Dems Have Killed Money

In 2021 the federal government, impelled by Democratic majorities, printed $6 trillion of paper money. This sum equaled the accumulated amount of paper money printed from 2011-2021, a ten-year span encompassing the Obama second term and the Trump presidency.

In doing so, the Democrats are trading dangerously on the willingness of people to rely on national currencies in commercial transactions. A switch to metals and cryptocurrencies may be the increasing MO in our global economy.

Remember the history. Until FDR in 1933 and Richard Nixon in 1974, fiat currencies were secured by physical gold held in government treasuries around the world.

But FDR closed the gold window for domestic transactions in '33 and Nixon followed suit for international transactions in '94. Since then, we have all had to accept the fiat of government assurances that a dollar is worth a dollar.

But Democrats are stretching our tolerance for paper money to the breaking point. We are only willing to credit national currencies up to a point. And the Democrats are pushing up against the limits of their credibility. They have increased the paper money in circulation by almost thirty percent one year.

Imagine what they will do with one more year of Congressional and three more years of presidential power! How much more will they print?

Will we put up with it?

Some won't.

Sign up for the daily JWR update. It's free. Just click here.

Many will return to gold and other precious metals. Others will put their trust in mathematics by investing in cryptocurrencies. Whichever gains credibility, one thing is clear: Paper money will lose credibility. Democrats are stretching the credibility of government money to the breaking point. Anything could happen.

If there is a massive shift to gold and crypto, the government will find it increasingly difficult to regulate the economy. It may also find it hard to collect taxes. And our global economy could be crippled by a lack of consensus on which currency — or which genre of money — should prevail.

We have taken the credibility of money for granted. But will we still be able to do so?

(COMMENT, BELOW)

Dick Morris, who served as adviser to former Sen. Trent Lott (R-Miss.) and former President Clinton, is the author of 16 books, including his latest, Screwed and Here Come the Black Helicopters.