Bankruptcy of Our Nation (Revised and Expanded). Jerry Robinson

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СКАЧАТЬ people. Despite their immense wealth of natural resources, the country consistently faced massive budget deficits throughout much of the 1980s. Faced with insurmountable debt to foreigners and to Argentina’s citizens, the political solution was clear: inflate the currency to pay off the debts. The inflation rate reached levels of over 5,000 percent and soon the country adopted a new currency to replace the old worthless one.

      Peru, 1990: In 1990, Peru faced a monthly inflation rate of 397 percent, due to its poor monetary policies.

      Norway, 1992: In 1992, Norway, Italy, and Finland experienced major currency problems with their fiat currencies.

      Yugoslavia, 1994: From 1993 to 1994, Yugoslavia experienced one of the worst bouts of hyperinflation in history. Mathematical equations are required to measure the height of inflation that struck Yugoslavia during this time. The inflation rate during this period: 5 × 1015 percent!

      Ukraine, 1995: From 1993 to 1995, the country of Ukraine suffered from hyperinflationary pressures. At one point, their inflation rate reached 1,400 percent per month!

      Mexico, 1994: In 1994, the Mexican peso collapsed in what was known as “the Tequila Hangover.”

      Asian Crisis, 1997: In 1997, the Asian Currency Crisis began as Thailand’s fiat currency, the baht, collapsed. The effects of the collapse spread to other Far East nations.

      Russia, 1998: In 1998, the Russian ruble collapsed. Like Germany’s Weimar Republic, Russian workers were paid in wheelbarrows full of rubles. While the situation was far from comical, some in the working class joked about the worthless currency: “We pretend to work and they pretend to pay us.”

      Turkey, 2001: Beginning in 2001, Turkey experienced major bouts with hyperinflation as its currency, the lira, became increasingly worthless. Currency reform came in 2005, when Turkey issued a new Turkish lira (1 was exchanged for 1,000,000 old lira).

      Zimbabwe, 2007: In 2007, after several years of increasing inflation rates, the African nation of Zimbabwe was gripped by massive hyperinflation. By the summer of 2007, the inflation rate was 11,000 percent. One year later, the official monthly inflation figures were over 11,250,000 percent! At this rate of inflation, Zimbabwe residents had to spend their paychecks as soon as they received them just to keep the money from losing its worth.

      The Failures of Fiat Money Ignored

      While the landscape of world history is littered with failed fiat currencies, history is also replete with vigilant warnings from our ancestors regarding the inherent dangers of fiat currencies. Below I have compiled a list of warnings issued by some of the brightest men in world history regarding the failures of fiat-based money. You will notice some references to gold and silver as a wise backing to a nation’s currency. I will explain those references momentarily.

Paper money eventually returns to its intrinsic value — zero. — Voltaire11

You have to choose [as a voter] between trusting to the natural stability of gold and the natural stability of the honesty and intelligence of the members of the Government. And, with due respect for these gentlemen, I advise you, as long as the Capitalist system lasts, to vote for gold. — George Bernard Shaw12

Sound money still means today what it meant in the nineteenth century: the gold standard. — Ludwig von Mises13

Paper money is like dram-drinking, it relieves for a moment by deceitful sensation, but gradually diminishes the natural heat, and leaves the body worse than it found it. Were not this the case, and could money be made of paper at pleasure, every sovereign in Europe would be as rich as he pleased. But the truth is, that it is a bubble, and the attempt vanity. Nature has provided the proper materials for money: gold and silver, and any attempt of ours to rival her is ridiculous. — Thomas Paine14

If you increase the quantity of money, you bring about the lowering of the purchasing power of the monetary unit. — Ludwig von Mises15

We are in danger of being overwhelmed with irredeemable paper, mere paper, representing not gold nor silver; no sir, representing nothing but broken promises, bad faith, bankrupt corporations, cheated creditors, and a ruined people. — Daniel Webster16

The governments alone are responsible for the spread of the superstitious awe with which the common man looks upon every bit of paper upon which the treasury or agencies which it controls have printed the magical words legal tender. — Ludwig von Mises17

Of all the contrivances for cheating the laboring classes of mankind, none has been more effective than that which deludes them with paper money. — Daniel Webster18

      Based upon the preceding quotes and all that is known from recorded history, it is hardly conceivable as to why our modern society would dare to build and hold the majority of its wealth in a fiat paper money system. Yet today, every economy in the world uses a fiat currency! Why would nations place their wealth near the precarious cliffs of a fiat currency system? If fiat currencies have a 100 percent chance of failure, then why do modern governments even consider them?

      One obvious answer is human greed. Fiat currency systems allow governments, businesses, and consumers to spend more than they actually have. This is because modern fiat money is debt-based money. Today’s monetary systems are based and rooted in debt. In fact, money itself is simply debt. While many financial commentators are quick to point out that you should “get out of debt,” this book is going to explain that the money you hold in your pocket is debt itself. The current system is entirely flawed. How all of this is possible is completely exposed in chapter 7 (“Modern Money Mechanics: What the Banksters Do Not Want You to Know”). In that chapter, I will unveil another possible reason why nations have opted for fiat currencies over more sound and honest money. What we will discover in that chapter will be shocking, to say the least.

      Insanity has been defined as doing the same thing over and over again but expecting a different result. Considering the consistent failures of fiat currency systems throughout history, you may find yourself asking why the world has not created a better monetary system by now. The answer is not easy to find, but it can be found. Solutions do not magically appear simply because a problem exists. Solutions are created only when enough people ask the question and demand an answer.

      The Biblical View of Fiat Currencies

      One of the tragedies of our modern day is found in the passivity of the population regarding its government’s monetary policy. For the most part, economic literacy levels are at all-time lows around the world. Part of this is due to the increasing complexity of the global financial systems. But it is also due to a growing apathy among the citizenry of various nations. This apathy has allowed government to grow, both in size and in strength, virtually unchecked. The larger the government, the more severe the problems eventually become.

      For people of faith the solution to our modern financial crisis is not found in political or economic activism, but rather in simple awareness. This awareness of the monetary system has traditionally been rejected by faith-based communities on the grounds that money is an unspiritual topic. For example, many evangelical Christians have completely shunned economic awareness in the name of spirituality. This is staggering, especially when one considers СКАЧАТЬ