Understanding Fiat Money

Stocks soared yesterday in the wake of the deal to avert falling off the fiscal cliff. While that is certainly better than stocks going down, the public needs to know about the real prospect of inflation or even hyperinflation that continues to be stoked by our government's unrestrained spending. A nation may grow apparent, nominal wealth while drowning itself in public debt. That is what America is doing whether or not we have alleviated momentary concerns about the fiscal cliff our politicians manufactured to further their deception of that portion of the citizenry that is gullible enough to fall for it. Everyone in the Weimar Republic and in Mugabe's Zimbabwe was a millionaire because the currency was so devalued. When it takes a wheelbarrow of cash to purchase a loaf of bread, it matters little what your stock price is. If some discipline is not imposed in government spending, then that is where the USA is heading.