So they will issue still more debt until that tipping point when the world realizes that debt is worthless. It always comes. It is the fate of all fiat currency.
The lessons of such a profound event will be generation-defining, as the lessons of The Great Depression were for my grandmother, whose experience informed every decision she made thereafter. Nothing was too small to repurpose, nothing was worthless…because she remembered a time when that was true in her own life, and understood, deeply and personally, that it was a reality that could return.
Imagining a day when all the dollars you have in the bank or stock market or stuffed under your mattress are nearly worthless overnight, victim to a hyper inflationary nightmare, is extremely difficult.
Investors, during times of global stock market uncertainty, still flock en masse into the seeming safe harbor of the US dollar. And there, bathed in the pacifying security of the full faith and credit of the US government, the only thing standing behind that dollar, they wait out the storm.
This has worked, time and time again. And it will. Until it won’t.
- Source
