Break Quote by Ludwig von Mises
“If the practice persists of covering government deficits with the issue of notes, then the day will come without fail, sooner or later, when the monetary systems of those nations pursuing this course will break down completely. The purchasing power of the monetary unit will decline more and more, until finally it disappears completely.”
About This Quote
Source Book: Human Action, Ludwig von Mises, 1949
Persistent reliance on printing money to cover deficits erodes currency value, eventually causing hyperinflation and collapse.
In simple terms: Printing money to pay debts destroys money.
Key Takeaway
Avoid financing deficits by creating money.
Themes
economics
inflation
monetary policy
government finance
Mood
cautious
analytical
Type
economic
policy
When to use this quote
- budget planning
- policy advising
- investment strategy
- personal finance
- business management
Key Concepts
sound money
inflationary spiral
fiscal responsibility
Questions to Reflect On
- How do you assess the sustainability of a nation's fiscal policy?
- What alternatives exist to avoid monetary collapse?
A Different Perspective
If deficits are financed by borrowing rather than money creation, the warning is less immediate.
![“This [Federal Reserve Act] establishes the most gigantic trust on earth. When the President (Woodrow Wilson) signs this bill, the invisible government of the monetary power will be legalized…the worst legislative crime of the ages is perpetrated by this banking and currency bill.” quote by Charles A. Lindbergh Sr](https://sms4smile.com/quotes/img-quotes/b95/charles-a-lindbergh-sr-197289_federal-reserve_this-federal-reserve-act-establishes-the_2898079.jpg)
