There is an old adage that "Bad money drives good money out of circulation". Unbacked money is always inflated away. This is a hidden tax on working people and results in ever higher prices.
ALL world currencies work this way. Therefore, it is only a matter of time before any replacement currency or basket of currencies is inflated away. This is why we see periodic huge price increases in gold and silver which is a tangible asset compared to a paper IOU.
I find it extremly ironic that this inflation (theft) occurs while the government goes to great lengths to tell the sheep that there is no inflation (CPI index).
The Hermit
I agree.
Furthermore, the SDR's won't be accepted either for they are fiat too.
All currencies are now fiat and are in a race for the bottom. When the bottom comes, no one will accept fiat money anymore. It was a scheme from the beginning in that the governments wanted confiscation of the peoples wealth without their knowledge. Otherwise, they would face revolt. When the US dollar is no longer accepted as the world reserve currency, those dollars abroad will come home resulting in hyperinflation worse than Zimbabwe. We export much of our inflation to other countries since we are the world reserve currency and that is why you are seeing the food price revolutions around the world. It is interesting that the Bernank takes credit for the stock market surge, but not the food inflation in other countries. QEII is the cause of both. Wait until QEIII gets here.
It is quite remarkable that we let one man or a few men control our money and interest rates as if they would know all that there is to know about a multiplicity of economic decisions. Such central planning is what got USSR and all socialist countries into trouble resulting in their demise.
