Financial System Quotes & Sayings

Despite all the challenges facing higher education in America, from mounting student debt to grade inflation and erratic standards, our system is rightly the world's envy, and not just because our most revered universities remain on the cutting edge of research and attract talent from around the globe. We also have a plenitude and variety of settings for learning that are unrivaled. In light of that, the process of applying to college should and could be about ecstatically rummaging through those possibilities and feeling energized, even elated, by them. But for too many students, it's not, and financial constraints aren't the only reason. Failures of boldness and imagination by both students and parents bear some blame. The information is all out there. You just have to look. — Frank Bruni

Key to success for the education of young African girls is building a model that works with communities, schools, and national Ministries of Education to build a system of protection and support around girls, ensuring that they receive the education that is their right. Financial support is provided alongside a social support system. — Ann Cotton

[Al-Qaeda's supporters] are aware of the cracks in the Western financial system as they are aware of the lines in their own hands — Osama Bin Laden

A rentier is an investor whose relationship to a company or enterprise is strictly limited to the ownership of financial wealth (such as stocks or bonds) and the receipt of income on that wealth (such as dividends or interest). The financial system performs dismally at its advertised task, that of efficiently directing society's savings towards their optimal investment pursuits. The system is stupefyingly expensive, gives terrible signals for the allocation of capital, and has surprisingly little to do with real investment. — Doug Henwood

Today, even small entities that trade complex instruments or are granted sufficient leverage can threaten the global financial system. — Paul Singer

To ensure Israel's trust in Him rather than in a human king, God gives Israel an economic system that can't support a professional army. After all, somebody has to fund the army. But not in Israel. No taxes are supposed to be collected to support a military - God wants excess money to be given to the poor, not to fund a military (e.g., Deut. 14:29). And when Israel does end up choosing a king, God does not allow him to have the financial means to support an army (Deut. 17).7 Israel's economic system, therefore, is set up so that the nation can't sustain a standing army without violating the system itself. Israel's "army" - if we can even call it an army - is a group of weekend warriors whose skills, or lack thereof, testify to the power of God, who alone ensures victory. — Preston Sprinkle

They never had a better computer. They never had better lights. They never had better communication apparatus. They never had the finest tools. They never had the best transport system. They never had a perfect comfort. They never had all people loving them and their works. They never had all the financial resources. They never had the best garments. They never had the best and the most of all things. They never had all that they needed but they had ideas. They had a vision. Their hearts were filled with reasons to move. Their minds were pregnant with great thoughts and they wanted to prove what was in them. They took bold steps in wisdom and they were able to do distinctive things with what they had, and they left distinctive marks on minds before they left. — Ernest Agyemang Yeboah

Time is running out fast. I think we have maybe a few months
it could be weeks, it could be days
before there is a material risk of a fundamentally unnecessary default by a country like Spain or Italy which would be a financial catastrophe dragging the European banking system and North America with it. So they have to act now. — Willem Buiter

The Abyss. Globalization had many economic benefits but, as in our own times, the creation of a truly international economic network combined greater efficiency with greater fragility. In 1914 a highly optimized system crashed in what was, without doubt, the biggest financial collapse of all time. (Unlike in 1929 or in 2008, the world's major stock markets were forced to suspend trading for no less than five months.) — Niall Ferguson

We cannot live without trade. A society can neither advance nor improve without excess of disposable income. This excess can only be amassed through the production of goods and services necessary or attractive to the mass. A financial system which allows this leads to inequality; one that does not leads to mass starvation. — David Mamet

The rest of the family tree had a root system soggy with alcohol ... One aunt had fallen asleep with her face in the mashed potatoes at Thanksgiving dinner; another's fondness for Coors was so unwavering that I can still remember the musky smell of the beer and the coldness of the cans. Most of the men drank the way all Texas men drank, or so I believed, which meant that they were tough guys who could hold their liquor until they couldn't anymore
a capacity that often led to some cloudy version of doom, be it financial ruin or suicide or the lesser betrayal of simple estrangement. Both social drinkers, my parents had eluded these tragic endings; in the postwar Texas of suburbs and cocktails, their drinking was routine but undramatic. — Gail Caldwell

The world became more aware that America-despite being the hope of many who have the personal drive and ambition to become part of the "American dream"-is beset by serious operational challenges: a massive and growing national debt, widening social inequality, a cornucopian culture that worships materialism, a financial system given to greedy speculation, and a polarized political system — Zbigniew Brzezinski

The welfare state is collapsing all around us. There are people that realize that we can't go on this way, but I'm not sure how many people realize how close we are to the collapse of the U.S. financial system. — Rush Limbaugh

Like it or not, we have to have a financial system that is healthy and functioning. — Barack Obama

But our system of regulation must keep up with this. If it fails to keep up, it will hold back economic expansion. We need financial market regulation that works at national and European level. — John Bruton

Less than a decade after the explosion of the first atom bomb the megamachine had expanded to a point where it began to dominate key areas of the whole economy of the United States: its system of control reached beyond the airfields, the rocket sites, the bomb factories, the universities, to a hundred other related areas, tying the once separate and independent enterprises to a central organization whose irrational and humanly subversive policies ensured the still further expansion of the megamachine. Financial subventions, research grants, educational subsidies, all worked unceasingly for the 'Life, Prosperity, Health' of the new rulers, headed by Goliaths in brass armor bellowing threats of defiance and destruction at the entire world. In a short time, the original military-industrial-scientific elite became the supreme Pentagon of Power, for it incorporated likewise both the bureaucratic and the educational establishments. — Lewis Mumford

The free enterprise system has not failed; the financial system has failed. — Tony Blair

The rest of the world needs the US economy and financial system to recover in order for it to revive. We remain at the center of global economic activity with financial and trade ties to every region of the globe. — Timothy Geithner

By rescuing the financial system without reforming it, Washington has done nothing to protect us from a new crisis, and, in fact, has made another crisis more likely. — Paul Krugman

In the financial system we have today, with less risk concentrated in banks, the probability of systemic financial crises may be lower than in traditional bank-centered financial systems. — Timothy Geithner

I believe that the banks and the financial services industry take more than their fair share of our profits by using unfair business tactics. It now appears that our entire financial system has taken far more risk than is warranted by its capital structure and that this will lead to a market crash affecting economies worldwide. Gordon L. Eade — Kenneth Eade

Looking past the immediate crisis, a more resilient system must be built on stronger and better designed shock absorbers, both in the major institutions and in the infrastructure of the financial system. — Timothy Geithner

The threat posed by Bank of America isn't just financial - it's a full-blown assault on the American dream. Where's the incentive to play fair and do well, when what we see rewarded at the highest levels of society is failure, stupidity, incompetence and meanness? If this is what winning in our system looks like, who doesn't want to be a loser? — Matt Taibbi

Westerners who go native with Chinese ideas are called 'eggs' - outside white, inside yellow -, and are often systematically excluded from their expat community's activities, let alone the financial support system. — Thorsten J. Pattberg

It is the policy of the federal government to use all resources at its disposal to make our financial system stronger. — Henry Paulson

I would very honestly just tell you that what I tried to do was simply respond to inquiries from people as they came in. Where I've thought I could say something useful, I've tried to add a voice that was, frankly, a dissident voice earlier on, but one that I think has become a more mainstream voice-and not because I've shifted. I think that the critique I had of what was going on in our financial system from six, eight years ago-after seeing some of what we've suffered through and even since the cataclysm itself-in terms of the structural changes. — Eliot Spitzer

Real estate offers huge financial advantages to those who will learn the system. — Garrett Sutton

I believe in market economics. But to paraphrase Churchill - who said this about democracy and political regimes - a market economy might be the worst economic regime available, apart from the alternatives. I believe that people react to incentives, that incentives matter, and that prices reflect the way things should be allocated. But I also believe that market economies sometimes have market failures, and when these occur, there's a role for prudential - not excessive - regulation of the financial system. — Nouriel Roubini

I think what they've been doing is largely almost in firefighting mode without a good conceptual framework - either at the micro or the macro level. Micro, you would ask: "What kind of financial or banking system do we want?" Macro, you would say: "What are the underlying problems in the structure of our economy?" — Joseph Stiglitz

When you give up the hope that some advisor, some system, some source of inside tips is going to give you a shortcut to wealth, you'll finally begin to gain control over your financial future. — Harry Browne

Since 1994, lawmakers on both sides of the aisle have considered it politically risky to offer a plan to fix America's broken health care system. The American public, though, has paid the price for this silence as health care costs skyrocketed, millions went uninsured, and millions more grappled with financial insecurity and hardship. — Ron Wyden

By remaining behind the scenes, they (the Rothschilds) were able to avoid the brunt of public anger which was directed, instead, at the political figures which they largely controlled. This is a technique which has been practiced by financial manipulators ever since, and it is fully utilized by those who operate the Federal Reserve System today. — G. Edward Griffin

The revival of the U.S. financial system after the crash of 2008 is arguably the Obama administration's biggest domestic policy success. — David Ignatius

We must see that it is foolish, sinful and suicidal to destroy the health of nature for the sake of an economy that is really not an economy at all but merely a financial system, one that is unnatural, undemocratic, sacrilegious, and ephemeral. — Wendell Berry

The people in a position to resolve the financial crisis were, of course, the very same people who had failed to foresee it: Treasury Secretary Henry Paulson, future Treasury Secretary Timothy Geithner, Fed Chairman Ben Bernanke, Goldman Sachs CEO Lloyd Blankfein, Morgan Stanley CEO John Mack, Citigroup CEO Vikram Pandit, and so on. A few Wall Street CEOs had been fired for their roles in the subprime mortgage catastrophe, but most remained in their jobs, and they, of all people, became important characters operating behind the closed doors, trying to figure out what to do next. With them were a handful of government officials - the same government officials who should have known a lot more about what Wall Street firms were doing, back when they were doing it. All shared a distinction: They had proven far less capable of grasping basic truths in the heart of the U.S. financial system than a one-eyed money manager with Asperger's syndrome. — Michael Lewis

A central notion in the Affordable Care Act was we had an inefficient system with a lot of waste that didn't also deliver the kind of quality that was needed that often put health care providers in a box where they wanted to do better for their patients, but financial incentives were skewed the other way, we don't need to reinvent the wheel
you're already figuring out what works to reduce infections in hospitals or help patients with complicated needs. — Barack Obama

Of course most Americans don't know how A.I.G. brought the world's financial system to near-ruin or what credit-default swaps are. They may not even know what A.I.G. stands for. But Americans do make the connection between their fears about their own jobs and their broad understanding of the A.I.G. debacle. — Frank Rich

In the two decades after I left, I waited for the end of Wall Street as I had known it. The outrageous bonuses, the endless parade of rogue traders, the scandal that sank Drexel Burnham, the scandal that destroyed John Gutfreund and finished off Salomon Brothers, the crisis following the collapse of my old boss John Meriwether's Long-Term Capital Management, the Internet bubble: Over and over again, the financial system was, in some narrow way, discredited. Yet the big Wall Street banks at the center of it just kept on growing, along with the sums of money that they doled out to twenty-six-year-olds to perform tasks of no obvious social utility. The rebellion by American youth against the money culture never happened. Why bother to overturn your parents' world when you can buy it and sell off the pieces? — Michael Lewis

Nearly everything possible had been done to spoil the game: the heavy financial interest; the absurd transfer and player-selling system; the lack of any birth or residential qualifications; the absurd publicity given to every feature of it by the press; the monstrous partisanships of the crowds. — J.B. Priestley

On balance, the financial system subracts value from society — John C. Bogle

'Bush v. Gore' gave us a president who lost the popular vote, eventually appointed two more justices, and led us into a war of choice while failing to regulate a financial system dependent on toxic mortgage-backed derivatives. — Marvin Ammori

You are kept apart that you may be separately fleeced of your earnings. You are made to hate each other because upon that hatred is rested the keystone of the arch of financial despotism which enslaves you both. You are deceived and blinded that you may not see how this race antagonism perpetuates a monetary system which beggars both. — Thomas E. Watson

Mr. Chairman, when the Fed was passed, the people of these United States did not perceive that a world system was being set up here ... and that this country was to supply the financial power to an international superstate. — Louis Thomas McFadden

the function of the system of financial intermediation (banks and financial markets): to find the best possible uses for capital, such that each available unit of capital is invested where it is most productive (at the opposite ends of the earth, if need be) and pays the highest possible return to the investor. — Thomas Piketty

If the financial system collapses, it's really, really hard to put it back together again. — Henry Paulson

He smote the rock of the national resources, and abundant streams of revenue gushed forth. He touched the dead corpse of the Public Credit, and it sprung upon its feet. The fabled birth of Minerva, from the brain of Jove, was hardly more sudden or more perfect than the financial system of the United States, as it burst forth from the conceptions of Alexander Hamilton. — Daniel Webster

We judged that a sudden, disorderly failure of Bear would have brought with it unpredictable but severe consequences for the functioning of the broader financial system and the broader economy, with lower equity prices, further downward pressure on home values, and less access to credit for companies and households. — Timothy Geithner

It's great that people get together and collaborate, talk about the facts and the analysis, all in the interest of having a great financial system. — Jamie Dimon

Momma, a welfare cheater. A criminal who couldn't stand to se her kids go hungry, or grow up in slumbs and end up mugging people in dar corners. I guess the system didn't want her to get off relief, the way it kept sending social workers around to be sure Momma wasn't trying to make things better. — Dick Gregory

She [Carolyn Maloney] understands the whole picture. She is comfortable with these issues 'cause she is chair of the committee, and she's dogged and will make sure the average woman and man is represented as well as making sure that our financial system stays afloat. In other words, she gets it and she has represented the financial district, but she also represents the average person and definitely the average woman. — Eleanor Smeal

To prosper and advance, the American business sector is going to need a financial system oriented toward business, not 'home ownership.' — Edmund Phelps

Our financial system is a false one and a huge burden on the people . . . This Act establishes the most gigantic trust on earth." - Congressman Charles Augustus Lindbergh, Sr. — Eustace Mullins

[High income tax rates] not only check consumption but discourage investment and encourage ... the avoidance of taxes [rather] than the production of goods.[ ... ]Our present tax system ... reduces the financial incentives for personal effort, investment, and risk-taking. — John F. Kennedy

We are inheriting the worst financial system since the Depression. We're inheriting a situation - when people go back and study major banking crises a quarter century from now, the one that America developed in 2007 and 2008 is going to be one of those crises. — Lawrence Summers

The financial system as a whole has had the characteristics of a Ponzi scheme if we look at it fundamentally. — Tim Lee

Central banking has become the new central planning. Under the old central planning, government attempted to manage production and the supply of goods and services. Under the new central planning, the Fed attempts to manage the financial system and the supply and allocation of credit. — Anonymous

Well, as you know, we're working through a difficult period in our financial markets right now as we work off some of the past excesses. But the American people can remain confident in the soundness and the resilience of our financial system. — Henry Paulson

From my point of view, the American financial system - including banks and investment banks - is far safer because of capital and liquidity requirements. Despite all the turbulence so far this year, I don't think anyone's questioning our system. And that, obviously, is a good thing. — Jamie Dimon

The current financial crisis makes it very clears that the system that we have isn't really working, and this is the right time for us to undo things and build them in a new way. — Muhammad Yunus

If the financial system has a defect, it is that it reflects and magnifies what we human beings are like. Money amplifies our tendency to overreact, to swing from exuberance when things are going well to deep depression when they go wrong. Booms and busts are products, at root, of our emotional volatility. — Niall Ferguson

For market discipline to constrain risk effectively, financial institutions must be allowed to fail. Under optimal financial regulatory and financial system infrastructures, such a failure would not threaten the overall system. — Henry Paulson

When large companies take on risk, then they impose risks on the rest of the system. And these are systemic risks and these systemic risks we never used to think were really that important, but as soon as we recognize how the financial sector - the risks the financial sector takes on can impact the entire global economy, we realize that those risks needed to be controlled for the social good. — Robert F. Engle

The process of globalization has now interconnected almost everything ranging from financial markets to transport networks to communication systems in a huge system that no one really understands. — John L. Casti

The stock market is a financial redistribution system. It takes money away from those who have no patience and gives it to those who have." - Warren Buffet — John F. Demartini

If women had better access to the financial system - even so much as a basic deposit account at a bank - it would be a major step in the direction of greater wealth and greater economic empowerment. — Sri Mulyani Indrawati

From opposing unfair trade deals to fighting for a fair financial system, Hillary Clinton has shown she puts working families first. She knows as president that her first job will be creating jobs for the middle class. I am proud to endorse her today because I know she will keep Ohio moving forward. — Sherrod Brown

If the American government can't stand behind the dollar, the world's benchmark currency, then the global financial system will very likely enter a new era in which there is much less trade and much less economic growth. It would be, by most accounts, the largest self-imposed financial disaster in history. — Adam Davidson

Look at any financial institution, at any bank. They're all photocopies of each other. There's no diversity of institutions and even less diversity of currency. Therefore, just as you say its very logical that an ecosystem like this will collapse, it's very predictable a monetary system like this will collapse, too. And it hasn't finished collapsing, by the way. — Bernard Lietaer

The Bankers' New Clothes makes a simple, powerful argument: that banks need to raise more capital. It is entirely persuasive that the extent of their leverage makes the financial system fragile, and it clearly and patiently demolishes all the counter-arguments made by the banks and their lobbyists. — Diane Coyle

The banks, because of mismanagement, because of huge risk taking, are now in very vulnerable positions. We can expect that we're gonna have to do more to shore up the financial system. We also are gonna have to make sure that we set up financial regulations so that not only does this never happen again, but you start having some sort of - trust in how the credit markets work again. — Barack Obama

Does a population have informed consent when that population is not taught the inner workings of its monetary system, and then is drawn, all unknowing, into economic adventures? — Frank Herbert

There is a system of terroristic states-the real terror network-that has spread throughout Latin America and elsewhere over the past several decades, and which is deeply rooted in the corporate interest and sustaining political-military-financial propaganda mechanisms of the United States and its allies in the Free World. — Edward S. Herman

The current system is organized around financial values over life values. We need to shift that locus of power down to the community level because the financial markets recognize only money and thereby only financial values. — David Korten

The presently existing global financial and monetary system will disintegrate during the near term. The collapse might occur this spring, or summer, or next autumn; it could come next year; it will almost certainly occur during President William Clinton's first term in office; it will occur soon. That collapse into disintegration is inevitable, because it could not be stopped now by anything but the politically improbable decision by leading governments to put the relevant financial and monetary institutions into bankruptcy reorganization. — Lyndon LaRouche

Normally, when you challenge the conventional wisdom - that the current economic and political system is the only possible one - the first reaction you are likely to get is a demand for a detailed architectural blueprint of how an alternative system would work, down to the nature of its financial instruments, energy supplies, and policies of sewer maintenance. Next, you are likely to be asked for a detailed program of how this system will be brought into existence. Historically, this is ridiculous. When has social change ever happened according to someone's blueprint? It's not as if a small circle of visionaries in Renaissance Florence conceived of something they called "capitalism," figured out the details of how the stock exchange and factories would someday work, and then put in place a program to bring their visions into reality. In fact, the idea is so absurd we might well ask ourselves how it ever occurred to us to imagine this is how change happens to begin. — David Graeber

As masters of the bond market, the Rothschilds were already more feared than loved. Reactionaries on the Right lamented the rise of a new form of wealth, higher-yielding and more liquid than the landed estates of Europe's aristocratic elites. As Heinrich Heine discerned, there was something profoundly revolutionary about the financial system the Rothschilds were creating: — Niall Ferguson

The process of reforming the mental health system never includes the complaints that families and caregivers have regarding a need for increased access to resources, treatment, education, and financial support. Reform has continued to ignore the basic needs of families and suffering individuals with severe mental illness and special needs. — Tamara Hill

When you hear the phrase "rescue the financial system," translate it in your mind into "keep the debts on the books." They are trying to find a way for you (and debtor nations too) to keep paying and for the debt to keep growing. — Charles Eisenstein

At Mint, we developed five pending patents on our technology, ranging from categorization to the Ways to Save system that calculates how much a new financial product would save a user given their present financial situation. — Aaron Patzer

The stress on the financial system in the fall of 2007 was significant, but not so significant as to threaten the overall stability of the U.S. economy, although it did lead to the beginning of a recession at the end of 2007. — Ben Bernanke

Since 2001, people have been scared. There's been some really scary stuff that's been happening - 9/11, Iraq, Afghanistan, Katrina, anthrax letters, D.C. sniper, global warming, global financial meltdown, bird flu, swine flu, SARS. I think people really feel like the system's breaking down. — Max Brooks

When you make a movie outside the system and it's successful critically or a moderate financial success, you usually have to go back into the system and make a big hit. — Brian De Palma

War has generally had grave and fateful consequences for the American monetary and financial system. We have seen that the Revolutionary War occasioned a mass of depreciated fiat paper, worthless Continentals, a huge public debt, and the beginnings of central banking in the Bank of North America. — Murray Rothbard

Like the effects of industrial pollution and the new system of global financial markets, the AIDS crisis is evidence of a world in which nothing important is regional, local, limited; in which everything that can circulate does, and every problem is, or is destined to become, worldwide. — Susan Sontag

Nothing brings home the fragility of the banking system or the potency of a financial crisis more vividly than writing about these issues from the eye of the storm. Watching the world's central bankers and finance officials grappling with the current situation - trying one thing after another to restore confidence, throwing everything they can at the problem, coping daily with unexpected and startling shifts in market sentiment - reinforces the lesson that there is no magic bullet or simple formula for dealing with financial panics. — Liaquat Ahamed

The Death of Money is an engrossing account of the massive stresses accumulating in the global financial system, especially since the 2008 financial crisis. Jim Rickards is a natural teacher. Any serious student of financial crises and their root causes needs to read this book. — John H. Makin

I do sense that the financial system is under the gun. In order to keep our system and economies moving globally, there's the need to extend new money. — Henry Kaufman

The powers of financial capitalism had a far-reaching aim, nothing less than to create a world system of financial control in private hands able to dominate the political system of each country and the economy of the world as a whole. This system was to be controlled in a feudalist fashion by the central banks of the world acting in concert, by secret agreements arrived at in frequent meetings and conferences. — Carroll Quigley

Book I wrote this book because I believe there is still hope to prevent the catastrophic events planned by the global elite ruling class. In a desperate attempt to protect their monopoly on the global financial system, they are willing to start World War III. It is their intention to use ISIS to ignite a massive conflict in the Middle East, a conflict designed to draw Russia and China in so they can start a global war. — James Garcia

The Federal Reserve Bank of New York is eager to enter into close relationship with the Bank for International Settlements ... The conclusion is impossible to escape that the State and Treasury Departments are willing to pool the banking system of Europe and America, setting up a world financial power independent of and above the Government of the United States ... The United States under present conditions will be transformed from the most active of manufacturing nations into a consuming and importing nation with a balance of trade against it. — Louis Thomas McFadden

It took us years to get into the mess that we got ourselves in at the end of 2008, and it's going to take a while to get us out. We lost eight million jobs, we saw a financial system near collapse, we have a continuing housing crisis that we're making progress on dealing with. — Robert Gibbs

At the federal level, this problem could be greatly alleviated by abolishing the Electoral College system. It's the winner-take-all mathematics from state to state that delivers so much power to a relative handful of voters. It's as if in politics, as in economics, we have a privileged 1 percent. And the money from the financial 1 percent underwrites the microtargeting to secure the votes of the political 1 percent. Without the Electoral College, by contrast, every vote would be worth exactly the same. That would be a step toward democracy. — Cathy O'Neil

When you print money, the money does not flow evenly into the economic system. It stays essentially in the financial service industry and among people that have access to these funds, mostly well-to-do people. It does not go to the worker. — Marc Faber

Defaulting on the nation's debt would be cataclysmic. The U.S. Treasury's Aaa rating is the one constant in the world's financial system. When times are bad anywhere on the planet, global investors flock to Treasury bonds because they know they will get their money back. — Mark Zandi

I don't feel so strongly against remakes, but if I don't like it, I guess I just don't do it. It is what it is. Hollywood is driven by the financial system, so if they think that it has a brand and people are going to go see it because it's a recognizable property, they're going to remake it. — James Wan

The world economy is in a nosedive, and understanding what I call "depression economics" - the weird world you get into when even a zero interest rate isn't low enough, and a messed-up financial system is dragging down the real economy - is essential if we're going to avoid the worst. — Paul Krugman

In Eisman's view, the unwillingness of the U.S. government to allow the bankers to fail was less a solution than a symptom of a still deeply dysfunctional financial system. — Michael Lewis

In my opinion, the United States and many Western nations have a financial disaster coming, caused by our educational system's failure to adequately provide a realistic financial education program for students. — Robert Kiyosaki

Capitalism has grown into a world system of colonial oppression and of the financial strangulation of the overwhelming majority of the population of the world by a handful of "advanced" countries. And this "booty" is shared between two or — Vladimir Ilyich Lenin

A government always finds itself obliged to resort to inflationary measures when it cannot negotiate loans and dare not levy taxes, because it has reason to fear that it will forfeit approval of the policy it is following if it reveals too soon the financial and general economic consequences of that policy. Thus inflation becomes the most important psychological resource of any economic policy whose consequences have to be concealed; and so in this sense it can be called an instrument of unpopular, i.e. of anti-democratic, policy, since by misleading public opinion it makes possible the continued existence of a system of government that would have no hope of the consent of the people if the circumstances were clearly laid before them. That is the political function of inflation. It explains why inflation has always been an important resource of policies of war and revolution and why we also find it in the service of socialism. — Ludwig Von Mises