When I say we have produced the most comprehensive research project covering the world monetary system structures on a global basis, I mean it is truly second to none. The chart we have often shown regarding the collapse of the Monetary System of Rome cost more that $20 million to produce, We have constructed the entire global monetary system that includes Asia as well. I have often stated that history repeats because the passions of man never change.
I have also explained that Asia has always been a fiat monetary system unlike the ideas that circulate claiming money must be tangible. It is by no means what we regard as money, for that is simply a medium of exchange and should NEVER be regarded as a store of wealth since everything rises and falls as we can see just here with the gold silver ratio. Nothing is EVER constant. Absolutely everything fluctuates which is why you can never peg currencies or try to fix some monetary standard. The Free Markets will always tear the best laid plans apart.
However, it is Japan that provides the most drastic example from history of fiat monetary systems. During the Nara Period, the state was dominated by religion. They believed that the emperor was chosen by God and whatever he said was therefore written in heaven, There were numerous monetary reforms in Japan and each time a new coin was issued it was valued at 10 times that of what was previously in circulation. This is a chart of the massive fiat revaluations that took place that rendered coinage worthless.
The consequences of this fiscal mismanagement meant that everything collapsed. The capital of Japan left Nara separating itself from the Buddhist monks. This created the new capital of Kyoto. However, the constant fiat revaluations had destroyed the confidence in money so that the use of coinage declined. From 987 until 1587, Japan devolved into a monetary system of pure barter. THERE WERE NO COINS MINTED FOR 600 YEARS.
Even the United States defaulted on the colonial currency. When the new federal government was formed, they prohibited the issue of money by the states as will take place in Europe if it tries to hold together. The new US federal government also stopped issuing paper money. The first US federal paper money did not appear for 72 years 1789 to 1861. The monetary system has routinely collapsed and you end up with a economic void. What we face will be the subject of a special report and the Sovereign Debt Crisis on March 16th, in Philadelphia. It is beyond what most even contemplate.