It is a truth universally acknowledged that every dominant fiat currency will rise, and then sink into oblivion. For thousands of years, powerful and prosperous nations have used their coin recklessly – to wage ruinous wars and to fund profligate public works. In each era – ancient Egypt, classical Greece, imperial Rome and Britain – economic prosperity was first weakened by currency debasement, and then drowned in a rising tide of inflation. Will the dollar’s destiny be any different?
Rome’s problem lay in trying to manage an increasingly unruly empire through the force of its legions. As the empire grew, so did its reliance on mercenaries, who needed to be paid in full and on time. Even during the Pax Romana of 27 A.D.-180 A.D. when war booty and tribute were plentiful, the amount of silver in the denarius was slowly reduced – from 4.5 g to less than 3 g – to meet the needs of sundry public works and other extravagance.
A little…
