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<p>[QUOTE="fatima, post: 1050192, member: 22143"]I have no time for "economic theory" as that would imply some sort of science behind it, and these yoyo's have no such training. </p><p><br /></p><p>It's simple mathematics. If you grow any system at a consistent linear percentage over a period of time, it blows up. The math can't be escaped. Consistent inflation is exactly that. Specifically towards the end, in monetary systems where consistent inflation is applied, the a graph of the money supply over time will look like a hockey stick with the puck end turned up, and the danger is when you enter that puck end. Eventually the money supplie goes to infinity and the currency is done. In linear percentage growing systems this will happen very fast relatively speaking which is why the graph looks like a hockey stick. History is littered with examples of it and has no examples of a completely fiat currency surviving. </p><p><br /></p><p>--------------------</p><p><br /></p><p>On the earlier comment about silver in the currency, it is a matter of perspective. If one can only conceive of prices in terms of federal reserve notes, then yes silver became too expensive to use. However this rather narrow view misses the point being made completely.[/QUOTE]</p><p><br /></p>
[QUOTE="fatima, post: 1050192, member: 22143"]I have no time for "economic theory" as that would imply some sort of science behind it, and these yoyo's have no such training. It's simple mathematics. If you grow any system at a consistent linear percentage over a period of time, it blows up. The math can't be escaped. Consistent inflation is exactly that. Specifically towards the end, in monetary systems where consistent inflation is applied, the a graph of the money supply over time will look like a hockey stick with the puck end turned up, and the danger is when you enter that puck end. Eventually the money supplie goes to infinity and the currency is done. In linear percentage growing systems this will happen very fast relatively speaking which is why the graph looks like a hockey stick. History is littered with examples of it and has no examples of a completely fiat currency surviving. -------------------- On the earlier comment about silver in the currency, it is a matter of perspective. If one can only conceive of prices in terms of federal reserve notes, then yes silver became too expensive to use. However this rather narrow view misses the point being made completely.[/QUOTE]
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