The effects of creating money out of thin air

Posted on January 31st, 2009, by admin

Unless you’ve been hiding under a rock lately, you’re well aware that the American economy is struggling, to put it mildly. American families are losing their homes in alarming numbers and the government has dug itself into a hole of debt that it may never be able to climb out of.

Thanks to our unfailing use of a fiat monetary system, which basically manufactures money that isn’t backed by a physical commodity such as gold or silver, the government’s typical solution to financial problems is to create more paper money out of thin air. The problem is that the more common dollar bills become, the more value they lose. So, basically, the government’s “solution” is only serving to further devalue our currency.

History shows that no matter how many times people have tried to use a fiat monetary system, they always, I repeat, always, come back to gold as their primary currency. To learn why, please visit my website and read my article, “The Inevitable Transition from Dollar Bills to Gold as Currency.”

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