Now the lesson here is that the unthinkable has occurred. We have expanded the money supply (and commensurate debt) more than 1000-fold in less than 40 years, yet no one really thinks that we have expanded economic growth and real wealth to anything near that level.
Rather, the excess money has resulted in a series of rotating inflationary bubbles. Bubbles in commodities, consumer prices, and wages are seen as bad, while inflation in stock and real estate assets are seen as good. But both are symptomatic of an unsustainable system doomed to failure, as Congressman Paul explains:
Ironically, in the past 35 years, we have benefitted from this very flawed system. Because the world accepted dollars as if they were gold, we only had to counterfeit more dollars, spend them overseas... and enjoy our unearned prosperity. Those who took our dollars and gave us goods and services were only two anxious to loan those dollars back to us. This allowed us to export our inflation and delay the consequences we are now starting to see. But it was never destined to last, and we now have to pay the piper... Printing dollars over long periods of time may not immediately push prices up -- yet in time it always does. Now we're seeing catch-up for past inflating of the money supply. As bad as it is today with $4 a gallon gasoline, this is just the beginning.