Wow. I never realized that the dollar’s purchasing power declined so substantially after Nixon delinked the US dollar from Gold in the early 1970s. Some economists (like Mark Perry of Carpe Diem blog) still cite M1 and M2 charts in order to argue that inflation is not really a problem, but when one sees charts like above the impact of inflation becomes painfully obvious. Sadly, it’s probably going to take what Mises called the “crack-up boom” before we ever readopt a true commodity money, and even then I would be skeptical that some establishment economist would argue that it’s not the fault of fiat money but that the fiat system was mismanaged. The deficiencies in fiat money originate in the fact that it can be mismanaged at all.

Also, I can only imagine the extent of the future decline in the USD’s purchasing power should Obama win and, with the help of congress being controlled by his party, implement the vast array of government spending initiatives and other direct interventions in the private sector economy.

Looks like time-currencies will be all encompassing as the standard of services exchange in the very near future.

Ernest
Rumor has it that since people started using the Zimbabwe currency for toilet paper, that they took Robert Mugabe’s picture off the note. Can you check if this is true?

Looks like a bubble to me.

What happens when debt dries up, as it will?

How much of the economy lives on/for debt, the
other piece of the money supply?

Watch the unemployment numbers coming.