fiat theory

In “The Fiat Standard” Saifedean Ammous defines fiat currency as: A compulsory implementation of debt-based centralized ledger technology monopolizing financial and monetary services worldwide. In other words it’s government money, that we have no choice but to use. And instead of being a commodity with some market value in itself, fiat currency itself is based […]

Fiat currency is a type of currency that exists only by government decree. It refers to the nature of the currency being untethered to a commodity with new units being easily created at will. Legal tender is a status that a government bestows on a currency, stating that it must be accepted by merchants and

Do all fiat currencies go to zero? History says that they do and common sense suggests that on long enough timeline the failure of every fiat currency is inevitable. Even Charlie Munger thinks so: “The safe assumption for an investor is that over the next 100 years the currency’s going to zero.” When you understand

Fiat currency, or government issued currency, is bad for many more reasons beyond the obvious one – that it loses purchasing power due to inflation and eventually goes to zero. It has many other negative characteristics that cause economic, political and social problems. However, first it is important to acknowledge the one benefit of fiat

The short answer is that fiat currency is backed by the government that issues it. That is the nature of what a fiat currency is – something that the government, not the market, has deemed to be money. The government declares the fiat currency to be legal tender and mandates that its population pay their

The economic disadvantages of fiat currency are well known and well discussed amongst financial commentators who understand the problems in our monetary system. These include: What is not discussed quite so widely is the social harm caused by fiat currency. But when you understand the true nature of fiat currency, it is plain to see.