Paper Money Collapse: The Folly of Elastic Money and the Coming Monetary Breakdown Hardcover – 23 Sep 2011
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Paper Money Collapse was the 2012 getAbstract International Book Award Winner!...An excellent introduction to the dangers of our current monetary system.′ (therealasset.co.uk, January 2012)
From the Inside Flap
The recent financial crisis has exposed the instability of our financial system. While there is plenty of talk of reform, few commentators are yet willing to consider that the root cause could be the transition from commodity money to limitless paper money, although the track record of paper money systems is uniformly discouraging: Throughout human history, all paper money systems have either collapsed in chaos, or society has returned to commodity money (usually based on gold) before a total currency disaster occurred. This book shows why this was the case and why this is also the choice we are facing today.
Drawing upon ground breaking new research, Paper Money Collapse conclusively demonstrates why paper money systems those based on an elastic and constantly expanding supply of money, as opposed to a system of commodity money of essentially fixed supply are inherently unstable and why they must, by their very nature, lead to economic disorder.
These highly controversial findings clash with the general consensus that elastic state money is superior to inflexible commodity money, and that expanding money is harmless or even beneficial as long as inflation remains contained.
In an engaging style based on extensive study and analysis, this compelling new book exposes the fallacies of mainstream macroeconomics and debunks erroneous conventional wisdom. It explains why many people working in financial markets, in the media, and in policy establishment positions are unable (and often unwilling) to fully appreciate the underlying problems with elastic money and the danger it presents.
Paper Money Collapse shows in the starkest terms that the recent crisis is far from over and that the solutions presented by the advocates of paper money around the world are misguided and inherently flawed, in particular the current policy of accelerated paper money production to "stimulate" the economy. If these policies are continued, a complete currency catastrophe will be inevitable.
An absolute must–read for economists, individual investors, and anyone with an interest in finance, Paper Money Collapse will change the way you think about our financial system and about how to take control of your own financial future.See all Product Description
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Top Customer Reviews
He begins with a clear explanation of what money is and how it works; how it began as a pure commodity currency, morphed into a paper currency backed by gold, changed again through the process of Fractional-Reserve Banking and has today (as it has in past times before collapsing) become a fiat currency where Central Banks can create money at will and at no cost. Currency created through Fractional-Reserve Banking is somewhat elastic and that created by Central Banks is infinitely so.
It is this elasticity that allows monetary expansion to distort and unbalance the economy, and to induce short term stimulus in certain sectors but zero real growth overall in the long term. It also has the important side effect of generating inflation. As the process continues monetary stimulus is destined to have less and less effect whilst the inflationary consequence is intensified, with the inevitable result of hyperinflation and currency collapse.
Schlicter underpins his analysis with descriptions of historic paper money systems, all of which failed. Our present system of paper money, particularly after 1971 when the US abandoned The International Gold Standard, displays numerous symptoms analogous to the historic examples cited.
What is the solution?Read more ›
One way to describe Paper Money Collapse might be to say that it is the sort of book that the great Austrian School economist and economic historian Murray Rothbard might have written, had he lived a bit longer. Last year I read Rothbard's Man, Economy and State. While doing this, I kept hoping that I would read a theoretical analysis of our current financial woes, as opposed merely to Rothbard's general take on Austrian Economics as a whole. I realise that this was a lot to ask of a book published several decades ago, and not surprisingly I was, although in general much educated, largely disappointed on that particular count. Well, what I was only hoping to read in that Rothbard book was what I did read in Detlev Schlichter's much shorter book, which I heartily recommend to anyone willing to really get stuck into it. Here is a conceptual analysis, in very much the painstaking Rothbard manner, of how non-commodity-backed currencies behave when they collapse, and why they do collapse, always, inevitably. In other words it is about the times we now live in.
I learned a lot from reading Paper Money Collapse.Read more ›
Given that understanding of time, elastic and inflationary money is a distinct poison. That poison is now destroying our society.
Schlichter's book sets out the arguments in convincing detail. I should love to believe he is completely wrong. That no longer seems likely.
Anyone who cares about prosperity and progress should read this book.
His wakeup call to sound-money economics came in the wake of the LTCM crisis. The lessons from that are the same as the lessons from 2008... or the coming euro explosion... or another round of bank collapse. Detlev gets it; the rest of his ilk in the banking community and the wider parasitic political party of central banks are too busy saving their skins to care!
I believe Detlev Schlichter's Paper Money Collapse will prove the handbook for a new generation of economists. He's a bit like the Euclid of sound money. Once the Von Mises crowd gets a hold of this book, it can't fail to go viral in all sorts of excerpts! Your best bet is to read it cover to cover. It starts out from one basic principle: YOU are the driver of the economy. You buy what you need when you need or want it.
Detlev handily rejects, with welcome soundness, the idea that the economy is a super-organism worthy of preservation by the unsound manipulations of the State! All this intervention results in is what Detlev refers to as "dislocations." That is, misallocations of capital galore. I've just turned 29... I consider myself a young woman who's grown up in a world of nothing but false interest rates -- that give false clues to savers and industry -- that deliver only boom-bust cycles in rapid succession. I was born in a recession, I got my first job in a boom, I was baptized a finance editor by the bust, and I expect to enjoy myself even as the greatest depression the world has ever seen creeps stealthily to catastrophic proportions. Detlev is my hero.Read more ›
Most Recent Customer Reviews
Much of this book is derivate of MIses theory of money and credit but in a much more accessible manner. Read morePublished on 2 Feb. 2014 by DIOMIDES MAVROYIANNIS
I have known about the Austrian business cycle. But never had it been explained in such clarity and relevance to the current economic conditions and thinking. Read morePublished on 30 Jan. 2014 by BigLemon
With so many chancers turning out garbage about the economy at present, it must be hard for the layman to actually see that no new economic theories are required to explain the... Read morePublished on 1 Oct. 2012 by Dr Bob
The sky is falling, and so are the dollar, the pound and every other currency not linked to an independent, immutable source of value, like gold. So says economist Detlev S. Read morePublished on 25 Sept. 2012 by Rolf Dobelli
They often say that "cometh the hour, cometh the man." In our case, the man is Detlev Schlichter, perhaps one of the best Austrian school economists in the UK and whose razor-sharp... Read morePublished on 18 May 2012 by Mr. Ds Phillips
The worst thing about this book is the totally idiotic forward by Wiggin. He states grandly "if you agree with (everyone he disagrees with) then ... Read morePublished on 30 Mar. 2012 by @iGlinavos
The question of the sustainability of a fiat currency is interesting and worth making, unfortunately Schlichtel's book is riddled with fallacies that completely undermine its... Read morePublished on 27 Feb. 2012 by AlexHanin
Much of that the author says in this book will be familiar to any readers of economists like Ludwig von Mises and Freidrich Hayek and he admits as much - this is a book about the... Read morePublished on 20 Jan. 2012 by Emilio Mestiga
Essential reading for those wanting to understand what is currently taking place in the world economy and just how it is all going to play out/end. Read morePublished on 8 Jan. 2012 by Nicholas Winstanley