“Almost without exception, if you look around the world for regions with persistent double-digit money supply inflation, those regions are not very economically productive. Instead, they tend to be in disarray. In that type of inflationary environment, it is hard for businesses to plan for the long run while remaining profitable, and it’s hard for workers to maintain wages that keep up with the cost of living. All negotiations become harder and more frequent, especially if they involve a lot of people, such as unions and large contracts. Investors want to get their capital out to easier jurisdictions, which increases the cost of capital for local businesses, which makes them even less organized, less profitable, and less competitive. In this context, the public ledger is broken, and by extension everything becomes broken. It risks becoming a vicious cycle, because disorganization leads to inflation, and inflation leads to disorganization.”