An inverse relationship between the issuance of paper by the state and the hard-currency value of that paper has been recognized for centuries, and it can be observed in U.S. history.
The same phenomenon can be observed in the index-linked government-bond market, where both interest payments and the maturity value are pegged to inflation.
"I said of course I was more than willing to help them and help them both for their interest, as they are entitled for their rights to be observed, and also for the public interest because it is in the public interest to ensure the proper value is established and paid for these lands, " he said.