Fiat Currency: Inflation, Currency Failure, and the Digital Economy Evolution:
Detailed Analysis: On the next several pages there is a detailed analysis of the current economic conditions, an explanation of the processes, and some likely outcomes. Please see the following pages for more information. Skip this page
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Inflation Purpose and Timing: Inflation steals value from works, savers, and investors. The economic system is likely entering a period of substantial Inflation due to excessive Fiat Currency printing, Government Debt, and other structural economic conditions.
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Inflation as Additional Return: Inflation has one major and primary purpose, to Socially Undermine the value of all workers over time. Essentially, it allows additional hidden return for governments to obtain additional economic control beyond the worker's value.
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Wealth Concentration: In the short to intermediate time frame, Inflation will generally increase wealth for Economic Concentrators, Capitalists, Owners, Investors and Governments. Over the longer time frame, after the impacts from the subsequent economic inflation or economic crisis, the benefits are almost always solely for Governments.
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Fiat Currencies Fail: The major known types of Historical Currency that are now discontinued counts to greater than 300 different types over time and across all cultures. The true historical number of currency failures is unknown. It is certain that the number of Fiat Currency failures has been much higher than what is known. In virtually every case, the failure was due to excessive debt and excessive printing of Fiat Currency.
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Inflation Failure: When any currency lacks a real Intrinsic Value or is not a basic Commodity Money, sooner or later that currency will fail. Either through outright government failure, by Inflation, or perhaps by Hyperinflation, currencies loose all or virtually all of the accepted value or its primary Store of Value.
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Retained Marginal Value: When the underlying value of a currency has real Intrinsic Value or is a true basic Commodity Money, it holds some retained Store of Value and will always have at least some Marginal Utility for use. However, in today's economy Commodity Money is not generally useful.
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