Archive Note
evergreen 2026-08-14
Greshams Law in Modern Fiat
#garden #evergreen #gold #currency
Bad Money Drives Out Good
Sir Thomas Gresham observed in 1558 that when debased currency circulates alongside sound money, citizens spend the paper and hoard the coin.
In modern cycles, the same rule operates in reverse: people spend rapidly depreciating fiat on everyday transactions, while locking their savings into scarce hard-asset instruments like physical gold, productive land, and high-margin balance sheets.
Fiat functions as a transactional token, not a long-term store of energy.