The dollar losing 94% of it’s value over the course of 80 years is not a problem. Most economists believe a small rate of inflation is helpful to the economy because it provides and incentive to people to invest instead of simply hoarding cash.
Over 80 years a small rate of inflation will add up. But the economy itself hasn’t been harmed. That small amount of inflation does not appear to have harmed our economy over the last 80 years.
If you hoarded cash 80 years ago, you have lost a lot of purchasing power. But if you invested in a diversified portfolio, you now have incredible purchasing power compared to 80 years ago.
The Ron Paul plan works only if you want to pursue the incredibly stupid economic goal of incenting people to hoard cash and not invest.
“The dollar losing 94% of it’s value over the course of 80 years is not a problem.”
It’s a catastrophe. An absolute catastrophe.
You think the US is somehow unique? You this this game hasn’t been done before? The Byzantines did this exact thing, by debasing the currency. It worked for a long while, until finally they had a massive revolution, which destroyed their productive capacity for decades, until they restored the value of the coinage back to the original.
It’s the hallmark of poorly managed regimes to see currency debasement as the way to evade debt.
“That small amount of inflation does not appear to have harmed our economy over the last 80 years.”
As compared to where America was in 1912? America had 90 percent of their prosperity and industrialisation, and since then have stagnated.
80 years ago, that cash would have been made out of gold or silver, and it has lost none of its purchasing power in that time. A silver quarter is still worth a gallon of gas. A gold coin is still worth a good men's suit.
You're talking about Federal Reserve Notes, not dollars. The problem is with Federal Reserve Notes, whose value can only go down. The problem isn't with cash. it's with the Federal Reserve.
The Fed sucks. The best way to cure the plague that is the central bankster is stab them in the heads with a pitchforks until they stop twitching.
But let's see if Crazy Ron can obviate that more intensive form of surgery.