The Death of Paper Money

``As a signed-up member of the deflation camp, I think the Bank and the Fed are right to keep their nerve and delay the withdrawal of stimulus -- though that case is easier to make in the US where core inflation has dropped to the lowest since the mid 1960s. But fact that O Parsson’s book [on the Weimar German hyperinflation] is suddenly in demand in elite banking circles is itself a sign of the sort of behavioral change that can become self-fulfilling... [Weimar Germany] is not a picture of America, or Britain, or Europe in 2010. But we should be careful of embracing the opposite and overly-reassuring assumption that this is a mild replay of Japan’s Lost Decade, that is to say a slow and largely benign slide into deflation as debt deleveraging exerts its discipline.'' -- A staggering statement coming is it is from Ambrose Evans-Pritchard...