I admit I am not an economics major. However, like you, I have common sense — something the current federal administration desperately needs. In the event that our current president may read this, here is a pop quiz for him about inflation and devaluation. President Biden’s highly likely answers to these questions are in quotes below –
• Mr. President, imagine you are at an estate sale, and you successfully bid on a box of sports memorabilia. You find a baseball card of a famous player in mint condition in the box.
Question. In which case will the baseball card be worth the most?
a). You find out your card is a one-of-a-kind, and some collectors will pay $150,000 minimum for it.
b). You find out there are 199 other cards of that same famous player in the world also in mint condition.
c). “It makes no difference. Since both (a) and (b) are of the same famous player in mint condition, all cards are still worth $150,000 each, regardless of how many cards are in existence.”
• Mr. President, with the creation of the Federal Reserve in 1913 and President Nixon taking America off the gold standard in 1971, we have had fiat money, backed by nothing, as the “legal tender for debts public and private.”