I'm surprised at how stable everything is, especially since they did all of that spending for the war, and than all of the natural disasters. You would think that hopefully there won't be another war because that is a drain on the economy, but now it is a complete mystery. Things seem to have gone well in the last six or seven years. Maybe we should have another war. I don't understand the logic but there has been many improvements that have taken place and people seem to be getting by.
They used to have gold and they had problems moving to the fiat money standard because some banks would experience bank runs, people taking out all of their money. They could not pay everyone back, so only so much is guaranteed by the government. You are good for up to 100 thousand dollars, and than if you want more security, you can open accounts in more than one bank, and last of all, you can than buy gold or real estate, etc.
There should be inflation if the treasury creates too much money. I'm not so sure that is what took place. Didn't they borrow money instead?
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