Paper Money Collapse: The Folly of Elastic Money and the Coming Monetary Breakdown

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Wiley, Aug 31, 2011 - Business & Economics - 240 pages
2 Reviews
The case for the inevitable failure of a paper money economy and what that means for the future

All paper money systems in history have ended in failure. Either they collapsed in chaos, or society returned to commodity money before that could happen. Drawing upon novel new research, "Paper Money Collapse" conclusively illustrates why paper money systems--those based on an elastic and constantly expanding supply of money as opposed to a system of commodity money of essentially fixed supply--are inherently unstable and why they must lead to economic disintegration.

These highly controversial conclusions clash with the present consensus, which holds that elastic state money is superior to inflexible commodity money (such as a gold standard), and that expanding money is harmless or even beneficial for as long as inflation stays low. Contradicting this, "Paper Money Collapse" shows that: The present crisis is the unavoidable result of continuously expanding fiat moneyThe current policy of accelerated money production to "stimulate" the economy is counterproductive and could lead to a complete collapse of the monetary systemWhy many in financial markets, in media, and in the policy establishment are unable (and often unwilling) to fully appreciate the underlying problems with elastic money

This compelling new book looks at the breakdown of modern economic theory and the fallacy of mathematical models. It is an analysis of the current financial crisis and shows in very stark terms that the solutions presented by paper money-enthusiasts around the world are misguided and inherently flawed.

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Review: Paper Money Collapse: The Folly of Elastic Money and the Coming Monetary Breakdown

User Review  - Erez Davidi - Goodreads

The main argument made by Schlichter in this book is that paper money is flawed and inferior to commodity money in basically every way. Schlichter derives his arguments almost entirely from the ... Read full review

Review: Paper Money Collapse: The Folly of Elastic Money and the Coming Monetary Breakdown

User Review  - Mike - Goodreads

“Paper money has never worked in the history of civilization. Government-backed money gives them control and is generally used to finance wars. The endgame is always massive inflation and loss of confidence in the paper. Buy gold. Or Bitcoins, apparently. Read full review

About the author (2011)

DETLEV S. SCHLICHTER is a writer and Austrian school economist who has spent nearly twenty years working in international finance, including stints at Merrill Lynch, J.P. Morgan, and Western Asset Management. In his career, Schlichter has overseen billions in assets for institutional clients around the globe.

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