Warday

One of the great acts of economic heroism—which, as usual, nobody outside the profession understands at all—was the creation of the Gold Tier in the currency. Barker Findlay, the chairman of the Federal Reserve, is responsible for that idea. If he hadn’t been in Atlanta on Warday—if he had been in Washington—I hate to think about it.

We have experienced an economic situation with no known parallels. We’ve been in uncharted territory. At home we had dollar deflation due to scarcity, while abroad our currency was becoming as worthless as if it had inflated itself out of existence. So you had a situation where a house in the States might cost a thousand dollars, while in Italy, say, a thousand dollars wouldn’t buy a cup of coffee. This has hurt trade very badly. If it weren’t for the gold, we’d be dead in the water as a trading nation. But we’re doing pretty well—and out here on the Coast we’re beginning actually to thrive—because we’ve been able to pay in gold for foreign products. By the time the gold gives out, it’s to be hoped that we’ll have enough independent production to be able to offer goods for trade.

What we are doing is supporting ourselves on gold transfers to foreign companies. The National Mint in Atlanta makes all those beautiful double eagles we send abroad in return for the few and astronomically overpriced televisions and radios and computers the colonial powers will send us.

Around the economics faculty here, it’s popular to say that the undamaged powers need our markets. The hell they do. You didn’t see Belgium developing the Congo. They do not need our markets, they need our resources, and they will encourage American economic development just enough to get our agricultural system running on a stable base, and then they will put the brakes on.

Our First World friends want to develop their own technological economy without reference to us. They want America to be an agricultural nation. We supply the corn and wheat and soybeans and they give us an occasional stripped Toyota. And yet, we have the plant and equipment here. Detroit is three-fourths idle, but it didn’t get bombed. And EMP did not damage it that much. You can build cars without computers. Hell, we did just fine at it, right up until the seventies. So why aren’t the plants in Detroit running?

Oh, I’ll grant the flow from American plants out here on the Coast, but look at the cars—a mess. Plastic doors, for God’s sake. Look at the difference between a Chevy Consensus and, for example, a Leyland Star or a Toyota. It’s ridiculous. We don’t even have any chrome! And yet a Consensus costs more than a Toyota! You can get a Toyota 4xD Timbre for thirty gold dollars, but no paper currency accepted. A Consensus costs three thousand one hundred paper. With a hundred paper to one gold, that’s still a hundred dollars more for far less car. Of course, if you’re like most people, you can’t get gold to buy a Toyota, so you end up with the Consensus.

Now let’s see. What haven’t I covered? Ah yes, debt. The federal debt, of course, has ceased to exist, largely because of the failure of so many records. And the moratorium on remaining prewar debt will be made permanent within the year, in my opinion. Or at least restructured to new dollars. I mean, you can’t expect a man who earns a thousand dollars a year to pay off a hundred-thousand-dollar mortgage, can you? That would have to be pared down at least ten times. Besides, it’s unfair to a man whose debt records survived to penalize him with responsibility for them when another man, whose records were lost, gets off scot-free.

I wish you guys would talk to me. I know I agreed to do this solo, but I’m really very uncomfortable with two heavily disguised roadies sitting across from me with a very expensive-looking disk recorder, no matter if you’re Quinn’s friends or not. I don’t know what I’ve been saying. Maybe I’ve been a bit subversive. The British have been a tremendous help to us. So have the other Europeans. And the Japanese. I think we would have gone back to the barter level without access to their technology and services, and our economic efficiency would have declined too far to enable us to adjust to the continuing condemnation of farmland in the Midwest.

Famine would have become a permanent institution. And, just for the record, I adore California and if anything I may have said implied otherwise, it was a misstatement.

I think I can lay my hands on some figures. Yes—these come from the U.S. Census Bureau, by the way, the Statistical Abstract of the United States, extrapolated to 1991 from original 1987 data, and taking into account war damage.