I VOTE YES ON CALEXIT!

[Kinser79]

(03-12-2017, 01:07 AM)Galen Wrote:

(03-11-2017, 11:53 AM)Kinser79 Wrote:

(03-11-2017, 10:54 AM)Odin Wrote: Ah yes, the usual "HYPERINFLATION IS COMING, THE END IS NEAR FOR EVIL STATIST COLLECTIVISM"  predictions that never pan out.

Can you name me one historical fiat currency that hasn't collapsed?

Judging from the silence he hasn't found one yet.  Hint Odin: Its because there isn't one.

Once the currency blows up you have a choice go down the road of Venezuala and Zimbabwe or embrace the free market.  Even in places like that the informal economy comes in to being and in fact saves people from their own government.  Even in benighted places like this the free market improves many individuals lives even while their government tries to stamp it out like the Soviet Union tried.

Precisely why I asked the particular question I asked.  I conducted my own investigation--I didn't want to believe myself that fiat currencies inevitably always fail.  That isn't to say that they can't be made to work for long periods of time (Colonial Scrip was moderately successful as were United States Notes [but both were side by side with specie]).

Informal economies are perfectly able to take on a "non-money" currency.  After WW2 not only was the German money practically worthless but so was the currencies of most other countries occupied by the Axis.  For a long time the medium of exchange was cigarettes with a premium on American cigarettes.

Ultimately it seems that the failure of fiat currencies is that they are incredibly easy to abuse.  Particularly when you have a political class that wants to kill the population (war is expensive) or buy their votes (welfare is expensive too).