Friday, June 08, 2012

The Fiasco of Fiat Money 
Mises Daily posted essay explains how today's worldwide paper, or "fiat" money, regime is an economically & socially destructive scheme, with far-reaching harmful consequences to society  .. Fiat money is inflationary - it benefits a few at the expense of many others, it causes boom-and-bust cycles; it leads to overindebtedness .. ultimately it will end in a economic depression .. makes the case of fiat money to be the root cause of the current financial & economic crisis .. "As the Austrian economists have shown, however, there is no escape from the disastrous economic consequences caused by fiat money; high inflation, or hyperinflation, wouldn't do the 'trick.' In fact, it would make ensuing depression even worse. The sooner the fiat-money boom is brought to a halt, the lower will be the costs of the ensuing depression — a reasoning already expressed by the Prussian philosopher Immanuel Kant (1724–1804), who noted in his Prolegomena (1783), 'It is never too late to become wise; but if the change comes late, there is always more difficulty in starting a reform.'"

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