THE BORSODI CONSTANT AN INFLATION-FREE CURRENCY

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"Well that was a nice thought, but politicians don't seem to work that way. Planned inflation is just like planned drug taking. It doesn't work. You always need a bigger 'fix' the next time around. Politicians have never stopped inflating a country's currency once they've begun. Quite the contrary. They just keep on giving a nation's money supply a bigger and bigger shot in the arm until the whole situation runs away with itself. And that's what's happening on a global scale right now."

Borsodi traces the planet's current financial problems to the International Monetary Conference held in Bretton Woods, New Hampshire in July of 1944. Keynes' inflationary philosophy was adopted on an international scale at that meeting and, as a result, is universally accepted by heads of state and their advisors today. Dr. Borsodi, on the other hand, was not impressed by the idea then and he remains unimpressed by it now.

"I like what I call 'rational systems of money'. I liked then in 1944 and I still like them today. Fiat money is not rational and Keynes' philosophy of economic growth can lead only to fiat currency."

The Bretton Woods conference disturbed Dr. Borsodi so deeply that he soon wrote a small paperback in which lie prophesied what are substantially the economic problems that we're experiencing right now. The booklet, published in 1948 by The School of Living, was titled Inflation is Coming and What to Do About It. Despite the fact that the publication sold nearly half a million copies, however, few individuals in positions of power seem to have read it or to have heeded Borsodi's warnings.

And so we find nearly every nation in the world frantically trying to run up . . . an increasingly rapid down escalator of debased currency. It costs more and more every day, in other words, just to stayeven than it did the day before. During the 28 years from 1945 to 1973, the value of the United States dollar depreciated by a good two-thirds . . . and a 1974 dollar has shrunk an additional 10%. And there's no end to the madness in sight. "If we continue this foolishness," says Borsodi, "we're eventually going to witness a debacle followed by a depression worse than that of the 1930's."

Dr. Borsodi was more or less content to write and talk about the problem until the U.S. dollar was devalued in 1971. He and his wife were visiting a health resort in southern California at the time and Borsodi was researching a book in the Escondido library when he picked up a newspaper and read of the devaluation. The book was forgotten. Borsodi says, "I began to wonder what would happen if, instead of writing another book about inflation, I were to try to issue a currency that would be inflation-free."

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