Got feedback on the new design? We're Listening! Send us Feedback

Congressman Ron Paul - Faith-Based Currency - Texas Straight Talk »

Posted by: GHOSTWHOWALKS 1 month, 2 weeks ago

1.0

Scale of 1 to 10

Read: 128

Propped: 11

Comments: 1

Click Prop It to Raise Score

Prop it

The Latin term "fiat" roughly translates to "there shall be". When we refer to fiat money, we are referring to money that exists because the government declares it into existence. It is not based on production or earnings, and not backed by any commodity. It is solely based on trusting the government.

Read Full Story at house.gov

Join the Discussion

+ Add Comment

Comments So Far: 1

0%
GHOSTWHOWALKS1 month, 2 weeks ago

FTA:
"Fiat money is exchanged in the economy as long as there is faith in the government that issues it. Some are blaming the recent shakeup in the markets to "whining" or financial fear-mongering, which misses the whole point. History has shown that fiat money, or "faith-based currency" always fails, because when governments claim this power, they always behave irresponsibly.
This is why our founding fathers considered, but decidedly rejected the creation of a national central bank. They understood that governments, even the best of governments, cannot control spending.
When government has the ability to create and spend all the money it wants, priorities shift, and the concept of budgeting, as most Americans know it, loses all meaning. Hand a teenager a credit card, and tell him there is no limit and no accountability for what he spends, and the effect would be the same. You see, this problem is not unique to our government."
Reply