Audiobook9 hours
Paper Money Collapse: The Folly of Elastic Money and the Coming Monetary Breakdown
Written by Detlev S. Schlichter
Narrated by John Lee
Rating: 4 out of 5 stars
4/5
()
About this audiobook
In an engaging style based on extensive research, Paper Money Collapse shows conclusively why paper money systems - monetary systems that are based on an elastic and constantly expanding supply of money (such as our system today) as opposed to a system of commodity money of essentially fixed supply - are inherently unstable and why they must lead to economic disintegration. All paper money systems in history ended in failure. The book shows why this must be the case and why it will also be the fate of the present system. The conclusions are controversial as they go against the present consensus, which holds that elastic state money is superior to inflexible commodity money (such as a gold standard), and that expanding money is harmless or even beneficial for as long as inflation stays low. The book shows that the present crisis is the unavoidable result of continuously expanding fiat money, that the current policy of accelerated money production to stimulate the economy is counterproductive and that, if pursued further, it will lead to a complete collapse of the monetary system. Paper money systems are confidence games. When the public realizes that the printing press is increasingly used to keep states and banks solvent, this confidence will evaporate quickly. The endgame will then be sovereign default, hyperinflation and economic chaos.
Related to Paper Money Collapse
Related audiobooks
The Great Devaluation: How to Embrace, Prepare, and Profit from the Coming Global Monetary Reset Rating: 5 out of 5 stars5/5The Inflation Myth and the Wonderful World of Deflation Rating: 4 out of 5 stars4/5The Coming Bond Market Collapse: How to Survive the Demise of the U.S. Debt Market Rating: 5 out of 5 stars5/5The Demographic Cliff: How to Survive and Prosper During the Great Deflation of 2014-2019 Rating: 5 out of 5 stars5/5Code Red: How to Protect Your Savings From the Coming Crisis Rating: 4 out of 5 stars4/5Leverage: How Cheap Money Will Destroy the World Rating: 4 out of 5 stars4/5The Great Reversal: How America Gave Up on Free Markets Rating: 5 out of 5 stars5/5Finance and the Good Society Rating: 4 out of 5 stars4/5Bailout Nation: How Greed and Easy Money Corrupted Wall Street and Shook the World Economy Rating: 4 out of 5 stars4/5Endgame: The End of The Best Supercycle And How It Changes Everything Rating: 4 out of 5 stars4/5Broken Money: Why Our Financial System Is Failing Us and How We Can Make It Better Rating: 5 out of 5 stars5/5What to Do When the Bubble Pops: Personal and Business Strategies for the Coming Economic Winter Rating: 4 out of 5 stars4/5Boombustology: Spotting Financial Bubbles Before They Burst 2nd Edition Rating: 5 out of 5 stars5/5Currency Wars: The Making of the Next Global Crises Rating: 4 out of 5 stars4/5The Day After the Dollar Crashes: A Survival Guide for the Rise of the New World Order Rating: 5 out of 5 stars5/5A History of the United States in Five Crashes: Stock Market Meltdowns That Defined a Nation Rating: 4 out of 5 stars4/5This Time is Different: Eight Centuries of Financial Folly Rating: 4 out of 5 stars4/5The Finance Curse: How Global Finance Is Making Us All Poorer Rating: 4 out of 5 stars4/5The Future of Money: How the Digital Revolution Is Transforming Currencies and Finance Rating: 5 out of 5 stars5/5The Last Gold Rush…Ever!: 7 Reasons for the Runaway Gold Market and How You Can Profit from It Rating: 0 out of 5 stars0 ratingsHow Money Became Dangerous: The Inside Story of our Turbulent Relationship with Modern Finance Rating: 4 out of 5 stars4/5Zombie Banks: How Broken Banks and Debtor Nations Are Crippling the Global Economy Rating: 0 out of 5 stars0 ratingsThe Little Book of the Shrinking Dollar: What You Can Do to Protect Your Money Now Rating: 5 out of 5 stars5/5The Illusion of Control: Why Financial Crises Happen, and What We Can (and Can't) Do About It Rating: 5 out of 5 stars5/5Other People's Money: The Real Business of Finance Rating: 4 out of 5 stars4/5The Money Plot: A History of Currency's Power to Enchant, Control, and Manipulate Rating: 4 out of 5 stars4/5The Capitalist Code: It Can Save Your Life and Make You Very Rich Rating: 5 out of 5 stars5/5How to Survive (and Thrive) During the Great Gold Bust Ahead Rating: 4 out of 5 stars4/5The Great Depression Ahead: How to Prosper in the Crash That Follows the Greatest Boom in History Rating: 3 out of 5 stars3/5
Economics For You
The Technology Trap: Capital, Labor, and Power in the Age of Automation Rating: 4 out of 5 stars4/5These are the Plunderers: How Private Equity Runs—and Wrecks—America Rating: 5 out of 5 stars5/5Economics 101: How the World Works Rating: 5 out of 5 stars5/5Freakonomics Rev Ed Rating: 4 out of 5 stars4/5The Genius of Israel: The Surprising Resilience of a Divided Nation in a Turbulent World Rating: 4 out of 5 stars4/5The Divide: Global Inequality from Conquest to Free Markets Rating: 4 out of 5 stars4/5Poor Economics: A Radical Rethinking of the Way to Fight Global Poverty Rating: 4 out of 5 stars4/5Chip War: The Quest to Dominate the World's Most Critical Technology Rating: 5 out of 5 stars5/5Marvel Comics: The Untold Story Rating: 4 out of 5 stars4/5Nothing Is True and Everything Is Possible: The Surreal Heart of the New Russia Rating: 4 out of 5 stars4/5Four Futures: Life After Capitalism Rating: 4 out of 5 stars4/5Don't Trust Your Gut: Using Data to Get What You Really Want in Life Rating: 4 out of 5 stars4/5Men Without Work: America's Invisible Crisis Rating: 4 out of 5 stars4/5Killing Sacred Cows: Overcoming the Financial Myths that are Destroying Your Prosperity Rating: 5 out of 5 stars5/5Nudge: The Final Edition: Improving Decisions About Money, Health, And The Environment Rating: 4 out of 5 stars4/5San Fransicko: Why Progressives Ruin Cities Rating: 4 out of 5 stars4/5How the World Works Rating: 4 out of 5 stars4/5What We Owe Each Other: A New Social Contract for a Better Society Rating: 4 out of 5 stars4/5The Myth of Capitalism: Monopolies and the Death of Competition Rating: 4 out of 5 stars4/5Why the Rich Are Getting Richer Rating: 5 out of 5 stars5/5Principles for Dealing with the Changing World Order: Why Nations Succeed or Fail Rating: 5 out of 5 stars5/5Nickel and Dimed: On (Not) Getting By in America Rating: 4 out of 5 stars4/5Think Like a Freak: The Authors of Freakonomics Offer to Retrain Your Brain Rating: 4 out of 5 stars4/5Doughnut Economics: Seven Ways to Think Like a 21st-Century Economist Rating: 5 out of 5 stars5/5The Ascent of Money: A Financial History of the World Rating: 4 out of 5 stars4/5A History of the United States in Five Crashes: Stock Market Meltdowns That Defined a Nation Rating: 4 out of 5 stars4/5The Sovereign Individual: Mastering the Transition to the Information Age Rating: 5 out of 5 stars5/5The Color of Money: Black Banks and the Racial Wealth Gap Rating: 5 out of 5 stars5/5Bad Samaritans: The Myth of Free Trade and the Secret History of Capitalism Rating: 4 out of 5 stars4/5
Reviews for Paper Money Collapse
Rating: 4 out of 5 stars
4/5
8 ratings1 review
- Rating: 4 out of 5 stars4/5I read this book as research for my upcoming novel The Internet President: None of the Above. I was researching the economics of a total collapse of the global economy, a backdrop of my book. So far my favorite book in this category is Deep Freeze about the collapse of Iceland.
Schlichter uses a valid educational approach of layering. He starts with a simple abstraction and adds more elements. He assumes he's proven his point, but that wasn’t always the case. He follows the standard trajectory of these sorts of books, starting with the history of paper money (from Chinese paper money and later European gold smiths) and the resulting disasters. I really enjoyed his coverage of that section. He rightly points out the consistently tragic history of paper money. I’m not sure if I agree about his reinterpretation of the Great Depression, but it was well presented.
I didn’t enjoy his more abstract economics sections as much. I would have preferred more concrete examples than talking about 150,000 units of ‘p’. How about widgets, at least?
He placed a lot of importance on the time preference of consumers (willingness to spend later instead of now, like marshmallow experiment in psychology, or savers). That seems to be the path to true prosperity. If all people were given 10% more prices would rise 10%. Only in the complete abstract. People aren't arbitrage machines. Most humans would still go off nominal valuations until the changes got large or frequent.
He does make good points like lowering interest rates tend to go to recipients who were marginally unprofitable under the previous rates. Otherwise, they would already have loans. That explains the malinvestments that happen in booms that has to be cleared out in busts. However, in that same section, when talking about money pumping by central banks vs. Holistic savings, he writes: “The lowering of interest rates on the loan market has fooled entrepreneurs into thinking that consumers have decided to consume less and save more.” So he’s telling me that business people are fooled by the actions of the Fed? The reality is quite the opposite. Businesses play along as long as the music lasts.
Like many of the books on this topic, he seems to be a libertarian goldbug. See my none of the above bookshelf for more books on this topic if you want a more in-depth comparison.