The real value of fiat currency

If you still have doubts, please look:

“Unfortunately, the classical gold standard lies forgotten, and the ultimate goal of most American and world leaders is the old Keynesian vision of a one-world fiat paper standard, a new currency unit issued by a World Reserve Bank (WRB). Whether the new currency be termed “the bancor” (offered by Keynes), the “unita” (proposed by World War II U.S. Treasury official Harry Dexter White), or the “phoenix” (suggested by The Economist) is unimportant. The vital point is that such an international paper currency, while indeed free of balance-of-payment crises (since the WRB could issue as much bancors as it wished and supply them to its country of choice, would provide for an open channel for unlimited world-wide inflation, unchecked by either balance-of-payment crises or by declines in exchange rates. The WRB would then be the all-powerful determinant of the world’s money supply and its national distribution. The WRB could and would subject the world to what it believes will be a wisely-controlled inflation. Unfortunately, there would then be nothing standing in the way of the unimaginably catastrophic economic holocaust of world-wide runaway inflation, nothing, that is, except the dubious capacity of the WRB to fine-tune the world economy.”

Murray Rothbard, “What Has Government Done to Our Money?”… written in…. 1963!!!!

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