Category: Fiat Currency
The analysis published under this category are as follows.
Sunday, April 07, 2024
The Evils of Paper Money Have no End / Currencies / Fiat Currency
By: MoneyMetals
Many prominent American founders warned us about paper money.
Thomas Paine may have summed it up best:
“The evils of paper money have no end.”
In an 1814 letter to Thomas Cooper, Thomas Jefferson was prophetic.
Monday, December 04, 2023
Transition From Debt Default And Dollar Demise To A Digital Bridge Currency Recovery / Currencies / Fiat Currency
By: Raymond_Matison
Over recent years much has been broadcasted, written and u-tubed about an impending global fiat currency collapse resulting from excessive debt, likely central banking loss of control over monetary systems manifested by increasing volatility of interest rates, rise and expansion of BRICS country membership with increasing global influence in economic/monetary and military power, and technology solutions for instant payments and settlement fostering a global digital asset revolution which will make banks much less relevant in the near future, while one such possible digital asset innovation could make whole, over time, the purchasing power losses for global holders of our nation’s destructive and overwhelming national debt.
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Saturday, February 04, 2023
Fed Postures as States Grow Alarmed at Currency Debasement / Currencies / Fiat Currency
By: MoneyMetals
By Mike Gleason: As the Federal Reserve winds down its rate hiking campaign, precious metals bulls are anticipating a favorable environment for gains ahead.
On Wednesday, Fed policymakers raised their benchmark rate by just a quarter point. Chairman Jerome Powell also delivered remarks widely interpreted by markets as dovish. He suggested the Fed was close to declaring victory over inflation.
Powell also claimed that disinflation is now taking hold. After getting his inflation forecast wrong for two years by insisting it would be “transitory,” he is now trying to take credit for predicting the supposed trend of disinflation.
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Friday, November 19, 2021
Will the Senate Confirm a Marxist to Oversee the U.S. Currency System? / Stock-Markets / Fiat Currency
By: MoneyMetals
Precious metals markets pulled back a bit this week as the U.S. dollar strengthened versus foreign currencies.
In other markets, the rising dollar index put downward pressure on crude oil and gasoline futures this week. Consumers who have been experiencing pain at the pump should get a bit of a reprieve in the days ahead.
But it could be short lived. The same government policies that helped drive gas prices higher this year are still in place: Massive fiscal and monetary stimulus coupled with disincentives for domestic energy production.
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Sunday, March 07, 2021
The Great Reset Is Coming for the Currency / Currencies / Fiat Currency
By: MoneyMetals
As the Great Reset proceeds from globalist think tanks and technology billionaires to allied media elites, governments, schools, and Woke corporations, what will be “reset” next?
Supporters of the World Economic Forum’s all-encompassing Great Reset agenda are eyeing BIG changes for the global monetary system.
Plans that might once have been dismissed as pure speculation or conspiracy theories are now being openly pushed by people who occupy the highest levels of power.
Wednesday, March 03, 2021
New Global Reserve Currency? / Currencies / Fiat Currency
By: Raymond_Matison
Politicians and investors regularly claim that “this time it’s different”. But history shows us repeatedly that rarely things are truly or fundamentally different. The power of the Roman Empire two thousand years ago was established by military means. Over time, its government undermined that empire by continuing military campaigns and lavish spending. This ultimately required that their money, the silver Denarius coin, be diluted with other metals which brought its purchasing value down. This in turn reduced people’s trust in the empire’s money and eventually brought the empire into decline. Since then, this history has been repeated many times – only the name of the country and its currency have changed. It is a lesson which neither kings nor politicians have been willing or able to learn – to this day. And this time it is not different.
Starting in the 15th century, Portugal, geographically bounded by the Atlantic Ocean rapidly developed shipbuilding and maritime exploration. Discovering new lands (Brazil) and routes for the spice trade (India) and other commodities (Africa), and by expanding military incursions into Asia, their empire flourished as one of the world’s major economic, military, and political powers. When its king died in battle in Morocco, King Phillip of Spain seized the Portuguese crown, and Portugal was subject to military adventures from the Netherlands, France, and England – who were hostile competitors to Spain. Unable to protect its lands and vast global network of trading posts, its empire started a long and gradual decline.
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Thursday, December 10, 2020
What Happens When Confidence Falls Apart? / Currencies / Fiat Currency
By: MoneyMetals
While we may never know how deep and wide the political elites’ effort to gain control over our government goes, it appears to be vast. Although it’s still unknown whether fraud altered the overall election outcome, the evidence of fraud is real.
Corrupt poll workers and election officials have been identified in numerous locations along with voting machine “glitches.” Some judges seem to be ignoring evidence while affirming Joe Biden’s victory.
All the while, the corporate media plus the major social media platforms are working overtime to convince people the “evidence of widespread fraud doesn’t exist.”
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Tuesday, August 04, 2020
“Government Sachs” Is Worried About the Federal Reserve Note / Currencies / Fiat Currency
By: MoneyMetals
As July comes to a close, gold is up better than 9% for the month and has advanced nearly 30% for the year.
Gold’s record-setting rise has been driven by Federal Reserve stimulus, dollar weakness, and strong safe-haven investment demand. Even the Wall Street-centric financial media is taking note:
Financial News Anchor #1: Gold is shining once again, this morning. The spot price is touching all-time highs, as the dollar index sits around a two-year low.
Financial News Anchor #2: Those gold prices have hit an all-time high. The spot price of gold reaching a record.
Gold traditionally surges in times of turmoil. In this case, the economic impact of the pandemic, and those US/China tensions. They are sending investors to this safe haven. But the Federal Reserve's monetary easing measures, they also have a part to play in the price of gold.
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Friday, July 10, 2020
Declaring Your Independence from Currency Debasement / Currencies / Fiat Currency
By: MoneyMetals
Precious metals markets kicked off trading for the third quarter by posting modest declines across the board.
However, the technical bigger picture for gold and silver still looks strong after the metals recorded impressive gains in Q2. Gold finished out the quarter trading at its highest level since 2012. That has bulls anticipating new all-time highs for the monetary metal in the near future.
Even though gold is outperforming the stock market in 2020, it isn’t getting much attention from the Wall Street-centric financial media. We suspect public interest in precious metals will begin to surge once gold hits a new record and trades over $2,000. Then the media will be forced to start paying more attention to the sector.
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Tuesday, June 30, 2020
In The Year 2025 If Fiat Currency Can Survive / Currencies / Fiat Currency
By: Bob_Kirtley
Introduction
We are presently enduring a period of great change due to the Coronavirus which has already cost many lives and inflicted untold damage to the global economy.
Alongside the damage caused by this virus the world has also entered a recession having been through an eleven-year period of expansion.
To make matters worse many nations are shouldering massive debts raising questions about the possibility of debt defaults on a grand scale.
Today we are taking a peek into what the future might look like and it is not a pretty sight.
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Monday, May 04, 2020
What’s Next, Trillion US Dollar Coins? / Currencies / Fiat Currency
By: MoneyMetals
The massive set of stimulus measures rolled out last month by the Treasury Department and Federal Reserve has left many Americans wanting more… and politicians scheming for new ways to dole out additional trillions in cash.
Most taxpayers have already received their $1,200 “stimulus” payments. However, that one-time payment will do little to repair the long-term financial health of the 26 million (and rising) who are newly unemployed.
And it surely won’t bail out all the small business owners who were callously deemed “non-essential” and forced to shut down during this pandemic.
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Wednesday, April 15, 2020
A single currency system for the world / Currencies / Fiat Currency
By: Submissions
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Friday, December 13, 2019
The ABC’s of Fiat Money / Currencies / Fiat Currency
By: Rob_Kirby
The machinations and bravo sierra excuses that are being “served up” attempting to explain the onset of massive Fed liquidity “adds” are fogging up my glasses. As a savant I once worked with in the institutional capital markets told me many, many years ago when I first parked my butt in a chair on a trading desk fresh out of University told me, “Kirby, what happens in here is really quite simple – we deal with money and the only things you can do with that are: buy it, sell it, borrow it or lend it. It isn’t rocket science”.When the Fed adds “liquidity” [aka fresh fiat money] they purchase debt – either on a temporary basis [repo] or a permanent basis by outright purchases [expanding their balance sheet]. Fresh fiat money is the oil that greases the wheels of our debt based money system. When the Fed purchases debt they are signalling concern that the wheels of our money system are seizing up.
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Sunday, October 27, 2019
Latin America Sinks Under The Weight Of Its Third-Rate Currencies / Currencies / Fiat Currency
By: Steve_H_Hanke
Latin America is plagued with many endemic economic problems. As a result, slow growth and economic instability are the order of the day. Latin America is sinking. In the grand scheme of things, it’s become irrelevant.
When it comes to listing culprits that account for the zombie growth rates in Latin America, the laundry list usually includes: high levels of corruption, a weak application of the rule of law, poor public services, a lack of public safety, and so on.
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Sunday, September 15, 2019
The Race to Depreciate Fiat Currencies Is Accelerating / Currencies / Fiat Currency
By: MoneyMetals
Metals investors are anxiously awaiting the market’s reaction to next week’s Fed meeting. We may see players in the futures markets move to smash gold and silver prices down to lower support zones in the trading around the Fed’s decision.
But flushing out some more speculative longs and late comers with weak hands would be a healthy development in setting up the next rally.
Those who got left behind in this summer’s big moves in metals markets should certainly consider taking advantage of favorable buying opportunities as they present themselves ahead of a possible seasonal push higher in the sector this fall.
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Saturday, August 17, 2019
It’s Time For Colombia To Dump The Peso / Currencies / Fiat Currency
By: Steve_H_Hanke
Colombia’s peso is in trouble, again. Against the U.S. dollar, the peso has shed 20% of its value in a little more than a year and 7% in the last month. Like most Latin American currencies, the Colombian peso bobs up and down like a yo-yo, but its long-term trend is one of weakness. Indeed, since August 2014, the peso has lost 45% of its value against the greenback. Talk about a theft! The chart below tells the peso’s most recent tale.
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Sunday, March 03, 2019
Zimbabwe Introduces A New Currency For Maxi-Devaluation / Currencies / Fiat Currency
By: Steve_H_Hanke
Until February 20th, Zimbabwe produced a quasi-currency. It was dubbed a “Zollar.” On the 20th, the quasi-currency became Zimbabwe’s official currency. This new currency is called RTGS dollars and consists of bond notes and RTGS (electronic money).
The RTGS dollars possess legal tender status and will serve as the unit of account for the government’s books. The official exchange rate for Zollar quasi-currency had been set at a one-to-one rate with the U.S. dollar. But now, the RTGS dollar will trade at a managed floating exchange rate. The rate today is 2.50 per U.S. dollar, not par, as it used to be. So, Zimbabwe’s official exchange rate has experienced a maxi-devaluation of 60%.
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Wednesday, November 28, 2018
Gold, Original Money, Fiat Money / Currencies / Fiat Currency
By: Kelsey_Williams
The first gold coins appeared around 560 B.C. Over time it became a practice to store larger amounts of gold in warehouses. Paper receipts were issued certifying that the gold was on deposit. These receipts were negotiable instruments of trade and commerce which could be signed over to others. They were not actual currency but are a presumed forerunner to our modern checking system.
Gold is original money. It was money before paper receipts were issued. The paper receipts were not money. They were substitutes for real money. Today, all paper currencies are substitutes for real money.
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Thursday, August 23, 2018
Fiat Currency Inflation, And Collapse Insurance / Currencies / Fiat Currency
By: Raymond_Matison
FIAT CURRENCY INFLATION, AND COLLAPSE INSURANCE
Insurance against fiat currency
Billions of people covering a vast land mass around the globe do not have insurance of any sort. Why? It is because they own few assets. No house, no car, just a hovel with no electricity or water at the foothills of some nondescript mountain. By contrast, those who live in advanced economies have assets worthwhile protecting against loss. Thus, we in America have homeowners insurance to protect against the loss of our dwelling, auto insurance to protect against the involuntary conversion of our movement conveyance into scrap metal, and to protect our financial assets against a lawsuit which could strip us of our savings and investment assets in the face of our fault in an automobile accident. Further, we protect our family’s income and savings by purchasing life or disability insurance. We buy insurance because we do have assets, and believe it worthwhile to protect those assets against unforeseeable loss, when the cost of that insurance is affordable.
Why is it then, that we do not protect our assets against the major foreseeable and persistent source of asset loss – that of loss in the value of our currency. Should we not have protection against inflation and the resulting loss of value or purchasing power in our fiat currency represented in our pension funds, stock or bond funds, or savings and money market account assets? We know and acknowledge that inflation robs us of our savings each and every year. Since 1971, even using the contrived statistics used in calculating the Consumers Price Index, the value of a 1971 collar is just worth $0.16 today. That is a very significant loss in value over a relatively short period of time.
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Thursday, August 23, 2018
Big Money and the Big Lie / Currencies / Fiat Currency
By: Rob_Kirby
The picture below is one of the most important pieces anyone could look at to begin understanding the true nature/condition of our global financial system:
This picture depicts the life cycle of “ANY” fiat currency with compound interest. This concept is explained thoroughly by Chris Martenson on his web site under the moniker of The Accelerated Crash Course. I recommend everyone read it.