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An economic prophecy?

We are mildly surprised that the Obama Administration and Mr Brown are basing their economic projects on the discredited eighty-year-old ideas of John Maynard Keynes.

But as the Bank of England prepares to print money, and inflation rears its head, this observation from Keynes may prove prophetic -

By a continuing process of inflation, governments can confiscate, secretly and unobserved, an important part of the wealth of their citizens. 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." John Maynard Keynes, The Economic Consequences of the Peace

Comments (1)

A betts:

Governments deliberately create inflation as a hidden tax on the whole population to pay for their (the Government's) profligacy.

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