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During the economic crisis of 2008, I remember watching people lose their minds and predict financial Armageddon as the national debt crossed from 9 trillion to 10 trillion dollars. Although the psychological impact of going from single to double-digit trillion-dollar debt was significant, the economy simply didn't collapse to the same extent that many people predicted. In fact, the economy has continued to trudge along despite the US currently carrying over a 26 trillion dollar national debt. In this article, I'd like to entertain the notion that a fiat-backed money supply has certain advantages in allowing the government to respond to extreme scenarios.
During the economic crisis of 2008, I remember watching people lose their minds and predict financial Armageddon as the national debt crossed from 9 trillion to 10 trillion dollars. Although the psychological impact of going from single to double-digit trillion-dollar debt was significant, the economy simply didn't collapse to the same extent that many people predicted. In fact, the economy has continued to trudge along despite the US currently carrying over a 26 trillion dollar national debt. In this article, I'd like to entertain the notion that a fiat-backed money supply has certain advantages in allowing the government to respond to extreme scenarios.