A system of capitalism presumes sound money, not fiat money manipulated by a central bank. Capitalism cherishes voluntary contracts and interest rates that are determined by savings, not credit creation by a central bank.

Summary

This quote emphasizes that capitalism functions best under a stable and trustworthy monetary system, with money backed by tangible assets rather than being controlled and manipulated by a central bank. It suggests that capitalism flourishes when voluntary agreements are made freely and interest rates are determined naturally through actual savings rather than being artificially influenced by the creation of credit by a central bank. This interpretation supports the notion that a capitalist economy thrives when financial decisions are based on market forces rather than centralized interventions.

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