Mises Institute: We live in the age of rampant (monetary and price) inflation, more frequent economic crises, chronic deficit spending, unpayable debt, and massive financial bubbles. That’s not accidental. That’s consequential.
This fact and the many economic, social, and even cultural consequences of our fiat money system remain largely unknown to the majority of people. The US dollar became a fiat currency by deceit and not due to the merit of fiat money or by free choice.
So much so that economist Jacques Rueff titled his book The Monetary Sin of the West (1971) in reference to the Bretton Woods gold exchange standard, which was not even a full fiat money system.
What is fiat money? you may ask. Essentially, it is an inconvertible or unbacked currency usually issued by the government/central bank. Fiat money is currency of unlimited supply.
The word fiat comes from Latin and means “let it be done,” used in the sense of a government order and decree. Another key word here is inconvertible. Notice that fiat emerged from paper currency no longer being redeemable for silver and gold.
The US dollar, euro, and all national currencies today are fiat. Thus they can be easily and “endlessly” created, printed, if you prefer. In addition to that, because of fractional reserve banking, commercial banks also create large amounts of money by lending it into existence—artificial credit expansion. Read More …
Opinion: Great definition: “Fiat money is currency of unlimited supply”, and that is why it is a crime for you (and me) to have a money printing press in your garage.
Notice the last paragraph “all national currencies are fiat“, and that is precisely why when the final straw, or last trillion is printed, the whole world will suffer an economic collapse from which there will be no escape.
Yes Virginia, even the rich will collapse near the end.
“And the merchants of the earth will weep and mourn over her, for no one buys their merchandise anymore” Rev. 18:11
From the article:
It is worth noting that the “crime of ’71” was simply the final blow against moral and sound money and the final step in the journey to fiat money, which, in my view, started in 1913, with the establishment of the current US central bank, the Federal Reserve System.
Today’s global fiat money system, the dollar standard, originated from government trickery and deception by self-serving politicians serving special interest groups, who colluded to bring about a full fiat money system. To the benefit of the ruling elites and in detriment to everyone else.
Now suppose the American public, back in 1971, had been well informed and aware of the insidiously destructive nature of fiat money. Would they have allowed their government to make the dollar a fiat currency?
The reality is humanity lives under a fiat money system. But as sound economics shows and history proves, fiat money is an unreliable and fallible form of money that always comes to an economically and socially destructive end.”
The really smart writers at Mises Institute probably do not know how destructive.
It begins with the third horseman of the apocalypse found in Revelation 6:5-6: The Black Horse Rider carries scales with which to measure the comparative value of money and food (Matthew 24:7).
“When He opened the third seal, I heard the third living creature say, “Come and see.” So I looked, and behold, a black horse, and he who sat on it had a pair of scales in his hand. And I heard a voice in the midst of the four living creatures saying, “A quart of wheat for a denarius, and three quarts of barley for a denarius; and do not harm the oil and the wine.”
A quart of wheat, representing one person’s food for the day, will cost a day’s wages. But many will be forced to buy barley, a less expensive food usually used for animals. Three quarts of barley will also cost a denarius, but only the 1% will still be able to afford the luxury of oil and wine. Affordable access to economic commerce will be strictly limited.
Now the true picture of hyperinflation emerges, that a person will be forced to work a full day to have enough money to feed themselves for one day.
The 20th and 21st century’s have seen six nations in hyperinflation:
- Weimar Republic 1921-23 inflation rate of 29,500% (monthly)
- Hungary 1945-1946 inflation rate: 4.19 x 1016%
- Yugoslavia:1992-1994 inflation rate: 313,000,000%
- Zimbabwe: 2007- 2008 inflation rate: 7.96 x 1010%
- Venezuela in 2016-2021 inflation rate hit 686.4%
- Lebanon 2020-2021 inflation reached 132.98%
Now imagine that the hyperinflation of the coming 7 year tribulation is global. Further imagine just how much power the final dictator (Rev. 13:1) and his pontifex Maximus (Rev. 13:11) will have over a panicked world.
“He causes all, both small and great, rich and poor, free and slave, to receive a mark on their right hand or on their foreheads, 17 and that no one may buy or sell except one who has the mark or the name of the beast, or the number of his name.” Revelation 13:16-1
See our paper: The 1% and Revelation: Do Not Harm the Oil and Wine” HERE