United Liberty

Just a random thought today…

I may be betraying my ignorance of history, but I’m willing to take that risk.

I am trying to find a situation in all of recorded history analogous to the present U.S. economic crisis, where a government has spent $ TRILLIONS of fiat money within a few months to “solve a problem” and hyper-inflation (or massive taxation) DID NOT occur as a result.

If anyone out there in cyberspace knows of an example, please post a comment.

Everyone is a “Trillionare” in Zimbabwe… one of the world’s poorest countries

If no examples can be found, does it make sense for anyone to keep real wealth in the form of US dollars? As bad as the stock market is performing, at least a stock is ownership in a company—which may be profitable or own assets that have value. But paper money can, overnight, become an “I.O.U. nothing.”

The only issue in my mind is who is going to “get out of cash” in time. Some economists are saying that because other currencies are doing much worse than the dollar and banks are not lending, we have a temporary period of deflation. But if they are correct, how long will this last, and who will wait too long before they get out? I think whoever answers this question correctly will be a very wealthy person.