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This is the problem with fiat currency-based economies; THEY DON'T WORK.
When the currency is based upon something that has a finite, relatively fixed supply ( gold, silver, platinum, etc ) the currency cannot become inflated, because the supply can never grow beyond its' own ability to purchase goods and services. Once the currency is unhooked from its' Standard, however, you start to have major problems.
The first and largest of these is what we're seeing now. The Gov't needs money, so it has the Central Bank ( in this case the Fed. Reserve ) simply print some, which the Gov't then spends into circulation. This massively devalues the currency over time; 97% in the last 100 years, in the case of the US.
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