The inventions of paper and printing gave enterprising governments, always looking for new sources of revenue, an “Open Sesame” to previously unimagined sources of wealth. The kings had long since granted to themselves the monopoly of minting coins in their kingdoms, calling such a monopoly crucial to their “sovereignty,” and then charging high seigniorage prices for coining gold or silver bullion. But this was piddling, and occasional debasements were not fast enough for the kings’ insatiable need for revenue. But if the kings could obtain a monopoly right to print paper tickets, and call them the equivalent of gold coins, then there was an unlimited potential for acquiring wealth. In short, if the king could become a legalized monopoly counterfeiter, and simply issue “gold coins” by printing paper tickets with the same names on them, the king could inflate the money supply indefinitely and pay for his unlimited needs.
“…what occurred in October 1917 [7th November Gregorian calendar] was a classical modern coup d’état accomplished without mass support. I was a surreptitious seizure of the nerve centres of the modern state, carried out under false slogans in order to neutralise the population at large, the true purpose of which was revealed only after the new claimants to power were firmly saddle. (….)