Fiat Money, explained 

so true and even weirder when you think about transferring credits to the car dealership electronically... and weirder still when you realize the government could credit people's bank accounts like that if it wanted to like in the recent stimulus

LET IT BE DONE:)

Try and buy a car with cash these days, and you will probably end up with federal police paying you a visit.

Buy car using crypto makes more sense..😍😍

@@wiretamer5710 They could pay you a visit, but if that money is legitimate they just wasted everyone's time. I have bought a new car in cash, nobody questioned anything. Now if you have a criminal record, no job, and a zero credit score, that may be a different situation.

No kidding lol

Lmao

BILL 📈 BILL📈 BILL📈

Kinijah DeGrate BT-1100

Daydreaming or sleepwalking, which is which?

hahahaah truuuu

Cash and credit is not real. Gold and silver is.

Joke will always be on us nice good working people

Having a 'free market' makes absolutely no sense: its like trying to separate the north and south ends of a magnet. A exchangeable currency is intrinsically a form of regulation. Particularly when the executive controls the amount of currency moving freely at any given time. Also there is the whole issue of property rights, which are only exchangeable because of the regulatory framework of the bureaucracy and the legal system. Take away regulation and you have a failed state, where private property is not respected and the local currency is worthless.

Now it's bitcoin

Gold isn't rare. Gold and diamonds are artificially scarce to keep the price up

They turn away from gold standard because US do not have enough gold. Pretty simple. Currently Russia and Australia have the most gold reserve. For sure, US don't want indebted to Russia.

Fonk Vènço So losing 2% of all your money each year is not a problem. And struggling to only lower the value of peoples money with 2% is a noble and hard struggle?

Yes but thats the problem. The dollat is only worth what someone is willing to give for it because they chose to stop backing money with gold, hence fiat money

Yeah, you're correct. Especially the 2nd point. People determine the value of gold and dollar using the same concept. Then what is real money?

You look soo beautiful

@d papa With respect you have much to learn. You (and the rest of us) are a pawn in a very big game - it's akin to communism. Start researching, but stay away from Google and Wiki if you want the truth. Try Maneco64 for Understanding finance

It does indeed seem to mean that

Fits very well.

Fix it again Tony, because it's an Italian make

do you think you could write this for me on my Econ Exam?

I believe you. Can you site the exact section in the Constitution where they're banned? I'd like to have a read.

Simple explanation 👍🏾

It's backed by our birth certificate bonds.

@@reisele1980 what does that mean. Because my thought was money is backed by, we the people, who go out there and earn money, only to have most of it taken by the govt via tax, which kinda seems like what your saying. I may be wrong but to my understanding a bond is property. So in other words, we are the property of the govt. Makes sense. Its funny how they like to claim that money is backed by nothing, when in actual fact its backed by us, and now that you say a birth certificate is basically a bond it makes more sense that money is indeed backed by us working our tails off

An increase in the money supply only increases demand in the short run. In the long run, as you sort of mentioned, you end up at the same level of output but at a higher price level

The "Middle Class" is a redundant economic description that largely doesn't exist anymore, aside from a few nostalgic but delusional financial, business & taxation policies. Modern Economic dynamics are now largely confined to the polar opposites making up the Poverty & Wealthy classes, which are perpetually expanding in size. Eventually Capitalist Societies will have to limit the profits available to the Ultra Wealthy & incorporate Socialist Policies to remedy the economic damages created by sustaining the Wealthy Classes at the expense of everyone else. Since the Middle Class who once functioned as stable economic "shock absorbers" can no longer increase their incomes & reduce their debts easily, a result of Business trying to save money by refusing to pay High Basic Wages in line with the Cost of Living, decent Wage Increases where appropriate & Employment inclusions like Child Care & Parental Leave. While the Governments protect them to cut such costs, the Middle Class continues to disappear right along with the "Economic Shock Absorption" they once created. This leaves Economies exposed to unrestrained "Market Trends" set by the Wealthy Classes as they increasingly become the majority of economic participants. Ultimately this reduction in levels of Economic Participation from the Middle & Poor Classes serves to drive up the amount of Taxation that needs to be collected from Business & the remaining Wealthy Classes to finance subsidies to remedy the problem. As the Middle Class are gradually incorporated into the new Economy of the "Working Poor" as a result of their Income not matching their Debt & Living Expenses, the Socio-economics of Poverty are becoming diversified & includes more & more people who despite employment, cannot sustain the cost of living, the costs of Debts & the cost of participation in a Capitalist Economy built on Consumerism. This leaves Employment & the financial independence from Gov it provides, as redundant for use as the first & end solution to this problem, which happens to also be the only solution Capitalist Govts are willing to use. When employment puts people further into Debt then people need to stop working. Australia encountered this dilemma with its "Robodebt Scandal" which was linked to increase in employment rates among those receiving financial subsidies from the Government. They couldn't reduce the amount of Money received from the Government by working because: a) They never earned enough; & b) What they did earn put them into Debt with the Government. On all accounts they were better off not working at all intead of working to earn more Debt. This Scandal caused by a Government initiative to increase Employment Rates & cut the costs of Social Security, resulted in the Government maintaining the same Social Security costs it was already paying, with an additional increase in costs in the form of Damages. Without issuing Debts the Fiat Money system cannot create more Money out of nothing. And if Debts can't be paid, the Fiat Money system never gains Value. In order to re-create the former Middle Class & engage people economically in the cycles of Debt & Consumerism, then the Cost of Living needs to come down while increasing Wages & Income, ultimately requiring Socialist Policies to be introduced by Governments in order to subsidise both the High costs of Living & the Wage Increases required. A Socialists response by Governments would require Higher Taxes to be paid by Business & the Wealthy Classes, who instead prefer to avoid paying Taxes at all, as they do now. So Governments can either collect more Taxes from Business & the Wealthy Classes now to pay for the subsidised Wage Increases of the Working Poor which Business refuse to Pay themselves, or the Govts can pay the Wage Increases directly, in addition to the financial subsidies already paid to the Unemployed. In the future the Business & Wealthy Classes will either have to pay more Tax, Pay Higher Wages & reduce their business profiteering from the Costs of Living voluntarily or else continue to cause such damages & be forced to pay moreTaxes at an even Higher Rate to cover the costs of a Socialist response to an expanding Poverty Class created by their Profiteering. Sure the Fiat Banking System allows more money to be created from nothing, but the same Fiat Banking System LENDS that money created from nothing in the form of Credit, only gaining the projected value of the money when it is repaid by Customers after it is first earned as Income. If the money cannot be earned, then the money cannot be repaid & the Debts issued do not have any Value, crashing the Value of the Banks. Not only does the projected Value disappear, but the Fiat Currency Debts of the Banks are sustained, meaning the Banks have more Debt & less ability to create new Money out of nothing. So yeah, Governments can effectively continue to create Fiat Money out of nothing for a declining Middle Class & the expanding Working Poor that can't earn a decent Wage, but it will not gain any Value as its unlikely to ever be repaid. On top of all of that, the Employment conditions are becoming increasingly automated, further reducing the amount of Employment available, while simultaneously increasing the profits of Business, Banks & the Wealthy Classes who are also having their overall running expenses reduced. This makes even more money for these already wealthy classes while expanding the populations in Poverty, who then require higher subsidies. Such Economic consequences of the Fiat Banking System under Capitalism are never really escapeable & will ultimately require a "Universal Income" to be issued by Governments & financed by the increased Taxation of the Business & Wealthy Classes. A Universal Income not only allows the Middle Classes & Working Poor to survive with Basic standards of living but also allows them to pay Fiat Debts in an increasingly Automated World. Without a Universal Basic Income then the Poverty Classes continue expanding & costing Governments more money, while more wage earners of the Working Poor are unable to pay Fiat Debts. So technically there is an invisible ceiling to Fiat Currency that ultimately limits the amount of money that can be issued by Banks & consequently the amount of money available to be made by the Billionaires & Wealthy Classes who profiteer off the Middle & Poverty Classes. The wealthy are making more money, although there is less of them & the poor are making less money, although there is more of them.

its fiat, in future its nothing, i am not sure but i think after this " great reset " comes like in 2030 then fiat is gone and digital currency is that people is using.

@@bullterror5 this helped me tp understand some things that although i have read about then, for some reason i couldnt quite understand it... thanks

If the US wanted to remain the only super power in the world, that's what it'll take to do it. The top 0.001% and the rest. Because you can't tax the hell out of those company. Every country have their own economic model and are agreed by majority of citizens through voting in democracy region, or at least should be.

RHJunior Gold does not back up the US dollar. It hasn't since 1934 when Truman was in office.

RHJunior "an ounce of gold stayed at $20 for over 130 years." Really? Without fluctuation of any kind? And look at the variation in the price of gold today versus the dollar....which is less volatile?

audra powell actually it hasn't backed up the US dollar since the 1970's when richard nixon was president. and truman wasn't president in 1934, franklin roosevelt was lol

William Hammer The president is wrong but the date is right. Silver has not backed dollar since the 70's. It doesnt matter anyway because it is all worthless until we make it worth something. Gold. Silver,oil, currency or anything used for trade. It is all bullshit.

paddy hirsch With all due respect (I mean that sincerely), The volitility you mention in gold price can be skewed by looking at the "price" of gold in dollars rather than the "value" of Gold in goods and services. If you can find comparable goods and services that havent changed much in demand or availablility over the last 100 years ( ex. prostitution and a nice tailored suit), you'll find the "value" of gold hasn't waivered much for the last 200 years. Its the dollar's value that jumps all over the board depending on whatever new scam the Fed, the government, and their wall street/banker/corporate buddies are up to. The "price" of gold is more of a reflection of how strong or weak the dollar rather than a reflection on gold's intrinsic "value".

Good point, but fiat is actually money and credit is different from money and creates money

And most of the remaining "virtual" money is locked up in tax havens and controlled by a few people.

@@simonbarr9476 soros? Or is it the other one. The name excapes me at the moment

Yea, banks were able to print money before but now, they have to borrow it from the federal reserve to then borrow it to us. Banks used to be able to borrow between each other but a certain family who actually owns the federal bank made it so banks can only borrow from them. The government doesnt own the federal bank that certain family are. The govt are actually the puppets, rather than the puppet masters

Nh. H j Nbb. L

Its the first one. Banks borrow money from the federal bank with a promise to pay (iou) , The interest is passed on to us by way of inflation etc, but in order for the fiat money system to avoid collapse is to keep us in debt, which is why banks agree to loans etc. If there was less supply there would be less demand, but that would cause a problem because they have to keep us wanting to spend in order to keep demand high. This way people continue to take loans, which as i said, is the basis on which fiat money depends on. Essentially what they are doing would be classed as illegal because they are basically stealing from us so no theres no law, theyre just doing as they please, like they always do. The govt would like us to believe that they are in control of the money, but in fact they are not. The federal bank is private and not owned by the govt

Gasper Kosmac Thanks!

Yep. Thats why there goal is, the rich will stay rich and the poor will stay poor. I remember margret thater openly and without shame stating that this was her goal. I was young and didnt understand it at the time because i thought, you cant stay poor if you work hard, but clearly removing the gold standard, high taxes and inflation was the plan to keep the poor poor

Oh its backed by something alright. Its backed by the working classes blood, sweat and tears. Its backed by the high taxes one has to pay out of their wages, all while being unable to heat their houses in the winter

It's a very unreactive so will stay unspoiled etc for a long time, also you probably don't want something that actually practically useful as your currency because then it would all get used up and not be in circulation as currency

😂😁😃

Are you jew ✡️ 😳

Corruption and greed. Nothing more, nothing less

I get where your coming from but if the govt is not prepared to raise wages to reflect inflation of course people wont want to work. If after bills, childcare etc, people are still living in poverty and cant afford to heat their homes etc there is no incentive to work, yet the rich pay less tax than the working class and get ridiculously large wages (such as bank mangers)

Jason G Fractional reserve banking is in no way contingent on fiat currency. You could be on gold standard and still have fractional reserve banking.

@@jaakkooksa5374 Exactly interest is cancer

@@doorknob5720 Interest is the price you pay for the advantage of being able to spend future income today. I don't see anything wrong with it.

@Mar Blox Banks compete for your money. Nobody is going to pay you interest because of kindness of their heart. The interest that you get is ultimately determined by the laws of supply and demand just like all prices, interest being the price of holding someone else's money (in this case yours). If you want higher interest for your money, find something riskier to investment in.

@Mar Blox "You seem like an idiot." You seem like a person who has never read even a single book on economics in general or economics of money and banking in particular. Central banks are free to determine the interest rate at which they borrow funds to banks, which in the United States is called the Federal Discount Rate. Other interest rates, such as the rate that banks pay you for your deposits, are determined by the financial institutions themselves, through competition. Furthermore, there are an infinite number of other interest rates in an economy. For instance the interest rate of a consumer credit might be, say, 5 to 10 percent at this time when the Federal Funds Rate is close to zero. Please consider reading books. A couple of first year university textbooks on the basics of economics could be very useful to you. www.investopedia.com/ask/answers/who-determines-interest-rates/