Consistently and uninterruptedly continued inflation must eventually lead to collapse. The purchasing power of money will fall lower and lower, until it eventually disappears altogether. It is true that an endless process of depredation can be imagined. We can imagine the purchasing power of money getting continually lower without ever disappearing altogether, and prices getting continually higher without it ever becoming impossible to obtain commodities in exchange for notes. Eventually this would lead to a situation in which even retail transactions were in terms of millions and billions and even higher figures; bu t the monetary system itself would remain. But such an imaginary state of affairs is hardly within the bounds of possibility. In the long run, a money which continually fell in value would have no commercial utility. It could not be used as a standard of deferred payments. For all transactions in which commodities or services were not exchanged for cash, another medium would have to be sought. In fact, a money that is continually depreciating becomes useless even for cash transactions. Everybody attempts to minimize his cash reserves, which are a source of continual loss. Ludwig Von Mises
About This Quote

When the government prints more money to pay for its expenses, it is not really helping the economy. When the government prints more money to pay for its expenses, it is not really helping the economy because there are limits to how much money can be printed. If it goes beyond that limit, there are only so many bills that can be printed before there are no more bills to print. The government will have to stop printing money because there won’t be any more bills to print.

Source: The Theory Of Money And Credit

Some Similar Quotes
  1. It’s probably not just by chance that I’m alone. It would be very hard for a man to live with me, unless he’s terribly strong. And if he’s stronger than I, I’m the one who can’t live with him. … I’m neither smart nor stupid,... - Coco Chanel
  2. I am not an angel, ' I asserted; 'and I will not be one till I die: I will be myself. Mr. Rochester, you must neither expect nor exact anything celestial of me - for you will not get it, any more than I shall... - Unknown
  3. The really important kind of freedom involves attention, and awareness, and discipline, and effort, and being able truly to care about other people and to sacrifice for them, over and over, in myriad petty little unsexy ways, every day. - David Foster Wallace
  4. They say a good love is one that sits you down, gives you a drink of water, and pats you on top of the head. But I say a good love is one that casts you into the wind, sets you ablaze, makes you burn... - C. Joybell C.
  5. Keep your best wishes, close to your heart and watch what happens - Tony Deliso
More Quotes By Ludwig Von Mises
  1. Only stilted pedants can conceive the idea that there are absolute norms to tell what is beautiful and what is not. They try to derive from the works of the past a code of rules with which, as they fancy, the writers and artists of...
  2. The biological equipment of a man rigidly restricts the field in which he can serve.
  3. Science does not give us absolute and final certainty. It only gives us assurance within the limits of our mental abilities and the prevailing state of scientific thought.
  4. The worship of the state is the worship of force. There is no more dangerous menace to civilization than a government of incompetent, corrupt, or vile men. The worst evils which mankind ever had to endure were inï¬â€šicted by bad governments. The state can be...
  5. Used to the conditions of a capitalistic environment, the average American takes it for granted that every year business makes something new and better accessible to him. Looking backward upon the years of his own life, he realizes that many implements that were totally unknown...
Related Topics