Fiat Currency Graveyard: A History of Monetary Folly

Living in Denial About the Economy. I still see many Americans living in denial about the fate of the USD. Even when they know that past performance is not a guarantee of future performance, they still say things like “Yes, the 2008 bailouts were bad, but our economy has stabilized and we’ll be OK.” No, the economy will not be OK, and the chart below illustrates why.

U.S. money -- Money Printing Is Wealth Theft

Money Printing Is Wealth Theft. As the chart below illustrates, the money printing in the U.S. since 1900 has destroyed 98% of the USD’s value. But what happens to the value of the USD when the money supply shoots up like a missile as has occurred since 2008? It loses even more value and will eventually and inevitably collapse, along with the value of every asset that is denominated in USD. This has happened many times in recent and not-so-recent history; and when it happens, the currency is usually killed and buried in the fiat currency graveyard.

The Fiat Currency Graveyard

R.I.P. Fiat Currencies -- EchoBTG.comThe Average Lifespan of a Fiat Currency is About 35 Years. The following list of currencies is a small sample of all the fiat currencies throughout the past 1,000 years that have collapsed due to corrupt and/or incompetent monetary policymaking. Hyperinflation is one of the most common precursors to a fiat currency’s collapse. Keep in mind that most of these currencies below collapsed within the lifetime of most Baby Boomers living today. So, hyperinflation and currency collapses are not exceptionally rare events. In fact, the average lifespan of a fiat currency is only about 35 years, which means these events happen much more frequently than many people realize.

Peru – 100,000 intis, 1989Peru – 100,000 intis

Russia – 10,000 rubles, 1992Russia – 10,000 rubles

Zaire – 5 million zaires, 1992
Zaire – 5 million zaires

Hungary – 10 million pengo, 1945Hungary – 10 million pengo

Germany – 1 billion mark, 1923Germany – 1 billion mark

Zimbabwe – 100 trillion dollars, 2006Zimbabwe – 100 trillion dollars

Greece – 25,000 drachmas, 1943Greece – 25,000 drachmas

Central Bank of China – 10,000 CGU, 1947Central Bank of China – 10,000 CGU

Venezuela – 10,000 bolívares, 2002Venezuela – 10,000 bolívares

Yugoslavia – 10 billion dinar, 1993Yugoslavia – 10 billion dinar

Bolivia – 5 million pesos bolivianos, 1985Bolivia – 5 million pesos bolivianos

Angola – 500,000 kwanzas reajustados, 1995Angola – 500,000 kwanzas reajustados

Ukraine – 10,000 karbovantsiv, 1995Ukraine – 10,000 karbovantsiv

France – 5 livres, 1793France – 5 livres

Turkey – 5 million lira, 1997Turkey – 5 million lira

Georgia – 1 million laris, 1994Georgia – 1 million laris

Brazil – 500 cruzeiros reais, 1993Brazil – 500 cruzeiros reais

Argentina – 10,000 pesos argentinos, 1985Argentina – 10,000 pesos argentinos

Nicaragua – 10 million córdobas, 1990Nicaragua – 10 million córdobas

Belarus – 100,000 rubles, 1996Belarus – 100,000 rubles

Chile – 10,000 pesos, 1975Chile – 10,000 pesos

Romania – 50,000 lei, 2001Romania – 50,000 lei

Bosnia – 100 million dinar, 1993
Bosnia – 100 million dinar

Will Your Fiat Currency Be Next? Based on the historical average lifespan of fiat currencies and the data table in the Global Governance Scorecard, if your country’s total Debt-to-GDP Ratio (private and public debt) approaches or exceeds 200%, then there’s a high probability that your fiat currency will be buried in the fiat currency graveyard within your lifetime. The only currency that can escape this fate is a well-designed cryptocurrency; not gold, silver, or any other physical commodity because they can all be confiscated by governments controlled by politicians who have been driving our economies into the ground for generations.

About Ferris Eanfar

Ferris Eanfar has over 20 years of experience in technical, financial, media, and government intelligence environments. He has written dozens of articles and several books in the fields of Economics, Crypto-Economics, and International Political Economy, including Broken Capitalism: This Is How We Fix It and GINI: Capitalism, Cryptocurrencies & the Battle for Human Rights and the Global Governance Scorecard. Ferris is a cofounder of the Gini Foundation, which builds unique cryptocurrency systems to protect human rights, among other benefits; and the CEO of the AngelPay Foundation, a nonprofit financial services company with a mission to “return wealth and power to the creators of value.” To learn more about Ferris, please visit the About Ferris page.

Visit Ferris on: Click to view's Ferris Eanfar's LinkedIn profile. and Click to view's Ferris Eanfar's Twitter stream.