Monday, June 21, 2010

The origin of global monetary inflation

Hugo Salinas Price writes about the Consequences of abandoning the gold standard: "...  The consequences of that fateful day (of abandoning the gold standard in 1971) have overthrown all order and harmony in economic relations among the nations of the world, while facilitating and expediting the global expansion of credit because part of the dollars exported by the US ended up in the reserves of Central Banks around the world..."
Comment: After the final cut of the link to gold in 1971, inflation in its original sense as an inflating monetary mass, took off at an ever accelerating speed producing along its way one financial crisis after the other until moving towards the final act of the modern drama of fiduciary money with the current sovereign debt crisis.

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