Inflation Run Amuck
Updated: Aug 30
Its no surprise that inflation is on the minds of Americans, The pandemic has caused many people to question the strength of our financial systems.
Since the 1970s, since Richard Nixon took us off the gold standard it seems that printing money and inflation are as synonymous as 4th of July and American pie.
With the eyes of looking at history, Rome as an Empire devalued their currency to the point that it wasn't worth minting because you could get more for the raw metal than the money being minted.
If we look at Germany right before WW2 the printing of money and inflation was so high that people would take wheel barrels with millions of marks and not be able to afford a loaf of bread. The money was not worth the paper it was printed on.
The question that has been in my mind, could the American dollar and the American empire follow the same path.
People tell me, well we don't exchange precious metals anymore and the exchanging of paper is steadily becoming obsolete. We store our money on servers and to that I say you are correct.
Today in the modern era servers might be more expensive than the paper and precious metals of the past in comparison. The paper and precious metals have one continuous expense, the value of itself. But servers are a whole different story. They require constant maintenance and electricity, Many large companies spend vast amounts on servers and employees to maintain these servers. So, my question that has been on my mind is could the American dollar not be worth storing on servers, it being devalued by inflation that is so rampant it is going to be worth storing other things on those servers.
It is no surprise that digital currencies like Bitcoin and Ethereum and digital art in the form of NFT's, which is a secure and an un-forgeable piece of art are gaining popularity. Even the idea of our cultural data has been turned into a source of tradable income in the digital currency, Dogecoin has creeped up into popularity as well. With these things being stored on servers it seems that the USD has some competition for server space and a battle for it's universal global standard crown to the world. In one of the recent interviews the Fed Chair Powell has hinted at using Blockchain technology as a replacement for the fiat dollar. To me this has been done throughout history.
Rome was an empire for a thousand years with a democratic process and when they inflated their money to the point it was not worth the metal it was stamped on the people became desperate and a new era in Rome's history began.
They put their faith in a new governing process called imperialism and elected their first emperor..
One of the first things that happened was that they confiscated all of the gold and re-stamped the money with the face of the emperor thus creating the roman gold standard and saved the economy.
But this came with great political and governing sacrifice for the people. Today we would call this a dictatorship, Germany did the same thing. They put their faith in someone who told them that they could fix the economy.
The first thing Adolf Hitler did when he got into power was forcibly change the value of Germany's money. Once this happened Rome and Germany both had unprecedented economic growth and temporary newer freedoms.
Through the eyes of looking back and forward replacing a currency seems to be the only way that an empire can forego a total economic collapse and subsequent destruction of the empire. America has done this in the past by taking us off the gold standard and putting us on a fiat currency which historians might argue cost the American people political freedoms.
My question to you is: What political and social freedoms will the world have to give up when it comes time to replace the current U.S. Dollar?
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