During the Middle Ages, a group of men tried to turn base metals into gold; they were known as alchemists and they did not succeed in their endeavors. We’re fortunate that they didn’t. Why? Consider the alternative.
Had the alchemists found a way to transmute base metals such as lead into the monetary unit of the time, a race would have kicked off. A race to find as many metals as possible to turn into gold.
The first users of this newly created gold would have enjoyed tremendous wealth, but as it circulated throughout the economy — a much smaller sphere of opportunity in the Middle Ages — calamity would have ensued.
Those with less personal or political connection to alchemists would have found themselves outside of any market economy. They would no longer be able to bid on goods and services. The price in gold terms would simply be too high.
It would have created the ultimate boom-and-bust cycle. Given where economic development was at the time, that could have prolonged the Dark Ages by hundreds of years.
While considered part of the lore of the Middle Ages, the work of alchemists in experimenting and documenting their results paved the way toward the scientific method of discovery. In other words, they failed at their primary goal, yet they found something that would be far more valuable for mankind.
Where the alchemists failed in trying to create value from something out of lesser value, a group of people in the 20th century found success. These modern alchemists are known as central bankers.
The Current Age Of Financial Alchemy
The early 1970s saw a surge in inflation and commodity prices, much like today. Dollar printing had been persistent for years, also much like today. With the end of money having
