The usual justification for the use of fiat money is the power it gives to governments to smooth out and reduce occurrence of business cycles. Cycles, however, have as stubbornly remained with us since 1932, just as they have before. Stimulus spending proved ineffective in stemming most of the serious contractions, and when it did succeed — in the hands of Chairman Greenspan — in shortening one, the ultimate results was merely postponed and much magnified pain, as we are now witnessing. Continue reading
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