In other words, this system selects for its own failure. Ultimately, the monetary system fails. Many Greshamite systems exist in our society. For example, a pesticide kills all but resistant pests. As this process continues, increasing percentages of the pests are resistant to the pesticide.
Positive feedback occurs as pesticide applications are increased to offset increasing resistance.
Ultimately, the pesticide fails. This same process occurs with antibiotics, producing resistant diseases. Our political system is also a Greshamite system. If Good is elected, she will treat everyone fairly. If Bad is elected, he will reward everyone that helped him and punish those who opposed him.