I posted this on my blog about a year ago and recently sent this to the Turd because I think it's extremely important for people to see. They say history repeats itself and if that's true, this text written about 150 years ago in the mid 1800's is shocking.
Nearly all the government paper issues ever made have shared the same fate as those whose history we have sketched. The phases through which they all pass is remarkably similar. The issue of paper money is generally resorted to by governments, as a resource to meet indispensable expenditures. This is contrary to the first principle of money, which is, that being an instrument made by the government at the expense and for the convenience of the individuals who use it, it should only be manufactured when demanded by the individuals. The principle which controls the issue of government paper money being false, like all other recourse to false principles, the issue cannot fail to be injurious to both government and people. No matter how despotic or popular the government issuing the paper money may be, the public soon lose confidence in it: if forced by legal enactments to accept it, they avoid holding it, and hoard the coin, in which they have confidence, and which, therefore, suddenly disappear from cirulation. The anxiety to exchange paper money, in which the community has no confidence, for commodities and other property which have an intrinsic value, soon produces a rapid rise of prices, which is the true indication and measure of the depreciation of all paper money having a forced circulation. Every rise in the prices, being in reality a fall in the value of the paper money, instead of inducing holders of commodities and property to realize, only increases their desire to retain their desire to retain them, whilst it increases the desire of the holders of paper money to exchange it for anything possessing intrinsic value. The inevitable result is a panic in regard to the paper money, and the very government that issued it is soon forced to refuse it in payment of taxes and loans, as it will no longer procure the supplies needed by the government and by its officers and employees.
Such are the terrible perturbations produced in communities by a forced cirulation of paper money. An inevitable fatality urges the Governments that use it, toward its abuse; for a forced circulation of paper money is always resorted to in moments of crisis, when the ordinary resources are insufficient. A first excess in the issue of paper money, rendered necessary by excessive expenditures, produces a depreciation in the value of the money received in payment of the taxes levied, and this depreciation obliges the Government to make further issues to augment its resources, so as to compensate the depreciation in the value of the taxes; and so on, ad infinitum, until the value of the paper falls to zero, which is equivalent to general or rather national bankruptcy.
You can read the full book titled, "Money" by Charles Moran on Google Books.