Saturday, January 3, 2009

The ultimate impact of inflation

Is inflation a threat to our survival?

"All paper-money systems, be they national or international, labor under the presence of moral hazard. In the long run, therefore, a global paper money cannot evade the fate of national paper money. It must either collapse in hyperinflation or force the government to adopt a policy of increasing control, and eventually total control, over all economic resources. Both scenarios entail economic disruptions on a scale that we can barely imagine today. The inevitable result would be death for many hundreds of millions of human beings." The Ethics of Money Production, Jörg Guido Hülsmann, p. 236.

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