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FIAT money, explained


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See mine - I don't think you've ever explained what you understand by a FIAT currency - all you ever seem to do is link to youtubes.

 

If you understood surely you'd be able to explain it in your own words

 

OK

 

Basically, it's a monetary system based on debt and trust, and has no inherent value.

 

Money used to be backed up by gold - the paper was an IOU for the gold it represented

 

---------- Post added 17-04-2015 at 20:34 ----------

 

Do you really think our current system will collapse in your lifetime??

 

Yes

 

"You can't solve a debt problem, by taking on more debt. Even a child can understand that""

Edited by Solomon1
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OK

 

Basically, it's a monetary system based on trust, and has no inherent value.

 

Money used to be backed up by gold - the paper was an IOU for the gold it represented

 

We only used the gold standard for a very short period of history - we used fiat money before that and have since. We don't appear to have done too badly.

 

A currency has a value as long as people are willing to use it as a means of exchange - there is very little if any realistic sign of a loss of confidence happening - just a few youtubes from the former "Occupy" crowd.

 

The argument for a return to the gold standard appears to be limited to people who own gold who would see it inevitably increase in value as FIAT currencies expand (eg economic growth in China).

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We only used the gold standard for a very short period of history - we used fiat money before that and have since. We don't appear to have done too badly

 

Right

 

So how do you propose we deal with this

 

---------- Post added 17-04-2015 at 20:50 ----------

 

The argument for a return to the gold standard appears to be limited to people who own gold who would see it inevitably increase in value as FIAT currencies expand (eg economic growth in China)

 

The argument for a return to the gold standard is common sense

 

A debt based currency is unsustainable

 

A gold based currency is sustainable

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