That Speech By Daniel Hannan: Fiat Money and Inflation

Let’s go right back to the big one. The Great Depression. The cause? Inflation. The cure? The same nonsense that’s going on now. Massive government intervention. It didn’t work then, it didn’t work in the 1970s, it didn’t work in Japan and it’s not going to work now.

We’re just putting off the pain. But it’s in the post. Late delivery simply means it’s going to be worse when it arrives.

Again and again history tells us that the cause of such problems is inflation made possible by fiat money. It’s all lies, deceit, smoke and mirrors. They can’t even say the words "printing money" – instead it’s "quantitative easing"! More double-speak – the "Mushroom Principle" – keep them in the dark and feed them BS!

Government issued fiat money is created through a scheme of borrowing, either from itself or others, and issuing IOU's to the debtor and pumping newly printed dollars into the banks. It's much like the story of Rumplestilskin who spun straw into gold except the Fed is spinning paper into dollars and seems to believe they're creating real money.