hare krsna to all devotees..kindly clarify point of srila prabhupada ji when he is saying that paper currency is cause of economic prostitution? how paper currency can hamper our economy?

what is exact thing which bhagvatam teaches us regarding this topic? 

You need to be a member of ISKCON Desire Tree | IDT to add comments!

Join ISKCON Desire Tree | IDT

Email me when people reply –


  • Volunteer

    hare krsna pr ji


    His Divine Grace A. C. Bhaktivedanta Swami Prabhupada

    Do not accept paper currency. It must be gold or some metal worth. Just like one dollar, it must be worth one dollar metal. Then the economic problems are solved. But the government wants to cheat, so how can these problems be solved? Because if I pay you one dollar, I must pay you value for one dollar. But the cheating process is going on, "I pay you one dollar, a piece of paper. That's all." So you accept this cheating, and I also cheat. Government allows. So how can the problem be solved? It is cheating. But the government allows it as law. And you accept, I accept. (Morning Walk, 31 December 1973)

    To stop inflation, the government must stop paper currency. Then there will be no more inflation. But they will not do that. They want to cheat people. "In God I trust. Take this paper and you be satisfied that you have got a thousand dollars." That's all! This cheating is going on. Why should you pay me paper? Give me a real dollar, in gold. That they haven't got. They will employ laborers and cheat them by paying these papers, and this rascal will think, "I am getting more money." Since the world has taken to this system of paper currency, the situation has degraded. (Morning Walk, 25 May 1974)

    The basic principle is falsity because currency notes are issued in value beyond that of the actual reserved gold. This artificial inflation of currency by the authorities encourages prostitution of the state economy. The price of commodities becomes artificially inflated because of bad money, or artificial currency notes. Bad money drives away good money. Instead of paper currency, actual gold coins should be used for exchange, and this will stop prostitution of gold. (Purport to Bhag. 1.17.39)

  • Volunteer

    Hare Krishna Abhimanyu Prabhu, please accept my humble obeisances! All glories to Srila Prabhupada!

    For example, some years back there was Soviet Union. And all those 22 countries were united into one - Russia. Since Russia ruled all of them they made one money which is - ruble. Years past. And after 70 years Soviet Union was destroyed and all countries got their independence from Russia.

    In this was each country made their new money papers and ruble lost its value. And those people who had collected enough big amount of ruble lost everything.

    I remember my grandmother how she lost everything. We were really small kids but i remember how we used to play with those now useless papers.

    Srila Prabhupada means that.

    When some disaster is there or let's take an example of fame. When there is fame one peace of bread will cost 50$ so where is the use of paper? But if we had grains, land, cow then even in those fame days we would just eat those food stuffs.

    Or in previous ages people used to eat in golden, silver plates. It is not only for health but also some wealth for black days. It says that every grihastha should keep some savings for extreme days.

    But if we keep money there is chance that it will loose its power, value, as like banks are closing down...

    Your servant, 

    • thanks mata ji  for ur wonder ful explanation...but if we make land ,gold silver etc. as a medium of exchange then also there will be shortage of all things may be just due that it is difficult to follow?

      • Volunteer

        these days these papers go so deeply that it is not possible to stop using them.

        But we can save our wealth, if we have so, investing them into land, cows, or just in the form of gold. But with daily life it will be the same - paper money.

        This can not be changed until the president will be a Devotee of Krishna. Or we can use this system slowly slowly in our farm communities.

        Your servant,

This reply was deleted.