The gold standard is incompatible with chronic deficit spending (the
hallmark of the welfare state). Stripped of its academic jargon, the welfare
state is nothing more than a mechanism by which governments confiscate the
wealth of the productive members of a society to support a wide variety of
welfare schemes . . . .
The financial policy of the welfare state requires that there be no way for
the owners of wealth to protect themselves.
This is the shabby secret of the welfare statists’ tirades against gold.
Deficit spending is simply a scheme for the “hidden” confiscation of wealth.
Gold stands in the way of this insidious process. It stands as a protector of
property rights. If one grasps this, one has no difficulty in understanding the
statists’ antagonism toward the gold standard.