The History of Fiat Currency
Paper money, like the dollar, is a fiat currency. It used to be a promissory note for real money, but now it is nothing but a promise. And its an empty promise at that. What props up our currency isn’t our gold reserves anymore. It’s the strength of our military and the stability of our nation. So right now, that’s fairly solid. But everything can change.
Here is a history of fiat currencies and why they aren’t really a good thing.
As you know, I’ve been hip to this since the early 2000s. After researching it for a couple of years, I decided to put a large part of my investments in precious metals and more recently, the Prudent Bear Fund.
The fiat pain may not happen soon, but I’m a long-term investor, and both precious metals and the Prudent Bear only lose value slowly in up cycles, and then gain it at turbo speed when/if a crash comes. Any investing is a bet, but I’m satisfied I made the right move on this.Posted by on 06/28 at 06:29 PM
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