The US has not had a currency collapse since 1861, since that time there has been many other nations that have fallen victim to this vice, Germany, Vietnam, Argentina, Yugoslavia, and finally, Zimbabwe just to name a few.
History is about to give the US a reminder of what we’ve forgotten:
Most people don’t spend any amount of time thinking about the value of the dollar. It has never occurred to nine out of 10 Americans that the last 35 years mark the first time in recorded history that every major financial power in the world operated with fiat (paper) money in the absence of a World War. No monetary backstop exists anywhere no limit in any country to the amount of paper the government can create on a whim. Meanwhile, the track record of every experiment with fiat money is 100% perfect: In every case, the currency regime was eventually destroyed by an inflationary crisis.
I worry about the middle class, people who generally lack the financial knowledge and resources to protect their savings. They will probably believe the lies they’re told by the mainstream press about greedy speculators and evil oil companies. They will almost surely support the policies and the politicians who are actually responsible for their increasing poverty.
I also worry about people who are retired and depending on the government to support them. They will surely see their standard of living decline substantially.
And finally, I worry most of all about my infant son. Will he grow up in a vastly different kind of America than I did? He could. And that makes me saddest of all.
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