Fiat Money

fiat moneyWhile there may have been one or two short-lived examples of fiat money working well, the history is full of incontrovertible evidence that the only currency system which is the most resistant to outright fraud is precious-metal-based, for example gold or silver. Fiat money allows the governments (via central banks) to print as much money as they need to finance anything they like – at the expense of the population through the hidden tax known as “inflation.”

Aug 24, 2011 – German Labor Minister says EU countries that want bailouts should collateralize their loans with gold. This was inspired by the example of Finland that insisted that Greece use gold as collateral. [This trend toward recognition of gold as the only reliable standard for measuring wealth will be fiercely resisted by advocates of fiat money, but the trend is gaining momentum.] Source: Resource Investor; Found through: Unfiltered News

Aug 2, 2011 – Fiat currency (without gold or silver backing) has an average life expectancy of 27 years. The world’s dominant monetary system fails every 30 to 40 years – at devastating cost to the average citizen. [The U.S. is overdue.] Source: Washington’s Blog; Found through: Unfiltered News

Updates will be posted whenever I have time 🙂

1 Comment

  1. Monkey

    That’s not just the best answre. It’s the bestest answer!


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