Not Whether But When? ...

SEE HERE One of the traditional functions of money is as a "store of value." Unfortunately fiat money is not a store of value unless the system that creates it operates in such a way as to resist inflation.

Inflation is a government induced phenomenon associated with fiat money primarily, although it can come with hard currency's as well if the underlying store of value (ex. gold) becomes more accessible. Paper is cheap however. Printing money like there is no tomorrow, creating more and more credit results in pressure that leads to inflation. Small amount of inflation tend to pass with little notice but large amounts of inflation lead to uncertainty, panic, and ultimately to economic collapse if they are not controlled.

We have been creating so much money that we are going to face a flood sooner or later which will create strong inflationary pressure. All the pious nonsense coming from the Fed will not change things. With gas for my Eclipse now over $4.09 a gallon I'm not very impressed by administration assurances that the economy is getting better. It's certainly getting more expensive.