As the Daily Reckoning puts it, “EVERY fiat currency since the Romans first began the practice in the first century has ended in devaluation and eventual collapse.” (4) There are two caveats to their argument, though: 1) if the fiat currency was ended for another reason, say the country was conquered and the currency replaced, then those examples are obviously ignored and 2) if the currency is still around today*, it also doesn’t count, because the currency will presumably fail in the future. The problem with this assessment is simple: What else can happen to a currency?
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Lies, Damned Lies and Statistics: All Fiat Currencies Fail
Posted by Andrew in August 22nd 2009
under: Deficits, Dollar, Federal Reserve, Game Theory, Live and Learn, Trust
Tags: Asian Financial Crisis, Austria, austrian economics, Daily Reckoning, deflation, fiat currency, Fiat Empire, gold standard, hyperinflation, inflation, libertarian, libertarianism, Roman Empire, Ron Paul, Weimar Republic, Zimbabwe
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