Did you know that war has always been paid for through currency debasement?
February 16th, 2010 stanleyhttp://inflationdata.com/inflation/Inflation_Articles/Inflation_War.asp
The very nature of War results in the destruction of goods. But in normal times money is spent to produce goods which makes the world a richer place.
During a war, however, things are produced but… they are not productive things but destructive. The money is spent to destroy things. Often this is combined with an increase in the money supply in order to pay for the destruction.
This increase in the money supply combined with a decrease in goods is classic inflation.
One of the earliest civilizations to debase its coins was Ancient Persia as it financed its war against Greece.
In this case, it didn’t work and Alexander the Great used the riches he captured to finance his own war on Asia.
At its peak Alexander was paying his Greek army half a ton of silver per day.
Later Rome debased its money fighting against Carthage - and eventually suffered so much inflation, it weakened its defenses against barbarian attacks.
The Anglo-Saxons used debased coins to buy mercenaries…
William the Conqueror (the Duke of Normandy) used the same tactics to launch the Norman Invasion. Which resulted in Norman control of England.
Then the British used debt to fight Napoleon…
The American Colonies lacked coinage and decided to print Continental Currency to pay for the war against Britain (instead of raising money through taxes). Congress authorized the printing of 2 Million Dollars worth of Continental Currency.
Interestingly, the currency was easily counterfeited so Britain fought back by printing more of the currency (counterfeits). Not to spend but simply to destroy the value of the currency. They actually gave them away to anyone traveling to other colonies for the price of the paper involved in printing them.
The Continental Currency (Revolutionary War) collapsed, by the way