If a nation prints more money, like cutting a 16 inch pizza into 16 slices instead of 8, is each slice worth less?

Nations are not ruined by one act of violence

but quite often, gradually, and almost imperceptibly

by the depreciation of their currency through excessive quantity

Nicolas Copernicus

Discovered Earth was not the center of the Universe

If Nathaniel Rothschild accumulated gold
essential for supporting an army upon Napoleon’s return
in anticipation of an extensive military conflict
and rapidly increasing government borrowing
and profitably exchanged relatively high priced gold
for lower cost debt
in anticipation of sovereign debt stability
upon Napoleon’s defeat at Waterloo in 1815
could current circumstances reflect something like the same thing
only opposite?

Now in modern markets

it is striking that exactly the reverse…applies

Governments all over the world

are about to flood the bond markets with paper

to finance their bank bailouts and economic stimulus plans

and the final bill could amount to more than $6 trillion

…governments are about to need to raise the funds

to fight another Napoleon

This massive new supply of bonds

[could]depress the price of existing bonds

…governments all over the world

have embarked on massive money creation

Peter Cooper

Seeking Alpha

(Hat tip for the Rothchild metaphor)

If Germany’s central bank suspended the right
to redeem gold backed Reichsmarks during World War I
and 170 Reichsmarks bought an ounce of gold in January 1919
why did an ounce of gold cost 87,000,000,000,000 Reichsmarks
in November 1923?

What if the pizza shrinks 

while the number of slices rise?

Should an IOU backed by faith and creditremain relatively stableas long as faith and credit exist?

If more is worth less

could less be worth more?

 

One of the really interesting things about supernovae

 is that, when the explosion takes place

 the elements that had been formed inside the star

 …calcium or iron or other elements

 that are made in the ordinary course of the star's burning

 plus, new elements that are synthesized in the explosion itself

 those elements get blasted out into the gas between the stars

 

And they become the raw material for the next generation of stars

and for planets and for people

 

The calcium that's in your bones and the iron that's in your blood

 or if you're wearing gold jewelry

 those atoms…were manufactured in supernova explosions

 that took place early in the history of our galaxy

 before the sun formed and before the Earth formed

 

So you are really star material

 

Dr Robert Kirshner

Supernova Expert

Harvard-Smithsonian Center for Astrophysics

 

If the totality of gold ever mined

equals about a third of the Washington Monument

and annual global gold production is about 2,500 tons

and all the governments of the world

are printing ever larger supplies of paper money

could a finite, relatively scarce inanimate metal

considered a means of monetary exchange

since the dawn of civilization

offset governmental profligate hubris?

 

Nations are not ruined by one act of violence

but quite often, gradually, and almost imperceptibly

by the depreciation of their currency through excessive quantity

 

Nicolas Copernicus

Discovered Earth was not the center of the Universe