How long can the current fiat monetary system last?
A debt pyramid monetary system supported by debt has a finite life span. The American super economy is now drowning in the same debt that has encompassed the rest of the world. The dominos are in place. Any event that contracts the money supply or diminishes confidence in the dollar will expose the inherent flaws in a system grounded in debt. What will happen to the U.S. economy? Stocks will be worthless. Corporate bonds will go into default. Loss of confidence and inflation will cause a flight of capital from U.S. government securities. Real estate prices will plummet. The U.S. dollar will lose its purchasing power. The only investment alternatives remaining will be items of intrinsic physical worth .such as gold. If money will contract how can there be inflation? Money will contract in the private sector, this will open the floodgate for excess U.S. Government spending. This will lead to stagflation; high inflation accompanied by low output and high unemployment. Since the government
