An Interesting Paper

jmski52

I linked this from Sinclair, and it explains some interesting things about inflation at the street level in France during the French Revolution. A very good read.

Fiat Money Inflation in France

bronco2078

Thats a great link thanks

We are going to get to learn that lesson the hard way again whether we like it or not.

these parts seem familiar

"But these evils, though great, were small compared to those far more deep-seated signs of disease which now showed themselves throughout the country. One of these was the obliteration of thrift from the minds of the French people. The French are naturally thrifty; but, with such masses of money and with such uncertainty as to its future value, the ordinary motives for saving and care diminished, And a loose luxury spread throughout the country."

and

"This outgrowth was a vast debtor class in the nation, directly interested in the depreciation of the currency in which they were to pay their debts. "

and this one

"Everything was tried. Very elaborately he devised a funding scheme which, taken in connection with his system of issues, was in effect what in these days would be called an "interconvertibility scheme" By various degrees of persuasion or force,—the guillotine looming up in the background,—holders of assignats were urged to convert them into evidence of national debt, bearing interest at five per cent, with the understanding that if more paper were afterward needed more would be issued. "


We only lack the guillotines and we will catch up to them.

jmski52

I wanted to bump this link just once because I've been reading this very well-documented academic account of the French Revolution. The paper is 30 pages of reading with 15 pages of footnotes, which includes both written and verbal accounts from newspapers, government records and other sources of the time.

The reason I find it extremely interesting is because it parallels today's experience in the US almost 100%, except for the public guillotining and executions. I never really focused on the French Revolution, which occured between 1789 and 1799 - but they had just formed their Republic and become freed from rule under the House of Bourbon - and before their new democracy was very well established, the problems with the economy and hyperinflation began. These problems caused the massive turmoil that continued for years.

What's also interesting is that France had had a similar Depression caused by hyperinflation about 70 years prior to the Revolution, and they repeated all of the same mistakes, with disastrous results.

I urge you to take a look. The logic and arguments used to justify the same things in the French legislature and its successors are unbelievably familiar to me in that I am hearing the same exact progression of logic and legislation taking place today.

The interesting thing is that this paper was written in 1912 by Andrew White, who was Professor of History at Cornell, minister to Russia, and Ambassador to Germany. It is in ebook format and is copied & distributed freely as part of Project Gutenberg.

It got more interesting the further I read.

DrBuster

Only a scant sliver of the populace knows history enough to not repeat the same stupid things.

KUCH

Thanks for posting, I plan on reading later. When economists, farmers, doctors, etc. state history as a factor of their analysis, I do tend to listen!

Baley

thanks for the link, very interesting

bronco2078

There is a great book called "Reflections on the Revolution in France" by Edmund Burke written in 1790.

I picked up a copy for 2 bucks back when borders bookstores were going bankrupt. Anyone who is interested in that era should snag a copy for their collection.

secondrepublic

brilliant article. one great quote which applies to many of our politicians today:

"men who had never shown any ability to make or increase fortunes for themselves abounded in brilliant plans for creating and increasing wealth for the country at large."