The end is nigh! No, really. It is!
Ernest Hancock
Website:
www.ernesthancock.com
Date: 04-17-2012
Subject:
Federal Reserve
Today's interesting (and scary) monetary fact:
With the
exception of the British pound Sterling, no fiat currency has lasted longer than
42 years. In America, we are in year 41.
The average life expectancy for a fiat currency is 27
years, with the shortest life span being one month. Founded in 1694, the
British pound Sterling is the oldest fiat currency in existence. At a ripe old
age of 317 years it must be considered a highly successful fiat currency. However, success is relative.
The British pound was defined as 12 ounces of silver, so it's worth less than
1/200 or 0.5% of its original value. In
other words, the most successful long standing currency in existence has lost
99.5% of its value.
Given the undeniable track record of
currencies, it is clear that on a long enough timeline the survival rate of all
fiat currencies drops to zero.
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