Quote of the Day

"The only relevant test of the validity of a hypothesis is comparison of
prediction with experience."

Professor Milton Friedman


Jim said…
Here is a good example, fiat currency. Go back through out all of human history and point to one single example of a fiat (or debased) Currency that worked.

The problem is you can't. You can't because no such example exists. Every time a fiat currency has ever been tried throughout history it fails. It leads to boom/bust cycles each bust worse than the last, then eventually either collapses by huge debts or erodes to its true value via hyper inflation.

Fiat currency is not a new idea, its just every time it fails, history shows us this time after time.

Its a good job we have history to inform us of mistakes, it helps us not re-make them,,,,,,erm, hang on a moment......er......oops!
Chris Whiteside said…
Perhaps I should find and put up as a quote of the day the one about the main lesson we learn from history is that mankind learns nothing from history ...

You're absolutely right about those who try to get away with debasing the currency.

It never, ever, ever works.

Unfortunately every generation someone comes along who has either never learned what happened to the previous generation, or thinks they have found a way to repeal the laws of economics - remember "No more boom and bust" ?

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