Fiat Money, explained

Your dollar isn't worth the paper it's written on. Literally. There's nothing backing your dollars, euros or yen, nothing but the promise that the note your holding will be able to buy the same amount of goods tomorrow that it buys today. That's fiat money, and here's an explainer.

Comments

1. Nice lie at 1:44 - check the data for the last century & go to school or change it.
2. The fiat dollar are you slaves!
3. what is the alternative to fiat currency? you can't tie the value of a currency to a commodity because it doesn't take into account technological innovation and advancement. thats why you buy assets to make money and money is really just the blood of the economy it has to constantly move to create growth and innovation,
   it would stay still if u didn't have to move it.
4. what is the alternative to fiat currency? you can't tie the value of a currency to a commodity because it doesn't take into account technological innovation and advancement. thats why you buy assets to make money and money is really just the blood of the economy it has to constantly move to create growth and innovation, it would stay still if u didn't have to move it.
5. I don't think there's something wrong with fiat currency per se, as long as inflation is kept low. The issuing of more money is essential, as I see it, to represent the additional wealth that's being produced.
   
   Problems begin when excessive and uncontrollable public spending and lending is involved.
   
   The government that can issue fiat currency is controlled by politicians. Politicians are generally statists and as such they proclaim their expensive solutions leaving out the fact that fiat currency issuing and excessive lending (bonds, etc) is in essence theft via depreciation and taxation (to produce, usually, meagre results).
   
   Keynes did a big favour to statists across the political globe, albeit (I believe) unwillingly so.
   
   Furthermore, all the gold that circulates in the world can be contained in 20X20X20 meter cube. That's not that much! The golden standard would eventually create the premises for a zero-sum game in economics when instead, now, the wealth pie can grow indefinitely.
6. All fiat currencies throughout the history of civilisation have eventually collapsed causing people to revert back to money in the form of gold and silver. These values fluctuate only as a direct link to the amount of currency in circulation in any given country. Remove currency and replace it with gold and silver money and it becomes the most stable system ever.
   All fiat currencies are debt based and as they're not tied to gold and silver then they're tied to our labour and that of our children. We need to work to pay taxes so the government can make payments on the bonds issued by their central bank. The government uses bonds to borrow from the super wealthy and uses our labour as collateral essentially selling us into bondage via the bond system. It then encourages us to take personal debt which traps us into the system and allows them to further multiply wealth/debt creation. The only winners in a debt based fiat currency are the super wealthy who own actual money.
   This is why fiat currency systems were expressly outlawed in the American constitution.
7. informed me on what i needed to know. good video
8. fiat money is pretty good if you are the state. Lets say you have the industrial capacity to produce 1.2 billion tons of steel per year. But you choose not to, because you are a profit seeking nation. You will only spend on what you can collect in taxes. As a result, you refuse to exercise you maximum capacity because you want to remain profitable. Fiat money allows your country to operate at 100 percent industrial capacity because you dont need taxes to pay for it. Instead, you print money to flex muscles at 100 percent.
9. Now that its not tied to a commodity like gold or silver it means its not going to be quite so volatile?
   
   Do tell me how our USA currency losing 98% of its value in 103 years via fiat currency and the federal reserve isnt 'volatile'. Are you fucking stupid?
   
   Gold backed currency is the most stable currency. Thats LITERALLY why Ghadaffi was killed. Because he wanted to set up currency that actually holds value. Welp the 1% cant have that shit, so they murdered him!
   
   After all, his 'gold backed currency' would baseline start off as being the best currency, the most valuable currency.
10. All jolly good but the federal reserve is not run by the government
11. So how does a country knows how much currency it has to print????
12. well since the bible tells us gold is wealth, then by golly "let it become" or "let it be done" then right?
    
    why choose gold? why not dimensional cut lumber? or the yellow colored leaves of the maple tree that can only be collected in fall time? that stuff is rare and hard to come by also.
    
    the fact is the bible told people for centuries gold is wealth and if you didnt go along with the church they sent people to cinvince you to tow the line or else, so guess what? gold, silver, diamonds and other 'precious' stuff is believed to be wealth.
13. That's not fiat, bro! The serial numbers map to our birth certificate bonds! We spend our lives paying taxes to buy back our bonds! Soylent green is people, bro! Get it? Ever wonder why you can't just start printing your own personalized dough and have other people take it for dollar value? That's because you don't buy and sell men's souls on the world bond (slavery) market, and then go print bills against the souls you buy!
14. That Latin Phrase is Wrong, The phrase is, "Let it become". If people lose faith in the currency that would lead to hyperinflation, because the currency is NOT backed by Gold only the banks word to honour the face value of the paper money...
15. STOP paying your corporate taxes its all extortion to bleed you dry and make you live a poor,destitute lifestyle so the rich inherits the earth
16. Gold and Silver are not money. They are cold dead metals.
17. The US Dollar is not fiat money because it is not issued by government fiat, but by lending from a private global banking cartel. Under the Kaynsian System, all debt is backed by the ability and the reliability of the borrower to pay back the loan. Since money cannot be printed without backing, it is backed by the good credit of the borrower. Thus "Debt Money". The US Dollar, (the World Reserve Currency), is backed by boundless recources supplied by Nature; boosted by the vital force of human creative spirit; impelled forward, and vouched for, by the purposeful labor of countless multitudes accross the entire globe. How much more backing do you want?
18. its the universal trust that this piece of paper will be honoured by a persons efforts in the form of goods and services. if an economy remains stable, this system will never falter, there is no fiat currency replacement for humanitys large population size. in addition, if you want to open your mind, check this pertinent experiment out, exactly how the cultural perpetuation of money works (systematic perpetuation being the banks, etc.):
    
    https://www.psychologytoday.com/blog/games-primates-play/201203/what-monkeys-can-teach-us-about-human-behavior-facts-fiction
19. Fiat currency means it's less volatile? Right after this you said fiat currencies can lead to hyperinflation... how is that less volatile?
20. It's gunna be a scary time when the dollar dies.