Well, what a real doozy of a statement that is....
That is the very reason why the money supply (of any country) should be pegged to gold (the uniqueness of this has already been explained).
"Growth" should only occur in tandem with productivity. Growth of one's money supply shouldn't be pegged to a fiat system - which, as we all know, can be created out of thin air (ie - without any corresponding productivity). Another way of looking at it is "living beyond one's means").
But don't take my "unqualified" word for it mate - you just keep watching the world's financial system because I have a feeling that this lesson is close to being given by the best teacher of them all - aka "the market"!! Let's just hope the student is ready....
