I am no financial expert or economist. My reading of history tells me that every time "money" is separated from intrinsic value, as with all the world's fiat currency, it always collapses. My reading of history also tells me that those who profit from this engineer use of the worthless fiat currency precisely to transform it into real wealth prior to the collapse. The collapse is normally followed up with war to both divert the wrath of those suffering and to kill them off.
We have been on this stairway to hell ever since Roosevelt stole our gold and Nixon took us off the gold standard. It's not a matter of if. It is a matter of when. And that could very well be now!
My reading of history tells me that every time “money” is separated from intrinsic value, as with all the world’s fiat currency, it always collapses.
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Product of good knowledge of history & basic common sense.
I am also aware of what happens when huge numbers of people remove God and His ways from the center of their lives/culture.
Hayek is looking smarter everyday.
L
Re: “We have been on this stairway to hell ever since Roosevelt stole our gold and Nixon took us off the gold standard.”
Good post. Lyndon Baines Johnson takes the booby prize, too. In May 1933, Americans could at least exchange their gold coins (excepting numismatic pieces) for 90% silver coins if they desired. After JFK was popped, LBJ debased the currency with 1965 Coin Act. This replaced silver in coins with base metals. Then in 1968, LBJ strongarmed Congress to remove 25% gold backing on domestic dollars. It passed by one vote. Ike said this was a grave mistake.
From then on, politicians could print money without any real restraint.