Thanx fer yer response, Ray.
1. The currency loses value until it no longer has any value. Using gold as a consumer price standard, it took $20 to buy an ounce of gold in 1910. Today it takes $900. That's a devaluation of 98%.
Gold is real. A tangible. Money is becoming less real over time as it spins around the globe faster and faster every year.
Are you one of those economist types who think Nixon's didsmantling of the Brettton-Woods agreements back in'70 was pure evil or a neccesary evil?
2. Even small amounts of monetary expansion have finite limit. To pick a numerical example. 3% compounded yearly is not much when your GNP is in the millions. But when it is in the trillions, it is impossible to sustain because the dollar amounts become too great.
Makes sense. "Every thing counts in large amounts" is an exponential truth.
Our economy reached its debt limit about in 2008. Now the debt structure is collapsing into what could be called a hyperdeflation phase. It's so massive that no amount of government spending and monetization can bring inflation back. About all our governments can do is bankrupt themselves.
The governmental largesse to the international banking entities smack of pre-planning by Spud's lights. This global economic contraction as it's being called was not a complete suprise to too many who seem to be acting like it was. After hyperdeflation and global bankrupcy wot comes next?
Thanx fer the link.
Maybe check it out later.
/Not the entire thing, of course, Spud has the attention span of a goldfish with ALS.
Be Well.
