Fiat money is money declared by a government. It's money that doesn't really exist except by governmental ordinance.
In years gone by, only gold and silver were money. Inflation was unheard of. On the contrary, the more industrious a nation was, the lower the costs were, and the more a nation prospered.
Fiat money is created by our banking institutions, printed by our Federal Reserve and given our government's ordination as legal tender.
At the stroke of a pen our entire country (and almost every other industrialized country) can be bankrupted because we don't have the gold nor the silver to backup our presumed wealth.
Fiat money is fake money. There is no true wealth behind it, except that which is ordained by a government's ability to declare war on other nations and take their wealth.
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