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Originally Posted by The_Dunedan
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.
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I understand that printing more money can cause hyper-inflation but there must be other reasons for economic systems to crash as well. Were we not on the gold standard during the great depression back in the 1930's?
It seems like all it takes is a certain percentage of the population to get nervous and stop buying things which leads to layoffs and more nervousness and things start spiraling downward.