Chapter 88 Chapter 10 The Conspirator

Like freedom, gold has never succumbed to underestimating its value.Morrill, 1878 Introduction to this chapter In 1850, London was undoubtedly the sun of the world's financial system. In 1950, New York became the center of global wealth. In 2050, who will aspire to the throne of international financial hegemony? The experience of human history shows that rising countries or regions always create huge wealth with more vigorous productivity. In order to protect their wealth from being stolen by other people’s diluted currency in trade, these regions have high-purity currency Just like the strong gold pound in the nineteenth century and the gold and silver dollar that dominated the world in the twentieth century, the wealth of the world has always flowed automatically to places that can protect its value.A strong and stable currency in turn greatly promotes the social division of labor and the rational distribution of market resources, thereby forming a more efficient economic structure and creating more wealth.

Conversely, when a powerful country begins to decline, social productivity continues to shrink, and huge government expenditures or war expenses gradually empty out previous savings. The government always starts by devaluing the currency in an attempt to escape the high debt and plunder the people. At this point, the wealth will flow irreversibly to find other places that can shelter them. Whether the currency is strong or not becomes the earliest sign of a country's ups and downs.When the Bank of England announced in 1914 that the gold convertibility of sterling would be stopped, the glory of the British Empire was gone forever.When Nixon unilaterally closed the golden window in 1971, the glory of the United States had reached a turning point in its prosperity and decline.Britain's national strength dissipated rapidly in the smoke of World War I, while the United States was fortunate to be able to maintain a period of prosperity in a world without major wars.But on the surface, the gate of the mansion, which is decorated with bright flowers and rich fire, has been gradually hollowed out by huge debts.

Historically, any country that manipulates currency depreciation to try to deceive wealth will eventually be abandoned by wealth.