There are many examples of countries that have attempted to live beyond their means and have inevitably destroyed their currency in the attempt. This is such a common theme throughout history that one is tempted to believe in the existence of some biologically deficient gene that stimulates a need to believe that printing money will cure debt brought about by excessive spending while suppressing the many historical examples of failed attempts.
If history teaches us anything, it is that fiat currency schemes always result in failure and always by inflation due to excessive currency creation.
The first example of inflating the currency was likely that of Rome. While Rome had not yet devised the printing press, they were however debasing their coinage with base metals to reduce the silver content. While it took Rome decades to destroy the Denarius, the Weimar Republic of Germany, with the use of the printing press, destroyed the Mark in only five years. Today, ...
To view the rest of this article, you must log in. If you do not have an account with us, please subscribe here.