Friday, July 2, 2010
Fiat money conspiracy theory could send us to depression
Towards the end of this article it says: â€œWhat worries us is the current backlash we are seeing against debt, and the fiat money conspiracy, and all these fears you see circulating about impending inflation. It is all very dangerous. If productivity is rising, and given the advances in technology and the greater specialisation that is coming with globalisation, it surely should be, then we need an expanding money supply. We need debt levels to rise, or else demand will lag further and further behind potential. It continues: In reacting against the practices of the last decade, we are in real danger of overreacting, castigating all debt as bad, and sending the global economy into deep, deep recession, as a result.