FIAT MONEY
The American Heritage Dictionary defines fiat money as "paper money decreed legal tender, not backed by gold or silver." The 2 characteristics of fiat money, therefore our (1) does not represent anything of intrinsic value and (2) it is decreed legal tender. Legal tender simply means that there is a law requiring everyone to accept the currency in commerce. The two always go together because, since the money really is worthless, as soon will be rejected by the public in favor of a more reliable medium of exchange, such as gold or silver coin.”
The Creature from Jekyll
Island, by G. Edward Griffin, page 154,
The Black’s Law Dictionary 6th Ed, define Fiat money. Paper currency not
backed by gold or silver.
Fiat money is paper money without precious metal backing and which people are required by law to accept. It allows politicians to increase spending without raising taxes. Fiat money is the cause of inflation, and
the amount which people lose in purchasing power is exactly the amount which was taken from them transferred to their government by this process. Inflation, therefore, is a hidden tax. This tax is most unfair to all because it falls most heavily on those who are least able to pay: the small wage earner and those on fixed incomes. It also punishes the thrifty by eroding the value of their savings. This creates resentment among the people, leading always to political unrest and national disunity.
Therefore,
LAW: a nation that resorts to the use of fiat money has doomed itself to economic hardship and political disunity.
Ben Franklin's humble tool for decision-making that helped make
simple and most difficult decisions. This has been very instrumental for analyzing advantages and disadvantages, as well as strengths and weaknesses when I take the time to use it.
