"In order that the mass of money actually current, may constantly saturate the absorbing power of the circulation, it is necessary that the quantity of gold and silver in a country be greater than the quantity required to function as coin. This condition is fulfilled by money taking the form of hoards. These reserves serve as conduits for the supply or withdrawal of money to or from the circulation, which in this way never overflows its banks." Does anybody know?
Well well... Often, it seems that the Austrian school of economics is the one most closely associated to the gold/silver movement. But you know, I take my queue from Karl Marx. He was a lousy writer about communism but he was one of the best ever writers about the workings of capitalism. To Marx, the only true money was gold and silver. How true is that? According to Marx, wealth only comes from one source - productive human activity (farms, factories, mines). You can't just generate wealth out of thin air. So while Marxism and the Austrians are on opposite ends of the poltical spectrum - in the current global crisis, their theories have a bit in common.
