History shows that every nation that rises to super power status ends up in massive deficit spending and devalues their currency, especially in war time. They used to recall gold and silver coins, melt them down and add cheaper metals. The US did that with coins decades ago. We went off the gold standard and to the petro dollar under Nixon's Presidency. During Clinton's time, he robbed the Social Security surplus and added it to the budget making it look like he paid off the national debt when he didn't. Every President and Legislature since his time has continued to rob any surplus SS funds and they have also given SS benefits to illegals further destroying SS. In 1913, 2 cents could buy what 100 years later it took 1 dollar to buy due to inflation. Unfortunately inflation is their hidden tax and they will continue to devalue the dollar in order to keep deficit spending until the system finally collapses. Roosevelt blamed the depression on the Republican Presidents money printing, but he printed even more. The Federal Reserve prints money with the stroke of a computer key as well as banks by the amount of money they loan to increase the money supply. If you look at a chart of wealth to money supply, the top 1%'s wealth rose at the same level as the money supply while the rest of us remained on a flat line even though living expenses are higher. So it's the elites who benefit from money printing and inflation. The only thing that is different in money history is that all the world banks have been printing money like its going out of style. Wall Street loves it, but main street suffers. At the height of WWII, the US spent $1.06 for every $1 GDP. Today the US spends $1.26 per $1 GDP. How will it end, well I don't know, but its not going to be pretty if they don't get the debt paid down soon. As the BRIC's nations move away from the petro dollar, those US dollars will come home to roost causing more inflation because the deficit spending is no longer easy to fund by exchanging debt for cheap goods. Goods will only increase in price.
History shows that every nation that rises to super power status ends up in massive deficit spending and devalues their currency, especially in war time. They used to recall gold and silver coins, melt them down and add cheaper metals. The US did that with coins decades ago. We went off the gold standard and to the petro dollar under Nixon's Presidency. During Clinton's time, he robbed the Social Security surplus and added it to the budget making it look like he paid off the national debt when he didn't. Every President and Legislature since his time has continued to rob any surplus SS funds and they have also given SS benefits to illegals further destroying SS. In 1913, 2 cents could buy what 100 years later it took 1 dollar to buy due to inflation. Unfortunately inflation is their hidden tax and they will continue to devalue the dollar in order to keep deficit spending until the system finally collapses. Roosevelt blamed the depression on the Republican Presidents money printing, but he printed even more. The Federal Reserve prints money with the stroke of a computer key as well as banks by the amount of money they loan to increase the money supply. If you look at a chart of wealth to money supply, the top 1%'s wealth rose at the same level as the money supply while the rest of us remained on a flat line even though living expenses are higher. So it's the elites who benefit from money printing and inflation. The only thing that is different in money history is that all the world banks have been printing money like its going out of style. Wall Street loves it, but main street suffers. At the height of WWII, the US spent $1.06 for every $1 GDP. Today the US spends $1.26 per $1 GDP. How will it end, well I don't know, but its not going to be pretty if they don't get the debt paid down soon. As the BRIC's nations move away from the petro dollar, those US dollars will come home to roost causing more inflation because the deficit spending is no longer easy to fund by exchanging debt for cheap goods. Goods will only increase in price.