We live in a day and age in which the coin of the realm is our medium of exchange, and for the most part, though not always, it seems to do a respectable job of permitting people and businesses to conduct transactions that are seamless and secure. The problem though is that we also live in a day and age in which inflation, but never deflation, continues to wreak havoc on the value of that coin of the realm, and because of that, it makes it more difficult for transactions that utilize the coin of the realm as credit, to properly know how much to charge for that credit, especially when dealing with long-term durations such as thirty years, which is common for mortgages. In other words, what is an appropriate interest rate to charge when inflation is not only persistent but could conceivably go significantly higher? This thus signifies that one of the primary duties of good governance is to protect, defend, and to maintain the value of the coin of the realm, or else everything financial becomes much more problematic, especially in consideration that most people, let alone businesses, have other things to attend to, without trying to accurately forecast what the value of money is going to be in the future; yet, this is also something that they need to have a good idea about so as to properly protect their assets and wealth.
The thing about today’s money is that it is supposed to be a reliable medium of exchange, so that, each party to a transaction does not need to try to come up with some alternate barter type of exchange which not only would complicates matters, but would necessitate more time and energy devoted to figuring out how best to work with bartering, when their preference would be to just labor or sell things and get paid in a currency which has not just intrinsic value, but lasting value, as well.
All of the above is indicative that nations need to keep or get their fiscal house in order, because when important personages and huge corporations lose confidence in the coin of the realm, which nowadays represents a fiat currency, the whole edifice could come tumbling down. So too, inflation is a real problem, which could be countered somewhat if the inflation rate were never to exceed a relatively low number, such as 2%, and the confidence that the government could indeed accomplish this very thing was high. Instead, we seem to have a government that cannot keep our money stable, can’t keep the inflation rate at no higher than 2%, can’t keep its fiscal house in order, and doesn’t seem to have a reasonable plan to actually do these very things. The only thing that this government appears to care about is putting together inflation reports that seem to reflect their desire to have the public believe that inflation is not too bad, by manipulating numbers in a way that purports to demonstrate this, which seems to be in contradiction to what is actually the reality of the situation.
Remember this well, history tells us that fiat currencies are subject to not just devaluation, but also to a partial or full replacement, and those on the wrong side of that bet, through ignorance or lack of interest, might just find that the assets that they thought were sufficient for their needs have instead gone up in smoke.