IMF: Austerity is much worse for the economy than we thought
- Thread starter mentalfloss
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No, it's not. There is always something backing it.
No collateral or guarantor, no money.
"Fiat money is currency that a government has declared to be legal tender, but it is not backed by a physical commodity. The value of fiat money is derived from the relationship between supply and demand rather than the value of the material that the money is made of. Historically, most currencies were based on physical commodities such as gold or silver, but fiat money is based solely on the faith and credit of the economy...
Fiat Money Definition | Investopedia Fiat Money Definition | Investopedia
...BREAKING DOWN 'Fiat Money'
Fiat is the Latin word for "it shall be."
Because fiat money is not linked to physical reserves, it risks becoming worthless due to hyperinflation. If people lose faith in a nation's paper currency, like the U.S. dollar bill, the money will no longer hold any value"
Faith and credit are concepts and do not actually exist
the federal reserve in the US for example is not federal and does not have the power to tax and its only assets really are the fake money it creates out of thin air
unless you count derivatives as collateral...
lol
Fiat Money Definition | Investopedia Fiat Money Definition | Investopedia
...BREAKING DOWN 'Fiat Money'
Fiat is the Latin word for "it shall be."
Because fiat money is not linked to physical reserves, it risks becoming worthless due to hyperinflation. If people lose faith in a nation's paper currency, like the U.S. dollar bill, the money will no longer hold any value"
Faith and credit are concepts and do not actually exist
the federal reserve in the US for example is not federal and does not have the power to tax and its only assets really are the fake money it creates out of thin air
unless you count derivatives as collateral...
lol
The myth is fiat currency has any actual value. In fact it has a negative value. It is created by debt and has more debt than the assigned value attached to it. It is a bastardized construct designed and used to perpetuate the endless debt bubble forced upon the citizens by the bankers.
The guarantee is your future labour (read taxes). Well nowadays it's the future labour of your great-grandchildren.
It can be many things. Even keeping resources off the market.
Debits and credits can't exist without each other. One or the other can't be created out thin air.
Debits and credits can't exist without each other. One or the other can't be created out thin air.