“What is barter? An egg for bread, a glass for a dish. People start trading actual commodity. “In other words, when money fails it does not reduce down to gold. It reduces down to produce! “So the whole theory of money is really that it represents produce. Not gold. Not bankers. Not paper. But produce.”

     Now let us consider what really happens when money, inflated beyond use, fails to buy any longer.

     That’s right. Barter ensues.

     What is barter? An egg for bread, a glass for a dish. People start trading actual commodity.

     In other words, when money fails it does not reduce down to gold. It reduces down to produce!

     So the whole theory of money is really that it represents produce. Not gold. Not bankers. Not paper. But produce.

     The US can’t make gold but it sure can produce wheat.

     England can’t produce gold but it sure can make machinery and cheap tin trays.

     So what’s all this phony junk about “dollar balances” and “gold reserves”?

     And for that matter what’s all this bunk that if you tax a nation to death it will be solvent?

     Ah! Keynes’ “Create want!” If you put money on an impossible standard, it will cease to exist and then everyone will starve very nicely.

     Who do they think swallows all this “economic” hocus-pocus? Not the public.

     The public mutters quietly to itself and wonders who’ll give the eventual signal to mob these idiots. They dutifully vote. They still play the game just to keep up appearances, but meanwhile, they hope and dream.

     The French population in 1784 dreamed about Dr. Guillotine’s new invention. They were quite docile—right up to the moment the National Guard went over to them and they stormed the Bastille.

     Strangely enough it doesn’t seem to be emphasized in history that on that same day an enterprising fellow led mobs that emptied every “insane asylum” and tore the “sanitariums” apart. They knew what they were doing!

     It never seems so quiet as just before the hurricane.

__________

     So how can a country go down?

     By being put down by its “best people” through denial of real justice, oppressive taxation and unreal, unworkable money standards.

     During the 1929–1939 US depression there were a lot of books written by fellows who saw clearly that a country full of produce that couldn’t be bought for lack of money was a farce. These may still be on the shelves but Lord Keynes is all they read.

     It is very, very plain that if barter comes in when money goes out, that the real substitute for, the real yardstick for money is PRODUCE.

     Nobody needs to deflate and hurt the people. Or inflate and collapse.

     All one has to do is say that a dollar or a pound or a franc are worth so many pounds of wheat, so many tin trays, so many onions and voilà, we’re rich. Take any given day of comparable prices and say that’s the comparable price day.

     Gold? Forget it.

     Forget also income tax.

     One of the standard equations of economics is that inflation occurs when money exceeds the produce, depression occurs when produce exceeds the money to buy it.

Economics continued...

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