Fiat money: money doesn’t grow on trees, it simply appears out of thin air. Why do libs like Soros and Buffet not seem to care about their taxes going up? Maybe it’s because they’re near the top of the fiat money pyramid, a pyramid scheme like no other.
This post was last modified on September 29, 2011
View Comments (3)
Ahhhh. The good old days when the bills said they were notes backed by silver and were usable as legal tender anywhere. Now everyone wants a card, and the banks are getting ready to start socking it to you for using a debit card.
The gold standard has been phased out in pieces going back to 1914 or so. The closing of the "gold window" in 1971 was the last straw. Almost everybody, including politicians, economists and bankers act as if we were still on it. In other words, we have had a kind of de facto gold standard economy even though we have been off of it for 40 years. It takes some getting used to - the idea that the government creates money out of nothing is counter-intuitive to most people who are used to believing it has actual value. The fact is the US CANNOT go bankrupt as long as our debts are denominated in dollars because the US govt can simply create dollars to pay off any and all such debts. The main danger is inflation and hyperinflation, not bankruptcy.
Glad to see more folks are catching on. Spread the word.