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The chart above shows the monetary supply of the United States from the early 1900s through today. If you understand economics, this chart should scare the hell out of you! Our monetary supply remained fairly steady until 1971. That year, President Nixon took the dollar off the gold standard. From that point on, the Fed has been free to print as much money as they wanted. Even after going off the gold standard, we maintained a fairly even slope, but then, just a few months ago, the monetary supply spiked. The Fed is now running the presses 24-hours, printing money like there's no tomorrow -- which there won't be if we keep going the way we are.
A large monetary supply is not a good thing. Too large a monetary supply leads to inflation. A huge over-supply of money leads to hyperinflation. To understand hyperinflation, we only have to look at German's Weimar Republic in the 1920s. As a result of simply printing more money, the Mark became worthless. It literally took a wheelbarrow full of money to even buy a loaf of bread.
Click here for a more in-depth explanation: http://www.glennbeck.com/content/articles/article/198/20816/?ck=1
We are in a very dangerous situation today. Our politicians refuse to make the hard decisions to solve our problems. Instead, they sellout our children's and grandchildren's futures with things like a so-called "Stimulus Bill" that's nothing more than money and pork for special interests.
The photo above from 1923 shows a woman in Germany feeding Marks into a furnace as the money had become so worthless, it was cheaper to burn the money than to buy coal. THAT is what we have to look forward to if we allow our current situation to continue and end up with hyperinflation.
