Deutsche Asks A Stunning Question: "Is This The Beginning Of The End Of Fiat Money?"

• Deutsche Asks A Stunning Question: “Is This The Beginning Of The End Of Fiat Money?”
  by Tyler Durden, http://www.zerohedge.com/
  One month ago, Deutsche Bank’s unorthodox credit analyst, Jim Reid published a phenomenal report, one which just a few years ago would have been anathema, as it dealt with two formerly taboo topics: is a financial crisis coming (yes), and what are the catalysts that have led the world to its current pre-crisis state, to which Reid had three simple answers: central banks, financial bubbles and record amounts of debt.
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  Just as striking was Reid’s nuanced observation that it was the modern fiat system itself that has encouraged and perpetuated the current boom-bust cycle, and was itself in jeopardy when the next crash hits:
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  We think the final break with precious metal currency systems from the early 1970s (after centuries of adhering to such regimes) and to a fiat currency world has encouraged budget deficits, rising debts, huge credit creation, ultra loose monetary policy, global build-up of imbalances, financial deregulation and more unstable markets.
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  The various breaks with gold based currencies over the last century or so has correlated well with our financial shocks/crises indicator. It shows that you are more likely to see crises/shocks when we break from hard currency systems. Some of the devaluation to Gold has been mindboggling over the last 100 years.
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