulate the soap supply of the country, we don't need it to mess around with the money supply either. The unfettered market mechanism is all one needs. Government regulation of the money supply is but a fig leaf for pilferage.

Read.