By Con George-Kotzabasis-February 26, 2012
The matador, Associate Professor Henry Farrell, has unfurled his red rag before the rampaging cerebrally blind by fury anti-free market bulls to gore by their intellectually paper horns the Gold Standard. In their cognitive obscurantism ‘liberals’ are ignorant of the fact that it is on the “gold fetters” of the standard that price stability is based and the G.S. is an unequivocally effective hindrance to inflationary credit expansion that would lead to an economic crisis.
One has to take a lesson from the tour de force pages of Wilhelm Ropke, the main architect of the German economic recovery after the War–who is an admirable and illustrious predecessor of former president of France Giscard d’Estaing, and former chancellor of Germany Helmut Schmidt–of the vital role the Gold Standard plays on the exchange mechanism and in the stability of the capitalist system, and the great damage it did during the depression, by aggravating the latter even more, when the U.S. abandoned it. “The abandonment of the gold dollar by the Roosevelt administration must, indeed, be viewed as one of the most disastrous acts on record of any government and any country in recent times, both for the country itself and for the rest of the world.” Wilhelm Ropke.