A BLOODY HISTORY OF MONEY
CHAPTER 1
A BLOODY HISTORY OF MONEY The best way to destroy the capitalist system is to debauch the currency. — John Maynard Keynes, “The Economic Consequences of the Peace”
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Throughout this book you’ll see side notes like this one. These notes contain key concepts and other juicy bits of information.
ost of what you know, or think you know, about money and the economy can be attributed to British economist John Maynard Keynes. Keynesian economics has been influential in shaping government economic policy in many countries since the 1930s. The basic principles include the use of fiscal policy, such as government spending and taxation, to manage economic demand and stabilize the economy, and the use of monetary policy, such as setting interest rates, to manage inflation and economic growth. One frequently quoted passage from Keynes is that, “the best way to destroy the capitalist system [is] to debauch the currency.” The phrase was dubiously attributed to Vladimir Lenin by Keynes, perhaps because he agreed with the sentiment or perhaps because he hated Lenin. Regardless of who said it, they were not necessarily wrong.
THE DEBAUCHERY OF CURRENCY Keynes was referring to debauchment, not debauchery. By the end of this book, you will probably reach the conclusion that the word choice is a distinction without a difference. Debauchery typically refers to excessive and often immoral indulgence in sensual pleasures or self-destructive behavior, such as excessive drinking, drug use, promiscuity, or other activities that are considered socially unacceptable or damaging to one’s health or well-being. However, debauchery can also refer to the corruption or degradation of something, such as a moral or cultural value, political system, or institution, often as a result of excessive indulgence or moral decay.
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