User 142738

The American Crisis and the Case for an Inflationary Depression

The Swiss franc hasn’t been backed by any gold since the “Nazi Gold” scandal — before, banks had to back 40% of their currency with gold. Today Switzerland wouldn’t have enough to back half their currency in the same manner.

In addition, the Japanese government had actually fluctuated between a budget deficit and surplus since the 1960’s. Japan had their last surplus hurrah in the late 1980’s and, after issuing 100-year bonds yielding 0%, quickly went into a permanent budget deficit.

Just thought I would chime in to clear up some historical misconceptions.