Categories
ECONOMY

FIAT CURRENCY

THE IDEA BEHIND FIAT CURRENCY.

We begin with the idea of “value of currency” and the factors that
contribute to its inflation or deflation.  But what is ‘inflation”?
Quite simply, “inflation” is
. . THE RISING COST OF GOODS AND SERVICES
. . DUE TO THE OVER ABUNDANCE OF MONEY.
And “deflation” is just the opposite.

A. THINGS THAT CONTIBUTE TO INFLATION:

1. INCREASED ACCESS TO MONEY.

. . a. PRINTING MORE MONEY.

. . . It should be noted that it is not necessary to physically print more
. . . money. All that needs happen is for the Federal Reserve to buy
. . . government ious and make a book-keeping entry crediting their
. . . own account with a phoney deposit & then debiting their account
. . . for the amount of the purchase of  those government iuos.
. . . He who does the book-keeping controls the economy.

. . b. LOW INTEREST RATES.

. . c. LOW TAX RATES.

. . d. DECREASED
. . .  POPULATION. MORE
. . . MONEY PER PERSON.

2. INCREASED COST OF
. . . PRODUCTION DUE TO
. . . SCARCITY OF RAW
. . . MATERIAL AND/OR
. . . LABOR.  INCREASED
. . . WAGES OR INCREASED
. . . ENERGY COST.

3. EXCESSIVE SPENDING.
. . MONEY TOSSING.
. . TOO MUCH MONEY CHASING
. . GOODS AND  SERVICES. ESPECIALLY PERTAINS
. . TO GOVERNMENT.

B. CURBS AGAINST. MONEY HOARDING

1. DECREASED ACCESS TO MONEY.

. . a. HIGH INTETEST RATES.

. . b. HIGH TAXES.

. . c.. INCREASE IN POPULATION.
. . . LESS MONEY PER PERSON.

2.  OVER ABUNDANCE OF RAW MATERIAL
. . AND/OR LABOR.

3. OVER PRICING, HIGH COURT COSTS,
. . CHARGING MORE THAN THE MARKET WILL BARE.

This is why the gov is struggling to gain total control over crypto currency. It takes away their ability to control the market. But crypto does offer a way for the gov to control induviduals.

A FIAT currency is not based upon any commodity like gold. It is strickly a book keeping system maintained by the banking cartel. The world departed from a currency system bssed upon gold back with Nixon. It is probably better to have the value of gold determined by the free market rather than a government opinion. But the hazard of that is that it allows rogue nations to hoard it and possibly upset the existing fiat currencies in use. The same may even be possible with crypto currency since it is like an electronic commodity that has limited supply.

In the end, it would seem that any currency sysyem amounts to the old barttering system in the exchange of goods and services. The question is HOW MUCH DO YOU WANT A THIRD PARTY,
like the government, interfering in your exchanges. And if you really
want a third party interfering to the extent that it forgets its basic
function of securing the nation’s borders, then lots of luck with that,
because you wont even have a nation to live in or a government to
protect you from unfair trading.

In real estate, the driving priority is location, location, location.
In government, the driving priority must be
THE BORDER, THE BORDER, THE BORDER.