Category: Fiat Currency
The analysis published under this category are as follows.
Thursday, November 24, 2011
The Money Crisis' First Blush, The Gold Pool Debate / Currencies / Fiat Currency
By: Adrian_Ash
"I cannot think of anything which would more surely lead to a danger of all-round deflation than the collapse of international monetary confidence."
- Roy Jenkins, then British chancellor, debate on the London Gold Pool, 18 March 1968
This SUMMER'S FIRST U.S. debt downgrade came after Washington failed to fix the debt ceiling one way or the other. Three months later, and Washington just failed again.
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Tuesday, November 22, 2011
Paper Banknotes and the Indebting Of Nations, Banking, War And Bankruptcy / Interest-Rates / Fiat Currency
By: Darryl_R_Schoon
On April 3, 1024, “the imperial Sung Dynasty began to print and circulate chiao-tzu notes [paper money] in the province of Szechwan”.
p. 11 Ralph Foster, Fiat Paper Money: the History and Evolution of Our Currency, 2nd ed., 2008
In China, paper money was a monetary form of ‘Hamburger Helper’, an addition to the royal treasury that allowed Chinese dynasties to stretch their budgets by allowing them to spend what they didn’t have.
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Friday, November 11, 2011
The Beginning of the End of Fiat Money / Currencies / Fiat Currency
By: John_Browne
Last week, the G-20 meetings did not produce an expanded bailout fund for the eurozone. While this may bode well for the long-term solvency of the member-states (moral hazard and all), it has also triggered a market reaction that I expect to help destabilize the common currency. Yesterday's market moves suggested that this development is good for the dollar and bad for gold. Allow me to step back from the stampeding herd to evaluate whether they are, in fact, moving in the right direction.
Thursday, November 10, 2011
Costless, Limitless, Meaningless Money, Part II / Currencies / Fiat Currency
By: Adrian_Ash
If this risks sounding metaphysical, so it should... SO a DOLLAR is still a Dollar, just as Richard Nixon told US citizens it was 40 years ago this summer.
Whether the Euro will be worth anything next week, who can say? But since then, 15 August 1971, that's all the Dollar has been – one dollar alone, rather than a quantity of rare, indestructible gold bullion, that "barbarous relic" of pre-Industrial superstition, and beloved of the 21st century's fastest-growing, wealth-accumulating societies today.
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Wednesday, October 26, 2011
We Pay Tax for the Privilege to Have Currency / Politics / Fiat Currency
By: Casey_Research
In this video excerpt from the Casey Summit When Money Dies, Rich Dad advisor Mike Maloney explains how currency is created, "fractional reserve banking," and why our banking system is a pyramid scam of epic proportions.
Monday, October 10, 2011
Fiat Money and the Euro Crisis / Currencies / Fiat Currency
By: Robert_Murphy
In September I participated in the amazing Supporters Summit, held at the prestigious National Academy of Sciences in Vienna, where Eugen von Böhm-Bawerk once lectured. After my visit to Austria, I piggybacked an excursion to adjacent Slovakia where I was surprised to discover a large number of fans of the Mises Institute and Ron Paul.
Thursday, October 06, 2011
Three Reasons the China Currency Bill Will Backfire / Politics / Fiat Currency
By: Money_Morning
David Zeiler writes: A Senate bill that aims to restore American jobs by punishing China for its undervalued currency may resonate with a frustrated American public, but it won't work.
In fact, instead creating jobs, the bill is more likely to trigger a damaging trade war with China and increase retail prices for Americans - further hurting the consumer spending that has already been undermined by high unemployment.
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Thursday, September 29, 2011
Yearning for a Currency Debaser’s Prison / Politics / Fiat Currency
By: Aftab_Singh
Until the mid-19th century, the means of retribution for the stiffed creditor was debtor’s prison. If the creditor could not see the return of his capital, then at least he could temper the pain and humiliation by witnessing the incarceration of the defaulted debtor. In our age of monetary lunacy, it would seem that some of the world’s more dollar-dependent central bankers are quietly (or perhaps not-so-quietly), yearning for a similarly harsh ‘debaser’s prison’. Here I speculate about the peculiar world of the dollar-dependent central banker and consider the consequences of the dearth of entrepreneurial spirit in the money production business.
Saturday, September 24, 2011
How to Prepare for When Money Dies / Currencies / Fiat Currency
By: The_Gold_Report
If dollar-dumping turns from a trickle into a flood, look out. Exploding prices (aka exorbitant inflation) resulting from the devaluation of the dollar will compound the problems we saw in 2007–2009. Catastrophe will come when everybody realizes that the dollar is an "IOU nothing." That's the downside in the decade(s) ahead, according to Casey Research Chairman Doug Casey. But an optimist at heart, in this exclusive interview with The Gold Report, Doug also identifies some reasons to be hopeful.
Wednesday, September 07, 2011
The Swiss National Bank Goes "Nuclear" / Currencies / Fiat Currency
By: Justice_Litle
The Swiss National Bank (SNB) rocked the forex market this week with a "nuclear" level currency intervention. The biggest net winner? Probably gold.
It was the press release that shook the forex market to the core.
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Wednesday, September 07, 2011
The Swiss Franc Ties Itself To The Collapsing Euro in Double Suicide / Currencies / Fiat Currency
By: Jeff_Berwick
These are grand times to be dollar vigilantes.
The whole premise of being a dollar vigilante is the acknowledgement that the entire global financial system is an artificial and oppressive system that is nearing the end of its road (and purchasing hard assets and internationalizing our assets to protect ourselves).
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Friday, September 02, 2011
If you Debase the U.S. Dollar, you Debase them all… / Currencies / Fiat Currency
By: Aftab_Singh
Praise the deposit. If only one thing in this world is to be guaranteed, let it be the holy financial instrument that is the commercial bank deposit. — Prayer 3:23, The Book of State-Banking
In recent years, the above prayer has been answered by the oh-so-benevolent monetary authorities of the West — we were ‘saved’ by the self-sacrificial debauchery of Western central banks. Alas, the commercial banker that owed what wasn’t his’n, wasn’t faced with the unappetizing prospect of buying it back or going to pris’n! Consequently, the question that repeatedly presents itself is: ‘Who got stiffed then?’
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Wednesday, August 24, 2011
The Floating Exchange Rate System / Currencies / Fiat Currency
By: George_Maniere
In 1953, renowned economist Milton Freidman was the first man to propose the “floating exchange rate system.” In 1971 it became a reality as then President Nixon was trying to open trade with China. Friedman saw the floating exchange rate system as a way to even the playing field for the fortunes of every nation. Sadly, I see that the bigger governments have tried to obfuscate the free market trade as they want the whole pie for themselves.
Wednesday, August 24, 2011
Currency Collapse - Where Now ? / Currencies / Fiat Currency
By: Andrew_McKillop
One thing is sure and certain. Permanent avoidance of economic, financial and monetary reality has resulted in the USA, European Union and Japan facing unmanageable and self-reinforcing debt spirals that - logically - should lead to currency collapse. By political decision, the "only solution" is to decree harsh austerity plans cutting economic growth and government tax revenues, and paper over the problem with massive amounts of newly printed currency. The only logical result is a stampede into gold and other precious metals. Occasionally, and without conviction, there will be a partial selloff in gold and some dip buying of eroding and fragile equities.
Sunday, August 21, 2011
Fiat Paper Currencies Finally Redeemed for Gold / Currencies / Fiat Currency
By: John_Browne
The basic unwillingness of politicians to face economic and financial realities has caused the United States and European Union to face currency collapse. The politicians are content literally to paper over the problem with massive amounts of newly printed currency. This means that savvy investors, facing major real losses, are turning increasingly to gold. In essence, even though currencies are no longer on a gold standard, they are increasingly being "redeemed" for gold in the marketplace.
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Monday, August 15, 2011
Swiss Government Bluffing on Swiss Franc Currency Target? / Currencies / Fiat Currency
By: Mike_Shedlock
Bloomberg reports Franc Weakens Against Dollar, Euro After Report Currency Target Discussed
Read full article... Read full article...The franc weakened after SonntagsZeitung reported over the weekend that the Swiss government and the central bank are in “intense” talks over setting a possible target for the currency, citing unidentified people close to the situation.
Friday, August 12, 2011
Beginning of the End of the Current Fiat Monetary System / Currencies / Fiat Currency
By: David_Galland
David Galland, Managing Director Casey Research writes: I am beginning to feel a bit like one of the French unfortunates stumbling through the fog in the Ardennes, circa 1914. Except that, instead of Germans full of deadly intent coming at me in the gloomy forest, it is a flock of black swans.
As it was for the French in the Ardennes, the number of problems - then Germans, now black swans - is becoming overwhelming.
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Wednesday, August 10, 2011
Irredeemable Fiat Currencies, The Ever-Changing Means of Mr Doubter… / Currencies / Fiat Currency
By: Aftab_Singh
Mr Doubter, otherwise known as the child who pointed out the Emperor’s lack of clothes, has always played a key role in monetary affairs. However, the tools with which he has done his doubting have evolved over time. Here, I detail the means by which alert speculators have questioned the currency systems of the past, and the means by which they question the irredeemable fiat currency systems of today.
Sunday, August 07, 2011
U.S. Economy Saved by a Trillion-Dollar Coin? / Currencies / Fiat Currency
By: Robert_Murphy
Now that the "crisis" over the federal debt ceiling has been averted, we can leisurely explore two of the wackier proposals that emerged during the state of panic. Not surprisingly, the schemes involved the Federal Reserve and its ability to circumvent, not just standard accounting, but also the traditional divisions of political power. It's worth studying the episode carefully because we will probably see one or more of these "solutions" promoted as the only answer to another crisis in the not-too-distant future.
Sunday, August 07, 2011
Quantitative Easing (QE) and the Debasement of the US Dollar / Currencies / Fiat Currency
By: Bob_Chapman
The entire concept of keeping the economy functioning is based upon US dollar debasement via the creation of excess money and credit, which is accompanied by departments of government and Wall Street.
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