DYSPEPSIA GENERATION

We have seen the future, and it sucks.

Why Fiat Currencies Will Always Beat Gold

27th July 2023

Zeihan.

Every time we’ve used an asset-backed currency, it’s resulted in collapse. There’s just no asset, especially not gold, that can keep up with economic growth and expansion around the world. And when the currency becomes a brake on economic activity, you end up with a sharp crack in the system; which leads to depression and often state collapse.

Exactly right. I’m as fond of an asset-backed currency as the nest right-wing nut, but the problem is that the amount of the asset can’t keep up with economic growth in the modern world, and so sooner or later acts as a noose strangling the money supply, which cases deflation, which chokes off growth, and we all suffer. (Oh, for the 19th century,  when we didn’t have that problem and could use gold and silver coins to our hearts’ content….)

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