Then a general fought his way to power – Diocletian (284-305AD). During this period, inflation soared. Money really became in kind and the purchasing power of the debased coinage collapsed with the lack of confidence in government. This became akin to the crisis in Germany during the 1920s. People simply did not really accept the debased Roman coinage. No disagreement with Armstrong. Lack of confidence in government. Lack of confidence in the currency to maintain its purchasing power. Lack of confidence in government because they pay their bills by debasing the currency instead of living within its means. To me, when he completely eliminates the possibility of hyperinflation, he ignores much of what he himself says. Hyperinflation IS deflation measured by any other measurement other than the currency in question. It is a low probability event. But government actions, if continued long enough so that people loose confidence in the government and the government mandated currency, is what can ultimately happen. Martin just thinks our government will not go to those lengths to cause this loss of confidence, and he may be right. If that is not the case (of what he believes), he is contradicting himself. With his own examples. John
Edited by John Burns 1/30/2015 12:52
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