Days
Commentator
Fiat = authority
A fiat currency is a synthetic currency that is administered by some authority. It is a top down type construction, that is, it is entirely set in place and controlled by the fiat. So the currency actually belongs to the fiat. The currency is not wealth in itself, but it is traded as a representative of wealth. Picture it this way. On the left, place all the wealth of the nation. On the right, place all the synthetic currency; the trade happening on the right represents the wealth on the left. If you double the volume of the currency on the right, it will cut its value in half... see that? That's how a fiat currency works.
There have been roughly 800 fiat currencies put in place during the known history of civilization. It is a strict control of wage and trade. Read up on the currency of the Teutonic Knights to get an idea how rigidly fiat currency can control society. Fiat currency is a controlled market. It replaces a free market that utilizes real money with a fiat market utilizing a fiat currency... see that? That's what a fiat currency is.
The economy of a fiat market is not the actual trade taking place, nor the actual manufacture of goods... that's the real economy. The fiat economy merely measures the volume of fiat currency being traded. When we read that the economy is growing or receding, it isn't the real economy of the nation that is growing or receding, it is the currency that is growing or receding. It isn't the real economy... It is the fiat currency. That's why you always see me writing, "It is the currency, stupid".
The real economy of the United states has been in decline for 40 years. Half the nation is impoverished. The frog is well cooked in the pot.
Fiat currency is created and distributed by the fiat. In America, the Federal Reserve is the fiat. Notice that all your "money" is actually Federal Reserve Notes. Although they are printed in US Mints, they are totally the product of the fiat's oversight. This holds true for the 99% of the currency that is represented electronically, as well. The distribution method of the Federal Reserve has been described as "trickle down" ... a perfect description for the strict way the fiat controls the currency... our wages and survival is trickled down to us from the greater machinery in place on Wall Street. Wall Street eats the fatted calf, the rest of the nation gets tossed a bone to gnaw on... see that? That is the distribution of our synthetic currency.
A fiat currency is a synthetic currency that is administered by some authority. It is a top down type construction, that is, it is entirely set in place and controlled by the fiat. So the currency actually belongs to the fiat. The currency is not wealth in itself, but it is traded as a representative of wealth. Picture it this way. On the left, place all the wealth of the nation. On the right, place all the synthetic currency; the trade happening on the right represents the wealth on the left. If you double the volume of the currency on the right, it will cut its value in half... see that? That's how a fiat currency works.
There have been roughly 800 fiat currencies put in place during the known history of civilization. It is a strict control of wage and trade. Read up on the currency of the Teutonic Knights to get an idea how rigidly fiat currency can control society. Fiat currency is a controlled market. It replaces a free market that utilizes real money with a fiat market utilizing a fiat currency... see that? That's what a fiat currency is.
The economy of a fiat market is not the actual trade taking place, nor the actual manufacture of goods... that's the real economy. The fiat economy merely measures the volume of fiat currency being traded. When we read that the economy is growing or receding, it isn't the real economy of the nation that is growing or receding, it is the currency that is growing or receding. It isn't the real economy... It is the fiat currency. That's why you always see me writing, "It is the currency, stupid".
The real economy of the United states has been in decline for 40 years. Half the nation is impoverished. The frog is well cooked in the pot.
Fiat currency is created and distributed by the fiat. In America, the Federal Reserve is the fiat. Notice that all your "money" is actually Federal Reserve Notes. Although they are printed in US Mints, they are totally the product of the fiat's oversight. This holds true for the 99% of the currency that is represented electronically, as well. The distribution method of the Federal Reserve has been described as "trickle down" ... a perfect description for the strict way the fiat controls the currency... our wages and survival is trickled down to us from the greater machinery in place on Wall Street. Wall Street eats the fatted calf, the rest of the nation gets tossed a bone to gnaw on... see that? That is the distribution of our synthetic currency.
