“The Economic Consequences of Mr. Churchill” was an essay written by John Maynard Keynes and published in July 1925.
In it, Keynes criticized Winston Churchill’s decision, as Chancellor of the Exchequer, to return Britain to the gold standard at its pre-World War I parity.
Keynes argued that this move overvalued the British pound, harming the economy by making British exports less competitive and leading to deflation and unemployment.
What will the consequences of an overvalued dollar be?
In which bubbles will investors choose to “take refuge” from the overvaluation? 🤦🏿♂️
More from Keynes
Three more from Keynes for anyone with skin in the game waiting for markets to correct:
“Markets can remain irrational longer than you can remain solvent.”
In talks with their bankers:
“A banker is someone who lends you his umbrella when the sun is shining, but wants it back the minute it begins to rain.”
On financial advisers:
“A sound banker, alas, is not one who foresees danger and avoids it, but one who, when he is ruined, is ruined in a conventional and orthodox way along with his fellows, so that no one can really blame him.”
Some comments from below the line
