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Strategies & Market Trends : The coming US dollar crisis -- Ignore unavailable to you. Want to Upgrade?

To: axial who wrote (11908)	9/28/2008 10:41:17 AM
From: Tommaso	4 Recommendations Read Replies (3) \| Respond to of 71454

All the Austrian thinking about credit is based on the assumption that you have a currency with real value to it, a gold based or at least gold backed currency. Or so I think. If I am wrong, someone please correct me. Once you have purely fiat currencies, governments can prevent a catastrophic credit collapse by issuing unlimited amounts of currency. As our government is doing right this minute. What that does is to convert a deflationary collapse into a violent inflation, and the depreciation of the currency destroys the debt overhang.