Does ANYONE know what a FIAT MONEY system is?

[angelsoulnme]

Did you know that our "MONEY" is actually "DEBT"? You must understand this to understand why the burst in the housing/mortgage/credit bubble is affecting our economy so drastically.

Did you know that all Fiat based economies have in the past fallen in on themselves?

Do you understand what printing money out of thin air means? And why Obama's plan to spend spend spend on all these false promises he is making will NEVER MATERIALIZE?

Did you know that our money is backed by NOTHING and that the FED has outlawed competing currency? That means that our "MONEY" is not backed by SILVER or GOLD but by the amount of OUTSTANDING Debt created by consumers?

This is why we are in the state we are in today. This is why Ron Paul economic plan is the only viable plan to reverse the free fall our economy is in.

Please tell me how Mr. Obama is going to deal with this??
Go to YOUTUBE and search for MONEY IS DEBT or FIAT MONEY SYSTEM
JHD - I tried to find a reference to the Fiat system and the issues we face with it, and I could find none.
Searcher - The fact that our money represents DEBT is NOT misleading - it is the truth. If a lender starts out with 100 dollars - He lends it out to Person (A) - Person A says he will pay the 100.00 in principal over 5 years and in addition, he will pay 400 in interest. That is his debt. The lender then goes and PRINTS the 400 in debt owed to him, and lends it to Person (B) and so on and so forth. The system will work as long as everyone pays back their debt on time, but it will crash when people are unable to pay. That is what is happening in our economy now. What I said is not misleading, I dont know where you get your facts from.
Thank you DAR - Excellent point. We dont even have it to give at this point, we have to borrow it with INTEREST from ANOTHER COUNTRY! This is insane!

 

[Lars]

A Fiat Dollar is a dollar that is backed by nothing. Take the USD for example, the fed prints as much of it as it likes and we no longer even have access to their G3 report -- which told how many of our dollars were in the possession of other countries.

Yeah, we're screwed.

 

[Searcher]

Everyone should know we are not on the gold standard or any other standard in the USA...hopefully. I guess saying it is based on debt is one way of saying it...although pretty misleading.


EDIT: It is misleading because just like in your example you are using "people", but they sound more like banks. People or banks do not have the power to print money. The housing crash has nothing to do with the governments ability to print money. If Joe Schmo doesn't pay his mortgage it will hurt the bank, it will hurt him, it will hurt his local housing market...but it will not hurt the value of the dollar. The value of the dollar is in trouble because of much bigger reasons...think more global. The housing crash will hurt mortgage companies, insurance companies, and low income people because it is going to be much harder to get loans. That is why it will hurt the economy, not because it is affecting the dollar.