Fiat Currency: Using the Past to See into the Future AhmadGOld: Fiat currency part 1 Fiat Money -Toilet Paper Money Fiat currency definition: Fiat money is money that derives its value from government regulation or law. The term fiat currency is used when a fiat money is used as the main currency of the country. The term derives from the Latin fiat (let it be done, it shall be). (wikipedia) The history of fiat money, to put it kindly, has been one of failure. In fact, EVERY fiat currency since the Romans first began the practice in the first century has ended in devaluation and eventual collapse, of not only the currency, but of the economy that housed the fiat currency as well. Why would it be different here in the U.S.? Well, in actuality, it hasn’t been. In fact, in our short history, we’ve already had several failed attempts at using paper currency, and it is my opinion that today’s dollars are no different than the continentals issued during the Revolutionary War. But I will get into that in a moment. In the meantime, I will show you that fiat currencies have not been successful, and the only aspect of fiat currencies that have stood the test of time is the inability of political systems to prevent the devaluation and debasement of this toilet paper money by letting the printing presses run wild. Fiat Money -Rome — The Denarius Although Rome didn’t actually have paper money, it provided one of the first examples of true debasement of a currency. The denarius, Rome’s coinage of the time, was, essentially, pure silver at the beginning of the first century A.D. By A.D. 54, Emperor Nero had entered the scene, and the denarius was approximately 94% silver. By around A.D.100, the denarius’ silver content was down to 85%. Emperors that succeeded Nero liked the idea of devaluing their currency in order to pay the bills and increase their own wealth. By 218, the denarius was down to 43% silver, and in 244, Emperor Philip the Arab had the silver content dropped to 0.05%. Around the time of Rome’s collapse, the denarius contained only 0.02% silver and virtually nobody accepted it as a medium of exchange or a store of value. Sumber: Daily Reckoning jom like page sy untuk more info https://facebook/pages/Ahmad-Gold/192849617589457 Untuk pm harge emas bisik2 jom kite pm2
Posted on: Sun, 09 Mar 2014 05:09:36 +0000
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