Fiat money, such as we have now, is backed by either nothing (ie, the full faith and credit of the United States Government), or oil.
Before Nixon took the country off the gold standard, each and every dollar was backed by either actual gold or silver. You could take your bills down to the mint, and they would give you the corresponding value in specie.
Now, with the Fed printing money at the rate of 85 billion a month, the value of your dollar is shrinking, in the sense that it will buy less and less of value for you. The hundred dollar bill will only buy what a twenty would a few years ago, as an example. The process continues until the value of a dollar becomes zero, as in Zimbabwe. A pure fiat currency has never survived, ever, in history.
Back in the day, the currency of the country looked like it had value, as is shown in the iconic "Woodchooper" five dollar bill. It's no mistake that Jackson's face is on it.
As our money's value deteriorates every day the Fed prints, where is our Andrew Jackson to save us today?
Fiat money should have Obama's goofy mug on it.
ReplyDeleteObama = 100, Biden = 50, Pelosi = 20, Kerry = 10, Reid = 5, Hillary = 1
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