Athenian money…defined a pattern
which was to repeat in other empires which were to follow,
dominance of trade, influx of gold to balance exports, public wealth,
liberty, overconfidence, the discovery of loosely managed money
as a stimulating solution to stagnation in an economy near its zenith…,
before finally the emptiness of the monetary promise was exposed,
leading to rapid national collapse.
Paul Tustain
Does earn today, spend tomorrow, conflict with borrow to spend today
and hope to earn enough tomorrow, or that someone else does?
Why did the Roman Empire reduce currency size and silver content
to increase the quantity of money during war against Hannibal?
Where under the [Roman] Principate the strategy had been
to tax the future to pay for the present,
the Dominate paid for the present by undermining the future’s ability to pay taxes.
The Empire emerged from the third century crisis,
but at a cost that weakened its ability to meet future crises.
Joseph Tainter
Did Spanish money become worth less
after the Emperor borrowed against 100 years of future tax revenue
to pay for war against England?
Did France execute relatively the same strategy
with similar consequences not long after?
By the time the great bullion inflow had ended in the mid-seventeenth century,
the Spanish crown was deep in debt, with bankruptcies in 1557, 1575 and 1597.
The country entered upon a long decline.
…one might draw a moral: Easy money is bad for you.
It represents short-run gain
that will be paid for in immediate distortions and later regrets.
The Wealth and Poverty of Nations
Why did the Continental Congress issue paper money
backed by anticipated tax revenues to pay for war against theocratic England?
Regardless of the dollar price involved,
one ounce of gold would purchase a good-quality man's suit
at the conclusion of the Revolutionary War, the Civil War,
the presidency of Franklin Roosevelt, and today.
Peter A. Burshre
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