Here’s an interesting short animated video concerning fiat money. It makes some good points like:
- Fiat money only has value because the government says so and you have to pay your taxes with it.
- Inflation benefits those with first access to newly created money such as governments and banks.
- EZ credit causes speculative bubbles.
- Newly created money trickles down to the lower economic classes but ultimately, because of inflation and usury, wealth is extracted back up from the bottom to the top.
The movie states that we’ve experienced the greatest growth of the money supply in history, and that is true, but what they seem to overlook is that since this money is borrowed into existence we are also burdened by the greatest expansion of debt in history.
So, what happens when all this debt becomes unpayable? If you listen carefully to our leaders, the very same ones that got us into this mess, their answer is growth, to expand credit (more debt!), to expand the money supply. They’re doing their Keynesian best to keep the debtmoney system going with make work projects, stimulus, and bailout programs but I see very little of that as being productive.
It’s hard for me to believe they don’t know any better! Pssst, here’s a clue…we can ill afford to squander and pollute any more of planet Earth’s finite resources chasing growth just so we can continue servicing our debt based monetary system. Infinite perpetual growth on a finite planet is mathematically impossible. It’s time for debt free money creation. It’s been done before, from 1862 up until 1971 the United States government issued debt free money called “United States Notes”.
Okay, now on with the show.