I see no reason why a currency of fiat like we have couldn't work if it was managed properly. This is what I've come up with to help explain fiat money but is sort of misleading as it is of a mismanaged fiat.
See the little bumps in this next chart during early times of war? That was other times we introduced fiat into a system which was basically sound and based on silver and gold. To me it shows what happens when you pretty much double the money supply by introducing fake money into the system. It then takes twice as much. For me I feel it loses its soundness. On the other hand if you had a really good year and produced a lot of inventory maybe with a system of fiat would need to be increased to keep the value of the dollar stable. In other words keep the line on the chart running flat. Something you can bank on. Something you could exchange for commodities now or ten years form now and still hold its value.
Fiat can be very dangerous though as you can see the fix the world is in from the manipulation. It could also have an advantage by not tying up a lot of wealth for the sake of trading.
This occurred to me as I looked into where the power was coming from to subvert the immigration laws of the world. I have since come to feel it is the root cause of the loss of control of the government, the borders and the war department. Not just here but globally.
I've heard that back in the civil war when they tried it many refused to except it. I think that may be the key to keeping it real. As a previous poster (
Seraphim) mentioned is allowing competing currency. People should have say.
The way it is, no matter how much hard earned money you and your friends around the globe could come up with, others in and outside of our governments can fire up the fake money presses and get their way!
P. S.
Did they ever tell you that the stock market went up today because the value of the currency went down? When they increase the money supply, say ten times, it then take ten times as much. You may think your stocks have been going up and up but they've been running hand in hand with inflation. The same people inflating the currency now cut themselves in with a capital gains tax for around thirty percent of your stuff when in fact you've only broke even.
