Specie [gold and silver coin] is the most perfect medium because it will preserve its own level; because, having intrinsic and universal value, it can never die in our hands, and it is the surest resource of reliance in time of war.
Interpretation
Jefferson argues that gold and silver coins are the most reliable form of currency due to their inherent value and stability.
In this quote, Thomas Jefferson highlights the enduring value of gold and silver coins as a medium of exchange. He suggests that these precious metals possess intrinsic worth which ensures their stability and reliability, especially in times of crisis such as war. This perspective reflects a broader philosophical approach to economics, where tangible assets are preferred for their ability to maintain value over time, providing security and assurance in uncertain circumstances.
In practice
During a discussion about investments, one might quote Jefferson to emphasize the importance of tangible assets.
The firmness with which the (American) people have withstood the... abuses of the press, the discernment they have manifested between truth and falsehood, show that they may safely be trusted to hear everything true and false and to form a correct judgment between them.
I, place economy among the first & most important republican virtues, & public debt as the greatest of the dangers to be feared
We must make our choice between economy and liberty or confusion and servitude...If we run into such debts, we must be taxed in our meat and drink, in our necessities and comforts, in our labor and in our amusements...if we can prevent the government from wasting the labor of the people, under the pretense of caring for them, they will be happy.
Very many and very meritorious were the worthy patriots who assisted in bringing back our government to its republican tack. To preserve it in that, will require unremitting vigilance.
A nation, as a society, forms a moral person, and every member of it is personally responsible for his society.
Timid men prefer the calm of despotism to the tempestuous sea of liberty.
But how do we know when irrational exuberance has unduly escalated asset values, which then become subject to unexpected and prolonged contractions as they have in Japan over the past decade?
You will either learn to manage money, or the lack of it will manage you.
The very nature of finance is that it cannot be profitable unless it is significantly leveraged... and as long as there is debt, there can be failure and contagion.
Our stay-put behavior reflects our view that the stock market serves as a relocation center at which money is moved from the active to the patient.
Debt collectors like to play on your emotions because they think you'll give in and do something you can't really afford to do. Most of them don't care about you or your situation as long as they get some money.
When interest rates are low we have conditions for asset bubbles to develop, and they are developing at the moment. The ultimate asset bubble is gold.
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