{"id":31771,"date":"2018-03-01T08:58:40","date_gmt":"2018-03-01T13:58:40","guid":{"rendered":"http:\/\/olduvai.ca\/?p=31771"},"modified":"2018-03-01T08:58:40","modified_gmt":"2018-03-01T13:58:40","slug":"the-failure-of-fiat-currencies","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=31771","title":{"rendered":"The Failure of Fiat Currencies"},"content":{"rendered":"
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The Failure of Fiat Currencies<\/a><\/h3>\n<\/div>\n
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We work hard for our money, as we think it has long-lasting value. That value can buy us other things that we want. It seems like a good exchange. However,\u00a0few of us consider how extrinsic the value of money really is. In reality, we are dealing in valueless fiat currencies.\u00a0<\/strong><\/p>\n

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At one time, our money was backed by the tangible value of gold or other precious metals,<\/strong>\u00a0legal tender for anything of equal value.<\/p>\n

That is not the case any longer.<\/strong>\u00a0The value of a dollar bill these days is what the government says it is. This arbitrary value is dependent on the whim of the government. And the government can print money like a copy machine run amok. There are no limits to how much money can be put into circulation. That is because this money isn\u2019t backed by any real value, it\u2019s called fiat currency.<\/p>\n

The US dollar became fiat currency when it stopped being backed by gold over 46 years ago and it has lost 97 percent of its value since the establishment of the Federal Reserve in 1913.<\/strong><\/p>\n

Apart from cryptocurrencies, all the world\u2019s major countries are using fiat currency.<\/p>\n

Since Roman times, fiat money has failed spectacularly throughout history due to the same pattern of rapid devaluation and then total collapse. The Romans used a 100 percent pure silver coin called the denarius at the start of the first century. By mid-century, during Nero\u2019s rule, the denarius only contained 94% silver. By 100 A.D., the silver content had been reduced to 85%. The value of the coin was decreasing steadily. This worked well for Nero and his followers, who no longer had to pay their debt at the full, actual value while additionally increasing their own wealth. During the next century, the coin was made of less than 50% silver.<\/p>\n

…click on the above link to read the rest of the article…<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/section>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

The Failure of Fiat Currencies We work hard for our money, as we think it has long-lasting value. That value can buy us other things that we want. It seems like a good exchange. However,\u00a0few of us consider how extrinsic the value of money really is. In reality, we are dealing in valueless fiat currencies.\u00a0 […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[15611,1099,309,374,379,19022,536,647,18900,19021,839],"class_list":["post-31771","post","type-post","status-publish","format-standard","hentry","category-economics","tag-cryptocurrency","tag-currency-devaluation","tag-fiat-currency","tag-gold","tag-government","tag-government-decree","tag-money","tag-precious-metals","tag-the-gold-telegraph","tag-tom-lewis","tag-us-dollar"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/31771","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=31771"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/31771\/revisions"}],"predecessor-version":[{"id":31772,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/31771\/revisions\/31772"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=31771"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=31771"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=31771"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}