Anatomy of A Fiat Currency Collapse
The comments below are an edited and abridged synopsis of an article by Alasdair Macleod
Infinite money-printing is set to destroy fiat currencies far more quickly than might be thought. This final act of monetary destruction follows a 98% loss of purchasing power for US dollars since the London gold pool failed. Now the Fed and other central banks are committing to an accelerated, infinite monetary debasement to underwrite their entire private sectors and their governments’ spending, to prop up bond markets and all financial asset prices.
It repeats the mistakes of John Law in France 300 years ago, but this time on a global scale. History, economic theory and common sense tell us governments and their central banks will rapidly destroy their currencies. So that we can protect ourselves from this monetary madness, Macleod digs into the past to see who benefited from the Austrian and German hyperinflations of 1922-1923, and how fortunes were made and lost.
Up for discussion: Introduction; don’t trust government inflation statistics; the first phase of inflation is ending; the second phase—currency destruction; currency dysphasia; and the fate of financial investments.