Fiat money - Deepstash
Fiat money

Fiat money

Fiat money is a government-issued currency that is not backed by a commodity such as gold. Most paper notes started as being backed by a reserve of valuable commodities, usually gold (the "Gold Standard"). Tying a currency to gold limits inflation and money supply.

But politicians hate the gold standard, so since Nixon's presidency, the US dollar was no longer tied to gold and money had value just because the government says so.

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vladimir

Life-long learner. Passionate about leadership, entrepreneurship, philosophy, Buddhism & SF. Founder @deepstash.

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A history of the US fiat currency

A history of the US fiat currency

1933 - President Franklin D. Roosevelt had gold confiscated and people were forced to accept paper money for their gold. The government needed people to adopt the inflated paper and they used force. 

1940s ...

The Rise of Paper Money

The Rise of Paper Money

Paper Money was pushed as a 'fiat' currency due to an attractive quality: it was guaranteed to trade by the state authority for a specific weight of gold or silver, and couldn't be melted down or devalued.

What is money

Money is a universal means of exchange. A technology that is enabled by something that has the highest proportion of trading ability to its utility (gold can be used for trade but also for jewelry & chips).

Money needs 5 characteristics. It needs to be:

  1. ...

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