by Alasdair McCleod
Alasdair McCleod presents one of the most simplified, yet comprehensive explanations of Money, Credit and Debt and how they originated and now relate to the American Dollar, Precious Metals and Crypto Currencies in layman terms. Our lives and our bloodlines lives will be deeply impacted by this in the near future.
The Middle East conflict. With the start of new open conflict in the middle east, expect the state of the economy, the next election, unrestricted immigration, the loss of the Ukraine to the Russians and other issues to take a backseat in the shadow of that conflict. However, the faults and fractures in the financial system that have built up over the last decades will become more intense and impacted from world conflict and AMERICANS AND PEOPLE OF THE WESTERN WORLD (fiat currency countries) WILL INTENSELY FEEL THE FINANCIAL IMPACT. Primarily through continued and increasing inflation.
Dictionary Definition
fiat
noun
fi·at \ ˈfē-ət
Definition of fiat: In this case, relating specifically to money… money created by an authoritative decree, sanction, or order… backed by NOTHING BUT WORDS. Money made out of thin air by a decree based on Babylonian Money Magic Principles. An arbitrary decree or pronouncement, especially by a person or group of persons having absolute authority to enforce it such as “The king ruled by fiat.”
Fiat money is usually a government-issued currency that is not backed by a physical commodity, such as Gold, Silver or other items of intrinsic value, but rather by the government that issued it. Fiat money also spawns and comes to encompass debt and credit. Thus, it has come that the American Dollar, by the FIAT statement of the Federal Reserve Bank… “Backed by the full faith and credit of the United States Government!” is no longer backed by anything… except those words. That is the total value that backs the American Dollar… those words only. Sadly, by the saying… “You can take that to the bank!” …try taking those words to the bank when the currency becomes valueless.
Origin: From Latin “fiat…” “let it be done” (used in the opening of 1630’s Medieval Latin proclamations and commands), of “fieri,” “be done, become, come into existence,” used as passive of “facere,” “to make, do.” Meaning “a decree, command, order” is from around the year 1750.
The danger of fiat currencies is historical and has never failed… to cause a fiat currency’s country to fail. Fiat currencies allow the country authorizing them to create money with no constraints, restrictions or limitations… as is diametrically opposed to currency with tangible backing. Unrestrained currency creation historically leads to the destruction of the country by creating an increase in their money supply without the forced measuring yard stick of value, regulation and correlation of tangible backing.
The American Dollar has had no tangible value backing it since President Nixon removed the gold backing from it in 1971. There is no longer the ability to exchange your paper dollars with the Treasury Department for something tangible that you can hold in your hands. That is, unless you consider exchanging your dollars for other pieces of paper, also securitized by the words… “Backed by the full faith and credit of the United States Government.”
Since 1971 the American Dollar has been a “Fiat Currency,” the same as most currencies in the Western World and countries allied financially with it. Along with this removal of gold as the dollar’s backing… all coins produced since 1965 have no silver in them and the majority of those silver coins have been melted down, the silver removed and sold. What remains is privately traded and called “Junk Silver,” although it is far from that by value.
I must point out that over 85 % of the world’s population live in countries that are actively involved with, or considering moving away from the influence and use of the American Dollar. Why? For one thing, read the book “Confessions of an Economic Hit Man.” What an eye opener!
Countries of the world are further tired of the loss of value of American Dollars and financial instruments they hold, averaging 24% in 2022… and worse now. This “American Ponzi Scheme” has created a nervousness of responsible financial leadership by the United States in these countries. They view American financial people like they have the level of responsibility that crack addicts have… none.
The rest of the world is tired of getting dragged into endless wars, slapped around by the American government… or their government overthrown by our intelligence agencies such as the Ukraine… if they object to using the American Dollar. Would you put your money in savings that was shrinking by almost one-fourth each year!? I don’t think so.
Looking to abandon the American Dollar as an international trading currency are the BRICS countries of Brazil, Russia, India, China and South Africa… now joined by the power house energy supplier Saudi Arabia… and soon another 41 some countries. These countries are busily creating currency that DOES HAVE BACKING… with backing of gold, minerals, oil, grain, natural gas and many other real tangible items. Something more than words and pieces of paper.
So, by decree… the American Dollar is backed only by “The Full Faith and Credit of the United States Government” and BACKED BY NOTHING ELSE… not gold, not silver, not oil, not grain, not petroleum. Backed by those words ONLY and subject to the bizarre and reckless spending habits that our Congress, the Administration and our government agencies decide on… with a Congress and Administration that rubber stamps bizarre, wild and crazy expenditures.
American reckless spending continues, regardless of whether it is against the wishes of the citizenry, or wasteful and negligent, as is now taking place on a scale of reckless abandon never before seen. It WILL have a tremendous impact on Americans and the Western World.
To understand what your future will be, read here, by clicking on the following link…
https://www.lewrockwell.com/2023/09/alasdair-macleod/hedging-the-end-of-fiat/
