Already in 1918, shortly after World War I, when
everybody talked about peace and many international organizations
were created to secure that peace, Gesell published the following
warning in a letter to the editor of the newspaper "Zeitung am Mittag" in
Berlin:
"In spite of the holy promise of all people to banish war, once and
for all, in spite of the cry of millions 'Never a war again,' in spite of
all the hopes for a better future, I have this to say: If the present
monetary system, based on interest and compound interest,
remains in operation, I dare to predict today, that it will take less
than 25 years for us to have a new and even worse war. I can
foresee the coming development clearly. The present degree of
technological advancement will quickly result in a record
performance of industry. The build-up of capital will be rapid in
spite of the enormous losses during the war, and through its over-
supply will lower the interest rate. Money will then be hoarded.
Economic activities will diminish and increasing numbers of
unemployed persons will roam the streets; within the discontented
masses wild, revolutionary ideas will arise and also the poisonous
plant called "Super-Nationalism" will proliferate. No country will
understand the other, and the end can only be war again. (28)"
The only good news is that our fractional reserve system is not as rigid as a gold standard. I.e. we will get a silent depression rather than a great depression.
"In spite of the holy promise of all people to banish war, once and for all, in spite of the cry of millions 'Never a war again,' in spite of all the hopes for a better future, I have this to say: If the present monetary system, based on interest and compound interest, remains in operation, I dare to predict today, that it will take less than 25 years for us to have a new and even worse war. I can foresee the coming development clearly. The present degree of technological advancement will quickly result in a record performance of industry. The build-up of capital will be rapid in spite of the enormous losses during the war, and through its over- supply will lower the interest rate. Money will then be hoarded. Economic activities will diminish and increasing numbers of unemployed persons will roam the streets; within the discontented masses wild, revolutionary ideas will arise and also the poisonous plant called "Super-Nationalism" will proliferate. No country will understand the other, and the end can only be war again. (28)"
The only good news is that our fractional reserve system is not as rigid as a gold standard. I.e. we will get a silent depression rather than a great depression.