In 1971 President Nixon ended the U.S. Dollar’s convertibility to gold. The following article summarizes many different measures by which standard of living rapidly declined.
Let's look back at the state of affairs in 2011 America, well before the global pandemic.
Nixon's Colossal Monetary Error
Nobel Laureate Milton Friedman said: "Inflation is caused by too much money chasing after too few goods." The article below explores the inflation risks of the Fed's Covid-related money printing. It also raises a deeper concern: the potential for a central bank digital currency (CBDC) to impose monetary policy on an individual basis.
Can the Fed Print Money Forever?
Deflation is another concern for individuals looking to preserve their purchasing power. Jeff Booth, author of "The Price of Tomorrow", discusses inflation, deflation and Bitcoin in the following in-depth video. Technological advancements reduce prices, leading to a deflationary environment that makes debt more expensive. Our debt-driven world uses inflationary monetary policy to make debt easier to service. Inflation leads investors to store value in scarce goods and also drives businesses to automate faster. The tension between technology-driven deflation and inflationary monetary policy has only ever been resolved by revolution, war or a shift to a managed economy (communism). Mass adoption of a non-inflationary currency such as Bitcoin gives the world an opportunity for a peaceful financial transition.
Inflation, Deflation and Bitcoin