Real gold drives out corruption and prostitution of money
excerpt from purport, Srimad-Bhagavatam 1.17.40
A.C. Bhaktivedanta Swami
According to Srimad-Bhagavatam, gold encourages falsity, intoxication, prostitution, envy and enmity. Even a gold-standard exchange and currency is bad. Gold-standard currency is based on falsehood because the currency is not on a par with the reserved gold. 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. Gold ornaments for women may be allowed by control, not by quality, but by quantity. This will discourage lust, envy and enmity. When there is actual gold currency in the form of coins, the influence of gold in producing falsity, prostitution, etc., will automatically cease. There will be no need of an anticorruption ministry for another term of prostitution and falsity of purpose.
Settling For Worthless Money
excerpt from purport, Srimad-Bhagavatam 5.16.20-21
A.C. Bhaktivedanta Swami
By the arrangement of the Supreme Personality of Godhead, the rivers on some planets produce gold on their banks. The poor inhabitants of this earth, because of their incomplete knowledge, are captivated by a so-called bhagavan who can produce a small quantity of gold. However, it is understood that in a higher planetary system in this material world, the mud on the banks of the Jambu-nadi mixes with jambu juice, reacts with the sunshine in the air, and automatically produces huge quantities of gold. Thus the men and women are decorated there by various golden ornaments, and they look very nice. Unfortunately, on earth there is such a scarcity of gold that the governments of the world try to keep it in reserve and issue paper currency. Because that currency is not backed up by gold, the paper they distribute as money is worthless, but nevertheless the people on earth are very proud of material advancement. In modern times, girls and ladies have ornaments made of plastic instead of gold, and plastic utensils are used instead of golden ones, yet people are very proud of their material wealth. Therefore the people of this age are described as mandah sumanda-matayo manda-bhagya hy upadrutah (SB 1.1.10: "misguided, unlucky and always disturbed"). In other words, they are extremely bad and slow to understand the opulence of the Supreme Personality of Godhead. They have been described as sumanda-matayah [misguided] because their conceptions are so crippled that they accept a bluffer who produces a little gold to be God. Because they have no gold in their possession, they are actually poverty-stricken, and therefore they are considered unfortunate.
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