At its most fundamental level, economic activity is no more than an exchange between strangers. It depends, therefore, on a degree of trust between strangers. Since money is the agent of exchange, it is the agent of trust. Debasing money therefore debases trust. History is replete with Great Disorders in which social cohesion has been undermined by currency debasements. e multi-decade credit in a- tion can now be seen to have had similarly corrosive e ects. Yet central banks continue down the same route. e writing is on the wall. Further debasement of money will cause further debasement of society. I fear a Great Disorder.
I am more worried than I have ever been about the clouds gathering today. I hope they pass without breaking, but I fear the de ning feature of coming decades will be a Great Disorder of the sort which has de ned past epochs and scarred whole generations.
“Next to language, money is the most important medium through which modern societies communi- cate,” writes Bernd Widdig in his masterful analysis of Germany’s in ation crisis, Culture and In ation in Weimar Germany (2001). His may be an abstract observation, but it has the commendable merit of being true... all economic activity requires the coop- eration of strangers and therefore, a degree of trust between cooperating strangers. Since money is the agent of such mutual trust, debasing money implies debasing the trust upon which social cohesion rests.
I am more worried than I have ever been about the clouds gathering today. I hope they pass without breaking, but I fear the de ning feature of coming decades will be a Great Disorder of the sort which has de ned past epochs and scarred whole generations.
“Next to language, money is the most important medium through which modern societies communi- cate,” writes Bernd Widdig in his masterful analysis of Germany’s in ation crisis, Culture and In ation in Weimar Germany (2001). His may be an abstract observation, but it has the commendable merit of being true... all economic activity requires the coop- eration of strangers and therefore, a degree of trust between cooperating strangers. Since money is the agent of such mutual trust, debasing money implies debasing the trust upon which social cohesion rests.