Now in its second edition, Detlev S. Schlichter's bestselling Paper Money Collapse: The Folly of Elastic Money challenges the mainstream thinking on money and monetary policy. This revised and updated edition draws on solid research and clearly demonstrates that the present monetary system, based as it is on essentially limitless fiat money and unconstrained central banking, is inherently unstable and ultimately unsustainable.

By the standards of history and theory, our present paper money system is a peculiar political creation. For centuries, the money of the free market was gold or silver, commodities whose supply was fairly inelastic and outside of the control of politicians, bureaucrats, and bankers. Capitalist money was hard and apolitical, and although banks have always added to the money supply by issuing banknotes and bank deposits, the free market kept strict limits on overall money production. This changed throughout the 20th century, as money became increasingly politicized and "elastic," a process that culminated in the closing of the "gold window" in 1971 and the beginning of the era of limitless paper money and uninhibited central banking.

Most modern economists tell us that elastic money is a boon. If handled correctly, it can allow for faster growth and a more stable economy. In a brilliant analysis that captivates through rigorous logic and accessible language, Detlev Schlichter explains why the consensus is wrong. Elastic money is a source of instability and the ultimate cause of the growing deformations in all developed economies: ever growing debt levels, periodic asset bubbles, overextended and weak banks, and an intensifying dependency on cheap credit. Like all paper money systems in history, our system too will face the choice between a voluntary return to hard and apolitical money or accelerated money printing that will ultimately end in hyperinflation. The time to choose is now!