"We can guarantee cash benefits as far out and whatever size you like, but we cannot guarantee the purchasing power."
So said former Chairman of the Federal Reserve, Alan Greenspan, 1 minute 50 seconds into this video.
Give this a moment's thought, and you'll realise he is talking about inflation, or even hyper-inflation. What have we had for the last goodness knows how long? Inflation.
Here's an example. Over the weekend my wife and I replaced a rose that had died. At the base of the old rose was it's name tag, with a price of £3.30. The cost of the replacement? £16.00. The difference in time? About 20 years.
The video talks mainly about the US Dollar, but it applies to the Pound Sterling, Euro, and all other debt based fiat currencies.
