Gold Standard – Globalization & Capitalism

Lawrence H. White is professor of economics at George Mason University and the F. A. Hayek Professor of Economic History in the department of economics at University of Missouri — St. Louis. His teaching and research areas include economic history, monetary theory, money and banking, and history of economic thought. White holds a PhD and a MA in economics from University of California at Los Angeles; he also received his AB in the same area from Harvard University. He is visiting professor at Universidad Francisco Marroquín.

Visit “The Clash of Economic Ideas” video collection
http://newmedia.ufm.edu/gsm/index.php/The_Clash_of_Economic_Ideas

Produced by New Media / UFM 2011
http://www.newmedia.ufm.edu
http://www.ufm.edu More

A new chapter is being written in the History of Money, Bank and Credit as news of how European leaders are asking for China to rescue them from the chaos they created. I wish this guys reconsidered before continue acting some of the most important principles of Deficit Financing, Freedom, Inflation, Money, Property Rights, Savings, Welfare State, Consumption, Credit; Gold Standard, Market Value, Objective Theory of Values, Production, Purchasing Power, Sanction of the Victim, Selfishness and the Trader Principle just to mention a few before going on making more business that en debts their country’s economy while make their citizens poorer.

And as Ayn Rand cleverly mentioned in regard to Deficit Financing,

The government has no source of revenue, except the taxes paid by the producers. To free itself—for a while—from the limits set by reality, the government initiates a credit con game on a scale which the private manipulator could not dream of. It borrows money from you today, which is to be repaid with money it will borrow from you tomorrow, which is to be repaid with money it will borrow from you day after tomorrow, and so on. This is known as “deficit financing.” It is made possible by the fact that the government cuts the connection between goods and money. It issues paper money, which is used as a claim check on actually existing goods—but that money is not backed by any goods, it is not backed by gold, it is backed by nothing. It is a promissory note issued to you in exchange for your goods, to be paid by you (in the form of taxes) out of your future production.

“Egalitarianism and Inflation,”
Philosophy: Who Needs It, 133

Read more of this news:

PARIS — A day after European leaders unveiled their latest plan to save the euro, top officials opened talks with China in an effort to lure tens of billions of dollars in additional cash, giving China perhaps its biggest opportunity yet to exercise financial clout in the Western world.

China is expected to demand significant concessions, including financial guarantees and limits on what Beijing sees as discriminatory trade policies, in exchange for any investment in Europe’s emergency stability fund. The head of the rescue fund, Klaus Regling, got a cautious reply from Chinese officials Friday during a visit to Beijing, where he said he did not expect to reach an investment deal with China anytime soon.

A senior Chinese official, Vice Finance Minister Zhu Guangyao, said China — like the rest of the world — was still waiting for the Europeans to deliver crucial details on how the rescue fund, the European Financial Stability Facility, would operate and be profitable before deciding on whether to participate. via: China Is Asked for Investment in Euro Rescue by Liz Alderman and David Barboza.