The financial crisis which the epidemic is bringing in its wake will require drastic measures, including the injection of huge amounts of money. The Rentenmark is the model. This is the currency that was introduced in Germany in 1923 to put an end to the hyperinflation of the previous year. It was based on the yield from a land value tax. The concept of a currency based on the yield from a land value tax
cannot be faulted. Land value is solely due to the presence and
activities of the government, paid for out of taxation. The primary
purpose of government-issued currency is for the payment of taxes
(“render unto Caesar”). Its use as a medium of exchange is secondary.
The Rentenmark completes a cycle which is otherwise dangerously open.
Even gold is subject to inflation risk.
The Guardian has published a couple more articles against HS2, one by specialist rail commentator Christian Wolmar, and another today by journalist Simon Jenkins. The main arguments in favour will doubtless be wheeled out by the commentators: the need for capacity and the disruption caused by upgrading existing routes. HST itself will severely disrupt services to Euston during the construction period. Capacity can be increased at a fraction of the cost by a variety of measures, provided that it is accepted that the additional traffic will run at existing speeds. It is not generally known that the Midland main line is, or was, four track all the way from London to Trent Junction, between Nottingham and Derby. This is because the additional tracks are separate, having been added for coal trains which trundled down to Brent sidings, on the edge of London, from a collection point at Toton in Nottinghamshire, where the Midland Railway build a huge marshalling yard. Beyond Derby, the main l...
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