Excerpt from conversation with disciples, Los Angeles, December 31, 1973

PRABHUPADA: Everyone can understand this is pure cheating. I give you a hundred dollars, a piece of paper. That's all. And you accept it. You want to be cheated. You thought, that "I have got now daily, hundred dollars. So let me work very hard." He does not consider that "I am not getting a hundred dollars. I am getting a piece of paper." So people have no brain to understand even. "This is not hundred dollars. Give me cash, hundred dollars." Then everything, solution will be... There will be no inflation. Because I know that paying you a piece of paper, I can cheat you, therefore I am printing notes, to cheat so many people. Therefore inflation. But when there will be no possibility to cheat you, then there will be no inflation. Here I have got the opportunity, because I know that pushing forward a piece of paper, I can cheat so many people. So there must be inflation. Is it not? This is not psychological? If I know that I can cheat you by this instrument, so why shall I not increase that? That is inflation. What do you think, Karandhara?

KARANDHAR: That's the basic principle, yes.

PRABHUPADA: Yes. I am cheating you, and people accepting my cheating.

KARANDHAR: The governments actually started the whole thing. They instituted paper money and they instituted it because it is a cheating process. But everyone is participating. So it is just going on and on. That is the real cause of inflation.

PRABHUPADA: Yes. That's it. They are getting encouragement in their cheating business.

BAHULASVA: They won't let you have any gold.

PRABHUPADA: Now they have made law that you cannot store gold?

KARANDHAR: That's been since 1933.

PRABHUPADA: Just see.

KARANDHAR: Americans cannot own gold, store gold. Pretty soon they are going to pass the same law for silver.

PRABHUPADA: Just see. Even they cannot have ornaments.

KARANDHAR: Well, you can have ornaments, jewelry.

PRABHUPADA: So by law they are cheating. So how you can stop?

KARANDHAR: Now they have introduced a law that even the penny, which is the smallest denomination, it used to made out of copper, so now they are going to make it out of aluminum, because copper is too expensive.

PRABHUPADA: Just see.

BAHULASVA: It will be worth less than a penny when it is made out of aluminum.

PRABHUPADA: Why not cement? [laughter] Because by law everything will be acceptable. Make it cement.

BAHULASVA: Srila Prabhupada, what can we do to curb down these rascals?

PRABHUPADA: Chant Hare Krishna.

BAHULASVA: That will curb them down.

PRABHUPADA: Yes. They will be purified. The more you chant Hare Krishna, they will be purified. This is... All problems are there on account of misunderstanding. What we are distributing? We are simply moving misunderstanding and bringing them to knowledge. This is our propaganda. So Mr. Theologician, is this suggestion appealing to you?

PRAJAPATI: It seems all right for ordinary dealings, Srila Prabhupada, having this money, what's going on, but for large scale transactions it might be very difficult.

PRABHUPADA: Huh?

PRAJAPATI: And as the practical basis, transactions of thousands and thousands of dollars, would be...

PRABHUPADA: That will be good for the people. Because large scale transaction is there, therefore the capitalists hoarding. Capitalists hoarding. Goods are there, everything is there. You pay black price, you get it. Then, when somebody's hoarding, he is not giving to the market. So if the large scale industry and trade becomes stopped, that is good for people.

JAGAJIVANA: Does that mean the same amount of gold is here?

PRABHUPADA: No, larger scale... Suppose if you want to store, say, thousand kilos or a thousand bags of rice, so you have to pay me gold. But you have no such gold. Therefore large scale industry will be stopped. Just see.

KARANDHAR: Then the price of rice would go very low.

PRABHUPADA: Yes. Then you get actual price and actual value. Goods are there, any part of the world you..., there is enough commodity. But these rascals, they are hoarding, and they are not giving in right time. So people are suffering.

KARANDHAR: Yes. There's a... They buy now. They buy the goods before they are even grown, from the commodity market.

PRABHUPADA: Yes, because they can pay in this paper, the bank will advance. So as soon as you... You have to introduce this metal coins, value. The whole cheating scheme will fail.

JAGAJIVANA: In the past there was a lot of gold on the planet. What has happened to it? There used to be a lot of gold on the planet?

PRABHUPADA: Yes. They used as utensil, as household pots. Just like now you are advanced, using plastic, because you have become very advanced. So you are using plastic. They were using gold.

JAGAJIVANA: So what has happened to that gold?

PRABHUPADA: What happened? If you keep utensil at home, what happens? You eat nicely on the plate. That's all. Why you are concerned, what happening? It is in your store. That's all. And gold is such a metal, any part of the country, any part of the world you go, you get immediately value.

KARANDHAR: Yes. Whenever there is an economic depression, then gold remains valuable. Just like when the stock market crashed in 1929, if you had gold you could still purchase goods. No matter how bad the economy was, people would accept gold as barter, but not currency.

PRABHUPADA: Yes. Indian economy was that if you have got extra money, you get gold ornament for your wife. So then your money is stocked there. Or purchase some utensils, silver utensils. That was Indian economy. This depositing in the bank and thinking that I am getting good interest, that is another cheating. It is another cheating. If things are not available, what will you get by getting interest? Therefore I am advising that purchase land and produce our own food. There will be no problem.

KARANDHAR: The inflation rate is higher than the interest rate. If you earn 5 3/4 % interest in a year, the inflation has gone up 6% in a year. So actually your money, at best it's kept the same.

PRABHUPADA: The money is to be kept in cattle and grains. That is Indian economy, cattle and grains. If you have got many cows, you get milk. Milk preparation. And if you have got grain, then where is your problem? You prepare your foodstuff at home and eat and chant Hare Krishna. Where is your problem? You want to eat and live peacefully. So if you have got grains and milk, you have got enough food and there is no problem. You haven't got to go fifty miles for your work, and then you require a tin car. So many problems. But if you get your food at home, then eat them and chant Hare Krishna and go back to home, back to Godhead. Simple thing.

PRAJAPATI: So many people now employed in sinful activities, jobs that are to do with sinful life. If we get rid of these sinful activities, what will we find for these people to do to replace their jobs?

PRABHUPADA: Do pious activities. Do you mean to say we have to continue sinful activities for their job? [laughter]

PRAJAPATI: They say like that.

PRABHUPADA: No, we shall give engagement.

PRAJAPATI: Cattle industry, liquor industry, tobacco industry, all these big industries.

PRABHUPADA: Yes. Let them be without industry. Come to us. We shall give them food. Yes. Just like that... What is that? Mrigari, Mrigari. He was thinking that "Unless I kill animals, how I will eat, I shall live?" And Narada gave him, that "I will give you to eat. Come here." So he became Vaishnava. So that is our propaganda." Stop this nonsense business. If you think that 'How you shall eat?' I shall give you eating. Come on. "This is our program." First of all you stop it. Then I will, see how I will give you." Just see. When I came first I was alone. I had no shelter, no food. And how we are maintaining now thousands of people, and giving them to eat, and nice shelter? How it is possible? It is possible. Because after all, Krishna gives everything. So if they become Krishnaized, everything will come. Why they bother about the sinful activities?