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On June 23, Hans F. Sennholz, one of the most important free-market economists of the last 50 years, passed away.
Given the time and place of his birth and early life, it seems that Sennholz was destined to become a dedicated supporter of freedom. Born in 1922 during the age of hyperinflation in Germany, during his formative years he lived through the Great Depression and the rise of Adolf Hitler, making him a witness to the damages caused by state intervention in the economy and to the dangers of totalitarian ideologies.
A major theme that Sennholz addressed in his writings was state manipulation of the money supply. In an update to his famous book Age of Inflation published in 2006, he warned, "paper money that is decreed to be legal tender and unbacked deposits resting thereon are now our legal media of exchange. They are," he said, "dwindling in value, depreciating our savings, ... causing boom and bust cycles and politicizing nearly every aspect of our economic and social lives." Perhaps recalling what he witnessed in pre-war Germany, he worried that our future may parallel our past. "Indeed, our monetary order breeds much economic and political conflict and may lead us straight to a political command system, with all its evil ramifications."
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